When to Work with Merchant Payment Consultants

Dec 10, 2024

Should You Go It Alone? When to Work with Merchant Payment Consultants

Navigating the world of payment processing can feel like venturing into a maze—especially for e-commerce business owners. With a dizzying array of processors, gateways, and merchant account options, making the right choices is both critical and challenging. Enter the merchant payment consultant: a professional who can simplify the process, help you avoid costly mistakes, and optimize your payment solutions.

In this post, we’ll break down the role of a merchant payment consultant, explore the benefits of working with one, and discuss why even small or new businesses should consider their services.

What is a Merchant Payment Consultant?

At its core, a merchant payment consultant acts as your advisor in the complex payments landscape. They help businesses—whether retail, e-commerce, or high-risk—find the right payment processing solutions tailored to their specific needs.

Many consultants, like PayDiverse, operate as a Retail ISO (Independent Sales Organization). This means we’re authorized to resell payment processing services from multiple providers. This flexibility allows consultants to offer customized solutions, especially for businesses facing unique challenges like high-risk processing or the need for multiple merchant accounts.

Do You Need a Consultant?

Not every business requires a payment consultant. However, for businesses aiming to optimize their payments, avoid pitfalls, or manage high transaction volumes, a consultant can be a game-changer.

Why Work with a Merchant Payment Consultant?

1

Expertise in a Complex Industry

The payments industry is notoriously complicated. From confusing fee structures to contracts loaded with fine print, it’s easy to make costly mistakes. A consultant simplifies this process by:

Identifying the processors that best suit your business model.
Helping you avoid account terminations by aligning your business with the right providers.
Providing tailored recommendations based on your industry and risk profile.

2

Enhanced Problem-Solving and Support

Payment issues can disrupt your business, but consultants have direct relationships with processors and ISOs. This allows them to resolve problems—like held funds or technical glitches—much faster than you could on your own.

3

Diversification of Payment Solutions

For e-commerce businesses processing high volumes, having multiple merchant accounts is critical. If one account encounters issues, a backup ensures your payments don’t come to a halt. Consultants can set you up with the necessary redundancies.

4

Better Terms and Lower Fees

Consultants often negotiate more favorable rates and terms with processors thanks to their established relationships. For high-risk businesses, this can mean significantly lower fees and a more stable payment setup.

5

Beyond Payments: Disputes and Chargebacks

Many consultants go beyond setting up merchant accounts. Services like Rapid Dispute Resolution (RDR) and chargeback management help you minimize disputes, protecting your revenue and keeping your business running smoothly.

How Consultants Are Compensated

One common concern about hiring a consultant is the cost. Here’s how it typically works:

Consultants earn a small percentage of the volume you process each month.
Their income is tied to your success, meaning they’re incentivized to help your business thrive.

The fees processors charge often include built-in profit margins, which are shared with consultants. In most cases, you’re not paying extra for their expertise—they’re simply ensuring you get the best deal and avoid hidden fees or unfavorable terms.

Why Small and New Businesses Need Consultants Too

There’s a misconception that only large businesses benefit from payment consultants. In reality, smaller businesses—especially e-commerce startups—can gain a lot from working with one early on.

The Risks of PayFacs

Many startups turn to PayFacs (Payment Facilitators) like Square, Stripe, or PayPal for their simplicity. While they’re great for getting started quickly, they come with risks:

PayFacs often auto-approve accounts without thorough underwriting.
If flagged as high-risk or hit with chargebacks, your account could be frozen for months, severely impacting cash flow.

How Consultants Help

A payment consultant can guide you toward processors better suited to your business. They ensure you’re fully vetted during the underwriting process, reducing the risk of unexpected freezes and setting you up for long-term success.

Key Takeaways:

1. Expert Guidance Saves Time and Money
Merchant payment consultants help businesses navigate the payments ecosystem, avoiding costly mistakes and securing better terms.

2. PayFacs Aren’t Always the Best Option
While convenient, platforms like Square and PayPal can pose risks for businesses as they scale. Consultants guide you to more stable solutions.

3. Diversification is Essential
Having multiple merchant accounts ensures your business can keep operating even if one processor encounters issues.

Whether you’re a new business setting up payments for the first time or an established company looking to optimize, working with a merchant payment consultant could be the smartest move for your business’s success.

Need guidance navigating the payment processing maze? Reach out to experts like PayDiverse to set your business up for success and avoid common pitfalls.