The most important of all merchant card services is the ability to accept credit and debit card payments. For a business it is very important to obtain a merchant account because in order to be successful the business needs to offer various forms of payment options.

The services that a business acquires when obtaining an account should be professional, efficient and cost effective. To make sure that your business reaches its maximum potential it is vital to explore all of the options available and select the exact services that will make your business successful.

First you must understand exactly what type of business you run and are planning on becoming in the future. The three main types of merchant accounts are traditional (storefront), wireless (vial mail and telephone), and virtual (via the internet). Your business may be one of these or a combination of any or all of the three.

When selecting which merchant card services that your company will utilize it is important have a clear idea of what is available. Some of the more common available services are:

• Credit Card Processing
• Debit/ATM Card Processing
• eCheck Processing
• Real Time E-Commerce
• Check Guarantee
• Programming Software
• Web Site Shopping Cart
• Check Verification
• Terminals (with or without printers)

Again depending on which type of company you are and which services you wish to offer your business will decided on varying options within the services. There are several types of terminals and software programs designed for specific transactions. When deciding which types of cards to accept it is common practice to accept VISA and MasterCard at the very least.

The beauty of merchant card services is that they offer your business the ability to accept multiple forms of payment all while the company who you have your merchant account with does the processing. Just saving your company this headache is very efficient, but include in that the profit that your business will see from the increased purchase options and you can see why it is so vital to have a merchant account.

It is very easy to get started. Most companies offer online applications that can be filled out quickly and effortlessly. Once you have determined which company offers the best options for your business and completed your application the company should respond to your request quickly and with a variety of options that are viable for your business. At this point you have to ask any questions that you may have so that you can ensure your companies success.

A common question asked is why does my business need these services? Studies have shown that consumers are spending more with credit cards, debit/ATM cards and checks each year. That fact along with the ease of use for processing such transactions makes the merchant account an excellent choice for the savvy businessman.

Determining what merchant card services are viable for your business can make or break you. A business wants to provide their customers with the most up to date technology while keeping their profits at a high. Pick the right services for your business and you will be sure to succeed.

By Brantley Graham

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Accepting credit card payments from customers as part of your daily business practice may seem like an intimidating prospect but it’s really not that difficult. However, before you decide to take the leap away from operating a cash-only business, there are some things you need to know when choosing a merchant services provider.

The first thing you should know is that the first vendor you approach probably does not have the perfect package to meet your needs. You really have to shop and when you shop, do so on the basis of what is the best account for your needs rather than who is the best provider. If you manage to combine both it will be icing on the cake.
If the bottom line is the most important factor in choosing a merchant account, you will need to know there are four common pricing structures in the merchant account industry. These include flat rate, interchange-plus, tiered and enhanced recover reduced (ERR). The flat rate and interchange-plus rates are usually better because they are less expensive and easier to compare than tiered and ERR. However, almost all interchange-plus accounts require a contract and cancellation fee. For now all you need to know is that the flat rate and interchange-plus fee structures are most commonly used by small business.

To determine what account pricing structure best suits your needs there are some factors to consider. As MerchantCouncil.org states, “No single account will have the lowest merchant account rates and fees across the board – and it doesn’t have to, it just needs to have great rates where it matters to you. Dealing with providers is a game of give-and-take. They’re in business to make a profit, and so are you. When you ask a provider to lower one fee, you should be prepared for them to raise another.”

Among the fees you will have to contend with include monthly processing volume, average ticket, monthly minimum and statement fees. If your business does significant volume, you will have more leverage to ask for a lower rate on your volume. If your business tends to have a high average ticket but lower volume, it is in your best interest to demand a lower discount rate. If your business is almost entirely seasonal, avoid accounts that charge monthly fees.

Other features to consider before choosing a merchant account are the cost of equipment, software or maintenance fees. Some providers will throw in the credit card terminal reader at no cost for signing on to their services. Watch out for long term contracts and proprietary equipment. If customer service is important, check with your potential provider as to their quality of service ratings. Finally, having a merchant account that is local may be a huge plus when there is a need to deal face-to-face with someone who knows your name and your business needs.

Now that you have a good sense what to expect as far as cost and features, the hard part may be finding the right provider. An immediate internet search of merchant account providers draws literally thousands of hits. For the beginner, this could be overwhelming to the point that settling on the first provider may be the easiest choice. Don’t. Instead, here are some tips to avoid being corralled into the first provider that comes along. Ask other business associates. Try networking and comparing notes with others. Your bank may also be a good starting point as well. Another option would be to try an online quoting service that can compare rates based on your business profile.

Once you’ve narrowed down your selection to several vendors, compare rates between your selections. Feel free to share your options with each of the vendors and let some competition take place between them. Once you’re ready to settle on a final choice, read the fine print carefully and make sure you understand all the details when it comes to cost and features. The next thing you’ll need to do is submit your application. This will take a little time as underwriters assess risk. Much of this will be based on whether your customers are present when they submit their credit card information or whether they are absent. Once approved, make sure you stay up to date on the account. Maintaining the account is important to control costs.

By Melvin A. Campbell

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