As an essential component of payment processing, a sub-merchant agreement is an agreement between the primary merchant, known as the merchant of record, and a sub-merchant. Under this agreement, a sub-merchant is authorized to accept credit or debit card payments on behalf of the merchant of record.
Sub-merchants are typically third-party entities that work with the merchant of record to expand a business`s reach. They may include franchises or other companies that offer complementary services/products to the primary merchant`s business.
The sub-merchant agreement outlines the terms and conditions under which the sub-merchant will be allowed to process payments. These terms will typically include the percentage of sales that the sub-merchant will receive, as well as the payment processing fee that they are responsible for.
Additionally, the sub-merchant agreement may also define the responsibilities of the sub-merchant, including the provision of customer service, fraud prevention, and compliance with relevant regulations.
From an SEO perspective, sub-merchant agreements are particularly relevant for businesses that operate in multiple locations or that offer services through a network of affiliated partners. By leveraging sub-merchant agreements, businesses can better serve their customers while also expanding their reach and improving their search engine visibility.
To ensure that your sub-merchant agreement is effective and legally binding, it`s important to work with an experienced payments professional who can help you draft a comprehensive agreement that covers all of the necessary terms and conditions. With the right team in place, you can confidently expand your business and improve your payment processing capabilities through the use of sub-merchant agreements.