You finally closed a deal! The merchant claims they are going to send in their application in a few hours. You call call call and never hear from them again. This is a huge issue in the credit card processing industry today! Where do these people go? What are they thinking when they say they will sign up and then disappear?
The most common misconception about our industry is how simple it is to sign up. We are not PayPal or Square. Customers think signing up is as simple as putting in an email address and a phone number. In reality it is a lot more complicated than that. The application processes although short, can take about 20 minutes to complete. It also has a lot of personal information on it. This is because our industry is very regulated. Banks need to know your personal background and business background to know if they want to back your merchant account. Signing up for Paypal or the Square requires almost identical information, however because it is online and a big name brand people tend to trust it more. What they do not realize is what is going on in the background.
When an application is turned in you do not automatically get an account and start processing. The application is reviewed by the processor and then taken to the processors supporting bank. The bank will determine if the customer is going to have a merchant account or not. There are many factors to this process that I go into in my high risk article. After you are approved by the bank you can start processing. It can take up to 2 weeks for the application to go through.
Many customers will simply forget to do the application. It takes weeks to call them and get in contact with them. It is almost as if they are dodging calls. It is a hassle to track them down half the time.
We have not yet found an exact solution to these various problems, however there are a few tips to take into consideration.
When speaking to a new client tell them the steps of the application process. Don’t wait until the last minute and just email them the forms.
Be honest and upfront with how the industry works
Don’t be afraid to call and help them fill it out
The credit card processing industry is a very regulated business with some very unregulated people. Make sure you are a reputable salesman and do not ruin the trust of the merchant with obscure pricing! You will slowly see more and more applications being filled out.