WE'VE MOVED!

We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co

Merchant Services

SerialentreprenuerSerialentreprenuer subscriber Posts: 2
edited November 2006 in Business Planning




Our Website has grown tremendously this year.  We went from a million dollar company to well over 5.  When we originally chose our merchant services company we did so based on rate alone.  Our rates are not the best and we are hoping to switch merchant service companies and negotiate better rates.  I have a couple of questions that I hope someone can help me with.
1.  Which merchant services are reccomeneded?
2. What are the key factors I need to focus on when I am negotiating a lower rate?
3. Due to our fast growth we are experiencing a higher amount of charge backs.  I have heard that if your charge backs equal 1% of your gross revenue you run the risk of losing your merchant privilages.  We are currently close to 3% rate of charge backs.  If we switch merchant accounts will it negate our past history of charge backs? 

Serialentreprenuer2006-11-27 14:14:35
· Share on Google+ Share on FacebookShare on Twitter

Comments

  • SerialentreprenuerSerialentreprenuer subscriber Posts: 2
    Are you doing most of your business over the internet?
    We do all of our business over the internet.
    · Share on Google+ Share on FacebookShare on Twitter
  • SerialentreprenuerSerialentreprenuer subscriber Posts: 2

    The first place to negotiate would be with your existing provider. If you did 1 million and anticipate doing $5 millions, they`d be crazy not to work something out with you, especially since you`ve been with them this long already.
    If you haven`t talked to them, by all means, start there first. Let them know you are entertaining other offers elsewhere and that should motivate them to act.





    I have heard that if your charge backs equal 1% of your gross revenue you run the risk of losing your merchant privilages.  We are currently close to 3% rate of charge backs.  If we switch merchant accounts will it negate our past history of charge backs? 



    I`m not 100% sure on this, but I don`t they base the percentages on your revenue, I think they base it on  the ratio of  percentages of chargebacks to the number of transactions.
    But I`m not entirely sure, so don`t quote me on this one.

     
    Thanks for your information.  We have already started to negotiate with our current merchant service provider.
    You`re the second person to say that the charge backs are judged more on a charge back/Transaction ratio.  If that is true I think we are in great shape. 
    · Share on Google+ Share on FacebookShare on Twitter
Sign In or Register to comment.