Reseller Definition

Merchant Account Reseller Explained:

What is a Reseller? The term “reseller” in credit card processing can be used to signify a person or entity that is selling the merchant account services of another organization, or processor. Resellers can be individuals in the form of independent sales agents, subsidiaries, partners, technology and hardware providers, or other independent sales organizations. Resellers often have the ability to set pricing and contract terms of merchant accounts within certain limits set by the processor.

Independent Sales Agents as Resellers

Generally speaking, independently contracted sales agents receive poor training on the details of the merchant account contracts and are intentionally focused on selling credit card processing services at high costs in exchange for large commissions. Independent agents usually work in outside sales positions and go door-to-door marketing their services. The position is easily attainable within most providers that offer it and often requires only a willingness to sell. Due to this, the position suffers from extremely high turnover, lack of training in the credit card processing industry, and many bad experiences for merchants. When working with an independent agent, be sure to work with someone who you trust and who willingly discloses all fees and terms without hesitation or questioning.

Entities as Resellers

Other organizations that act as resellers can run the gamut with the type of businesses they conduct, and may also have their own independent sales agents. Some may only exist to resell a processor’s services, while others provide their own unique product or service and package it with a processor’s services. When working with any reseller entity, be sure to research both the reseller and processor.

Also see: Sub-ISO

Phillip Parker is a former merchant services sales agent who believes the industry has been overrun by people who engage in fraud and deception in order to steal from hard working business owners. He created this website to help you avoid the bad players, save money on fees, and to get peace of mind with your merchant account. If you would like to help support his work, learn more about our cost reduction service. We can evaluate your statement, tell you exactly how much you're overpaying, and then help you dramatically reduce your fees with your current credit card processor. Looking to switch instead? See our list of the best merchant account providers.

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