Starting Merchant Services Company

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Merchant servicing is a lucrative business that entails its owner to understand how to read numbers and understand what they mean. The owner should also be able to look beyond these numbers to capture the market by surprise through dealings.

This business guideline will give you ideas how you should start your business.

Begin by understanding how merchant services work

Starting a merchant services company of your own can be risky if you don’t pay attention to what you are doing. Understanding the inner workings of merchant servicing without experience can be difficult task. Other competitor merchant companies can take advantage for your ignorance. Instead choose to work for a merchant company first to understand how the industry works before you start out on your own. Making mistakes can be costly. If you want to become as big as American Express and Master Card in the future pay attention to what you are doing.

Register a name for your merchant service company

Identify a workable company name for your business. Start by making a list of potential names for your company. Then one by one, check these names out in the web if they are already in use. From the names that are available, pick one that you like the most. Here’s a tip in choosing a business name for your company. Pick a name that you will still like 20 years later. After you have registered your company name, apply for a trademark.

Get set to have the right merchant service business licenses

Survey a lawyer who is very familiar with merchant servicing regulations and rules. Ask for legal advice from this business lawyer regarding your business license and other necessary documents. Once you have been briefed, immediately follow the advice and apply for the necessary business documents. Pay the corresponding fees and file it away in a filing cabinet.

Figure out a way to finance your merchant services company

Operating a merchant services company is similar to operating a bank. You have to have a lot of cash reserve to support. You got to have deep pockets to support the electronic infrastructure, to support the payments of your clients for a certain time, as well as other expenses made in the process of the transaction.

Get clients

The hard part about starting a merchant services company is getting the initial trust of your potential clients. Money is a very sensitive issue. And statistically, most clients would rather transact deals with a huge competitor merchant company with a long track record than work with a start up company. The good news is every business starts out that way. They need time to blossom and build their reputation before masses of people utilize their merchant services. My advice is preserver. Soon things will go your way if you keep on keeping on improving your company and its services.

