Telemarketing Merchant Accounts
Because of the unfavourable reputation of some telemarketing agencies, it may be difficult to get a merchant account for your telemarketing business. The reputation tends to make telemarketing agencies fall under the high-risk umbrella, which can sometimes limit the options available to you in terms of taking payment. This is often true whether you operate on an incoming call basis, or an outgoing call basis. That being said, outgoing call telemarketers are the ones with the most to deal with when they first start up.
A huge plus with operating a telemarketing business is that once the initial hurdle has been passed, customers usually get a good sense of what they’re in for before they buy your product. This helps to limit the amount of chargebacks, which is often one of the downfalls of high-risk merchant accounts.
A telemarketing agency is the type of business that most often relies on third party merchant accounts, since the big companies like Visa and MasterCard are often reluctant to get involved with such a business. This is not a big deal though, since the third party providers offer pretty much the same services as the big guys, and they are also able to accept the major credit cards. The only thing to watch out for is the legitimacy of such third party providers. Running a check on the history of the provider is crucial, as is asking all the questions you can think of when speaking to them about setting up your account.
Because telemarketing is a business in which you must always be prepared to take payment on the spot and constantly, one of your best bets is to get a high risk merchant account with unlimited transactions. You do not want to be in the middle of making a sale and then suddenly realize that you are not currently set up to accept Visa.
Because of their high-risk status, telemarketing businesses often start off having to pay a high rate for processing. However, if your telemarketing business conducts a large number of transactions, the rate you pay the bank or provider will quickly be reduced. When setting your processing rate, the bank or provider will often look at where your business is located, the history (if any) that you have with processing, your projected rate of transaction volume, your credit rating, and maximum sales amounts. These factors are all in addition to more idiosyncratic factors, which will vary from bank to bank. This is the point in your bank relationship when your account becomes tailored to you, with your goals in mind. For this reason, the more information you can provide the bank, the more convenient your account will be for you. Offering all of the pertinent information to your bank or provider up front will also help to make the process of setting up your account quicker. This, of course, is best for everyone.