home based business

Start a business in an industry where the majority of all consumers are already customers. 80% of consumers currently own a credit card and/or debit card. The US credit card processing industry has annual revenues of $40 billion. The industry is driven by consumer spending. The profitability of the individual companies depends on efficient operations since margins are slimmer on bigger clients. Larger companies have many products and services and are able to provide general services to a large scale of companies. Small companies (agents) can complete by specializing in industries and providing custom, unique, niche services. The average annual revenue per employee in the payment processing industry is $330,000.

Processors provide transaction services to banks that issue credit cards and debit cards and to merchants that accept credit card payments. Products that are provided to the merchants include; authorizing, capturing, and settling merchants’ credit and debit card transactions while also handling chargebacks. A chargeback occurs when a customer (cardholder) disputes a charge and charges it back to the merchant. Merchant account providers make money from transaction authorization, settlement and statement generation. There are over 40 different income streams from each merchant’s processing account. Another income stream for agents and payment processors is by selling and leasing point-of-sale (POS) terminals.

Agents starting out are able to build their client base while building wealth by focusing on a specific; local area, industry or by providing a specific product or service in addition to offering payment processing that expands their program from other competitors. Payment processing is a competitive industry however an agent is able to make a six figure income by having less than 100 average clients.

The merchant account industry is a very rewarding field to work in. The service is a requirement for nearly every business operating today. Businesses that would have never considered non-cash forms of payment; painters, contractors and plumbers are now being forced to accept these methods of payment in order to stay competitive. This is a huge bonus to the agent. When contacting a business, there is no need to sell a merchant on why they should accept credit cards; they already know that they need the service. Just sell them on your company!

Other home based businesses make you stock your basement full of products that might not sell and then when you begin marketing you realize that the product cannot be sold for the price you thought and you end up losing money or breaking even. Even worse, they might want you to market 10,000+ different products that will be drop shipped to the customer. This sounds good however where do you start marketing with a catalog of 10,000 different products? Finally, if they are selling you a mall of thousands of products to sell, how many other “malls” are they selling to directly compete with you?

Credit card processing is a service oriented business that pays LIFETIME RESIDUALS. Residual income is the key to building wealth. There are no two ways about it. When researching different businesses to be involved with, make sure you check to see which ones pay residuals. If there is not a residual payment, the company is becoming rich from your hard work.