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66 Comments

Gerod Mitchell said on June 24, 2009
Can you please tell me, how do i get a hold of merchant equipment and proper paper work and agreement contracts for my clients?
Gina Spohn said on July 22, 2009
I think some of the merchant co. out there are huge scammers like pay pal I would like to offer more for less this would generate jobs as well as a nice income for all that is a part of this co and how much money would I need exactly to get this rolling?
Bill said on September 4, 2009
i was looking to start a merchant service co and was told that fees could cost close to 250k. is that correct?
faraz said on September 8, 2009
how much cash do i need to have in my bank account to back the business up
Rob said on November 23, 2009
I'm looking for information or resources available to start a Merchant Services division within our bank. As a Bank we are interested in costs and procedures to start up a Merchant Service processing center.
melody phan said on December 12, 2009
I want to start a merchant service company in Garden Grove, CA, USA and London, UK
zayne scruggs said on January 9, 2010
I am looking to expand my merchant company and would like to know the in and outs
Chris Shapiro said on February 1, 2010
Can you please tell me, how to start merchant services company in GA and how do i get a hold of merchant equipment and proper paper work and agreement contracts for my clients? thank you
Conquest said on February 18, 2010
If anyone would like to become a merchant service provider, send me an email at sales@conquest-financial.com
rajanish babu said on February 25, 2010
how can i start a merchant service company in Houston, Texas, u.s.a
George B said on March 2, 2010
hello all, I have been in the merchant services industry for 7 years now and have started a unique company that will partner with you. We will set up a legal agreement that will allow us to split the profits right down the middle. Basically I will get you everything you need to operate and support your office and clientele. In exchange my company will get 50% of the profits. if at some time in the future you wish to go off on your own you will be free to. This program works especially well for banks that typically don't wish to bring these services in house due to the expense. We operate in the US only so unfortunately we would not be able to assist you with international accounts. Contact me if you have interest: George Brauburger, Versatile Merchant Solutions, DBA: North American Bancard, 877.510.2265 Ext 301, georgeb@nabcrd.com
Stephen T said on March 8, 2010
Myself and business partner have over a decade of experience in the Merchant Acquiring Industry. We spent several years working for one of the largest Acquirers in the nation. We have successfully built an ISO from nothing to a very lucrative business for others and ourselves over the years. If you are looking for a consultant to help you get started please feel free to give me a call. (830)832.7170
Sam said on May 8, 2010
Looking to start merchant services business & wanted to see which route is better? as an ISO or as an Agent? There is no training or a place to find more info on how to be an ISO? I found out so far that $10K fee is needed the 1st year for Visa & M/C w/$1500-$2500/year. What is an interchange rate? How many fees are involved per transaction as an ISO? What is your profit as an ISO VS an Agent? Lots of companies are paying 25 basis pts for Agents! What is the real profit on the transaction? is it 1%? 480-797-8684
Susan said on May 17, 2010
I am located in Austin, TX and am actually connected with two processing companies. Starting a merchant service company is not easy. There are many things involved to this. What processor will you sign on with or will you run directly under the association (Visa, MC, Discover and AMEX). Will you have your own Application, Risk, Customer Service and Technical Support Departments? This all takes $$$$ major bucks. To register with the association it is $10,000 to both Visa and MasterCard with extensive background checks. If you are setting up your own Risk Department you will have to put up around $500,000 to be bonded. The contracts and equipment is a very minor part of merchant services.
To Rob, Banker I would like to talk to you individually. I can help anyone become an ISO (Independent Sales Office) office and there is no risk or no money needed up front. You however must have a clean background. The main thing is this is hard work. I have been in this industry for over 5 years and am still working towards retirement. If you are any good at all and really care about your merchants you will use interchange (cost) on every business owner you contact. You will also get phone calls day and night to help solve their problems because very few reps help their merchants. So if you want to be an ISO office contact me and I will help you get started. Susan... bcd001@live.com
Steve Okon said on June 22, 2010
I really need to go into partnership with existing merchant company in a profit split arrangements. I can not afford my own for now, But i need to charge international users as well with use of different currencies. Anyone interested? Please write me at bidmatter@yahoo.com
Joshua B said on August 17, 2010
