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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Going with the credit card trend is just about another step towards shooting up on product sales. Products can range from consumer items to consumer services. Once quality, price, location, marketing, good reviews, and popularity are all in check, ease of purchase is also a consideration. The business might just be starting up or has been at it for quite some time, but there should still be room for innovation. Whether it’s the usual shop across the street, even a flea market, or a web-based company, the option of paying using debit or credit cards would surely attract the picky and impulsive buyers who live on credit these days. Therefore, choosing the best merchant account really does make a difference.

1. Different payment options
Scout for a merchant account provider that has a wide range of payment options. Among the popular ones are PayPal, and credit cards including American Express, Discover, MasterCard, Visa, etc. The accessibility of these credit options will cover a huge pool of customers that will definitely pull up more sales and more profit in return.

2. Meeting business requirements
When choosing a merchant account provider, several different options are usually available. Opening the right account for your business will make purchases much easily done. For a web-based business, all you need is a simple navigation link for accepting debit or credit cards on your website and ignore the rest. For a traditional business outlet, on the other hand, you just need a debit or credit card machine.

3. No sign-up fee
Sign-up fees are additional expenses a business owner would always want to avoid. For sure, there are merchant account providers out there that do not require sign-up fees. Skipping on a sign up fee can cut down on expenses that would allow more money for add-on services and features that will develop your business.

4. Good merchant account reputation
Reputation is something money cannot buy and is the most detrimental to any business. As you are particular with brands and what feedbacks say about them, so as with these account providers. All the more reason is because it involves money. So, checking out the reputation of your prospective merchant account provider would include asking for references and contacting the Better Business Bureau.

5. Check up on fees
Compare the fees and standard services when considering several of these specific account providers. This will determine which provider has the best offer for you. Also, make sure to find out if there are any special fees like statement fees for a monthly statement being mailed to you. This will avoid any future complaints about getting billed.

By Jim Oneil

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