Subscription businesses have made an impact on nearly every industry, from music to beauty supplies. And now, the idea is coming to payment processing, thanks to Fattmerchant.
You can read more about the business and its unique way of serving merchants in this week’s Small Business Spotlight.
What the Business Does
Provides payment processing services.
Suneera Madhani, CEO and Founder of Fattmerchant told Small Business Trends, “Fattmerchant is a subscription-based merchant services provider. We offer payment processing solutions for businesses of all shapes and sizes.”
Affordable rates for quality service.
Madhani says, “We like to say our customers come for the savings and stay for our technology and service. We offer zero percent markup for all our clients, and our statements are completely transparent. The payment processing industry is pretty archaic and traditional with its methods. At this point, most business owners just expect to be confused by their monthly invoice, and they often don’t understand why they’re being charged. Our clients know us for our transparency in an industry that usually keeps them in the dark.”
How the Business Got Started
To overhaul the payment processing business.
Madhani admired companies like Netflix and Birchbox and wanted to bring the monthly subscription-based model to payment processing. However, when she brought the idea to the bosses at her last job, they laughed at the idea. So she left to start Fattmerchant on her own.
Madhani explains, “It all started with the idea that merchants deserve better, and we work hard every day to make sure that’s exactly what they get.”
Being featured in a major article.
Madhani says, “We’ve had a lot of wins but our biggest (and first) was being featured in Fast Company. The article was title “Meet the woman who is trying to change the credit card industry” and as soon as it published our phones were ringing off the hook. It was our first real proof of concept and that was the moment we knew we really had something.”
Investing in the platform early on.
Madhani says, “The biggest risk we’ve taken was to invest in heavy R&D and technology dollars. You don’t get a direct ROI right away. However, it was the best decision yet. Our platform is now the heart of our business and the heart of our customers’ businesses.”
Preparation is important.
Madhani explains, “Being prepared is a difficult thing to do, but it’s the one thing we would advise every small business owner to prioritize. Set up a team of mentors to help you along the way, and stay as practical as possible.?”
How They’d Spend an Extra $100,000
Investing in a referral program.
Madhani says, “If we had an extra $100,000 that we could do ANYTHING with — we would spend it on our customer referral checks. We’re also looking for ways to give more back to our members as well as how we can encourage our members be our biggest advocates. Putting dollars towards our referral program would be the ultimate win-win.”
Benji the Pig.
Madhani says, “For our Fattmerchant and our members it’s ‘All about the Benjamins’ — this is where Benji got his name! “
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Images: Fattmerchant, Suneera Madhani