I am looking to start up an online merchant services company. Much like paypal, or similar to virtual terminal. Would any one know where to help me begin? Dallas Texas. inspireideas@hotmail.com
Woody said on August 26, 2010
I know of a start up ISO, they are looking for someone to handle the Admin part of the business from home, could lead to equity. Need to be the "bookie"n essence. Review and examination of merchants existing statement, propose new rates and fees, etc. Must understand interchange. Email me androidmerchantservices@gmail.com and I will introduce you if interested
Peter said on August 26, 2010
Anyone who tells you it cost more than $20,000 to start an ISO is not telling the truth. You can start one without a risk department.
Bongo said on September 14, 2010
I am looking to set up merchant processing company operating in East Africa area and South Africa, there is a huge market out there that has not been touched at all. I am looking for someone to partner with who knows international market. I am currently located in the US. Please email me at bongo_compiler@hotmail.com
internationalprocesors said on December 10, 2010
hi am in dallas texas we are looking for isos can make 50 and up part time call me 214-2131418, u can keep your present job no money to start.
peter said on April 3, 2011
how can i hold the MEMBER BANK to start merchant services co business. my merchant services co will located at orlando florida usa
Robert said on September 20, 2011
Ft Myers FL, Could you tell me who over see's the merchant service providers?
nicholas knox said on October 6, 2011
I would like to start up a merchant service company but i need help i have a reloader as well as rollers and it is there anyone who can show me which direction to go in. I'm in phoenix az and i know my floor will be good for at least 10 deals a week
Jason D'Costa said on March 1, 2012
Hi, We need aggregator merchant account with virtual terminal for our business we can pay good commission for processing our orders. Thanks Serious Merchant providers email us at :: 313bpo.outsourcing@gmail.com
Drew Barnes said on April 1, 2012
Hi! I am located in Central Texas and am looking at getting into this industry. I am not looking to start my own company from the ground up but would rather invest in a start-up or already running ISO venture. I am willing to invest up to $200,000 for the right venture. If you are interested, please contact me at andrewbenbarnes@gmail.com and we can take it from there. If you are already involved in this industry, that would be great and based in Texas, even better. Apart from capital, I may be able to bring in a few online retailers as initial clients who do good sales volumes ($100,000+ per month and growing).
Marc Lazo said on May 13, 2012
Hello, If you are looking for an honest, knowledgeable and dedicated merchant services company to get you the best rates possible, send me an email. Marclazo@nspti.com.
A.Banerjee said on July 1, 2012
Well I live in Los Angeles, California. seriously looking forward to become a ISO. I want to become a merchant processing company. I design websites for my clients and I integrate merchant account for them. I want to serve my own clients in Asia, America and europe, etc. I have huge clients based ready to use my services in Asia and others countries. I need help to form it immediately and get going. I'm also looking for investor to start this business as a partnership basis also. Please send me contact infos or contact me ASAP. aninyab@yahoo.com or can call me at 3107173759
Chris said on August 27, 2012
Hello My name is Cristian. I am in the process of launching an app and a device for mobile payments similar to square - Our device is PCI 3.1 encrypted and takes IOS, Android, BB phones Looking for a Company that can underwrite my account and help Me to became a ISO in USA and want to offer the merchant re-sale service via our mobile device and want to promote our brand.
CESAR MILLAN said on August 30, 2012
I own 7 restaurants and spend a large amount of money every month in processing all my credit card transaction and would like to know how to go about starting my on merchant company to service my restaurants only and all future restaurants to come.
Duane said on October 21, 2012
Good Day everyone!!! My name is Duane. I've worked for one of the fasted growing I.S.O's in the nations from marketing to closing deals and handling back office. My job is easy it natural and i love doing it, (i help people save money). If your interested in starting up your own I.S.O i can help you run it. I'll show you marketing strategy, selling techniques that I use and where tough to me by the best. Good luck everyone make every phone call count, your friend Duane. duanelamotte3@gmail.com/503-268-7561
ashok said on November 12, 2012
We would like to start our mew merchant services. We have excellent infrastructure, financials, land and buildings etc. Please call me @ 281 691 0821. Ash
Ambassador said on November 26, 2012
Merchant Processing Opportunity, I am a retired Business Executive from ATL now residing in Mississippi and have over 5 yrs exp in the Merchant Processing business. I would like to speak with a company who is looking to grow fast with small merchants in rural areas. I believe in this state face to face will create loyal merchants for life with follow up system. I can build 100-200 rep team, manage admin and customer service for right opportunity. this is a 2 comma opportunity. 404-669-6167
