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Education

StreetSmarts SM

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With Natasa Cvijanovic
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Contract negotiations — Part 1

Choose the right partner, negotiate

the right terms

By Natasa Cvijanovic Know your portfolio
Tesla Payments Before starting negotiations, it is necessary to assess both
your needs and those of your merchants. Consider your
ollowing are several line items often found in portfolio and the daily transactions processed by your
processor and ISO advertisements targeting merchants.
merchant level salespeople (MLS): large signing Is the majority of their business done in-person or online?
F bonuses, 95 percent residual splits, free credit
card terminals, 10-minute auto approval, lead generation Consider the liability you are willing to assume. Do you
and no minimums. focus on a merchant industry where merchants will likely
face a high volume of chargebacks? If this is the case, you'll
If you are considering signing up with a company that need to find a processor who specializes in working with
advertises all of the benefits mentioned above, you should companies in your industry. With a clear understanding
run! I recognize we are all entitled to our fiction, but you of your needs, you can eliminate unviable relationships
must not believe that you can receive all of the above and and focus on finding the best deal.
get paid as promised. If it sounds too good to be true ...
Walk away from high-pressure tactics
If you look through industry publications, you will
certainly not come across an advertisement that reads: Attempting to get a potential customer, or in this case,
"We are, at best, a mediocre processing company. Join our a potential partner (you), to "think beyond the sale" is a
team so we can pay you accurately ... on occasion." commonly used sales tactic that you are likely familiar
with. This approach assumes you will sign a contract after
Companies seeking MLS partners typically present you are led to talk about what other types of merchants
themselves as the absolute best, the cream of the crop, you will be able to write after signing it or how successful
with each program being superior to the last. So, how you will be. This may make you feel obligated to sign
do you determine which offer is best for you and your or feel guilty if you don't, which means that a sales
merchants? representative is most likely working you.

In this first article in a series, I'll provide a high-level look If you feel rushed to make a decision without having
at choosing the right partner and negotiating the best enough time to consider alternatives, pause the
terms. In the second installment, I'll delve into the details. discussions. Give yourself time to consider your options
and make an informed decision.

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