Hello, I am a licensed Ticket Broker and I am in dire need of help. First of all, let me tell all the people that are new to business to be vary wary of merchant Service Providers. They are like Car sales men ( most not all ) and will tell you anything you want to hear to get you to fill out the application. They will run a credit report on you and they do not give you immediate decisions like they advertise. With all that being said, I do already have 3 merchant services that I am working with, The only reason that I have 3 is because even with 3 of them, I am only allowed to do $70,000 in volume per month which isn't enough. I am tired of applying and looking for more so I thought that maybe someone out here who is doing high volumes can help me out. The thing is, when I advertise on Google and overture, The sales pour in and I cannot put a limit on how much business I am going to do. I have an 800 credit score and I don't know if I am just applying in the wrong places or if this is an industry standard. I have considered going offshore but I refuse to pay those %. Somebody please help me. You can e-mail me @ [email protected]
Michael, ticket brokers as you might know by now fall into the mid to high risk gray area. It sounds as though you are asking for a domestic account that has no cap for your processing needs. Offshore is the ideal place for unlimited accounts, however the discount rate you might have been quoted in the past has you thinking otherwise.
Do you have any idea as to how much your monthly volume would be if you where able to process unlimited?
How far in advance do you collect payments for, with respect to the tickets that you sell? Is there anything in particular that has been mentioned by your current providers as to why they want to limit your processing? (i.e. any specific risk factor)
If your current volume cap is $70,000 and you are looking to expand that - I don't think you need to go offshore. You should be able to get a U.S. merchant account capable of that volume and much more which could also be increased over time as you continue to grow.
You will want to definitely grill any prospective provider on their risk management policies so that you don't run into a situation where funds are held all of the time or where they are expecting one type of processing scenario and it ends up being something different.
However, even though I can totally understand your frustration about the "used car salesmen" reps out there in the industry - there are also good, ethical merchant processing options out there as well.
It is also worth mentioning that a credit check -is- a standard part of everyone's underwriting process. Not only is this a processor's first line of defense against merchant fraud, it helps validate the identity of the signer on the account and now - persuant to the Patriot Act legislation - it is necessary to have what is called an
"OFAC advisory look-up" placed on credit reports to be compliant with it.
I think that there is a solution out there for you with a reputable company... it is just going to be a matter of talking to various companies to see which one will best suit your specific needs.
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