What to Look for in a Merchant Account Provider
If you are trying to determine what merchant account company you should choose; chances are you are going to become overwhelmed. Within this article I am going to attempt to help make the choice an easier one by providing you with the information that you will need to make an informed decision. One of the first and most important tips that you should be aware of is that you should avoid using banks and be sure to choose only true merchant account providers for your needs.
The main reason that you should avoid using a bank opposed to a merchant account provider is that there are no benefits for you by doing this; however, there are disadvantages to using a bank. One good reason for this is because in the world of technology; banks are not up to date with the technologies used in merchant accounts. Banks are not accustomed to working with things such as website ecommerce or other technical components. Typically, if you were to hire a bank for your merchant account provider needs, they will outsource the project to a merchant account provider anyway; so it is best to just avoid the middle man all together.
So now that we have established that using a bank is not a good idea. You may be wondering how you should go about choosing the best merchant account provider for your business needs. One of the first things that you should consider when choosing a merchant account provider is if they have an established track record for good service. Good way to determine this is by checking with the Better Business Bureau. If the company in which you are considering has numerous negative reviews and complaints; you should not choose this company and continue looking at other options.
Another great asset to look for when choosing a merchant account provider is to see if they offer a money back guarantee. If the merchant account provider offers this guarantee then typically they are confident in their skills and abilities and will provide you with quality services that you are going to be happy with. A merchant account provider that is able to offer this type of guarantee is confident in their abilities and will typically provide you with top quality work or you will receive your investment back in full.
Another item that should be carefully considered when choosing a merchant account provider is the amount of fees in which they charge for their services. While you want to be sure that you are getting a good deal; it is best to choose a company that is priced moderately. You should not choose a provider that offers drastically low fees; there could be something deceptive about their advertising or services. Another way that merchant providers that offer fees that seem too low are going to catch you off guard is by concealing hidden fees; steer clear of providers whose fees seem too good to be true.
While we are on the topic of fees; there are many other fees that you should watch out for when choosing a merchant account provider. Some of these fees are an application fee, annual fee programming fee or set-up fees. Many providers will try to overcharge you with the use of these hidden fees so carefully consider all of the fees and ask plenty of questions in order to determine what hidden fees lie beneath the initial price quote given.
One final thing that you should weigh into your decision would be the personal needs of your business. For example, if you are in need of processing international credit cards; you should be sure that the provider offers this service. Be sure to ask them about reserve issues that could cause you problems down the road. Many processors will want to keep a percentage of the transaction in the event of charge backs; you want to be sure that the merchant account provider that you choose is not going to do this.
Another question that you will want to be sure you ask is if there is a cap in the amount on monthly volume that you will be able to process. If you are having exceptional sales, and then suddenly find out that you cannot accept any more payments due to a cap by your merchant account provider; this could have serious consequences for your income level that you will be able to achieve. Knowing what the cap is if any ahead of time will help you to prevent this from happening to you.
So to recap, you want to choose a provider that is established and has been offering services with a proven track record for many years. You also want to be sure that the services that they offer meet the needs of your business; without charging you any unexpected hidden fees. And most importantly be sure that the merchant account provider that you choose offers a money back guarantee so that you are not losing any money in the event that their services do not live up to your expectations!
Tags: Merchant Processing