Choosing a merchant account can be daunting especially if you don’t have the right provider. Today customers opt to use a convenient and secure way (debit or credit card) for payment, unlike the old days where cash was the only mode of payment.
For a business to thrive it needs to accept credit and debit cards as a way of payment hence applying for a merchant account is inevitable. However, to process this kind of transaction you need a merchant processing company, regardless of whether you accept payment online or in person. Here are things you should know about choosing a merchant account.
- Stick with a merchant account provider rather than a bank. Though opening a merchant account requires you to have a bank account, you should stay away from banks when it comes to merchant account services. Most banks act as a middleman since they outsource their merchant account services to the right merchant account provider. A wise business owner will stick with a real merchant account provider in order to deal with him/her directly and cut off banks. Also, due to technology upgrades which banks may lack, banks may fail to provide the latest merchant account services. Another reason to choose merchant account providers over banks is that some can process debit and credit cards just as banks do, plus gift and loyalty cards. An excellent example of such provider is North American Bancard.
- Know the fees charged. It is essential you find out what the prices are if they are reasonable and transparent. To do so, you should check with each provider. Know the fee you are supposed to pay for each transaction as well as monthly, annual and application fees. Since there are different types of merchant accounts offered by different providers, fees may vary depending on the company. However, some companies will trick you by charging low fees at the beginning, but in the end, they will charge you more. Generally, merchant accounts are not cheap.
- Consider customer service and support. Here, you research how the company’s customer service and support is. Get to know if it is available all day and night, do they have live support, does it have toll-free numbers to be called at any time of the day. Also, know how fast they can respond to your questions and concerns. Typically, a company with excellent customer service is the best provider. Customer reviews on the internet can help you determine the right provider as you can see the complaints and recommendations dropped. Also, you can check with other businesses and friends for clarification of how a company offers customer service.
Knowing the above things, you are ready to choose the right merchant account for your business. Picking a merchant account that meets the needs of your business facilitates convenience, security, and efficiency in transactions which later spurs success. Lastly, when choosing your provider, consider picking the one whose processing rates are fair and understandable.
source photos: unsplash.com