Divina Alcazar - Empowering Small Businesses Through Smart Credit Card Processing at Mayon Merchant Solutions
Jun 06, 2024
Alimond Studio
Discover the journey of Divina Alcazar, founder of Mayon Merchant Solutions, and learn the secrets to navigating the complexities of credit card processing for small businesses in our latest episode. From dreams of becoming a doctor to conquering the banking industry and finally establishing a thriving merchant services business during the pandemic, Divina's story is both inspiring and instructive. We'll uncover the unique challenges small and medium-sized businesses face, such as high overhead costs and exploitative leasing practices, and how Divina's company offers affordable rates and free equipment to ease these burdens. With over 200 clients under her belt, Divina shares the power of building strong client relationships and understanding their needs.
Curious about the benefits of choosing a local merchant services provider over larger, impersonal options like Square? We'll break down why local representation, next-day funding, and robust support during chargeback disputes can be game-changers for your business. From underwriting to receiving a 1099 for tax deductions, Divina emphasizes the critical advantages of personalized service. Join us as we delve into these insights and practical advice, leaving you with a newfound appreciation for the small things that make a big difference in the competitive world of credit card processing.
Discover the journey of Divina Alcazar, founder of Mayon Merchant Solutions, and learn the secrets to navigating the complexities of credit card processing for small businesses in our latest episode. From dreams of becoming a doctor to conquering the banking industry and finally establishing a thriving merchant services business during the pandemic, Divina's story is both inspiring and instructive. We'll uncover the unique challenges small and medium-sized businesses face, such as high overhead costs and exploitative leasing practices, and how Divina's company offers affordable rates and free equipment to ease these burdens. With over 200 clients under her belt, Divina shares the power of building strong client relationships and understanding their needs.
Curious about the benefits of choosing a local merchant services provider over larger, impersonal options like Square? We'll break down why local representation, next-day funding, and robust support during chargeback disputes can be game-changers for your business. From underwriting to receiving a 1099 for tax deductions, Divina emphasizes the critical advantages of personalized service. Join us as we delve into these insights and practical advice, leaving you with a newfound appreciation for the small things that make a big difference in the competitive world of credit card processing.
Speaker 1:
My name is Divina Alcazar and I am the owner and founder of Mayan Merchant Solutions. It is a local credit card processing company located in Ashburn. I set it up or, yes, it was founded in May of 2020, during pandemic, and from there I am a thriving local credit card processor in the area. I also have West Coast customers, so yeah, that is awesome.
Speaker 2:
And tell me, what is the goal of your company. Are you hoping to represent local and small businesses more? What's the goal?
Speaker 1:
local and small businesses more. What's the goal? Yeah, actually, the reason I founded the business is to help small and medium-sized businesses in the local community. I have an experience of more than 20 years in the merchant services industry and I know how the small and medium-sized businesses are being neglected in their needs, in the rate pricing and all the stuff. Coming from a business-minded family, my father was a businessman and I grew up in business world, so I know how the struggles of small businesses are. So I decided that hey, hey, I can help them locally and since I was able to do that, my number one referral partners are the local businesses that are my clients right now, since I started a business.
Speaker 2:
Yes. That is awesome. And now tell me a little bit about the part where you said that small businesses are neglected. Can we talk a little bit about that? I want to maybe give a platform for you to be able to reach out to other small businesses who are maybe wondering like yeah, I'm having that same struggle, like wow, I didn't know there was a solution for this. Tell me a little bit about those neglects that those small businesses are going through.
Speaker 1:
Yes. So small businesses, especially the startup businesses. They have not much cash flow. They're starting from the bottom and so they want to as much as possible eliminate or lower their overhead costs. And coming from a corporate company where merchant services is being offered, I know that the small businesses are not their priority because they are more on the profit side. But my compassion with the business owners is for them to be able to save the rates, the pricing that they are comfortable. I offer free equipment, you know, so they don't have to buy or they don't have to lease or rent.
Speaker 1:
I've seen how they are being ripped off by big companies that they are leasing, for example, a small hair salon that she is leasing $78 a month for a terminal that I could give for free. For 48 months she was paying that and that accumulated to almost $3,000 for that terminal. That's not even hers because she has to return it because she was just leasing it. Imagine that thing. So I said you know, you don't have to worry, I can give you a free terminal when you close your business. If it's necessary that you're not making money and you have to close your business, I just have to retrieve the terminal back. So those are the help, and also my rates are the same Since they started the business. My rates never change.
