subject: Selecting the Best Merchant Services [print this page] Selecting the Best Merchant Services Selecting the Best Merchant Services
Start-up businesses would naturally also require some form of payments processing. Selecting the best merchant services can, therefore, have a big impact on your sales revenue and profit margins. So for your benefit, here are the "unwritten" rules of the merchant account game.
1. What are merchant services?
Merchant services is a special account that is tied to a credit card processor. This enables you to process the credit card payments of your customers. It works by way of getting your customer's bank to route the payments into your bank account.
2: Who offers merchant services?
Merchant services are provided by "merchant service providers". They are specialized companies, financial institutions or independent sales organizations which offer payment processing.
3: Which type is the best merchant services company for a small business owner?
Your business situation will dictate this. Home-based businesses might not get a bank's nod since a home-based business is less established. However, other merchant service providers and some independent sales organizations can be more lenient towards home-based businesses. The key is to choose the one which gives low rates and provides the services that are important to your business.
4: Are you required to accept credit cards with a merchant account?
No. There are other options such as partnering with companies which will process payment on your behalf. However, if you are planning to sell on the Internet, a merchant account will provide your business with a more professional image.
Besides, with your own merchant account, you can expect to receive payments/funds in less than three days from the time of the transaction.
5: What are the requirements to begin online payment processing?
To begin online payment processing, you need the following:
A Secure Server with Certification
An Order Form
A Trustworthy Gateway
A Shopping Cart
A Merchant Service Account
6: Are there other ways to accept credit card payments?
Yes, there are. One way is to outsource merchant services to a third party. It will be this "third party" who will collect your customers' data and do all that is required to process payments for your small business.
Another way is through what is called "deferred payment processing". When the customer inputs the data, you receive it manually because it will not go through a gateway. One drawback of deferred payment processing is that it is time-consuming to inspect and file a claim each time you make a sale.
As you can see, finding the best one of all those claiming to be the best merchant services can be overwhelming, but you should stick to what the majority of your customers prefer and what your business can afford.
