What else does it cost?

There are other ways these sales organizations and agents make money.

1: in order to collect the portion of future credit card sales revenue that goes to re-pay the loan / cash advance, usually the merchant must switch their credit card processing service to a processing company that has a split funding relationship with the cash advance company. this agreement ensures that the portion of revenue that is supposed to go towards paying back the loan / cash advance is split correctly as the merchant accepts credit card payments.

Pricing on credit card processing is so complicated, tricky and unclear in most cases, that often the agent selling you the credit card processing agreements does not properly understand the pricing themselves.

And that is where the opportunity to make more money comes in, without the merchant understanding what is being charged, when & why.

Often the agreement will be priced with many useful and profitable items such as a Downgrade surcharges of 1%-2%, cancellation fees of $300-$500 are not uncommon and monthly minimum fees and annual fees to name just a few.

2: Often the merchant will be told that their current processing terminal is insecure, or that it will not work with the new credit card processing relationship, and leasing a new machine is encouraged, Processing terminals when purchased online cost roughly $100 for a simple terminal $250-$300 for an advanced terminal, and $800 for a wireless terminal.

The leases sold on simple terminals usually cost the merchant anywhere from $35 to $150 per month for 24-48 months!