One of the bonuses about payment service providers is the reselling partner program, in which PSPs work together to find a payment solution for a merchant. Of course, PSPs compete with one another for business. But in terms of finding options for hard-to-place merchants, PSPs can make the ultimate business partners.
How the Reselling Partner Program Works
Some PSPs often have a difficult time matching a business or merchant with an acquiring bank so that they may process credit card transactions. There could be a number of reasons for this. The most common is that the type of business may be high-risk – travel-related, online pharmacies, internet gambling – which many traditional banks tend to shy away from.
When PSP 1 cannot find a viable banking option for a hard-to-place merchant, it turns to a second PSP, usually one that specializes in high-risk businesses. From there, the two PSPs agree on how to split revenues, usually around 50 percent, although some PSPs offer as high as 70 percent for referrals.
When PSP 2 finds an acquiring banking solution for PSP 1, they split revenues as previously agreed upon, some for as long as the life of the account. It is an arrangement that strengthens partnerships and usually leads to further deals and pacts, through which both PSPs greatly benefit.
Building the Optimal Reselling Partner Program
It is a simple equation: To become a viable reselling partner program, it helps to build a diverse network of acquiring banks. The more acquiring banking options available, the better the chances of finding credit card processing solutions for hard-to-place merchants.
What to Look for in a Reselling Partner Program
Diverse network of offshore banks: Having a vast network of acquiring banks is vital in shopping for a reselling partner program. Now take it a step further: Find a reselling partner which has offshore banking options. Offshore merchant accounts have many benefits, including processing in different currencies, fewer tax restrictions and no processing caps. Processing offshore may be the most practical option for medium- and high-risk merchants.
No minimum number of accounts: Some PSPs will only pay residuals contingent on a minimum number of approved accounts. Sometimes five or even 10. Find a PSP with no set minimums – ensure you get paid whether you have one or 10 approved accounts.
Live customer service: Save time and aggravation by choosing a reselling partner program whose customer support team speaks with clients and other PSPs one-on-one.
White label solutions: Choose a reselling partner program that enables PSPs to use their own brand and logo on the merchant application.
Finding the Best Reselling Partner Program
The best PSPs pride themselves on finding banking options for merchants. Instabill, a PSP located in Portsmouth, N.H., USA, has an open-door policy for new partners to discuss joining its reselling partner program. With a vast and growing network of domestic and offshore acquiring banking partners, Instabill offers up to 70 percent revenue sharing on each approved application package. Learn more about Instabill’s Reselling Partner Program today.