Flat Rate Merchant Credit Card Process: How It Works?


Your professional account manager studies your file (financial situation of the company, quality of your customers, average payment time) and can grant you a discount line with a maximum amount outstanding.

You sign a contract line discount formalizing your agreement stipulates the tariff conditions. If your bank asks you for a guarantee to protect itself in the event of non-payment by your customers, the contract must specify the terms: commitment of a third party to guarantee the good end, retention of guarantee or, it may ask you to subscribe an insurance credit for his benefit. There are options if you are wondering How to become a merchant account provider and you follow that as well.

You can then discount a commercial paper from your bank. To materialize your claim and facilitate its settlement at maturity, you issue a bill of exchange payable on the agreed maturity. It can be in paper or dematerialized form (LCR).

Your client returns this signed bill of exchange to you for acceptance, which constitutes agreement on the due date of the payment. If the bank accepts it, it pays you the money into your account, deducting the fees. It will be refunded upon payment of the bill by your client, when it expires.

What happens in the event of unpaid bills?

The bank does not take charge of unpaid bills. It’s your business that manages and assumes the risk of failure of your affected customers and to perform the necessary operations overlap. If the bill is unpaid when due in the absence of a guarantee or credit insurance, the bank debits your account for the amount of the bill. It returns the unpaid item to you so that you can sue your customer if you wish.

Establish a clear strategy and present it to the teams

To formalize a strategy and present it to the teams, we will need to cross 4 analyzes:

  • The requirements, the needs of customers but also your ability to create a need for them (only valid in the commercial sector) and your ability to meet them in order to satisfy them
  • Taking into account the requirements of other stakeholders deemed strategic by you (Shareholders, Supervisory body, lobbies, etc. )
  • The opportunities your industry will experience in the future and your company’s ability to seize them
  • The major risks and the necessary internal adaptations to deal with them

 Set relevant goals

Each activity to be effective must aim for a performance point high enough to be motivating and realistic enough not to be demotivating. Do all of your main activities have clear objectives assigned to them? Do the objectives still correspond to a level of performance capable of competing with the best in the profession? Do you have the human, technical and financial resources internally to achieve the objectives that you have not changed for 2 years? All of these questions will help you take a fresh look at your activities and goals and give new impetus to your ideas.

Take stock of all the actions carried out and set new annual objectives

Once your company is ready, there is an intermediate step before calling the certification body. This is the management review which recapitulates the actions carried out and sets the course for future actions. This document is to be provided to the auditor (hence the intermediate step).


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