5 Tips for Getting the Best Merchant Account Deal
Since credit and debit card transactions now comprise the majority of business revenue generated, small businesses can make a substantial difference in their net profit simply by their choice of merchant account provider. However, there are so many from which to choose, how do you know which is the best one for your business? The following five tips can help you with that decision.
1. Evaluate Your Business’ Credit Rating
To begin with; you should make a realistic and objective credit rating of your business. This will have the most impact on your selection. Obviously, the higher the credit rating, the better the terms will be that your merchant account provider can offer your business.
2. Study Pricing and Fees
Learn the terms that merchant account providers will use in their quote so that you can accurately compare pricing. Terms will be used such as discount rate, which is the rate the provider charges to process the transaction, monthly fees, batch fees, transaction fees, authorization fees, payment gateway fees, foreign transaction fees, per item fees, and a plethora of other fees. Knowing the terms used by each provider is essential to making an informed comparison.
Even miniscule amounts can run into a considerable sum when they are added to each transaction, although they may seem very small when considered individually, so it is vital to sign up with one of the best merchant account services to get nice rates.
If you are starting a new business and want to accept credit cards, be aware that there may be a substantial early termination fee if you sign a long-term contract and are unable to fulfill it. There are plenty more ways to avoid paying too much payment processing fees to your merchant account provider, checking the web for different comparisons between the different suppliers is definitely a great way to find the best deal.
If you need a merchant account for a business with challenged credit, make sure to select a reputable company. If a company has fees that are substantially higher or lower than their competitors, you should keep looking. Also check on the length of time they have been in business, their requirements and their reputation.
3. Go In-Depth on Rate Structures
Scrutinize the fee structure for hidden fees and restrictions. Be particularly aware of any tiers of rates and whether the rates quoted are an introductory special or the normal rate; ask if there is any sales cap. If you have a sales cap on a very competitive rate and have a very good month for sales, you may reach your cap early and be unable to process additional transactions. Also ensure that you will be receiving a monthly statement from your merchant account provider that details your transactions and fees.
4. Make Sure You’ll Get Paid
Nice rate structures aren’t just the only numbers you should be looking at; be sure that you’ll get your payouts on time before your own bills start to come in. Merchant account services vary and some take longer than others to deposit funds into your account. This may also affect whether you select batch processing or real-time processing of transactions.
5. Will They Serve You Well?
What is the quality of their technical support and when is it available? If your business has a technical issue, you want to make sure that support is available when you are open for business rather than when technical support is available. If you know that a certain company has great customer support, then it is sometimes worth paying a little extra.
Choosing the right merchant account provider for your business is an important decision. Make sure you do your homework so that your decision is well informed and the best for your business. Switching from one credit card processor to the other takes up valuable time, while this can be avoided just by doing some searches on the web prior to signing up with a certain company.
This entry was posted on Thursday, April 5th, 2012 at 5:25 pm and is filed under Business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site. You can leave a response, or trackback from your own site.