Learn how credit card processing agents impact your business. Discover why Swipesum's tailored, provider-agnostic solutions outperform traditional merchant agents.
Payment processing agents are independent sales representatives for payments companies, multiple payments companies and SaaS (software-as-a-service) solutions.
Engaging with a Merchant Services Agent can mean the difference between a successful venture and one that runs you in the red. Spoiler alert: most businesses should not do business with a merchant services agent.
Ensuring your processor fits with your business is key; that’s what Swipesum specializes in.
Have you ever used a travel agent? Perhaps you’re planning that dream vacation to a remote island and you just can’t seem to navigate booking all of your excursions. Call it not speaking the language or having too many moving parts, but you call on the services of a travel agent. They have access to “discounts” but make their money in commissions from selling a package above the cost of that package, same thing for credit card processing agents.
Credit card processing agents are professionals who facilitate payment processing for businesses, enabling them to manage credit card transactions effectively. You’re a business owner and you want to ensure your customers can pay for your goods and services however they want. Importantly, you need to be focused on getting the best solution out of the more than 5,000 different options in North America, at the best price. Odds are if you are researching what a merchant services agent is, one has cold-called you, walked into your business, or met you at a networking event. Merchant services agents' job is to sell you their preferred merchant services partner, and to help you navigate these often confusing waters. Let's dive into exactly what a credit card payment agent is.
Merchant services agents are W-9 contractors who sell payment processing to merchants of all sizes, but mostly high-risk small businesses. A merchant services agent typically works with a payment services provider to offer a variety of services such as credit card processing and POS systems. They also work with various payment processors, but prefer the merchant services provider that gives them the most commission. They are typically resellers of an independent sales organization, or ISO. They are, essentially, freelance salespeople for all things payments. It’s their job to prospect merchants who could use the services they’re selling, which are typically payment gateways and merchant accounts, and get them to agree to less than favorable rates. In essence, merchant services agents are independent contractors looking for merchants that will earn them monthly payment processing residuals. Swipesum does not work with or suggest merchants use agents. Working with a payment processing consultant you get all of the positive characteristics of working with a merchant services agent (multiple providers and industry expertise), without the negatives (overpriced services, opaque business models, no customer service).
Instead of an agent, look for payment processing consultants that are provider agnostic and not looking to push you on one solution. Swipesum is well-placed to take care of all of the heavy lifting for you. Throw in our proprietary software that helps keep your payments on track and you’ve got a great company in your corner.
Merchant services refer to the financial services and products offered to businesses to facilitate payment processing, including credit card processing, debit card processing, and other electronic payment methods. These services enable businesses to accept credit card payments, manage transactions, and access funds efficiently. Merchant services providers, such as credit card processing companies, offer a range of solutions designed to streamline payment processes, reduce costs, and enhance customer satisfaction.
Imagine running a bustling café where customers want to pay with various methods—credit cards, debit cards, or even mobile wallets. Merchant services make this possible by providing the necessary infrastructure and support. From setting up a merchant account to ensuring secure transactions, these services are the backbone of modern commerce. By partnering with a reliable merchant services provider, businesses can focus on what they do best while leaving the complexities of payment processing to the experts.
A merchant services agent program is a partnership between payment processors and independent agents or ISOs. Understanding the credit card processing business is crucial for agents to effectively sell their services and maximize merchant accounts. When the industry was getting started all ISOs had feet-on-the-street salespeople. The costs associated with a team of salespeople peddling stand alone terminals, led to the decrease in outside sales reps for ISOs. Agent programs have gained popularity as the gig-economy has offered many ways for W-9 contractors to earn an income. These programs provide agents with essential tools, training, and support to sell payment processing solutions to businesses.
A credit card processing company plays a crucial role in facilitating transactions between merchants and credit card companies. These companies provide the necessary infrastructure, technology, and support to enable businesses to accept credit card payments seamlessly. Acting as intermediaries, they handle the intricate process of transaction authorization, settlement, and funding, ensuring that payments are processed quickly and securely.
Think of a credit card processing company as the bridge connecting your business to the vast network of credit card issuers. They manage the risk, handle customer support, and provide essential services like payment processing and merchant account management. By partnering with a reputable credit card processing company, businesses can offer their customers a smooth and secure payment experience, ultimately boosting customer satisfaction and loyalty.
ISO agent programs are designed for independent sales organizations looking to expand their reach by offering merchant services. These programs provide access to a wide range of payment processing solutions, flexible compensation models, and comprehensive support resources. However, ISO partnerships often come with challenges, including aggressive sales tactics that can erode trust. Agents in the field have earned a reputation for using deceptive pricing strategies and neglecting customer support, contributing to the stigma around the profession. As an agent, you must work to change this perception through transparency, ethical practices, and a commitment to client satisfaction.
Being a trusted advisor who delivers value and clear communication is a competitive advantage. Don’t be “that guy” who only cares about closing a sale without caring for client success.
