subject: I Need A Merchant Account For Credit Card Processing - 5 Tips [print this page] I Need A Merchant Account For Credit Card Processing - 5 Tips
It is a wise choice to start accepting credit cards at your place of business. Whether you work in a traditional, brick-and-mortar retail store, you work in a mobile environment, or you conduct operations daily using your computer, the ability to accept payment via credit cards means opening up new revenue vistas for your business.
In order to get set up properly with the ability to accept credit cards, it will be important that you research all of the options available to you. As you can imagine, once you start your search you will notice a number of credit card processing companies who are clamoring for your business. The important thing is to know how to compare your options.
If you are saying, "I need a merchant account for credit card processing," here are 5 tips that can help:
1. Put together a plan to compare at least 3 different merchant account servicers:
The best way to shop for any big-ticket product or financial service is to take a scientific approach. So, put your researcher's hat on, get your clipboard out and start making a careful study of what is available to you.
You should start by comparing the services of at least 3 merchant account servicers. These are the entities - usually banks or third-party companies who work with banks - who are responsible for the processing of the card transactions your clients will be making.
2. Contact each servicer and be prepared to ask each one the same set of questions:
Only by making apples-to-applies comparisons can you hope to make any sense out of the credit card processing landscape. To do so, be sure to prepare a set of questions that you can ask (or research online about) each servicer.
3. Find out your discount rate:
One of the most important questions to ask each provider concerns the discount rate you will be paying. This is the percentage of each transaction amount you charge that you pay to the provider. The typical range is 2% to 3.5%, but some go up to 5%.
4. Write down any other fees:
While the discount rate is the most important fee you will pay, there are a lot of other fees you typically will end up paying each month, as well. The best way to research the differences between fees charged by different servicers is to give them a specific case scenario (with specific details) and ask how much you would have to pay in fees. Tell them to be very specific as they explain it to you.
5. Examine the terms and conditions carefully:
Before signing any agreement, be sure to look over the terms and conditions carefully. For example, look into whether there are any early termination fees that you could end up having to pay should you cancel the contract early.
Consider these 5 tips as you compare options for a merchant account for credit card processing.
