Dedicated or Aggregate Merchant Account

Dedicated or Aggrregated Merchant Account

posted Aug 22, 2014, 7:50 AM by Rickey Wright   [ updated Oct 13, 2018, 2:16 PM ]

Dedicated or Aggregated Merchant Account

Posted on Nov 14, 2012 at 16:52 in by Lisa Hephner

Offering your customers the option to pay with a credit card is a great way to enhance revenue for your small business. Your customers want the points associated with rewards cards, and they want to manage their own cash flow by floating balances or financing their purchases. Allowing them to use credit cards accomplishes both.

So, give the customers what they want. If you don’t accept credit cards yet, now is a great time to start. Having made that decision, the next step is to obtain a merchant account for credit card processing. Merchant accounts come in two basic flavors, dedicated accounts that are provisioned specifically for your business, and aggregated accounts (such as those provided by Square) that use a single merchant account to provide credit card processing for an entire portfolio of companies.

Each has its advantages and disadvantages. Consider these 4 key points when deciding which type is the most advantageous for your small business:

• Funds Control: With a dedicated merchant account, transaction proceeds, less processing fees, are deposited directly into your business bank account. While the merchant account provider can correct errors, react to potential fraud, and debit your account for customer “chargeback” claims, this must all be done based on industry-standard credit card processing rules. With an aggregated merchant account, transaction proceeds go to the service provider and are then deposited to your bank account at the provider’s discretion. There are no industry standards or rules that govern how an aggregated merchant account provider handles or disburses your money. The provider makes the rules, and can change them at will, so if you choose an aggregated merchant account pay very close attention to the contract terms and any changes made to them.

• Creditworthiness: To obtain a dedicated credit card processing merchant account your business will need to go through comprehensive underwriting. If your business is very new, if it has a less than stellar credit history, or if you’re in a difficult to underwrite industry, then an aggregated merchant account may be the best choice. While you’ll still need to provide information about your business, underwriting for aggregated accounts is typically far less rigorous than for dedicated merchant accounts.

• Speed: Getting a dedicated merchant account can take time. While there are some providers automating the process and providing same-day decisions, a typical application will take 48 hours to approve and additional time to integrate into a POS or electronic payment processing environment. Signing up for credit card processing under an aggregated account service provider can usually be done in minutes, and it often comes with an online system that can have you actively processing payments within the hour.

• Neighborhood: With a dedicated merchant account the only company processing credit card transactions through it will be yours. Thus, you are in full control of keeping the account in good standing. With an aggregated account, you’ll have no idea about the other companies processing transactions. If a good number of them engage in fraudulent activity, it is possible that the service provider’s processing account will be terminated and even honorable businesses like yours will lose credit card processing ability. If you do go with an aggregated account, it is very important to make sure that your provider is large enough to absorb fraud generated by a few bad apples. If you’re using a small provider, try to get a list of the other businesses using the service, and check them out to see if you want to live in the same neighborhood. Of course, the actual credit card processing rates you’ll be charged are a critically important factor as well. But as with most things, you get what you pay for; so don’t choose a low rate without also considering how the provider you select will impact your overall business. Do you have any experience with credit card processing?

Reference: by Lisa Hephner

Paperless Merchant Applications

posted Mar 12, 2014, 2:21 PM by Rickey Wright   [ updated Aug 22, 2014, 7:59 AM ]

Merchant credit card processing companies have developed online and click here I agree applications for new merchant credit card processing accounts and I think this helps the industry in these ways.

1. Takes high pressure selling out of the picture as the new prospective merchants are on their computer or receiving an email application to sign up.

2. The schedule A form to disclose all possible and regular rates/fees are emailed or sent as part of the new application to explain what the cost of processing.

3. Representatives are not carrying around paper copies of the new merchant applications with sensitive information and numbers that could be stolen or lost and wind up in the wrong hands.

4. It makes the new application process faster with built in checks and balances that a written merchant application could never have.

Less sales pressure, full disclosure, higher merchant information security, faster service with written mistakes eliminated is all apart of the merchant credit card processing industry making improvements.

Rickey E. Wright
Cabrera Wright Company

I Love Doing Business With Highly Ethical People And Highly Ethical People Love Doing Business With Me

posted Feb 28, 2014, 9:54 AM by Rickey Wright   [ updated Aug 22, 2014, 8:00 AM ]

This is something someone said about me and the Cabrera Wright Company. I take it as a compliment and I started sharing it with those who want to lean how I operate in the merchant credit card processing industry. This industry has a reputation of taking advantage of hard working merchant entrepreneurs and I am committed to never let this happen to my merchant clients and to always be their advocate when I am trusted to handle their merchant credit card processing.

Rickey E. Wright
Cabrera Wright Company  

Christian Credit Card Processing

posted Feb 26, 2014, 1:19 PM by Rickey Wright   [ updated Aug 22, 2014, 8:01 AM ]

It Is Important For The Merchant To Understand That The Credit Card Processing Company And Representative That They Do Business With Will Only Operate With The Highest Principals Of Integrity.

1. Integrity, This means always doing what is right. The organization with integrity will make its business decisions based on the standards and principles of God with truth and honesty. 

2. No high pressure sales, we add new customers through referrals and network marketing. 

3. Commitment to excellence, If an organization is to be recognized as an exemplary one, one whose goal is to glorify God through its commitment to excellence in its service and product, it must always honor God and be thoroughly aware of its role and mission in the world. Such an organization never forgets that God has called them to be His witness to the world in which they do business.