Derick said on November 28, 2012
My name is Derick, I'm recent graduate residing in North Carolina. I'm originally from Kenya and there is need for merchant services in Africa. I would like to start merchant services business that can serve both locally and internally market. I'm currently working on the website. If anyone is interested in partnership,email me @ derickosi@yahoo.com
helene said on December 28, 2012
Hello. I live in Vancouver British Columbia, and would like to break into the business of Merchant Financing. I currently practice Corporate Law, dealing with mergers, acquisitions, takeovers, shell companies, private lending, etc. Please contact me if you are already running a profitable Merchant Financing Business and are willing to share how you got started, and any tricks of the trade.:) Thanks. This is helene_115@yahoo.com to clarify.
Gino said on February 13, 2013
Hello, I like to open a Merchant service company where do I start from?
Businessman said on February 19, 2013
I am able to help out anyone who wants to run a merchant service company, if you want to partner up or if you just want to brainstorm or run ideas by each other. I start up companies and make them successful. my contact is (818)486-6262, business.ben@hotmail.com
rashid tarik said on May 13, 2013
hi I am interest to start my own international merchant provider company. can you help me in this regards or affiliate me with such companies which offer merchant account services to the global. I will work for them as reseller with my own website. regards, Rashid, 5107782826
ajay said on July 14, 2013
hi i am interested to start my payment gateway service with merchant account could you advice me how to established the business i lived in guelph ontario, canada.
Todd said on July 22, 2013
Hi! I am located in Fort Lauderdale, Fl and looking at getting into this industry. I am not looking to start my own ISO from the ground up but would rather invest in a start-up or already running ISO venture. I am willing to invest $2-300,000 for the right venture. If you are interested, please contact me at tweider@msn.com and we can take it from there. If you are already involved in this industry, that would be great and based in S. Florida, even better. I have a unique opportunity that will enable a full circle service which is not available to other ISO's.
Doyle Fowler said on August 5, 2013
I live in San Juan Capistrano, Ca. I need to get hooked up with a merchant account who will take legitimate bank transfers from a legitimate bank in Argentina. My daughter owns a business there which takes in around $5,000 monthly in customers who pay in pesos. It is called L,A,Bronze and is a tanning salon business. Peson can be legitimately transferred to dollars in the U.S. if I I can find a merchant account who isn't stupid about international monetary laws. I invite any response. Thanks, Doyle
Denise said on August 8, 2013
My partner and myself have been in the Merchant Services industry for over 20 years collectively. We are seeking an additional partner to expand our business. We are willing to offer generous splits. We are also considering taking on an investor in exchange for equity in the company. Please contact me for this amazing opportunity @ denise@highriskholdings.com
Suzanne said on August 29, 2013
Interested in starting a Merchant Services company. I have a misdemeanor on my history from 34 years ago. Will this be an issue?
karthik said on September 13, 2013
hi, i'm karthik, i have 25,00,000 lakhs indian rupees, now i want to start small merchant finance in hassan, this place located in hassan district, karnataka state, india country,, pls inform me,, this amount will be possible to start merchant finance in hassan,,
tom gilmore said on November 22, 2013
Need a consultant to start a merchant service company. Two initial clients potentially generate 53 billion on credit card sales per year. We are not looking to partner with an existing merchant; instead, we are looking to start our own. Please call me at 240-446-0263. Thank you, Tom.
Luciano D said on January 26, 2014
Hello Everyone, You can start a merchant services company with nothing, and we can provide you with the same buying rates as if you were to go alone, invest a ton, and risk a ton. We also provide cash advances. I'm more than willing to help anyone out in the right direction, it's unfortunate that I see too many people start out on the wrong foot in this business because it is so deceiving. Feel free to reach out to me at 610.203.6662 or email luciano@batchout.com
anthony said on February 18, 2014
I am very interested in this industry and would like to start a company from the ground up, I just don't know much about the business. I am currently in sales and know a lot of business owners.
Mohan Bagga said on February 21, 2014
Duluth georgia. The market is wide open all over the world for high risk merchant services
Jon Trun said on March 6, 2014
hello everyone, I am in sale industry for many years. I'm planing to start Merchant service company but I need help. I never being in the merchant service business before. My location will be in Atlanta GA. I have a small niche of community around united state that I want to help. I had some bad experience with my current service so I decide to start my own. please email me at khoatrun09@yahoo.com if you can provide me with further information. I'm open up for partner if you interest. Thank you for you help.
