There’s an old saying that warns “If you’re trying to sell a cow, don’t give the milk away for free.” (You may have heard it in a song by the Georgia Satellites.) I’m pretty sure the saying had nothing to do with farming! It’s good advice for anyone involved in negotiations, including anyone who’s seeking favorable rates from a new payment processor.
When you’re searching for a new merchant services provider, you have the advantage. You have an established business with a proven track record. You already have a merchant account (in other words, you’re not desperate.) And you know what rates you’re currently paying. If you’re talking to a credit card processor about possibly changing to their merchant account, there’s a good chance they want your business more than you need theirs.
In negotiations, you never show your hand. In the credit card processing business, all providers pay the same Interchange (wholesale) rates. So naturally, we are all able to beat one another’s rates (if we know what rates you’re paying.) If an agent insists on seeing your statement BEFORE he’ll give a proposal, don’t walk away. Run!! If you give him that information, he’ll certainly offer a better rate, but not nearly as good as you might have gotten by playing your cards closer to the vest.
I prefer to give potential clients the best rate quote I can afford, regardless of their current rates. I’ll give you a binding quote without asking what you’re currently paying. If you’re speaking to another agent who’s not treating you with that kind of respect, I’d appreciate the chance to earn your business.
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