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Q & A – How to Flip Stripe Merchants to Your Gateway
Merchant Sales Podcast · Q & A – How Can Satisfied Merchants Be Lured from Stripe? This week’s question is from an agent whose clients are mostly eCommerce merchants. Many eCommerce merchants are well satisfied with Stripe. […]
The Pitch: “The good news is that we can integrate with their solution thru our gateway. Everything would be the same, except we are cheaper. If I can offer you significant savings, take care of switching your shopping cart solution to another gateway, and save you money in the process, is that something in which you’d be interested?”
“I totally understand why you went with Stripe. They have great documentation for developers and integration with them is very easy. However, you probably didn’t realize at the time of integration that you integrated with a gateway which is also a credit card processor. Stripe has now locked you into their rates.
Let me ask you a question, Mr. Merchant: When Stripe raises your rate by a percent or half percent in a year, what are you going to do? Are you ready to deal with that? You would just have to eat it, right? Are you willing to put your future profitability into the hands of Stripe, knowing they have the full ability and authority to do a price increase whenever they want – just like any other processor? You realize you’re totally powerless to escape that price increase? It could take you quite some time to build into a different gateway.”
“The great news is there are other gateway solutions with whom you can integrate. Integration with these solutions is probably 90% as easy as with Stripe. Your developers could build this integration that would be processor agnostic.
Thus, I can set you up with my preferred processor. However, if that processor makes a price increase, you simply switch to someone else! Switching to another gateway or switching your code is unnecessary. Just change the processor you’re using with the gateway.
In choosing Stripe, you chose a gateway and processor who locks you in. That is very dangerous from a business perspective. “
“Susan, here’s the situation. I’m sure you have developers, right? One of your developers will probably spend two weeks to make a switch from Stripe to something like an NMI. Roughly how much will that cost you?” [Sometimes I’ll say, “I’m guessing $5,000, right?”] “So, you know what the investment is. The next question is return on investment.
The first return is freedom. You’ll have a gateway which allows you to go with whichever processor you want whenever you want. How do you put a value on that? However, take that out of the picture for a second.
The other return is savings. This is where I need a copy of your credit card processing statement. It’s doubtful that Stripe is doing interchange optimization or special fraud protection. These are things I can do to dramatically lower your processing costs.
If I can dramatically increase your profitability by lowering your credit card processing costs enough to justify that $5,000 investment, and on top of that, offer freedom from being locked in with Stripe, is that something you’re willing to consider?”