What is a Merchant Consultant?

The ability to accept credit card payments is an absolute must in today’s world. But credit card processing is a complex subject—without thousands of different fees to navigate.

Credit card transaction fees can add up quickly. With average credit card processing fees ranging anywhere from 2% to 3.5% per transaction, businesses are paying tens of thousands of dollars per year just to accept card payments. 

To make matters worse, payment processors are intentionally deceptive when it comes to working with businesses. They make it nearly impossible for the average business to understand cost structures, and they’re notorious for adding unnecessary fees to monthly statements. 

That’s where merchant consulting comes into the equation. 

If your business accepts credit cards, this guide is for you. We’ll explain everything you need to know about merchant consultants, including what they do and how merchant consultants can save you money on credit card processing. 

Merchant Consulting Explained — What Exactly is a Merchant Consultant?

A merchant consultant is an individual or company that works with businesses to help lower credit card processing costs. The goal of a merchant consultant is to save their clients money on credit card processing without the need to switch processors or change equipment. 

Merchant consultants work directly on the merchant’s behalf. They don’t sell processing solutions or payment technology. 

Working with a merchant consultant helps businesses navigate the complex industry of credit card processing. Consultants can determine if a business is overpaying on card processing before outlining and implementing a proven plan to reduce those costs. 

What Does a Merchant Consultant Do?

Like any business or service, the exact role of a merchant consultant varies from provider to provider. But here’s a general overview of what you can expect if you hire a merchant consultant.

Audit and Analyze Processing Statements

To better understand your business, the first thing a merchant consultant will need is a three to six-month history of your processing statements. They’ll analyze the numbers to get a sense of your contract structure and what types of fees you’re paying to accept credit and debit cards. 

From there, they’ll identify any extra fees, unnecessary charges, hidden fees, and assess how much you’re overpaying. Your merchant consultant can also determine whether or not your processor is holding up their responsibilities in your merchant agreement. 

Negotiate Your Rates Directly With Your Processor

Merchant consultants are expert negotiators. They can negotiate processing rates directly with credit card processors on behalf of businesses. 

Most businesses don’t have much luck when they call a processor and ask for a lower rate. That’s because the processors know that the business doesn’t understand the industry. They simply say, “We’re already giving you the lowest possible rate.” Merchant consultants know that this isn’t the case, and they can leverage information to reduce rates for their clients. 

The best merchant consultants won’t try to sell you new equipment or recommend a new credit card processor. So you can save money without having to change anything that you’re doing. 

Ongoing Monitoring and Consultancy

Once the initial cost reduction is implemented, the arrangement with a merchant consultant doesn’t end. Your consultant will continue to monitor all of your monthly statements—keeping a close eye out for any cost increases or additional charges.

Again, credit card processors are notorious for this. They’ll randomly try to sneak in hidden fees because they assume that businesses either won’t notice or will simply accept them as necessary. But a merchant consultant can identify these fees and obtain refunds or credits on behalf of their clients. 

If your processor attempts to increase your rates again in three, six, or 12 months, you can rely on your merchant consultant to push back and work on your behalf to ensure you always get the lowest possible rates. 

Benefits of Working With a Merchant Consultant

There are countless advantages to working with a merchant consultant. Here’s a quick overview of the top benefits:

• No Risk — There’s no reason not to let a merchant consultant review your statements. It’s a free service to identify areas where you can save money, and it won’t cost you anything. 
• Cost Savings — Your credit card processor is not losing money on your account. They mark up each transaction to earn a profit every time you accept a card payment. This means there is plenty of room for concessions and cost-cutting that can be obtained by your merchant consultant, meaning you can save tens of thousands if not hundreds of thousands, every year. 
• No Effort — There’s minimal effort required on your end to work with a merchant consultant. Beyond providing some statements, your consultant can handle everything else on your behalf. This includes constant calls and emails to your credit card processor to negotiate your rates. You won’t have to lift a finger while this happens.
• No Need to Switch Processors — Working with a merchant consultant does NOT mean you need to switch processors. It’s rarely a good idea to change processors, and it’s usually more expensive to do so. Instead, merchant consultants can save you money by cutting costs on your existing statements. 
• Keep Your Equipment — Many businesses have complex POS systems or customized setups to accommodate workflows and internal infrastructure. You can keep all of this in place, including customer databases, integrations, and cards saved on file. Since you’re not switching processors, you don’t have to change your equipment either. 
• Peace of Mind — You no longer have to worry or ask yourself if you’re overpaying to accept credit cards. With ongoing monthly monitoring, your merchant consultant can immediately identify rate increases or hidden charges. They’ll work to get those removed from your bill and ensure your processor refunds or credits you appropriately. 

