The End of Discount Based Merchant Residuals

January 2nd, 2008 • Related • Filed Under

merchantwarehouse.jpgAnd so it begins. Merchant Warehouse today began offering free processing for the month of January. In part, as a means of recovering some lost business to Paypal and Google Checkout, but in part to test the waters of what the EU ruling really will mean to the merchant service provider industry.

If you have deep pockets like Google does, it’s easy to cover the cost of processing for your merchants when it means those merchants will take some of those savings and spend it on advertising. What happens when you are in the merchant services arena and depend heavily on those discount residuals for your livelihood?

Ultimately, only time will tell how the EU ruling will affect the merchant industry but in this blogger’s viewpoint, it’s unfortunate that the end of residuals is coming near as so many small to medium sized ISO’s who have managed to keep their heads above water are only starting to see the fruits of their labor.

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There Are 3 Responses So Far. »

  1. Comment by stepmy on 3 January 2008:

    Good riddance, I hate my bank.

  2. Comment by Shasha on 25 January 2008:

    Is merchant warehouse another paypal-like company, except that it’s from the EU? Did I get this one right?

  3. Comment by Guy Patterson on 16 March 2008:

    Merchant Warehouse is an ISO (Independent Sales Office). Paypal is not even in the same realm. Paypal is like western union, it assumes no liability, and if a charge back happens, you are responsible, not paypal.. And its stated in your Terms of Service. http://www.paypalsucks.com.. Check it out if you don’t believe me. Merchant Warehouse is a very credible company I have been doing business with them for awhile. The people there are great, and everyone I have talked to is very knowledgeable. The only reason I know is I was doing business with paypal and they screwed me. Merchant warehouse read through my statement of paypal and gave me a better deal with no contract. I love them and recommend them to anyone. Talk to a guy name Chris ext. 2108. He helped me out and saved me a bunch of money, and he could prob. help you out too.

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