How to select a suitable provider of merchant services?
When you set up your Merchant Account Services, there are several areas you need to focus on. And what are the options if you don’t have a company already established in the area? How to set up your new service? And once you’ve set everything up, how do you get the most out of it? And how do you maintain the service and increase your profits from it?
Merchant Account Services is a must when you operate a business. Without them, the processing of your transactions will be delayed and ineffective. So what are the things you should look for in a good service provider?
To help you decide, here are a few points to consider about the most common types of Merchant Account Services offered by various financial institutions:
Access to all major payment processing systems: The more payment processing systems, your service provider offers, the faster and easier your business processes will be. You want to have complete access to both credit card processing systems and electronic check processing systems. This makes it easier for you to complete transactions as they happen. But what if a particular system is not available? Check the internet for a list of merchants who offer their services on other systems.
High-risk merchant accounts only: Before you sign up for a merchant services provider, make sure you are signing up for a high-risk merchant account. Not all companies do; and some charge very high rates to new customers. You don’t want to get stuck with one of these, either. Find out exactly what fees they charge for transaction processing and compare them with other providers. Compare the cost of accepting credit cards from a high-risk company versus a low-risk one, too.
Security: Don’t just take the word of a credit card processing company or a merchant account services provider when it comes to choosing a company. Take an active role in the selection process by doing your homework. See what other customers are saying about their experiences. This can be done by reading reviews or going online. But regardless of how you choose a company, make sure you are getting what you need, especially in terms of security.
Annual Percentage Rate (APR): One of the biggest reasons that people choose low-cost credit card services is because they can ‘easily’ avoid paying a monthly fee. It’s almost a given that these companies offer low transaction fees. But do you know what the APR is? It’s the company’s monthly fee divided by its gross sales. So, if the fee is $100, then the APR is $10. When choosing between merchant account services, make sure you know what this fee covers, particularly any annual percentage rate.