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What to look for in a merchant account provider
You have at this point gotten your company up and running. It is going great, but it could be better. You are losing business because you do not take credit cards. Now you need to look for a merchant account provider. However, which one, there are so many?
A merchant account will allow your company to accept credit cards. In this current day and age, plastic is all the more popular. There colored cards, cards with picture, cards with art, cards with family, even see through cards. They are all plastic and almost all of us use them. With the pluses and minuses, it is faster, easier and subsequently safer.
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How do you get started using a merchant account provider? They will not just drop into your cash drawer. The fist thing I would recommend is getting on the Internet or in the yellow pages look them up and start asking questions. There are many companies on the Internet that offer easy, free and fast quotes. Fill out a few questions and then get the answers. You can also compare rates, fees and other pertinent information.
Merchant accounts are not free. A charge is then applied each time you run a credit card. These fees are valid and vary based upon something called intercharge. The level of fee is processed by different kinds of circumstances for different cards. For example: a credit card that is swiped costs less that a card that is keyed in.
There is going to be a few different types are merchant account and tools you are going to need. Keep in mind these different merchant account options as you choose your merchant account provider.
You will need to choose a bank credit card processor and clearinghouse:
Processing credit card transactions usually, takes place though a clearinghouse. They verify the limit and availability on the card, in addition to validation for authorization.
Bank:
Banks and financial institutions assist in setting up cards like Discover, Master card, AMEX, and Visa.
Credit card merchant accounts:
These allow you to be able to accept credit cards on the Internet.
Credit card swipe machines:
The machine sits on about every counter of every business in the world. This allows you are your customer to be able to swipe away their money. This machine will display the pertinent information for the sale. This machine is often called a credit card terminal. It is pretty much a stand-alone piece of equipment. This credit card terminal is plugged into a power supply and a phone line. However, it is ran with batteries if necessary.
Desktop Software:
This is for e-business. This software makes it possible for sales to be possible in real time over the phone, mail, or email.
Automated response unit (ARU):
This process allows for keyed entry and subsequent authorization of a credit card over the phone.
Payment gateway:
The payment gateway is the code that will transmit a customer's order to and from an Internet merchant account provider.
Finally, yet importantly, remember to check the fees. You will want to keep an eye on the fees and make sure you are getting the best deal for you possible. Here are some fees to keep in mind.
Typically, an Internet merchant account will have three types of costs:
- Up Front Application Fees
- On Going Fixed Fee
- Discount Rate
- Fixed Transaction Fee
- Termination Fees
- Miscellaneous Fees
There are many companies available out there that offer credit card processing. Be careful when dealing with companies, which do not list all prices and fees upfront. These companies will get you in the door and then hit you with high costs and high pressure. Research and ask questions. That is the best way to find the right merchant account provider for you.
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