How To Become A Merchant Processor?

Last Updated:

We may earn commissions for purchases made through links on our site. Learn more on our about us page.

Person using a calculator in front of a laptop on a desk - How To Become A Merchant Processor?

Whether you are searching for a meaningful career or just looking for a better income stream, you may have come across merchant processing. 

Becoming a merchant processor can come with strong revenue streams and several benefits, but there are a few things to consider before you can become one. 

A merchant processor is a middleman between the merchant and the IOS software and equipment used to complete a purchase.

Understanding some of the moving parts of this position can help determine whether this is something that can work for you and your situation. You must have a strong understanding of all aspects of credit card processing, along with strong sales skills. 


How Hard Is It To Become One?

Even though becoming a merchant processor might sound like a great position that can allow you to work for yourself and bring nice streams of revenue, there are a lot of moving parts and preparation.

If you have no sales or understanding of how payment processing works, you will need to start by educating yourself in those areas before considering becoming a processing agent. Without those skills obtaining the client base, you need for a successful business could be next to impossible.

Researching which IOS system to use is also a major factor in becoming a merchant processor. There are several options, and you will need to understand their features and which ones will best benefit the clients you are trying to reach.


Things To Know Before You Start

Becoming a credit card processor takes a lot of responsibility, organization, and a ton of prep work before you can even start marketing your services. Here are a few things you should consider before you start:


  1. What type of companies do you want to work with
  2. What type of problems does your ideal clients face with their current credit card processing system
  3. Are you going to operate entirely online, or are you going to have a brick-and-mortar location
  4. How are you going to keep track of your clients and the services you provide to each client 
  5. Which IOS system are you going to use to process payments
  6. Do you know about all the moving parts when processing payment and how they work
  7. What company or organization, if you chose, are you going to partner with to lower the start-up cost?


As you can see, there are many things to consider when considering the position of a merchant processor.


Do You Need A License

Before becoming a payment processor, there is no special license to acquire, but you will need a state-issued business license before applying with your chosen IOS companies. This license will also be required when opening a business account with the bank.

To apply for a business license in your state, the best place to start is online through the state website. You should find information about how to apply there, and they may even offer the option to apply online.


How Much Money Does A Merchant Processor Make

As with a lot of knowledge and sales-based job titles, how much you can make each year can differ greatly. 

If you’re new to this industry and don’t have great sales skills, then you might not make as much as someone that knows just how payment processing works and has outstanding sales skills. 

If you’re just starting out, you can expect to make around 30,000 dollars a year. Compare that to the more experienced merchant processors that make around 106,000 dollars a year, and you see why knowledge trumps in this field of work.


Do You Need To Develop New Software For It

If you are a super savvy computer code individual, you certainly can develop new software that would offer better benefits to the clients you want to work with. Most of us, though, are not great programmers.

If you research your IOS options well and choose the one that solves almost any issue a business might have, there is no need to reinvent the wheel. 

Instead, focusing on what problems your client base needs to be answered will give you a clearer picture of which IOS systems will solve them or if developing a new program might be more suitable.


Final Thoughts on How To Become A Merchant Processor

Becoming a merchant processor might have a lot of benefits and offer a more stable income, but it does come with some serious work. 

So do your research and ensure you are on top of today’s processing trends, and you may be able to have a job you truly enjoy while helping others.

Make sure you know your client base. This will help in the sales aspect when figuring out a marketing plan for your services. A great business plan, in general, will help you become a merchant processor.