5 STEPS TO CHOOSING THE RIGHT MERCHANT ACCOUNT

Credit card transactions have been on an unprecedented rise and it is natural for any savvy business person to want to cash in on that trend. The first step to processing credit cards is to open up a merchant account

However, this is where the hard work begins. Choosing the right merchant account for you requires much research. A glimpse into the huge market of merchant account providers and credit card processors would make the process seem extremely daunting. However, if you use the following 5 steps as a guide, the process would become more manageable.

Know Your Business Needs

As simple as it may sound, it actually is a very important starting point. Take note of all details of your business such as the nature of your business, the medium of your business, your average ticket size and expected monthly credit card transaction volume. Be honest and evaluate the expected increase in profits from accepting credit card transactions in comparison to the cost incurred in accepting credit card payments. Most merchants miss out on this crucial step and end up with loses rather than profits.

Compare the Rates

Of course, you know that you have to compare the rates before opening up any merchant account. However, many merchants do not really understand all of the fees and rates that they are charged by their merchant account provider. Please invest time into finding out what each and every fee is. Avoid paying anything unnecessary or arbitrarily added-on. Also, read your agreement carefully to detect any hidden costs before committing to the provider. For a brief introduction to the fees, go to http://www.100best-merchant-accounts.com/articles/merchant-fees.html

Find the Most Suitable Solutions

The knowledge of your business needs come in handy in this area. If you do business on the move (eg: delivery person), then a merchant account that provides you with a mobile solution may be perfect for you. You may choose to opt for a telephone merchant account or a store-and-forward merchant account. Study the different types of solutions available and settle on one that is best for your business.

Read the Agreement

Read the fine print! The importance of it can never be emphasized too much. Yes, the agreement may be way too technical and tedious for a pleasant read. But it is just something that you must do. Sit with the sales representative of your selected merchant account provider if you must and read through the terms and conditions in the agreement. Ask questions and clarify anything that you have problems with. The terms may not only hide costs but also specific contractual features. It is much better to be fussy and a pain than being caught in a disadvantageous stipulation.

Check on Customer Support

This is yet another important area. If you are having any problem with a transaction, you would want it solved as soon as possible, especially if you have a customer waiting for a solution. So, you want your provider to be contactable 24/7 and to have short waiting-on-line-for-response period. You also need to check on their policy on chargebacks and credit card frauds.  

Once you have narrowed down your choices of merchant accounts, obtain referrals or reviews of the providers from current or ex-customers. This will give you a clearer picture of what to expect when you do business with the particular merchant account provider of your choice.  For a good detailed guide to merchant accounts, you may want to refer to an e-book at http://www.merchant-accounts.com/e-book.pdf.