That is always the first question we get here at FREE Direct Mail And Merchant Processing and the simple answer is they want to make twice as much commission for both the sales representative and the company. In the end all Merchant Processing Companies have the same exact cost and expense foundation on what all Merchant Processing Companies with a few primary differences from a Wholesale / Retail Perspective, Commission Structure and Compliance knowledge.

1. Wholesale

There are what is called retail and wholesale Merchant Processing Companies with the wholesale ISO paying a lot less in processing costs since they have relationships directly with the card companies and primary processing banks that gives the wholesaler more control over costs, pricing and other aspects of the merchant relationship. A wholesale ISO has to qualify to become licensed wholesale ISO and has to take continuing education yearly to assure up to the date knowledge of the industry and the most in-depth knowledge of the many moving parts of the industry for compliance, rules and technology.

2. Retail

A Retail Merchant Processor is the majority of Merchant Processing companies’ businesses deal with which are typically white label Merchant Processor businesses that are tracking back to a Wholesale Merchant Processor. The main point to understand for the difference from Retail to Wholesale Merchant Processing providers are their profit margins. All retail Merchant Processors are parting with approximately .5% of a businesses monthly sales given to the Wholesaler for the privilege to selling Merchant Processing on a retail level.

3. Commission Structure

This is the primary difference between all Merchant Processors as, like with any business, want to maximize their commissions and bottom-line profits. With all things being equal regarding a commission structure, you will always get a better value when dealing with a Wholesale ISO versus retail since retail is typically paying .5% more than the Wholesale ISO. With FREE Direct Mail and Merchant Processing being powered by Payments Doctors we work off of much smaller commission percentages for our sales representatives and return approximately 50% of the commission back to our Merchant Business Partners in the form of monthly FREE Direct Mail and FREE Printing Cash Credits. Our philosophy is very long term oriented as client retention is our primary focus through providing all our clients a very unique and power merchant processing proposition.

4. Compliance Knowledge

one HUGE advantage in working with a Wholesale ISO such as Payments Doctors is knowledge of the ever-changing rules and regulations in being compliant in accepting charge cards. One just recent change that many Merchant Processors are not familiar with as the Cash Discount term and program has been changed to Dual Pricing. Just not being in compliance with that program can lead to fines from the issuing banks and/or the potential loss of your ability to take charge cards. The landscape is always changing and if your Merchant Processor is not intimately familiar with those changes, it could have a very negative impact on your business.