Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
Letting Them Use Plastic > NetSparsh - Viral Content you Love & Share

Letting Them Use Plastic

Obtaining merchant status will help to increase your sales.

Consumers are becoming creatures of convenience; when dealing with businesses-large or small-they desire ease of transaction. That most frequently translates into the ability to pay for services rendered or product purchases via credit card.

Small businesses are often denied merchant status because they can't prove to the bank that they are good risks. You must establish and demonstrate a track record before a bank or independent sales organization (ISO) will agree to back your business. Even today, some banks also hesitate to provide merchant status to companies without storefronts, to mail order firms or to individuals with a past history of personal or business bankruptcy. Although thankfully, it is getting easier today than it was even 15 to 20 years ago.

In this article we will help you to understand the reasons you may not be able to obtain merchant status, so that we can help you find ways to more favorably present yourself and your business as candidates for merchant status.

1. Start with your own bank. When shopping for a merchant account, the first place to stop is your own bank.

When banks look at an application, they consider three critical things: the principals, the product and the process. In other words, they need to know about you, what you are selling and how you are selling it. Be sure to take the time to carefully develop your proposal. It can really pay off. Show your bank that you're serious about obtaining merchant status and you take your business very seriously.

In spite of your best efforts, the bank may still turn you down. The next step is to approach other banks in your area. If you're still running into roadblocks, there is another option.

2. Investigate ISOs selling on behalf of other banks. ISOs serve as a liaison between banks and merchants. Your odds of getting merchant status from an ISO may be greater than from a bank, but the costs-and risks-may also be greater.

Most ISOs are legitimate businesses, but it pays to be wary. The first thing you should ask any service provider is what banks they represent. When considering an ISO, a merchant should know which bank they are working for, and should check with MasterCard and Visa to ensure the ISO is properly registered. Keep in mind that this service you are buying can have a significant impact on the cash flow of your business, and don't be shy about asking for references.

A good bank or ISO should provide reliable and trouble-free processing, with responsive customer service whenever you have a problem, all at a fair price. What's fair depends on the risk level of your business and the terms being offered by competing ISOs. Make sure the merchant bankcard provider you choose fully supports you as a merchant with a variety of services, like check guarantee, acceptance of all major credit cards, debit cards, etc. Also make sure they fully support the equipment or software they sell you. If they don't, ask them who does and how much extra this costs. Some programs may be appealing, but require hidden costs for assistance.

3. Clearly understand the costs involved. To better grasp the issue of costs, you must understand how credit card sales are processed. Simply stated, when you conduct a charge transaction, you will receive the cost of that sale, less a previously agreed-upon discount (from two to more than five percent), from the bank or service company. The more stable your business is, the lower your discount rate will be.

Fees are a substantial cost: ISOs typically charge fees for minimum activity, if yours doesn't reach a pre-determined amount; fees for each transaction made, above and beyond the two to five percent discount; and fees for processing customer statements. Another cost is that of equipment. Most merchants today use an electronic draft capture terminal to process sales, which you can lease or purchase. It is more economical to purchase the equipment, but your choices will be limited by the ISO you choose. You might be able to purchase a used terminal from your ISO or buy a new or used terminal from another source. Check with your ISO first!

If you have a personal computer and a modem, there are several software packages currently on the market that perform authorization and draft capture. Make sure that any software you buy is compatible with the system used by your ISO.

4. Caveat emptor. As with any other business decision, carefully consider your options and shop around. Research the requirements, costs and services of banks and ISOs offering merchant status, and talk to other business people who are already offering credit card service. There are many reputable companies out there and, of course, there are also bad apples. As a merchant, ask questions about any company you are choosing to use. The company should be willing to answer any questions you might have, as well as to tell you openly if they can't!

While the information presented might seen very disheartening to your getting merchant status, listen to this. Many individuals who have filed bankruptcy and have terrible credit have received merchant status.

While you may pay more fees going through an ISO, it is worth it to be able to say, Visa, Mastercard, American Express or Discover. For those of you doing any kind of consulting it is a big plus. If you eventually sell products, again it is a great convenience for your customers and many times will close the sale.


Copyright 2004 DeFiore Enterprises

Interested in having your own successful, home based creative real estate investing business? Chuck and Sue have been helping folks start successful home based businesses for over 19 years, and we can help you too! To see how, visit for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses. No time to visit the site? Subscribe to our "how to" Home Business Solutions Digest, it's like having your own personal coach:

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at


Toys R Us says liquidation sale likely to start Friday
Toys R Us began going-out-of-business sales at 144 stores in early February. The new round of liquidation sales was expected to take place at hundreds of additional U.S. stores. The company has announced plans to sell or close all of its U.S ...
Planning to hit Toys R Us' liquidation sales? You have to wait until FridayThe Mercury News
Pensacola Toys 'R' Us liquidation sales delayed until possibly FridayPensacola News Journal
Toys R Us liquidation sales begin soon. Here's what to know before you shop.Chicago Tribune
Washington Post
all 439 news articles »

New York Times

Citigroup Sets Restrictions on Gun Sales by Business Partners - The ...
New York Times
Citigroup is setting restrictions on the sale of firearms by its business customers, making it the first Wall Street bank to take a stance in the divisive nationwide gun control debate. The new policy, announced Thursday, prohibits the sale of firearms ...
Citigroup sets new policy restricting gun sales by its clientsWashington Post
Restrict gun sales, Citigroup tells its business partnersUSA TODAY
Citigroup restricts gun sales by business customersCNNMoney
Reuters -Bloomberg -CBS News -Citi Blog
all 207 news articles »

