A post by Integrity Payment Systems’ Senior Vice President of Business Development, Don Apgar
As a VAR that wins business based on the strength of your service reputation and the integrity of your platform, letting your customers select their own merchant services providers is like running an auto repair shop and letting your customers bring their own parts. When that part fails, as they often will when the customer buys the cheapest part they can find, they are going to expect you to fix it.
Sound familiar? It’s no secret that repair shops mark up their cost of parts for a profit, but more importantly, reputable shops use quality parts from a trusted supplier so they can confidently stand behind their work and offer their warranty to the customer.
Legacy mag-stripe payment cards and merchant accounts have been around for 30+ years, but that doesn’t mean that they operate trouble-free 100% of the time. When there’s an issue, and it’s a question of “when”, not “if”, your customer will be calling on you as their VAR to resolve it. Of course you can tell the client to call their merchant account provider, but that’s like the mechanic telling their customer that they need to go talk to the guy that sold them the failed part. You wind up spending time and money helping the merchant resolve a problem that you didn’t create, only to get a black eye in return.
A better solution is to source your own parts: select a merchant services provider with a strong service offering that compliments your own, and embed their solution in your software. Yes, it creates additional paperwork to have the client switch their merchant account at the time of the sale, but it’s certainly not going to cost them any more in the long run, and in fact you may be able to lower their fees.
More importantly, having all of your accounts with a common merchant provider and running on a strong service platform gives you the capability to answer any payment-related questions when the customer calls. You’re getting the call anyway, why not have the tools to resolve the issue and enhance your service reputation, rather than directing the customer away and risk getting that black eye? Just like the mechanic, you earn margin on those parts too, so you get to improve your service reputation and your bottom line at the same time.
Learn more about how embedding the right payments service in your software can boost customer satisfaction and cut servicing costs; call Don Apgar at Integrity Payment Systems, (631) 404-0131, email firstname.lastname@example.org, or visit us online at www.integritypays.com.