Being a merchant services agent offers numerous benefits, making it an attractive career choice for those interested in the payment processing industry. Here are some key advantages:
As a merchant services agent, you play a vital role in helping businesses thrive in the payment processing industry. By providing tailored solutions and exceptional support, you can build strong relationships with merchants and contribute to their success. With the right training and dedication, a career as a merchant services agent can be both rewarding and fulfilling.
Today’s landscape for building a residual portfolio is more challenging than ever. Most businesses secure credit card processing through integrated solutions like point-of-sale (POS) systems, accounting software, business applications, and industry-specific platforms. The days of easily placing stand-alone physical credit card terminals have largely passed. Building a lucrative portfolio is still possible, but it requires a strategic approach, adaptability, and access to a strong network.
Success comes to those who can connect with hundreds of businesses and foster strong relationships quickly. Specializing in high-risk and difficult-to-approve merchants — such as those with low credit scores, businesses in industries like cannabis, and online nutraceuticals — offers a lucrative opportunity to establish yourself in a profitable market segment that traditional solutions often overlook.
To excel as a merchant processing agent, you must:
If you’re looking to elevate your approach to merchant services, Swipesum offers powerful partnerships for companies seeking to monetize payment processing or for business consultants wanting to offer their contacts the best solution. Our programs provide access to the lowest rates and white-glove customer service, helping agents and businesses grow together ethically and successfully. Book a consultation today to learn how Swipesum can empower you to deliver real value to merchants.
Great question and it can be a little bit complicated. There are three major steps in processing a payment: Authorization, settlement and funding.
The first step, authorization, is all about ensuring that the customer standing at the till has the spending power to purchase the services or goods they've got on the counter. The customer will swipe, insert or tap their card, sending a message to the merchant's payment processor that says, “Hey, Rick wants to buy a candy bar for $2.99. Is that cool?” The processor sends that same message through the payment card network (think Mastercard or Visa) to the issuing bank. The issuing bank then says, “Yeah, no problem” or “Whoa…no way on Rick's candy bar,” and sends a note back to the merchant's card terminal with that message.
Assuming Rick gets his candy bar, most of the work now happens completely behind the scenes. The next step is settlement. At the end of the business day (usually) the merchant will send a batch of all of the payment information to their payment processor who will again work with the card network to get money from the various customers' banks. The issuing banks then send the appropriate cash to the merchant's bank, via the payment processor and card networks, minus fees.
The final step is the funding part, which is simply moving the money from the bank to the merchant, a process that can take a business day or two.
Yes indeed and that's why it's so important to select and work with one that fits your business. There are a few key reasons this is important:
The credit card and payment processing industry is fragmented and a bit all over the place. That means that many processors are highly specialized. This is both good and bad. On the good end of the scale, you can work with a processor that really understands your business. Let's face it, if you're running a restaurant, your needs are not the same as the person running a sporting goods store. On the bad end, however, the nature of the industry can make it incredibly difficult to find that correct agent.
Let's say you own a business that manufactures and sells specific widgets that go in high end machinery. You do quite a bit of your business online with some fairly large companies with large, complicated accounts receivable departments. There's lots of paperwork and invoicing and purchasing cards and other whatnots. Your needs are going to be completely different than an older couple, living in a small town, operating a five and dime. You need a payment processor that fits your business size too.
Simply Google “become a payment processor” and you'll find fairly quickly that there are hundreds or thousands of articles detailing ways that anyone can become an agent right from their own home. We're all for the pull up your own bootstraps entrepreneurs but if you're a business, you likely want to work with a tried and true payment processor.
Getting a handle on these three elements can be an undertaking which is why…
In summary, payment processing agents can serve as valuable allies or potential pitfalls, depending on their approach and your business needs. While many agents work within restrictive ISO structures and focus on maximizing their commissions, businesses should instead seek partners who prioritize transparency, flexibility, and customer success. Navigating the complex world of payment processing requires a knowledgeable partner who can customize solutions, offer fair pricing, and deliver exceptional customer service without hidden fees or misleading terms. This is where working directly with acquirers or engaging a payment processing consultant, rather than a typical agent, can truly set you apart.
Swipesum specializes in providing businesses with the best-fit payment solutions, leveraging industry expertise, proprietary software, and a commitment to client success. With a focus on offering tailored, provider-agnostic solutions and white-glove support, Swipesum eliminates the downsides of working with traditional agents. When your payment processing needs are aligned with your business goals, you unlock the potential for sustainable growth and cost-effective solutions. Book a consultation today to see how Swipesum can elevate your payment processing strategy.
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Sam Elkins
Sam Elkins is a versatile payments expert and Product Manager at Swipesum. Instrumental in the development and management of Swipesum's AI-driven merchant services statement software "Staitment," Sam plays a crucial role in client interactions, drawing on extensive experience with clients ranging from Fortune 100 companies to SMBs globally. Sam graduated from the University of Tennessee, Knoxville. He enjoys live music, road trips, and adventures with his massive dog. Originally from Memphis and Cowan, Tennessee, Sam now resides in St. Louis.
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