When I started my career as a merchant account consultant, the only goal of mine was to find high volume merchants. It was because if the merchant processes more then the commision is huge. It was also the reason why I started to work with merchants that are considered high risk. I was able to progress in the domain and was lucky to get connected to some genuine merchants from high-risk industries, and I was able to make an excellent commission.
Point of Change
Everything was going very well. Every day I used to get a lot of leads on my CRM which I still do, and all I had to do was to send an email to the merchant with a request for additional documents like full application and KYC set. This was going pretty well, but one day I watched a video on YouTube. This video forced me to relook at my business model.
I will suggest you watch the video here to understand the context. Language is Hindi, but the subtitles are in English.
Video Source https://www.youtube.com/channel/UC5GMWJmrR0LDUQ8MojJyXEQ
Video Copyright belongs to Actor Varun Pruthy
After watching the video, I realized that I was only working to get rich. That’s not the only reason why we were born. I realized that the core objective of life is to earn people. Who will cry when you die or who will cry when I will die. Time flys by fast and we get limited opportunities in life to think about others.
What I was doing was only helping myself to earn money but it was not helping me to earn people.
Change requires effort. I started putting some.
It created an urge within myself and I thought of finding ways that can help people without hampering my professional growth. Finding solutions primary for merchants experiencing challenges in getting a Credit Card processing solutions because of bad credit.
I started thinking of all possible ways of finding reliable solutions for this kind of merchants. It was not easy and it was very time-consuming. I started coordinating with multiple payment processing organizations and started explaining to them about the scenario. I educated them about what exactly is the challenge with these merchants. Why most of the domestic acquirers refrain from establishing the relationship with businesses owners with bad credit.
Most of these Merchants were expecting monthly transaction volume of less than $20,000. Comparing it with any High Risk Merchant this volume was definitely very small.
Processing companies were reluctant because the margin of profit was very less. Who knows whether these merchants may even cross $5,000 per month in sales after all there credit score is terrible and in some cases very bad. While I was coordinating with the processing companies, I also used to talk to these merchants.
I asked them some vital questions and here are the responses
- Are you comfortable in paying a slightly higher TDR?
- Are you comfortable with a fixed or rolling reserve?
- Are you comfortable with a 3D Secure Solution?
- Are you comfortable with a delayed payout like T+7?
- Are you comfortable with a 7 Days arrear?
I was surprised to know that almost ever Bad credit merchant was comfortable with all the above-stated terms. The answer to all the question mentioned above was a definite Yes. The reason why they said yes was that they were rejected by most of the Low-Risk processing companies or financial institutions.
After getting a green signal from few offshore payment processing companies, I started collecting applications.
Let me tell you it was hard to convince these processing companies. After using a combination of sales skills and emotions, I was able to get yes from them.
There was another big challenge. It was the non-availability of a bank account. Yes, there are many unbanked merchants in the USA. Even if they want to accept ACH or echeck transactions they cant because they don’t have any bank account.
I reached out to a veteran in the payment gateway industry. Thomas Skalla from Genie Gateway. He explained to me about the new genie card program that offers verified check, Person to person payments and a debit card without a credit check. Check22 appeared to be the best echeck processing solution. The incredible part is that the card comes with its account number and direct deposit routing number.
A combination of Genie Cash Box with Genie card Platinum can help merchants receive and withdraw funds.
I was certainly not making so much of commission as compared to other merchants who were processing a couple of thousands of dollars each month but certainly, I was definitely making a change in the lives of people who were actually demotivated by the response of many processing companies.
This actually helped me to identify a different kind of salesman within me. Now I feel that it is extremely important for any merchant account consultant to not only focus on the revenue but also focus on helping those merchants who really need a helping hand. There is nothing so rewarding as seeing your actions making a positive change in someone’s life.
I know this post may not be a substantial one for commercially minded individuals, but I wanted to talk to you and share my experiences. I’m not even sure that how it will work in long-term. Whether merchants will make money or not. Whether these accounts will actually last for a long time or not but what I am sure about is that I’ve contributed to the welfare of those businesses that were actually in need.
No matter which nation are you in. You may be in Canada, Singapore, Ireland, Austria, Bangladesh, Qatar, Belgium, Luxemburg, Australia, Bermuda, New Zealand, Brunei or Israel. You will always find merchants selling low-risk products but getting declined because of credit score. I will request you to help these merchants.
A consultant in need is a consultant indeed.