I have been associated with several msp/isos which stand for merchant service provider/ independent sales organization. Credit card services for small businesses is a big business. It is a must for any small business to accept credit cards or be left behind in the market place. The attitude that the small business owner doesn’t need to accept credit cards will hurt when it comes to acquiring the customer who spends money. In today’s market most people don’t carry cash because they don’t want to be a potential victim of thieves. So credit card service for small business can be very lucrative if you are with the right company.
Choosing that right company for credit card services for small businesses can be tricky if you don’t know who to go to. The set up of the industry is something that I have learned recently even though I have been doing it off and on for 18 years now.
First there is Visa/MasterCard on top. Then you have your level one processors like Wells Fargo, Bank of America, First data Corp. These companies you will need to go to work for if you want to offer the lowest rates. The only bad thing is it is not your business and it is tough getting a position with them. They qualify for a level one company because they do 6 million transactions a month.
Now if you want to become your own msp/iso you will have to contact Visa/MasterCard and they will tell you it cost $15,000.00 to become one. Then you have to buy the software that is compatible with Visa/MasterCard at a price of over $100,000.00. If that is not enough, now you have to compete with the level one companies who sell you the rate to you and then you tack on your profit. It is a dog eat dog business. There are companies out there where you can become an msp/iso for as little as $1500.00 but you have to do your homework.
Can you make money working for any msp/iso? the answer is yes. Can you make more money with the right msp/iso? again the answer is yes. This was the simplest way to explain the order of succession from Visa/MasterCard to you. If you want to succeed you have to help other people save money.
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