To say that a merchant consultant delivers a high ROI would be a drastic understatement. That’s because the investment doesn’t require any upfront capital, significant time, or valuable resources. 

Imagine what you could do with an extra $25,000, $125,000, or $250,000 in your bank account this year. With a merchant consultant, you won’t have to imagine—that thought can become a reality. 

What’s the Difference Between a Merchant Consultant and a Merchant Services Provider?

While the two terms may sound similar, merchant consultants and merchant services providers are two very different things. 

Merchant consultants try to get your processing rates as low as possible. Merchant services providers work to get your rates as high as possible. 

A merchant consultant works for the business that hires them and has the client’s best interest in mind at all times. But a merchant service provider is only interested in their own bottom line. They want to make more money, and they do this by inflating processing rates for merchants using their services. 

When you speak to a merchant service provider sales rep, they’re not interested in saving you money. The more they can charge you, the more they earn in commissions. Even if they say they’re giving you a deal or cutting your costs, it just means that the first offer they gave you was already grossly inflated. 

Merchant service providers will also try to continually increase your rates over time. Sometimes these rate increases can come multiple times per year.

That’s why you need a merchant consultant to identify these unfair charges and fight against your merchant services provider on your behalf. 

How Much Does a Merchant Consultant Cost?

The cost structure varies for different consultants and consulting firms. Some merchant consultants charge a flat fee, and others bill hourly for their services. But neither of these is the ideal structure for a business. 

Here at Merchant Cost Consulting, we don’t charge anything to audit and analyze your statements. We only make money when you save money—based on a percentage of the savings we obtain on your behalf. So if we can’t lower your rates, you don’t pay anything. 

This type of pricing structure makes the most sense for a business because it incentivizes the consultant to do well. If a consultant is being paid regardless of the results they produce, they’re likely not going to go the extra mile to get you the lowest possible rate. 

What Types of Businesses Work With Merchant Consultants?

Any business that accepts credit cards can work with a merchant consultant. From small businesses to Fortune 500s, franchises, and chains, merchant consultants work with organizations of all sizes across all industries. 

Some examples of business types industries that we work with our team at Merchant Cost Consulting include:

• Restaurant
• Retail
• Medical and Healthcare
• Dentistry
• Veterinary
• Automotive
• Ecommerce
• Nonprofit
• Pool and Spa
• Software
• Golf, Sports, and Fitness
• Hotel and Hospitality

We also work with high-risk businesses, including subscription services, online tobacco sales, telemarketing, pharmaceuticals, online gambling, vacation rentals, CBD, and more.  

You can check out our case studies to see some real examples of how we’re saving businesses money on credit card processing with our consulting services. 

We helped one client save $350,000 per year and recovered a $110,000 refund for hidden charges. Our team saved another business $275,000 in the first year alone and reduced their overall processing costs from 3.95% to 2.51% without the need to change processors or switch equipment. 

What a Merchant Consultant is Not

While there’s a lot that a merchant consultant can do for businesses, there are certain things that they cannot. So I just want to quickly identify some of those areas to clear up any misconceptions. 

Merchant consultants don’t have control over the interchange rates imposed at the card network level. The rates set by Visa, Mastercard, Discover, and American Express are non-negotiable. So if those go up, that’s out of our hands. However, we can still negotiate your processor’s markup to help offset interchange increases by the major card brands. 

It’s also worth noting that merchant consultants don’t provide legal services, accounting, or any actual credit card processing services. If you hire a merchant consultant and they try to sell you equipment or get you to switch processors, they’re not really a merchant consultant. They’re an independent broker, ISP, or sales rep that will earn commission by getting you to switch.

Final Thoughts—Should You Hire a Merchant Consultant? 

Merchant consultants are valuable resources that can help businesses navigate the complex world of credit card processing. 

There’s a good chance that you’re overpaying to accept credit cards. Unless you want to continue overpaying, then you should definitely consider working with a merchant consultant. 

Our team here at Merchant Cost Consulting saves millions of dollars annually for our clients. We know exactly how to identify hidden fees, spot contract inconsistencies, and negotiate rates with credit card processors. In addition to ongoing savings, we can even help you obtain a refund for previous overages that you’ve been charged.

Get your free audit and analysis today to find out how much you can save.