New York Times

YouTube to Ban Videos Promoting Gun Sales
New York Times
YouTube said this week that it would tighten restrictions on some firearm videos, its latest policy announcement since coming under scrutiny following last month's mass shooting at a high school in Parkland, Fla. The video-streaming service, which is ...
YouTube to ban videos about gun sales and modificationsUSA TODAY
YouTube bans firearm sales and how-to videos, prompting backlashChicago Tribune
Policies on content featuring firearms - YouTube Help - Google SupportGoogle Support
Bloomberg -YouTube Creator Blog
all 448 news articles »


Nike shares pop on earnings beat as US sales slump reverses
Nike on Thursday reported earnings and revenue that beat analysts' expectations, fueled once again by international growth and momentum within China. Its shares climbed more than 7 percent in after-hours trading following the announcement. CEO Mark ...
Nike swings to loss, but sales beat expectations; shares riseMarketWatch
Nike sales, shares climb amid fallout from 'behavioral issues'
Nike forecasts reversal in North America sales decline, tops estimatesYahoo Finance
all 201 news articles »

Arizona Legislature passes education sales tax plan
The Legislature has passed a bill that extends for 20 years the education sales tax rate that brings in about $667 million a year to Arizona schools. Gov. Doug Ducey indicated he would sign the bill into law. Voters passed the tax rate as Proposition ...


Clari raises $35M for its AI-based sales platform, expands into ...
Clari — a startup that has built a predictive sales tool that provides just-in-time assistance for sales people close deals and for those who work in the bigger chain of command to monitor the progress of the sales operation — is capitalising on the ...

and more »


Citigroup sets restrictions on gun sales by business partners
Citigroup is setting restrictions on the sale of firearms by its business customers, making it the first Wall Street bank to take a stance in the divisive nationwide gun control debate. The new policy, announced Thursday, prohibits the sale of firearms ...


'Justice League' Storms to Top of DVD, Blu-ray Disc Sales Charts
Warner's “Justice League” led a slew of newcomers that debuted in the top 20 of the national home video sales charts the week ended March 17. The superhero team-up adventure, which earned $229 million at the domestic box office, came in at No. 1 on ...

and more »


Existing home sales jump in February
U.S. home sales rebounded strongly in February, boosted by hefty gains in the South and West regions, but a chronic shortage of houses on the market remains an obstacle heading into the spring selling season. The National Association of Realtors said ...

Harvard Business Review

How We Made Our Sales Training More Effective by Making It Harder
Harvard Business Review
Not long ago, my company was the king of ineffective sales training. We'd hire and onboard reps and then train them in a hurried few weeks dedicated to shadowing sales calls, reading call scripts, and learning how to handle objections. As the company ...

Google News

Ten Tips for Choosing the Right Direct Sales Company

Direct sales can be your ticket to a profitable home-based... Read More

Stop Talking - Start Selling

Selling is not talking. It's listening. You may have heard... Read More

Making the Sale When the Customer Wont Buy

Ever had a party online or offline, and had guests... Read More

Is Cold Calling Dead?

Is cold calling dead? And if laws are being passed... Read More

Turn Your Wisdom Into a Workshop

The Technical Revolution has done a lot for us --... Read More

Casual Networking

What comes to mind when you think of networking --... Read More

Selling Abilities - Part 1

Selling "-abilities": Reliability (Part 1 of 4) Most salespeople... Read More

Save Your Breath: How To Sell In Trade Shows Without Pitching

You stand there, in front of your great presentation material,... Read More

Write Fundraising Letter Overlines That Donors Cant Resist (Includes Samples & Examples)

The headline that appears over the salutation in a fundraising... Read More

Are You Selling What They Want To Buy? Is It An Appropriate Solution?

Let me tell you about my friend Peter who has... Read More

?The Power Of Consumer Opinion, & How To Profit From It!?

Selling is just a whole lot easier when you know... Read More

Powerful Words

Hi, I'd like to discuss the most powerful words you... Read More

Complacency and Fear are Sales Busters

Prospecting is the engine that propels anyone in sales. Without... Read More

Five Things More Important to Buyers than WHAT Youre Selling - I

Article I of a two-part series.No matter what customers say... Read More

Caring - The Secret Sales Strategy

Sales information resource Just Sell, calls caring "sales love". Here's... Read More

Top 10 Ways to Sell your Product or Service While you Sleep - Part 1

Have you wasted valuable time and money on promotion that... Read More

How to Sell Your Products Without Competition

Selling your products at shows can be difficult when you... Read More

The Anatomy of a Sales Letter

When Dr. Frankenstein exclaimed "it's alive... it's alive," he thought... Read More

Selling For Keeps

When you are in sales and you come across a... Read More

Top 10 Ways to Sell your Product or Service While you Sleep - Part 2

Part one of this article is available at ... Read More

Book Yourself Solid


Ten FAST Ways to Sell Your Products

Always give a reason for the sale for credibility. 1.... Read More

Lessons Learned At Gunpoint

"If you do anything foolish or try to get out... Read More

An Introduction to Store Fixtures

Everybody is familiar with the old retail chant, "Location, location,... Read More

Successfully Selling Your Professional Services

As a professional service provider you face special challenges promoting... Read More