Let’s face it, many business owners see merchant processing as a commodity. And who can blame them? The industry pumps out salespeople who sell on rates alone and have limited knowledge of the industry, its regulations, and the systems that authorize their transactions.
Merchants tend to shy away from any discussion that involves credit card processing. Chances are, they have experienced an unfortunate event that left them telling themselves they will never switch again.
Objections to merchant processing has evolved over the years. Some are valid, and some are merely used as a polite way of expressing they are not interested. With that said, I think this a good time to share my “Top 10 Objection and Rebuttal” list. Hopefully this post will help you when you come across merchants who politely tells you they are “not interested.”
From the Home Office in UNCERTAIN, TEXAS here are
THE TOP 10 OBJECTIONS AND REBUTTALS
10. I’m Happy With My Current Provider
This is a common objection which usually means “I am not interested in talking right now,” even if they aren’t happy with their current provider. It helps to remind the business owner that is it important to review their statements every few months to expose any hidden fees that drive their cost up. You are not asking them to change. You merely want an opportunity to analyze their statements to confirm what they are paying is what they were originally quoted.
9. I Have A Contract That I Can’t Cancel
Trust me. They are not the first merchant that we have come across that is tied to a contract. What we have found is that many times there are more savings in breaking their current agreement for a lower merchant processing rate than waiting out the term. The right approach would be to request a thorough cost-benefit analysis and compare the monthly savings vs. the cost of breaking the agreement.
8. Last Time I Tried To Change I Had A Bad Experience – Never Again
The first step you will want to take is to find out if it was a financial issue or a setup issue.
If they ran into a financial issue, reassure them that we have rates explicitly designed for their industry and transaction needs. It would help to have a few sample statements ready to show so they can see the clarity of the reporting.
If it was a setup issue, they must be aware that many people in the industry can sell processing but are unfamiliar with the technology involved. Explain that you specialize in point of sale and terminal setups. That you work closely with each software company to make sure the system is set up and tested right the first time.
7. My Processor Gives Me The Terminal For Free – Do You?
A merchant’s agreement may state “free terminal,” but we all know nothing is free. Whether it’s a “annual/monthly statement fee” or “technology fees”, many processors have mastered the art of hiding the cost of terminals in their billing. If you offer a free terminal let them know you don’t have these junk fees.
6. I Already Have The Best Rate
This is probably the biggest objection we hear. However, it may surprise you to know how many merchants have no real idea of their rate. When a thorough statement analysis is complete. At no fault to the merchant, “I already have the best rate” usually means “I already have the best quote.” We need to help them understand that what was originally quoted is more than likely not what they are paying. The majority of statement analysis I have performed reveal hidden fees that were never discussed during the quoting process. As a result, they incur a much higher effective rate than what they expect.
5. What Are Your Rates
While this response may sound “salesy,” there is no possible way to answer this question without understanding the merchant’s business and transaction types. You want to give the business owner the information they are looking for, but more importantly, you want to give them the correct information. Providing misinformed information benefits no one. Having a better understanding of the merchant’s monthly volume, transaction type (swiped, manually keyed, moto, etc.) and transaction amount/count is vital information to give an accurate quote. .
4. I Won’t Show My Statement
Many merchants are hesitant to share financials with strangers. It makes sense. Assure the merchant that the information on the statement is only being used to analyze their fees and will be strictly confidential. If it makes it easier, offer to review the financials with them present and that way you are not leaving with a physical copy. A few minutes can reveal a lot about their rates and can be very informative for the business owner.
3.. No Thanks … I Just Changed Processors
If the merchant changed processors recently, now would be a better time than ever to complete a statement analysis! This will ensure they are receiving the Effective Rate they were quoted. Let it be known you are not asking them to switch. You would simply like to walk through their statement to explain the charges to make sure they fall in line with what was sold to them.
2. Every Processor Charges The Same, And There Is No Such Thing As True Savings
This is a common misconception in the merchant processing industry. The merchant needs to know that there are processors that run sales shops that are limited on the savings they can offer. However, tell them your work with a sales organization, who have greater control on the pricing they offer. Every rate and fee will be detailed in their agreement, and their statements are designed to outline their savings in a CLEAR and CONCISE layout.
And the number 1 Objections When it Comes to Merchant Processing is….
1. This Is My Busiest Time Of The Year / Not A Good Time To Change
There is never a good time in business for a change but consider this. If there is a substantial monthly saving by switching and the changeover is seamless, isn’t the busy season a great time for a change to maximize their savings?
The best approach that I have found for this situation is to assure the merchant you are not asking them to change right now. You are merely trying to analyze their savings. If they feel a switch-over is worth it, great! If not, then they have the information they need to perform the switch-over at a more convenient time.
I hope these suggestions help to educate business owners about merchant services. We all know people buy from people they trust. For me, a large part of my success in merchant services is built around me consulting merchants so they can make an informed decision.
Have a great weekend,
David
Payment Lynx Daily 