8 - Recognizing Questionable Sales Tactics

Recognizing Questionable Merchant Account Sales Tactics

As is true with almost every industry that is driven by a sales force, merchant account sales representatives are often looked upon in a negative light. Most business owners say they feel as though they are talking to the enemy when working with a merchant account sales rep. This attitude is unfortunate, especially since one of the biggest assets you will have when setting up a merchant account is an experienced representative to help you through the process and ensure that your merchant account is being set up correctly.

The truth of the matter is that the animosity toward merchant account sales representatives is largely a result of ignorance on the part of the general business public about merchant processing. The merchant account industry is not like the automobile industry. A merchant account rep can't tell you one thing, and then sell you another. The details of any merchant account are laid out in black and white in the merchant processing agreement (MPA) that is signed by the merchant before any merchant account is opened. For some reason, most business people don't bother to learn about merchant accounts and credit card processing before they research them and ultimately acquire one. After the merchant gets burned they turn around and point their finger at the sales rep that sold them the account, instead of placing blame of their ignorance where it truly lies.

If you take the time to learn about merchant accounts and credit card processing, the questionable sales tactics that are used to sell them will become transparent to you. Once you are educated, you will never be in a position where you will need to blame a sales representative or questionable marketing for any misfortunes with your merchant account.

VISA and MasterCard are opposed to all sales tactics that are considered to be underhanded or unethical. Most merchant account providers and sales offices operate in an ethical and appropriate manor, but with the number of independent sales offices (ISO) in the United States numbering in the thousands, it is inevitable that such tactics will be employed by some. MasterCard makes specific mention of sales tactics like hidden fees, price gouging, bait-and-switch pricing, and the promise of a "guaranteed" merchant account approval, among other tactics in the ISO Guide to Working with Acquirers that they released in 2002. This guide did little to eliminate these tactics from use, but knowing how to recognize and overcome them will be the focus of this section of the Merchant Account Information Guide. This section will be updated as new questionable sales and marketing tactics come to light. To be notified of these updates, please subscribe to the Merchant Council newsletter.

8-1 High-Pressure Sales Tactics

High-pressure sales tactics may be an acceptable form of sales in other industries, but it is a tactic that should not be employed when dealing with business owners seeking something as important as a merchant account. High-pressure sales tactics are very easy to recognize because they are so obvious. If you ever feel uncomfortable or rushed when speaking with a merchant account sales representative, you should simply tell the rep how you feel and quickly end the conversation. There are many different merchant account providers available, and you should never get pressured into getting a merchant account.

Do not copy or redistribute this content in any way without express written permission from the Merchant Council