How to Find a Reputable Credit Card Services Provider
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Posted On :
Feb-11-2010
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Article Word Count :
812
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Choosing the best merchant account provider can be time-consuming, but it doesn’t have to be confusing. Use these guidelines as a starting point to making your selection, and you can be accepting credit cards in only a matter of days.
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When you’ve decided your business is ready to tap into the potential profits, growth and other advantages that can be realized by allowing your customers to use credit cards to pay for your business’ goods or services, you’re ready to being your search to identify the merchant provider offering the right mix of services, options, and fees that suit your business’ unique needs.
With thousands of merchant account providers ready to serve your every whim, locating the provider that represents the best choice for your needs can be a drawn out, time-consuming process, especially if you begin merely by reviewing every merchant account provider website that comes up during an Internet search.
The tips in this article can help you narrow down your search and allow you to focus on the few providers who truly meet your needs and match the profile your business needs to compete effectively in today’s marketplace.
• Check the provider’s track record. How long have they been in business? What type of customers and businesses have they served? Do they offer bundled services for businesses that have a combination of retail, Internet, mail order, telephone, or wireless credit card processing needs? Check online forums and chat groups to see what other customers are saying about them. And be sure to check with the Better Business Bureau to see if there have been any complaints entered against them.
• Do they specialize? Some merchant account providers prefer to work with retail merchants, while others specialize in MOTO (mail order and telephone order) or Internet businesses. Be sure to choose an account provider who has expertise in your specific type of business, as well as in the way you want to accept payments (via telephone or online, for example).
• Do they accept international payments? Especially if you operate on the web, you want the convenience and flexibility of knowing you can attract customers from anywhere in the world. Some merchant account services allow international credit card charges while others do not. Of those that do, some charge substantial fees to process international payments, so be sure to inquire.
• What are their fees? This is the most complicated factor to consider, as fees vary substantially among providers, not just in the amounts but also in the types of fees that may be charged. Some accounts begin with an application fee, followed by a setup fee and a software installation fee. As more and more merchant account providers have begun competing for business, these fees have dropped off for many account providers. Other fees include transaction fees, which usually range from 20 cents to 30 cents per transaction, and discount fees, also referred to as a discount rate. The discount rate is a percentage rate that is charged on each sale, and usually ranges from about 2 percent to 4 percent of the total sale amount. Accounts that are deemed to have a higher level of risk due to higher levels of fraud and chargebacks are charged higher discount fees than those considered to present a lower risk. Among the higher risk businesses are online businesses and those which sell alcohol, tobacco, gambling services, adult services, and travel services, among others. When you narrow your search to a few providers, ask each for a complete list of all fees that may be charged. Also ask if you will be required to lease any required equipment or if you will have the option of purchasing it.
• Is there a contract, and if so, what is the renewal term? Many merchant accounts require their clients to agree to keep their account open for a specific period of time – usually one year. Some providers may require substantially longer commitments – sometimes as long as three years. Since no one knows where you’ll be in three years or whether or not the merchant account provider will still be able to meet your business’ needs as it evolves, it’s usually best to choose and account provider with a shorter contract term. For those with longer terms, if you close your account early, there are significant penalties to be paid.
• Do they offer a money-back guarantee? To remain competitive and to show their level of confidence in their ability to serve their customers effectively, many merchant account providers offer a money-back guarantee for a specified period of time – often the first 30 days after account opening – to their customers. This is an increasingly popular option which more and more merchant account providers are offering, so be sure to look for an account that offers a guarantee.
Choosing the best merchant account provider can be time-consuming, but it doesn’t have to be confusing. Use these guidelines as a starting point to making your selection, and you can be accepting credit cards in only a matter of days.
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Article Source :
http://www.articleseen.com/Article_How to Find a Reputable Credit Card Services Provider_10786.aspx
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Author Resource :
Karen Zabel is a freelance writer who writes about Accept Credit Cards.
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Keywords :
Accept Credit Card, Merchant Accounts, Credit Card Processing,
Category :
Business
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Business
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