Questions

How do you obtain an ISO / Super Merchant account from a bank like Wells Fargo for processing transactions ? Working on a payment gateway.

4answers

I just opened a normal business account and the used Stripe.com to process all credit card transactions - only tool 5 minutes.


Answered 6 years ago

Stay completely away from banks in general when picking a merchant services company. Stripe sits on your money for 5 business days and charges 2.75% and $.25 per transaction .. Here' s the trick: Figure out what your average ticket is. Divide the per item fee by your average ticket size. $.25/$10= $.025 ,, add this to your per item percentage and you will derive what you will be paying. Learn what Interchange means and go into the appointment with negotiating power:) Interchange=True Cost.. Hope This Helps!


Answered 6 years ago

Having been in the acquiring industry for 20+ years and having focused on ecommerce for the last 4 years this question is very interesting.....

Scenario #1
You say you want to obtain an ISO / Super Merchant account. This leads me to believe that you are trying to set up as a PSP, Aggregator, TPPA.

If you have your own gateway then you will also need to consider the ramifications of PCI Compliance not only for the gateway but also the users/merchants of your gateway.

Are you looking to take liability and risk and approve or decline the accounts? Delayed Funding to offset your risk? Who will provide services for back office such as chargebacks and retrievals?

Scenario #2
Or maybe you are just looking to set up a merchant account to process transactions on a payment gateway?

The question is to broad being that our industry can go in many different directions. Feel free to set up a call and we can discuss further and get you the specific answer you seek. I think you might be trying to do Scenario #1


Answered 6 years ago

Banks like Bank of America, Wells-Fargo, JP Morgan Chase, etc. all have a merchant services application process that you can apply for. There is quite a bit of documentation that needs to be provided for to qualify as a master merchant, i.e. a PSP.

The main issue here would be to demonstrate your business model and how you will mitigate risk for the bank. This is not overly difficult if you're in the know-how/business, however, you might also want to consider that, as an option, you can also go to large-scale processors like First-Data, MIGS, Cybersource, Chase Payment Tech, et. al. to obtain the same. Many a times, these processors offer added layers, that a bank might not be able to offer (not always the case, but nonetheless an important differentiator).

One of the most important aspects on this is to understand that paperwork aside, you will need to negotiate your way into getting a better MDR, reduce your risk deposits and get better payout terms for yourself.


Answered 5 years ago

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