In Credit Card Processing, Merchant Service, Retailers & Restaurants, Small Business Credit Card Processing

The Whole Truth About Wholesale Merchant Accounts

Are you tired of all the confusing hype about wholesale merchant accounts? So are we. We see a lot of direct credit card processors at other companies whose claims to wholesale rates, frankly, don’t hold water. That’s why we’ve made it our mission to educate our customers. The fact is, the best credit card processing company is the one that offers all the following advantages:

  • Low rates
  • Expedited processing
  • User-friendly platforms that require little or no set-up
  • Secure online payment gateway
  • Excellent customer support

We are continually amazed by what our competitors will say that stretches the truth so excessively that it’s comical to us. Our clients report to us that sales reps from other companies have tried to convince them that they offer supposed wholesale merchant accounts. Other companies claim that their wholesale rates make them a better option for businesses, with the implication being that merchants that go with them will pay lower rates and, therefore, have more money in their account.

What Are Wholesale Merchant Accounts?

So, what is a wholesale rate when it comes to opening and holding a merchant services account? In the retail industry, this would mean buying a product directly from the manufacturer or distributor instead of the retailer, thereby eliminating the retailer’s mark-up.

So, what would this wholesale concept look like for a financial service? The general concept to cut out the middleman sounds good but, for financial services, it simply doesn’t translate. This is due to the fact that you are buying a service instead of a product. In addition, there are no shipping and handling charges to process a credit card or move money from one account to another like you would find when ordering a product from a wholesale store or retailer.

There simply aren’t multiple hands that a service passes through before it gets to you. For example, if you go to a bank’s headquarters location, you get the exact same pricing that you get at the local branch, don’t you?

By comparing the concept of wholesale merchant accounts to its widespread application in the retail setting, you can get an understanding of what the other merchant account companies are trying to say. Merchants definitely want to get the lowest possible rate while still ensuring they receive high-quality services, and the term wholesale does have a connotation that you will receive the same services for less money.

So, what if you could get a wholesale merchant account at lower rates? It would probably mean that you contracted directly with Visa and/or MasterCard for your processing, but that’s simply not possible, as they don’t work directly with businesses.

Okay, so now you want to go directly to a processor for Visa/MasterCard … great. That defines most credit card processing organizations in the U.S. So, does that mean that almost all credit card processors are wholesalers? We figure yes, so when you contract with a merchant credit card processing service, you are almost always getting what can be called wholesale rates.

It is also possible to work with a sales rep from a processor that has its own sales reps, and so on, but each will also add a mark-up on their fees. This is the exception in the industry, however, not the rule.

What Do These Options Mean for My Business?

The bottom line is that what’s important to you are the actual rates that you pay, not the supply chain that provides the processing to you. Anyone can claim that they offer wholesale merchant accounts or rates for financial services, but compare your actual rates to make sure that you’re getting a great deal.

Leap Payments will gladly analyze your current statement to make sure that you’re paying as little as possible. We won’t pitch you that our rates are wholesale; our credit card processing solutions are simply better, and our service is second to none.

Credit card processing services can make or break your business. As you open an account for the first time to allow customers to pay by credit and debit cards, or need new equipment when you are expanding to a bigger location, you need to know that your needs are the top priorities. You should never have to worry about hidden mark-ups or fees that kick in after a short period with a new processor. Your company needs easy, efficient, and cost-effective services that deliver real value.

At Leap Payments, we offer all that and more, and we do it while following best practices to deliver cost-effective solutions. So, when other companies claim to offer wholesale fees, look closer. You may be surprised at what’s included—like mark-ups—and dismayed by what’s left out—like dedication to your best interests.

Save time shopping around for the best merchant service provider!

Call Leap Payments at (800) 993-6300 Today!

No Contracts Required, The Lowest Rates, No Hidden Fees, and Much More!

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