POS reselling used to be about plugging in terminals. Now it’s about plugging into ecosystems. Your clients don’t just want a way to take payments, they want all the messy parts (fees, reporting, reconciliation) to just… work.
And nowhere is this more visible than in payment processing. POS resellers who understand how to pick, package, and position payment processor partnerships don’t just close more deals, they create long-term client stickiness and open up recurring revenue streams.
This is your complete guide to doing just that.
Why Payment Processing Still Trips Up So Many Businesses
Payment tech is confusing. Merchants don’t always understand why their fees fluctuate, why refunds cost money, or what “PCI compliance” actually means. Resellers who can clarify these points and bundle the right solution win trust fast.
From complex fee structures to hidden cancellation penalties, processors can surprise even seasoned operators. Your job? Be the expert who demystifies it all and gets them a better deal.
Every time a customer taps their phone or swipes a card, there’s an entire chain of communication that happens behind the scenes in just a few seconds. These are the core players involved in making that payment happen:
1. The Merchant
This is your client – the restaurant, retailer, or service provider accepting the payment. They initiate the transaction and are ultimately the party that receives the funds (minus fees).
Reseller tip: Merchants care about fees, deposit timelines, fraud protection, and how well the system integrates with their POS. They expect you to help them get this right.
2. The Customer
They provide the payment method, typically a credit card, debit card, or mobile wallet. From a backend standpoint, their actions trigger the entire authorization and settlement flow.
Reseller tip: More customers today expect fast, contactless, and secure payments. If a business doesn’t support preferred methods (e.g., tap-to-pay, Apple Pay), it risks losing sales.
3. Payment Terminal (or POS System)
This is the physical (or virtual) device used to initiate the transaction. It could be an integrated touchscreen, a handheld terminal, or even an online checkout page.
Integrated terminals send data directly to the POS, while non-integrated ones require manual entry and reconciliation.
Reseller tip: Make sure your POS or terminal solution supports the payment processor’s hardware and APIs.
4. Payment Gateway
The payment gateway acts as a bridge between the merchant and the payment processor, especially for online or card-not-present transactions. It encrypts card details and securely forwards them for approval.
Reseller tip: If your clients take online or mobile orders (like through delivery apps), this step is essential.
5. Payment Processor (Acquirer)
This is the middleman between the merchant and the card networks. They handle transaction approval, routing, settlement, and merchant accounts.
Processors also:
- Collect and forward the interchange fee to the card networks
- Charge the merchant service fees
- Deposit the funds into the merchant’s account
Reseller tip: This is your biggest opportunity to add value. Not all processors are created equal and help clients choose based on pricing, features, support, and integration quality.
6. Card Networks (Visa, Mastercard, Amex, Discover)
They are the gatekeepers of card payments. Each network sets the interchange fee (non-negotiable), authorizes the transaction, and manages rules for its branded cards.
Reseller tip: Explain to clients that interchange fees are out of your hands, but your job is to help minimize additional processor markups or tiered fees.
7. Issuing Bank (Customer’s Bank)
This is the financial institution that issued the customer’s card. When a transaction is processed, the issuing bank:
- Verifies the card’s legitimacy
- Confirms funds/credit limit
- Approves or denies the transaction
- Sends the money to the acquiring bank
Reseller tip: This player is invisible to the merchant, but crucial to fast approvals and fraud checks.
8. Acquiring Bank (Merchant’s Bank)
This bank receives the funds from the issuing bank via the processor and deposits them into the merchant’s account (often via the merchant services provider or a sub-account).
Reseller tip: Some payment processors act as both processor and acquirer. Others partner with acquiring banks. Either way, payout timing (same-day vs 1–3 days) matters a lot to cash-flow-sensitive businesses.
Why This Matters for POS Resellers
Understanding this flow helps you:
- Choose the right processing partner based on features, rates, and payout timelines.
- Explain exactly where fees come from is building merchant trust.
- Sell value-added integrations that make the whole process more efficient.