Speaker 2:
Wow, that's kind of unheard of nowadays, right? Because? Everything's going up. But you've said I'm going to stay consistent and with the price that I've had.
Speaker 1:
Yes.
Speaker 2:
That is amazing. Talk to me a little bit about how you got into this industry. Like I know, you grew up with a little bit of a business background and your family growing up. But what made you decide to want to go this route with merchant services?
Speaker 1:
Well, I in the prospect perspective of business. My father taught me how to run a business, but I decided I love science. Growing up I took BS chemistry. I wanted to be a doctor. Okay, and he doesn't like that, you know. He didn't. No, no, he wants me to be in the business.
Speaker 1:
So from that side, I don't know how I ended up I did not continue being a doctor. I just finished a Bachelor of Science in Chemistry. And because, with no support from my parents, my family, financially, I have to work myself up to go to medical school. So I did not continue that and instead I ended up in the banking world. So in the banking world, I know where the ins and outs, credit and debit, you know, and I was done with that. I was not learning Seven years, it's routine. I know already everything.
Speaker 1:
So I decided why not merchant services? So I was hired by this big company who is already closed now, and for 12 years I learned the ins and outs of merchant services. I know how, how to the ins and outs, the credit that the customers are putting into the business owners. So from there I decided, you know I could do this on my own, because I've seen that how they treat the small business. They're more on the profit, they're more on the big businesses. So, yeah, so, ever since, since I want to help, because my father, he always tell us this that, uh, helping comes first and the profit follows you know, so when you help, you're actually creating relationship with the business owners and then, before you know it, the profit follows.
Speaker 1:
And it's very true. I I stand in that um idea and my merchants or my customers will call me and say, divina, I, I have a customer that that sold the machine and he's opening. He's opening actually a business. So I refer, I, I'm, I gave him your phone number, and and, and it's like a domino effect, you know like, from there and then my business is now. I have about 200 clients now, wow, since I opened in 2020. Congratulations for that.
Speaker 2:
Yes, thank you. That is a great, great goal to have. And all that, yes. And now for your business. Do you have other employees that are working with you, or do you run it yourself, or how does that work?
Speaker 1:
Yes, I have a 1W2 that work with me, but all the rest are 1099s, you know by commission basis. So just to give you an example last year the highest paid 1099 is about $25, and he is just doing it on the side. He has a full-time business and on weekends, on after work, that he will call the local community, you know on the phone and ask about are you happy with your merchant services? Do you have a local person? You know, when something is wrong with your terminal, do you call the 1-800 number or do you have a local person that you can call to? Yeah, and so I have about four or five 1099 and one of them is also a referral partner. So, yeah, I go from there. You know that is awesome.
Speaker 2:
And now with marketing, I know you said it's like a domino effect kind of like, maybe word of mouth. How are you marketing yourself Like out there? Are you on social media a lot. How are you getting the word out there about the services that you're providing?
Speaker 1:
Yes. So first of all, I am a BNI member, so I belong to the Loudoun Power Breakfast in Ashburn, so we meet every Tuesdays from 8.30 to 8 o'clock to 9.30. So that's a big help for me because I can also go to other BNI chapter and with the other BNI chapters. You know BNI is globally, is international, but because my business is only here, local, in United States, I cannot go globally. But within the BNI local I can go to other chapters and that's how I meet prospects, business owners and, like my main goal is to meet more referral partners. So I just I just sign up a CPA.
Speaker 1:
So CPAs are good for me because they can review their clients financials and tell them hey, you're paying so much on your merchant services, or do you want Divina to review it? And there's no cost. I do free cost savings analysis. I also partner with insurance agents, commercial insurance agents, life insurance, even financial advisors. I partner with them. So those are good for me and that's how I market myself. So, aside from I don't do much of social media because I'm not tech savvy, but yeah, but with a word of mouth and just exposing yourself out there, you meet a lot of people that could be. Potentially, you're helping each other like the cpa, I help, she helped me by um referring me her clients, and she helped her clients by saving money by referring them to me, absolutely, you know, and so it's a win-win for everybody.
Speaker 2:
Absolutely, I love that. No, I absolutely love that. And now tell me a little bit about who you are outside of your business. You are an entrepreneur, but what do you like to do when you are not working, if you have time right, yes. Do you like to travel? Do you like to read books? How do you wind down?
Speaker 1:
Yes, so actually I love traveling, okay, and also I love cooking, so I've been to over 100 countries now. Wow, oh, my goodness. I've been traveling since I was in my 20s.
