What to Know About Credit Card Merchant Services
If your company is looking for a merchant service provider, you may wonder if the most important factor to consider is cost. There are other factors, however, that you should consider. Ask the provider about start-up fees. Start-up fees may cost your business a lot of money, so it's important to figure that into your budget.
Your next step should include finding out what the per-transaction fees for merchant services. Once you know what the per-transaction fees are, you'll be able to make a good decision about who your provider is. High transaction costs can cost your company a lot of money over time and be detrimental to success.
But, if you are paying lower fees, you won't be wasting money on fees and thus, you can enjoy watching the company earn more money Once you've got all the information about fees, move on and think about promotional rates. Some promotions may be good enough to compensate for the regular rate you'd pay after the promotional period is over. Just make sure that those low, promotional rates are not being used by sneaky credit card merchant services as a way to trick you into paying higher rates later.
Now, you can think about how long of a contract that you'd like to enter into. Entering a long contract can be good if you really like your service or the proce you pay for it, but should you become unhappy with any part of the service, you will not be able to get out of the contract.
Now, you should find out if the provider has any card not present fees for those transactions made without a physical card. Next, find out the policy the provider has for card not present fees. Card not present fees may be very high in order to protect businesses from credit card fraud. A card not present transaction is what happens when a customer does not have a credit card on hand, but still wants to use that account for a purchase. Even though credit card processing fraud is illegal and prosecutable by law, some customers may use card not present transactions to commit such fraud.
Requiring a card be present for all transactions is just one of many ways that you can protect your business against fraud and avoid fees at the same time. After you've determined the details of your contract as far as payments and other fees, you'll have to decide whether you want to rent or own the merchant processing equipment that you'll need. When you are trying to decide to rent or own the equipment, just think about how long your contract is signed for or how long you'll want to keep utilizing those services. Now that you've decided what you want as far as renting or owning equipment, contract agreements, extraneous fees, and everything else, you just have to decide what provider is the best fit for your business's merchant account.