There are many ways a merchant services sales person can make money. This article will examine the top 6.
Monthly Fees
Merchant services salespeople typically earn a portion of the monthly fees charged to merchants as ongoing residual income. Depending on who they work for, salespeople may have the flexibility to adjust these fees within certain limits, potentially increasing their earnings by setting higher rates while still remaining competitive in the market.
Processing Fees
Processing fees typically represent a significant source of income for merchant services salespeople. They usually earn a percentage of the markup added to the base interchange rates set by card networks. This markup is often negotiated with each merchant, allowing skilled salespeople to maximize their earnings while still offering competitive rates. As processing fees are applied to every transaction, salespeople benefit from both the volume and value of transactions processed by their clients. High-performing salespeople focus on acquiring merchants with large transaction volumes or high average ticket sizes to increase their residual income from processing fees.
Consulting Time
While consulting time is often presented as a value-added service, savvy salespeople can monetize this activity in several ways. Some may charge a direct fee for their expertise, especially for more in-depth consultations or ongoing advisory services. More commonly, salespeople use consulting time as an opportunity to identify additional service needs, upsell higher-tier products, or secure long-term contracts. By positioning themselves as trusted advisors, they increase the likelihood of making sales and retaining clients, indirectly boosting their earnings from other revenue streams like monthly fees and processing charges.
Hardware Sales
Salespeople can earn large one-time commissions from hardware sales, which can significantly boost their income. These commissions are often calculated as a percentage of the sale price or as a flat fee per unit sold. Some companies may offer higher commission rates for premium or newer models to incentivize their promotion. Additionally, salespeople may earn residual income from hardware leases, providing a recurring revenue stream. Skilled salespeople focus on understanding each merchant’s needs to recommend the most suitable (and often more profitable) hardware solutions, balancing immediate commission gains with long-term customer satisfaction.
Hardware Maintenance
Merchant services salespeople can generate income from hardware maintenance in a few ways. They may earn commissions on the sale of maintenance contracts or extended warranties. Some companies offer residual income to salespeople based on the ongoing maintenance fees paid by merchants. By emphasizing the importance of regular maintenance and prompt support, salespeople can increase the adoption of these services among their clients. Additionally, maintenance contracts often lead to more frequent interactions with clients, providing opportunities for relationship building and potential upsells of other services or hardware upgrades.
Cash Discount
Cash discount programs can be a lucrative offering for merchant services salespeople. They typically earn money from these programs through a combination of setup fees and ongoing residuals. Salespeople may charge a one-time fee for implementing the program, which can include configuring the POS system and providing staff training. They also usually earn a percentage of the service fee charged on card transactions, which can be higher than standard processing fee residuals. By positioning cash discount programs as a cost-saving solution, salespeople can attract price-sensitive merchants while potentially earning higher commissions compared to traditional processing setups.