Speaker 2:
Okay.
Speaker 1:
And my father would always call me where are you? I would say, I'm in Japan.
Speaker 2:
He's like what are you doing there today?
Speaker 1:
You were just in North Carolina last week, so yeah, so I actually just came back from Seoul Korea, okay Two weeks ago, from during Memorial weekend, but I was there for like about two weeks and love Seoul Korea. I'm revisiting Asian countries. I haven't been there for a while, but I have been mostly to Europe now because I'm discovering Europe and my plan is to go to the Balkans, romania, serbia, romania, serbia and the other one, bulgaria. Okay, so that's my goal before the July 4th.
Speaker 2:
Nice, I love that goal for you. That's perfect.
Speaker 1:
And aside from that, as I've said, I love helping. So on my spare time, I teach Zumba for cancer survivors. Wow. So, yes, I am a licensed instructor and I just do volunteering. I don't get paid in the gym because I don't want to commit myself, since I like to travel. Yes, so, volunteering and helping the cancer survivors in Fairfax Hospital and Fair Oaks Hospital that you know they do exercises after their treatments and I am very happy that you know to see them smile. You know, behind all those, you know, with all those treatments that they are enduring, yeah, yeah, and they also need to exercise. So we are part of the Life with Cancer, which is a nonprofit organization helping the local hospitals. Like, they also offer yoga, Pilates, but I'm in the Zumba, yeah, yeah, yeah. So I'm one of the instructors. We're four of us volunteers and we rotate. So actually last Tuesday I just taught another one.
Speaker 2:
Okay, and it helps you too, right, of course. We all need to exercise, so why not? It's a win-win right.
Speaker 1:
It's a win-win. Again, like youwin right, it's a win-win.
Speaker 2:
And now, why is that so important to you? Giving back to the community, has that been something that you've always wanted to dip your feet into?
Speaker 1:
Yes, I think helping each other is what we need in this world. We all need to help each other, because if we just keep it to ourselves, then what's the reason of living in this world? What's the reason of evolving? I think since history you know, people help each other already. Whatever is their background, wherever they come from, they help each other, they share ideas.
Speaker 2:
That's what we are here for. You're right about that. And now, where do you see yourself in the next five years as a person and with your business? Where do you hope Any ideas for maybe expanding?
Speaker 1:
Yes, actually, five years or ten years from now maybe I'll be retiring. But retiring means, you know, like it's not just sitting down and watching TV. Yes, retiring for me is still doing the business. You know, like it's not just sitting down and watching TV. Yes, Retiring for me is still doing the business. You know, I probably will hand it to my other daughter because she is business inclined and she graduated with International Business and Global Studies Perfect. So I am teaching her right now and hopefully in the next five years she will take over while I'm still going to be a consultant. Yeah, you know like I'll be there, but I'm not going to be 100% hands on, stepping back, yeah, yes, and I hope to still help the community by volunteering. So if I cannot do that much intense Zumba, I will probably do, you know, um, just dancing you know, maybe yoga, yes, stretch out your body, calm for your mind too right exactly, you know so no, I love that, I love that you also have that ready and plan, like for your daughter, like, does she know?
Speaker 1:
yeah, does she like yeah, okay, cool, I'm teaching her right now and what better mentor to have than you?
Speaker 2:
who's like if she has like mom? I don't know what to do. Oh easy, I already know. I did this already like I got, that's perfect. I love that, yes and now tell me a little bit about, um, any of the issues that maybe you've had as an entrepreneur or starting your business up. Like I know you said, maybe you had bought this from a business that's no longer there, but what were some of the challenges that you went through to get the business going and putting your name out there?
Speaker 1:
Actually, when I started the business, I started it from scratch, so I founded it. I named it under Mayon Merchant Solutions. I'm originally from the Philippines and where I grew up in the province we have a Mayon volcano. It's like the sister of Mount Fuji, and so from there I said you know, I'm going to name my business Mayon Merchant Solutions, and so I started it from scratch. What I have learned about networking and exposing myself to the community that's how I get my clients. My very, very first client was a veterinarian. She is a veteran from the military and a vet, a veterinarian vet, so a veteran vet. Until now. She's very happy with my services and she was one of my biggest clients actually.
Speaker 2:
Okay, and then one of the questions that I wanted to ask you as far as being a business owner have you seen any challenges with people maybe stepping away from merchant services and just going? Would it be different if it's like Square? Is that a challenge for you? Like, since people are like I use Square, I don't have this Like. What are some of the pros and cons of that?
