Merchant accounts enable companies to accept and process electronic payments. Important people and businesses that make that possible include independent sales organizations (ISOs) and agents. These professionals work diligently behind the scenes to ensure that transactions happen securely and smoothly.
While receiving residual income from a merchant services account portfolio is excellent, maximizing this stream is just as vital. With so many variables at play, it’s understandable to wonder if you’re utilizing your payment processing residual stream revenue to its full potential.
Follow These Tips to Boost Merchant Services Account Income
Residual income isn’t just a nice perk—it’s a core revenue driver for agents and ISOs. Thankfully, skyrocketing portfolio-related income doesn’t have to feel like a mystery. Follow these time-tested tips.
1. Address Concerns Proactively
Most companies rely on customers. Whether you work with businesses or people, dealing with concerns is common. Instead of haphazardly responding to problems as they happen, opt for a more proactive approach. It can work wonders for protecting your credit card processing account royalties.
For instance, you know about upcoming processing fee changes or required software upgrades. Letting your customers know about this news lets them prepare accordingly. Plus, your clients won’t all contact you at once to voice their concerns and frustrations.
2. Build a Diverse Portfolio
No matter what you invest in, diversification is rarely a bad idea. The same rule applies when attempting to maximize income from merchant services accounts. How much room you have to diversify may depend on industry or job-related restrictions. However, this task is achievable for most agents or ISOs.
Even when current payment processing residual stream revenues are high, depending on a few similar clients, they may soon wreak havoc on your portfolio.
Examples of how to diversify and strengthen a merchant services portfolio can include:
- Expanding into new client industries
- Taking on clients with lower assessed risks
- Partnering with different merchant types (e-commerce, brick and mortar, etc)
- Accepting clients from new states, regions, or countries
3. Follow Industry Trends
There’s no denying the competitiveness among merchant services account portfolio owners. In this world, it’s essential to do everything to set yourself apart. One way to achieve this goal is to stay up-to-date with industry trends. A few recent examples of popular merchant services trends are the rise of contactless payments and the popularity of cloud-based payment platforms.
4. Provide Superior Customer Service
Some tips to boost merchant services account income never go out of style. One recommendation involves stellar customer service. Nowadays, most businesses have no shortage of companies to partner with to accept electronic customer payments. One way to satisfy clients is by being responsive when they have problems. If not, a customer could feel your business doesn’t care about them. Another helpful tip is to check in with merchants regularly. This simple step can reduce churn while letting you learn about what’s going well and what needs improvement.
If you haven’t implemented it, offering a 24/7 support system is another recommendation. Many companies provide this feature by offering around-the-clock phone-based support or an online help desk. These steps toward customer happiness can pay off through increased
credit card processing account royalties.
5. Ensure You Partner With Reliable Processors
Partners can, and often do, make or break a company’s success. While no business is exempt from an occasional error, repeated mistakes could begin affecting your portfolio negatively. If your current business partners aren’t offering the analytics, payouts, and support you need, it’s time to consider looking elsewhere.
6. Optimize Your Pricing
Prices significantly affect your merchant services account income. Using outdated or ineffective pricing models can hinder your ability to win over and retain merchants. Consider switching up your pricing model. This strategy could involve changing from tiered pricing to interchange plus pricing or vice versa.
Let Velocity Funding Help You Get More From Your Portfolio
If you want to increase payment processing residual stream income, contact Velocity Funding. Our company’s leaders have decades of experience valuating and purchasing merchant services account portfolios.
Whether you need a consultation to improve your portfolio’s value or want to sell it to leave your current field, Velocity Funding has the tools, experience, and expertise to help you achieve your goals.
Are you ready to take your portfolio to the next level? Contact Velocity Funding today for more help improving merchant services account income.
Dean Caso is a Managing Partner at Velocity Funding, which he founded with this company’s other Managing Partner, David Caso, in 2006. Caso graduated in 1983 from Babson College with a Bachelor’s degree in Finance and Investments. With over 35 years of experience, Caso has acquired over 300 credit card processing portfolios. He has a superior eye for opportunity and an unwavering commitment to excellence. Caso’s leadership instills confidence, fosters innovation, and inspires those under his professional command. His decades of industry experience and proven track record of success continue to drive Velocity Funding’s growth and industry-leading presence.