Merchant Accounts, Credit Card Processors and Merchant Account

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Merchant Accounts, and
Credit Card Processors

Increase Your Business Cash Flow With Merchant Accounts

Merchant accounts enable businesses to accept credit cards as payment for goods or services.

Did you know that customers are more likely to purchase from businesses that accept credit cards? Statistics show that businesses that process credit cards can see an immediate increase in the number of sales. These statistics are based on the average cash sale being only $9, while the average credit card sale is approximately $40.

A business accepting credit cards can easily see their sales increase dramatically, from 50% to over 400%!!

No matter what type of business you own, having the ability to process and accept credit cards can help your cash flow in several ways. Here are some benefits:

By processing credit cards means you can offer customers the option to purchase on the spot
Merchant processing fees are often lower than check or cash transaction fees
Accepting credit cards via your website's shopping cart and even cell phones with a remotes sales force can increase your sales exponentially!
Debt Collection issues become the bank’s problem, not yours.

While there are some definite benefits for your business' transactional needs, there are also some considerations:

You will need to protect your business against the probability for credit card fraud
You may need to revise your policies and procedures surrounding charge-backs and refunds to minimize damages
If you accept credit card payments via your website, be certain you’re using fraud protection measures to minimize scams, thefts and fraudulent charges

Comparing Merchant Accounts

Before you call up your own bank and ask them for a merchant account, take a little time to compare the offerings from different vendors. The fees and charges associated with them can vary drastically, so always check what you’re being charged and what fees are likely to come into effect per transaction as well.

Also, consider that many banks don't offer merchant accounts directly to small businesses. However, there are many third party providers who can secure them for you. Be sure to check them out, as their fee structures and rules vary.

If you plan to process orders on the Internet, you will also need a payment gateway, as well as shopping cart software, where customers will place their orders. This software needs to interface with your payment gateway, and merchant account, so make sure they're compatible with each other, since there are many different gateway systems available.

Rates and Fees

When comparing credit card processors, make sure all fees are fully disclosed up front and that they're clearly understood. In addition to application fees and rates, consider also the cost of equipment and software: physical or virtual, online terminals, monthly statement fees, address verification fees, monthly minimums, transaction fees, and any other additional costs.

Also, its important to understand the different rates charged for in-person transactions, versus telephone and other transactions. Many companies quote the lower in-person fees, where the person's card is swiped in their presence via a credit card terminal.

Credit Card Processing Equipment

While it can be convenient to lease equipment, as it usually requires less cost up front, you're likely to end up paying more in the long run than by purchasing the equipment outright. Also, leasing can lock you into a multi-year contractural arrangement, so read carefully.

Merchant Account Application

When applying for a merchant account, most vendors will require a copy of your business license, corporate documents (if any), possibly copies of previous tax returns, as well as financial statements.

Some merchant providers may need to visit your facility to take a picture of your business to verify that you are at the location you stated. Others will accept a photograph, in place of an onsite visit.

Business Bank Account Required

In order to establish a merchant account, you will need a business checking account. If approved, you will need to provide the credit card processor with two-way access to your bank account. This access allows for both depositing funds, as well as the ability to withdraw funds in the instance of chargebacks.

Important Considerations About Merchant Account Providers

There are a number of vendors offering credit card processing equipment and merchant accounts. While getting a good price and fee structure that is reasonable is certainly important, there are a number of other equally important factors to consider.

The merchant account industry is filled with less than scrupulous vendors and providers who are only interested in making a quick buck.

Here are some red flags to look out for:

If you repeatedly get an answering machine when calling during normal business hours, avoid doing business with them...period. Customer service is just as important as getting a good rate. Time is money, and it will cost you dearly to have to deal with constantly busy signals, leaving voice mails, and waiting on hold forever.
Only consider merchant account vendors that have friendly, knowledgeable customer service personnel. Another very important consideration is making sure that their customer service is available on holidays, and even after hours. This is especially important if you're open after hours and during holidays.
When talking with a representative, make sure they answer all of your questions about rates and fees. Be concerned if they're evasive or ambiguous with their answers about prices.
Avoid companies who try to sell you on the lowest price only, as a number of variables can determine your total costs.
Make sure they fully explain all the details in their merchant agreement so there aren't any "surprises" further down the line.
Make sure the provider clearly state in their conversations, agreements and/or website what bank(s) they represent. The law states that a merchant account provider must disclose the bank(s) they represent.

If you're interested in a merchant account quote to grow your business online, and/or to accept credit cards in person, fill out the quick form below. One of our consultants will contact you within 24-48 hours.

U.S. based businesses ONLY

e-Commerce Merchant Account Quotes

Please note that all fields followed by an asterisk must be filled in.

Company Name*
Company Name*

First Name*
First Name*

Last Name*
Last Name*

Title*
Title*

E-mail Address*
E-mail Address*

Street Address*
Street Address*

City*
City*

State/Prov*
State/Prov*

Zip/Postal Code*
Zip/Postal Code*

Business Phone*
Business Phone*

Fax

Types of Goods/Services Sold*
Types of Goods/Services Sold*

Does your business currently accept credit cards?*
Does your business currently accept credit cards?*

Estimated monthly credit card sales?*
Estimated monthly credit card sales?*

Value of typical credit card transaction?*
Value of typical credit card transaction?*

How you plan to handle the majority of your credit card orders?

	In person
	By phone and/or mail
	Internet

Questions/Comments

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