Speaker 1:
Yes, so actually I get clients that were using square before. Yeah, um, square is good for small businesses like or or flea markets. I mean not small, small, but like, for example, the flea markets that they just do like five hundred dollars a month. There are some like that sideline business. So Square would be good, but for small business like doing at least $5,000 up, I would suggest it's better with me. So there are a lot of advantages. First of all, square they do not investigate or underwrite the business. Anybody can just get a Square account and even if you're not a business owner, you can get a Square account. And that's how I think years and years ago, if you remember when all the credit cards were hacked in the United States by a Russian boy who had a Square- that's actually really scary.
Speaker 1:
Yes. So with us, we underwrite the application, we make sure that the business is legit. We also compare it or match the tax ID number with the IRS, make sure that it's a legal registered business. We also you know, I would visit if there is a business actually Like if it's a retail business, I would say, oh okay, there's a physical location.
Speaker 1:
And second, so, aside from we underwrite, we also have next day funding. So Square doesn't have next day funding. We also have next day funding, so Square doesn't have next day funding. Which is so, for example, if you process today, you get the money tomorrow in your bank account, cash available to you. So it's good for the business owners, for cash flow, because if you're a small business, you need cash yes, right, and to keep it rolling. But with Square, I think they deposit into your Square account before you can transfer it to your bank account in two to three days. So what if you're a small business and you need the cash to get your business rolling, for example, a deli shop? So you need money to buy the bread and all the supplies.
Speaker 1:
So if you don't get the money from the credit card which is, of course now everybody pays with credit card it's convenience, you know that we're talking about. But with us, if you process with a credit card, it's convenient for your customer, convenient for you, because the next day it's turned to cash, it's available in your bank account and you can withdraw the money or you can write checks, whatever. The third one is we give 1099, which is a tax deductible at the end of the year. Okay, so all your expenses from the credit card processing fees can be deductible from your taxes as a business, and not a lot of business owners know that. So they're taking Venmo, they're taking Square, but do they get a 1099 at the end of the year? Probably not. So, yeah, so with us, we send that to them and, hey, you can give this to your CPA, you can write these expenses as tax deductions.
Speaker 2:
Perfect. So I like that. I like that. That's the difference of it.
Speaker 1:
Not a lot of people know they're like, oh, Square, it's easy, okay, but no, actually there's a little bit of thought behind that. Yes, and the last one that's very important local representation. Yes, I'm local, you can always see me. And with Square, they have to email. They don't have a customer service. I've heard that people are missing money in their funds and they have to email because who knows where is the square? Yes, and and another thing is when they have a chargeback. So this is a jargon term. A chargeback is, for example, you're the business owner and you have a customer and some people do this for a living, trust me, they give the credit card to you and, in return, they get the product. The next day they call their credit card and say I'm disputing these charges because I did not pay from this so-and-so business. So what will happen with Square? Because they are not actually credit card processors, they're agitators. They give the money back to the credit card, processing the credit card.
Speaker 2:
Merchant.
Speaker 1:
No, the customer, so they disputed it. Okay, we'll give it back to you, the money, without the business owner knowing it, oh my goodness.
Speaker 2:
So that's a big loss for them, because that happens a lot and a lot of businesses.
Speaker 1:
They do not. A lot of business owners. They do not review their statement. So when they say this is not right, something is missing. And then they found out months ago that there's a fifty dollars that was given back to the customer with us. If somebodyed charges, we let the business owner know hey, this customer of yours from this day with a $50 is disputing the charges. Do you have a receipt? Do you have a proof that she came to you and purchased the product? So if you have the receipt and the customer signed, that's the proof that we will not give the money back to them. It belongs to the business owners. Wow.
Speaker 2:
We stand by the business owners. That is great security there. So if people didn't know that and they're listening to that, that is something big to consider and that's why you should check out Davina's business. Yeah, and now for my final question. If there could be a message that you could leave with our listeners, it could be in regards to life merchant services, anything at all.
Speaker 1:
What would that message be? And appreciate the small little things, because when time comes back, times pass by and you look back the small things are actually the big ones.
Speaker 2:
Wow that's powerful. Yes, thank you so much for being on the podcast and for sharing all of your wisdom and knowledge with us. We really appreciate it.
Speaker 1:
Thank you so much for this opportunity, and I hope my name and my business will reach more people and I'll be able to help them as well.