4. A portion of our profits will only support charitable organizations that follow Christian moral principals. We support this Christian charitable organization on a monthly basis "Sharing Life Community Outreach". To find out more information about this organization see 

Our core merchant credit card processing principals 

1. We believe that the merchant's needs and interest are always our first priority.

2. We believe that the most transparent and cost effective credit card processing plan for the merchant who is processing over $4,000.00 a month is the "Interchange Plus" plan sometimes referred to as the interchange pass-through or true pricing plan. For smaller merchants or the merchant who accepts the occasional credit card from a customer using their phone or iPad the "Flat Rate" plan, with no other monthly charges or fees, can be a cost effective merchant credit card processing plan. This is a negotiable item of the merchant services contract.

3. We believe that it is not in the best interest of the merchant to sign a long term merchant credit card processing contract with early cancellation fees. The month to month merchant credit card processing plan is how you want to be treated as a merchant. This is a negotiable item of the merchant services contract.

4. We believe that it is not in the best interest of the merchant to sign a long term lease for credit card processing equipment with early cancellation fees. This is a negotiable item of the merchant services contract.

5. We believe there should never be any hidden fees, surprise fees or undisclosed fees in a merchant credit card processing plan. We call that the "Sin of Omission" in the credit card processing industry and we believe that is never acceptable. A merchant should always receive the schedule A form which is a full disclosure form for all regular fees and rates, monthly fees, per occurrence fees, miscellaneous fees and any annual fees. A full disclosure of all possible rates and fees is required by card association rules.

Mission Statement
We Are Committed To The Business Principle Of Applying The Golden Rule "Treat Others In Business As You Want To Be Treated In Business".

We Will Always Find The Solutions That Are In The Merchants Best Interest.

We Will Only Represent Merchant Credit Card Processing Companies That Are Built On Quality, Integrity and Transparency.

We Are Helping Fellow Merchants Avoid The Mistakes We Made When We Began To Accept Credit Cards For Our Customers Convenience.

We Love Doing Business With Highly Ethical People And Highly Ethical People Love Doing Business With Us.

Rickey E. Wright
Cabrera Wright Company

Advice For The Merchant About Credit Card Processing

posted May 21, 2013, 8:15 AM by Rickey Wright   [ updated Aug 22, 2014, 8:02 AM ]

There are some mistakes merchants can avoid when they get a merchant account and start accepting credit cards and debit cards as payment for their products and services. Here is some good advice from a fellow merchant who now is an independent credit card processing representative. 

1. Do not fall for the "What's your rate" sales tactic. It is not the rate it is the type of merchant services pricing plan that you need to look for. The most transparent pricing plan is the Interchange Plus or sometimes referred to as the Interchange Pass Through merchant account. Another good choice especially for the merchant who occasionally accepts a credit card is the Flat Rate plan. Traditional Tiered Plans are to complicated, subjective, easy to overlook downgraded surcharges for reward cards and corporate cards and ultimately cost the merchant more money. Now they are called by other names like "Enhanced Bill Back" but stay away from these Tiered merchant accounts.

2. You should never have to sign a merchant account that has an early cancellation penalty. There are merchant accounts being signed everyday with an addendum to the terms and conditions of the merchant contract that states that there are no early cancellation penalties. Some credit card processors put that right on the merchant application for you to sign. Here is an example of one my processors that have added this to their merchant application "The terms of this agreement are month to month and there are no early termination (cancellation) fees." My advice is this, You should do business with a company because they are doing a good job not because it is to expensive to leave and take your business somewhere else.

3. It is not in the best interest of the merchant to lease a credit card terminal. These leases come with an irrevocable lease contract which is impossible to get out of without paying one of those early termination (cancellation) penalty fees. This is a very costly mistake for a merchant to make. Credit card terminals, like all electronics, are getting less expensive and a large majority of merchants who do not have long lines of customers checking out can use their computer as a virtual terminal and they don't need a credit card terminal.

4. If some salesman is using high pressure on you to sign today or the deal goes away "JUST SAY NO". This salesman is not looking out for your best interest they are looking out for their best interest. Remember the Interchange Plus pricing plans, the No Early Termination (cancellation) Penalty Merchant Contracts and Not Leasing Credit Card Terminals are always in the merchants best interest.

Rickey E. Wright
Cabrera Wright Company

Merchant Services Contracts Are Negotiable

posted May 13, 2013, 4:48 PM by Rickey Wright   [ updated Aug 22, 2014, 8:02 AM ]

It really frustrates me to be referred to a hard working merchant and find out they have been told something that is not true or, they have been the victim of "The Sin Of Omission" and some important details were left out in the merchant services contract discussion. Just last week I was referred to a business owner and he had signed a contract to lease a credit card terminal when he had a perfectly good terminal already. The new credit card processing company said that all merchants got the best deal when they provide the terminal. Well this merchant did not understand that he was signing an irrevocable lease agreement for the new terminal that had costly early cancellation penalties if he decided to quit before the contract was up.

Here is the truth about merchant services and the contracts that merchants are ask to sign. Very important things in the merchant services contract are negotiable such as early cancellation penalties. I am an independent credit card processing representative and I have placed merchants with five different processors and everyone of these processors let me sign merchants to merchant contracts without any early cancellation penalties. Furthermore I have never had one of my merchant clients lease a terminal because that is not in their best interest. It cost to much and those irrevocable equipment lease contracts are one of those costly mistakes I will not let my merchant clients get caught up in. 

Remember "Very important things in the merchant services contract are negotiable" so always negotiate and never be pressured to sign any contract with early cancellation penalties and do not lease your credit card processing equipment.

Rickey E. Wright
Cabrera Wright Company

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