It’s not just about who processes the transaction; it’s about who owns each part of the chain and how well they all work together. That’s where your expertise comes in.
Most resellers encounter three pricing models from payment processors:
1. Interchange-Plus
- Transparent, good for high-volume merchants.
- Merchant pays the true interchange + fixed markup.
- Ideal for multi-location operators with low margins.
2. Tiered Pricing
- Grouped into qualified, mid-qualified, and non-qualified.
- Often opaque – watch for surprise markups.
- Avoid unless the processor offers deep documentation.
3. Flat-Rate Pricing
- Predictable, great for startups or low-volume locations.
- Often used by aggregators (e.g., Square, Stripe).
If you’re building bundles for different client segments, offering a choice of all three models (via different processor partners) helps close more deals.
Integrated Terminals: Clean, Fast, Connected
Integrated payment terminals are directly linked with the POS system. This means the amount due is automatically pushed from the POS to the payment terminal, and once payment is completed, the order is closed in the POS, no manual steps required.
Benefits:
- Streamlined operations: The cashier doesn’t have to re-enter amounts.
- Real-time reconciliation: Payments automatically show up in reports.
- Faster service: Reduces friction during peak hours.
- Fewer errors: No typos, double entries, or mismatched totals.
- Better reporting: Full visibility into payment types, refunds, and tips.
Best for:
Established restaurants, QSR chains, and high-volume operations that rely on speed and accuracy.
Non-Integrated Terminals: Simple and Flexible
In non-integrated setups, the POS and terminal operate independently. Staff manually enter the total into the terminal after ringing up the order in the POS.
Benefits:
Processor flexibility: Merchants can switch processors without changing the POS.
Lower initial costs: Good for smaller operators not ready for full integration.
Quick setup: Ideal when time or budget is tight.
Challenges:
Manual entry = more errors
Time-consuming closeouts: Requires matching payments to sales manually.
Harder reporting: Payment data isn’t linked to items or orders.
Best for:
New businesses, pop-ups, seasonal vendors, or merchants testing new concepts.
Value-Adds That Matter to Merchants
When pitching a processor partnership, highlight what makes it useful beyond pricing:
- 24/7 support: Especially crucial for restaurants and retail.
- Multi-currency or cross-border support: For eCommerce or tourism-heavy businesses.
- Fraud prevention: Tokenization, end-to-end encryption.
- Omnichannel reconciliation: For businesses that use both in-store and online ordering.
Many processors lure clients in with low rates but surprise them with:
- PCI non-compliance fees
- Early termination penalties
- Statement or batch fees
- High chargeback penalties
- Manual entry fees (higher risk = higher cost)
Shift focus to the merchant perspective. After listing the pitfalls, it makes sense to say, “Okay, so what does a good processor look like from a merchant’s POV?”
You can cover things like:
- Simplicity over clever pricing structures
- Speed of payouts (e.g. daily vs 2–3 day settlements)
- Human support when things go wrong
- Reliable uptime
- Transparent reporting
- Compatibility with their current tech stack
This builds empathy and shows the reseller what matters most to the end user they’re selling to.
Now pivot to the reseller's POV again. With knowledge of red flags and what merchants want, resellers are in a stronger position to:
- Negotiate custom rates (especially if they bring multiple clients)
- Push back on unnecessary fees
- Request API access or documentation early
- Ask for multi-location support or reporting tools
- Set SLA expectations upfront
How Payment Processors Are Evolving in 2025
Step back and offer a more macro view of how the payment space is changing:
- New processors launching with simplified flat fees
- Embedded payments inside platforms (e.g. Toast, Shopify, Square)
- Rise of crypto acceptance or BNPL options
- Consolidation, fewer providers, more bundled ecosystems
You don’t need to be a payment expert. But you do need to work with the right ones, and know how to spot the difference between a solid partner and a black box of hidden fees. Because in the end, your clients aren’t just buying a POS. They’re betting on you to make all the moving parts make sense.