Robin said on April 10, 2014
If anybody interested to execute business in India, i am pretty interested to support. Please contact at robin19nov@gmail.com
Andy said on May 1, 2014
Hi, I have been working in merchant services for over 5 years. I know all the ins and outs, and I want to start my own firm very soon. I am looking for an investor who would also like to be part of everything. I am based in the UK. I have many new ideas which I could implement to bring costs down in order to be competitive. G
Patrick Green said on May 25, 2014
San Francisco - I am starting a Merchant Account Service Company specializing in India. We will be accepting High Risk as well as lower risk applications. We have identified a niche market. We would like to partner with experienced, knowledgeable and honest companies or individual who can market to Indian as well as American clients. We will deliver the facility that can handle that business. It gateway experience a huge plus. Interested parties may contact me here: tweetforgold@gmail.com. Thank you
Lori said on June 12, 2014
I just started working for a small office as a rep for merchant services. I love it! Saving people money is fabulous. But the office is very small and unorganized. I would love to do more. I was a regional manager over 3 states and am capable of more work and would like to earn more money. Any suggestions?
Paul said on July 13, 2014
I need to start a merchant services business in Utah, Wyoming and Idaho. ISO or direct. I need info and initial consulting. Please email.
steve said on August 2, 2014
Hello. I'm in the Miami area and interested in partnering up to start a ISO. I have capital and looking to build a huge successful ISO. Please feel free to call or email 310 927 6739
David Hogwarts said on August 3, 2014
Hello, I am interested in forming a PSP (Payment support Providing) company to process credit and debit card sales. Please email me at support@cartpay.in in case some one have any information or can assist me to from a company. David Hogwarts
VFG said on September 14, 2014
Interested in a partner/affiliate program with a merchant service provider. Who offers processing and/or vendor relationship, has 24/7 customer/technical support ect. I would prefer my agents concentrate on selling. if you have any information on starting a merchant service company via affiliate method please email me at validusfinancialgroup@gmail.com
SherieAnn said on October 25, 2014
I have offices in both South Florida and the New Orleans Metropolitan Area with a network of Agents who operate their own businesses under our Umbrella. They focus on the selling and service component of the business and we take care of all of the back office for them including developing relationships with Merchant banks to have access to the most lucrative financial incentives and best technology available in the market, placing their clients with the best merchant banks, developing and submitting the paperwork and applications, training and plans as well as consulting for start up at various fees. Let me know if there is anything specific you would want assistance, consulting or education in by emailing me at QuickMerchantServicesTraining@gmail.com
dimitris said on October 30, 2014
I am living in Cyprus and I'm interested to start a merchant services provider. My email dimitrispanayi123@hotmail.com
jav said on November 17, 2014
Hi I am interested to start my merchant company in uk. I don't know much about the industry. Any one who can help me pls contact me j_nasim@yahoo.com.
Raj said on March 1, 2015
Hello, I am interested to start merchant company in Nepal ,as in Nepal no one provide merchant service, so that I thought to gather information if possible to start my own . I don't know much about it , looking for for some help and suggestions. Anyone who can help me please contact me. rajgupta_2058@yahoo.com
rajeev beginner adviser said on April 25, 2015
The best way of getting into merchant services have an offshore company, offshore bank account and offshore merchant account with payment gateway (multicurrency).
rajeev_roychowdhury@yahoo.com || Consultant
Dennis said on March 16, 2016
Hello, we are looking to start credit card processing company, and need back up from the financial institution. Please contact me at 2157640084.Thank you.
Isaac beginner adviser said on March 25, 2016
I want to start my own merchant service company (ISO) or find out the best route for my company online so I can make more and stop paying the bs fees and if anyone can help I would appreciate it. I am in Phoenix Arizona and need to start up ASAP. 480-567-4817
Isaacgloria88@yahoo.com|| Bodybuilding Supplements Business Expert
rajeev beginner adviser said on March 31, 2016
@Issac: Go for Services from Seychelles. It will be offshore.
rajeev_roychowdhury@yahoo.com || Consultant
Todd said on November 9, 2016
I'm starting a merchant business in New Mexico. Need sales people, and need ISO service with a great provider. please call or email Todd at 505-307-8685 tlevene@msn.com
Javaid Ahmed said on February 2, 2017
Hi I am interested in opening a credit card processing co in UK can anybody help or can I buy into a set up can you steer me into the right direction or be an affiliate with another co. Thanks Javaid Ahmed 07960481874 based in london