Transparency in Payment Processing and Breaking Down the Barriers to Fair Merchant Services: PayBright
Dustin Magaziner, Founder, PayBright
In episode 80 of The Payments Show Podcast, I spoke to Dustin Magaziner who is the Founder of PayBright.
PayBright helps businesses to reduce processing costs by up to 30%, recommends the best payment systems for different types of business, and provides risk management advice to ensure your business runs 100% of the time.
AUDIO VERSION: thepayments.show
Episode Highlights:
Businesses Are Sceptical About Big Cost Savings
I had businesses all the time tell me, it's too good to be true. You're going to give me a free machine, there's not going to be a contract, and you're not going to raise my price?! How do you guys make money? My answer is, well, let's just do the math … I break even at five months. But if I don't raise your price and I service you properly, how long are you going to be in business here? 5 years? 10 years? 20 years? I should make that money back plus, plus, plus, right? It's about lifetime value.
Introductory Rates: Bad for Both Parties
… what I call starter rate game is still really prevalent in our business and it's something I fundamentally don't believe in… the processor is banking on is that you won't notice the rate increase. And it seems, just to me, a little dishonest. They'll try to justify it: “Oh, well we put it on the statement”, a little message at the bottom. To me, that's not right. I've seen price increases that are thousands of dollars a month. A month. Businesses paying tens of thousands of dollars a year more in processing fees from one month to the next.
Account Termination, TOS, Payments Being Frozen: Risk Management
Risk is a complicated conversation or topic in our industry because the question is what makes it risky, right? A business can be risky due to the products and services they offer. That's one level of risk: reputational risk. Whereas other things could be financial risk, like subscription based or telemarketing type services have a very high financial risk associated with them. You can also have risk due to risk of fraud, and that's a whole different level of risk. And this might be the inability for a processor to validate or verify the business. With a company like ours... We have a risk department. We have an underwriting department. Our risk department talks to merchants.
