Longer Answer – PayJunction and Merchant Services Explained:

If you are not familiar with the merchant services industry, the following explains the basics. When a merchant needs to accept credit cards, they must have at least two things:

1. A Merchant Account – This is an account that allows merchants to accept credit cards as payment.  Like a checking account, it is an account used to facilitate monetary transactions; however, instead depositing checks you are depositing credit card payments. When a transaction is approved in your merchant account, the funds are generally deposited into you checking account within 48 hours.

2. A Gateway – This is the device or system that is used to process/accept the actual transaction. Gateways include phone line terminals, virtual terminals, website shopping carts, point-of-sale systems, etc.

PayJunction is a gateway provider with a unique product called Trinity.  If you also need a merchant account, PayJunction will match you up with a pre-screened, well respected merchant account provider.  In addition, they will negotiate lower rates for you if you are already processing.  They provide this added service free of charge.  Generally but not always, its processing bank is either Wells Fargo, United Bankcard, or Chase Bank.

Now that we've covered the basics, let's talk about how PayJunction sells its service. It's likely that you are reading this because you are doing some research before making a decision about which provider to choose. Congrats! A very smart move, indeed. Unfortunately, like many industries, there are a few bad eggs that manage to give the overall industry a bad name. I urge you to research any merchant services company of which you are considering doing business. Fortunately, PayJunction is one of the good guys; however, there is one important factor that could impact your experience with this great company, and that is your sales agent.

PayJunction (like most merchant services providers) relies on independent representatives/agent/distributors who are paid on a “commission only” basis for accounts, much like the insurance industry.  This does not increase the price you pay for signing up with PayJunction and is also why you find independent websites like mine.  The problem with the commission only structure is that it can lead to quick turnover and result in dealing with a representative who has not taken the proper time to educate himself/herself on merchant account fees, pricing, and other very important pieces of information that you need to know.   Obviously, problems can arise when this happens.  That being said, the professional staff at PayJunction HQ quickly resolve the majority problems when misinformation occurs.  But, who wants to deal with problems, right?  My advice it to make sure you are dealing with an expert on merchant services and PayJunction. Although problems are unlikely, it will help gaurantee a great experience both short-term and long-term.

Does that clear up any confusion you might be having? I hope so. If not, please feel free to contact me with any questions. I have been in the merchant services industry for close to seven years and representing PayJunction for the last three. I am in expert and consultant in this industry, and always happy to help. Thanks for reading my blog!

Phillip Parker
CardPaymentOptions.com
Direct Line: 310.896.1076