FAQ - Negotiator versus merchant service provider - (FREQUENTLY ASKED QUESTIONS)
Many merchants have questions about our process and procedures. Take a look at these Frequently Asked Questions in an effort allay any concerns you may have.
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Q: How do we determine the savings after you get us the lowered rate?
A: We do this in one of two ways:
1. We can take 3-4 months of your merchant statements in order to determine an average effective rate we can both agree on. Then we take your new effective rate based on our negotiations and subtract it from the old effective rate. We then multiply that difference by your total monthly volume which will represent the total savings for the month.
2. If the negotiable component is clearly disclosed on your merchant statement, we can simply deduce the savings by, again, figuring out the difference and multiplying it by your total volume for the month. Savings can also come in the form of refunds that we can obtain for you.
1. We can take 3-4 months of your merchant statements in order to determine an average effective rate we can both agree on. Then we take your new effective rate based on our negotiations and subtract it from the old effective rate. We then multiply that difference by your total monthly volume which will represent the total savings for the month.
2. If the negotiable component is clearly disclosed on your merchant statement, we can simply deduce the savings by, again, figuring out the difference and multiplying it by your total volume for the month. Savings can also come in the form of refunds that we can obtain for you.
Q: What are your fees?
A: If you decide that you want us to do the work for you, GlassHouse Consulting will split the savings with you 50/50 over 36 months (3 year retainer) or you can simply do a buyout and pay us 8 months of the savings up front (with a 1 year retainer). This program includes a streamlined and customized tutorial based on new changes to your account.
Q: How do you collect your fees if you negotiate the rates for us?
A: If we split the savings 50/50 over 36 months, we will contact you every 2-3 months to review the merchant statements and determine the savings for those months. Once we determine that we will collect payment based on 50% of the savings for those months. If you decide you would like to pay up front, we take the difference between your old rate and the new rate (after 1st month of processing) and multiply it times 8 months of volume. We determine your average monthly volume by using 12 months’ worth of merchant statements.
Q: What if there are no savings?
A: Then you don’t pay us anything. If you take the tutorial and learn there are no savings after analyzing your own account, don’t look at this as a bad thing. If you couldn’t tell you had rock bottom rates, then the tutorial did its job and you are now armed with knowledge to help maintain the same, low rate year after year. Ultimately, you need to ask yourself: how do I know if I have a low rate if I don’t even know what the lowest rate is?
Q: How much time does this process take?
A: If we do the negotiating for you, we do all the work and will take very little of your time, at the most only needing a hour of your time over the course of a few weeks.
Q: What if our processor/bank/ISO will not meet the requirements set forth by GlassHouse?
A: Although this is unlikely to happen, the obvious choice is let GlassHouse handle the processing for you at the same rate we'd try to obtain for you. If you want a third option, we have many reputable options for you that will give additional choice.
Q: If we sign up with GlassHouse for credit card processing, how do you guarantee a "bottom-of-the-barrel" lifetime rate?
A: Since we are the registered agent for the credit card processor, we have 100% say in how much we charge you for our rate. We not only apply the same low rate we would seek for you if we negotiated with your current provider but we can guarantee a lifetime of the account rate since we are the registered independent agent. The reason we are able to write the rate on a razor-thin margin is because we have extremely low overhead and we look at the overall volume from multiple merchants being processed in our portfolio as the source of our total profit. The lifetime rate is based on the presented volume at the time you sign up and we will establish the threshold at which time that will change if the volume drops dramatically - before you even sign up.