Merchant Account Hiring Mill Explained:
What is a hiring mill? The term “hiring mill” generally refers to any company that hires its employees on an independent or part-time basis without the expectation that these employees will someday become full-time workers. Businesses who use hiring mill strategies often expect to see high turnover in their staff and do not bother to provide extensive training or support for new employees. In the credit card processing industry, hiring mill practices are especially common within sales departments.
Many merchant account providers prefer to hire a high number of independent sales agents in locations across the country. The providers usually pay these agents by commission and provide bonuses for bringing in large accounts. While this decentralized method is good for increasing a company’s presence in different markets, it often has disastrous results for merchants. Without careful training and oversight, many independent agents work to sign merchants up for more expensive contract terms in order to earn a higher commission.
For these reasons, hiring mills often receive poor reviews from merchants. As a general rule, merchants can expect better service from companies that utilize full-time, in-house sales teams.