Becoming a merchant services reseller can be a lucrative business opportunity for individuals or companies looking to enter the payment processing industry. Merchant services resellers act as intermediaries between merchants (businesses) and payment processing companies, helping merchants set up and manage their payment processing accounts.
In this guide, we will discuss how to become a merchant services reseller, how the commission structure works for a merchant account reseller, and what a payment processing reseller program is.
How to Become a Merchant Services Reseller
1. Understand the payment processing industry: Before becoming a merchant services reseller, it is important to have a good understanding of the payment processing industry. Research the different types of payment processing services, fees, equipment, and technology used in the industry.
2. Choose a payment processing partner: Once you have a good understanding of the industry, you will need to choose a payment processing partner to work with. Look for a reputable payment processing company that offers a reseller program and has a good track record of providing reliable services to merchants.
3. Sign up for a reseller program: Most payment processing companies offer reseller programs that allow individuals or companies to resell their services to merchants. Sign up for a reseller program with your chosen payment processing partner and complete any required training or certification.
4. Set up your business: As a merchant services reseller, you will be running your own business, so it is important to set up your business properly. Register your business with the appropriate authorities, set up a website, and create marketing materials to promote your services.
5. Start selling merchant services: Once you have completed the necessary steps, you can start selling merchant services to businesses. Reach out to potential merchants in your area or industry, and offer them payment processing solutions that meet their needs.
How Does the Commission Structure Work for a Merchant Account Reseller?
1. Residual commissions: As a merchant account reseller, you will earn residual commissions on the transactions processed by the merchants you sign up. Residual commissions are usually a percentage of the transaction volume processed by the merchant each month.
2. Upfront commissions: In addition to residual commissions, you may also earn upfront commissions for signing up new merchants. Upfront commissions are one-time payments that are usually based on the size of the merchant's transaction volume.
3. Bonus commissions: Some payment processing companies offer bonus commissions to resellers who meet certain sales targets or performance goals. Bonus commissions can provide additional income opportunities for resellers.
4. Revenue sharing: Some payment processing companies offer revenue sharing programs to resellers, where the reseller receives a percentage of the revenue generated by the merchants they sign up. Revenue sharing can provide a steady stream of income for resellers.
5. Chargebacks and fees: It is important to understand how chargebacks and fees will affect your commissions as a merchant account reseller. Chargebacks occur when a customer disputes a transaction, and can result in a loss of revenue for the reseller. Make sure to factor in chargebacks and fees when calculating your potential earnings as a reseller.
What is a Payment Processing Reseller Program?
1. Reseller program: A payment processing reseller program is a partnership between a payment processing company and a reseller, where the reseller sells the payment processing services of the company to merchants.
2. Benefits of a reseller program: Payment processing reseller programs offer a number of benefits to resellers, including access to a wide range of payment processing services, marketing and sales support, training and certification programs, and the opportunity to earn commissions on the transactions processed by merchants.
3. Types of reseller programs: There are different types of payment processing reseller programs, including white-label reseller programs, referral programs, and independent sales organization (ISO) programs. Each program has its own set of requirements and benefits for resellers.
4. White-label reseller program: In a white-label reseller program, the reseller can brand the payment processing services as their own and sell them to merchants under their own brand name. White-label reseller programs offer the most flexibility and control for resellers.
5. Referral program: In a referral program, the reseller refers merchants to the payment processing company, and earns a commission when the merchant signs up for the company's services. Referral programs are a good option for resellers who do not want to handle the sales and support of merchants directly.
6. Independent sales organization (ISO) program: In an ISO program, the reseller acts as an independent sales organization for the payment processing company, and is responsible for signing up and supporting merchants. ISO programs offer higher commissions and more control over the sales process for resellers.
Conclusion
Becoming a merchant services reseller can be a rewarding business opportunity for individuals or companies looking to enter the payment processing industry. By following the steps outlined in this guide, you can become a successful merchant services reseller and earn commissions on the transactions processed by the merchants you sign up. Remember to choose a reputable payment processing partner, understand the commission structure, and take advantage of the benefits offered by payment processing reseller programs. With hard work and dedication, you can build a successful business as a merchant services reseller.
