Business Merchant Account

The process of adding a business merchant account to your company can be pretty intimidating to the unknowing. There is a lot of information available to sort through and most business owners don't have time to wade through all of it before they need the account set up. There is some vital information you'll need to be aware of though, before you set up your new business merchant account.

Use the competition to your advantage. It's a highly competitive market with providers who will do anything they can to earn your business. Get quotes from at least three providers and don't be afraid to let each of them know some of what the other is offering. Many times you'll find providers willing to match the benefits of other companies where they can. Processing rates and fees are negotiable and you'll be able to move things around to get the best of all three of them with a little patience. Don't discount a merchant account just because there is a contract term attached. All merchant accounts have contracts, it's the terms of the contract you want to watch out for. Sometimes these terms make it possible for providers to lower rates or fees and to lend you equipment free of charge. Some contracts will automatically renew if the account isn't cancelled within a specified time, and contracts don't guarantee that rates and fees will remain the same. Most agreements ha! ve out-clauses that make it easy for them to change fees or rates as long as they give proper notice on the changes. Even though transaction fees account for most of the credit card expenses, you still have to pay other fees. Providers have monthly minimums, statement fees and other less visible fees that will account for a portion of your contract. Compare all aspects of the account contract, not just the discount and transaction fees. Consider your business credit as this will also help you determine what type of account you qualify for.

Merchant accounts do not have hidden fees. Although those less visible fees may be hard to find, they are more often just overlooked. Merchants can't charge you for anything you haven't agreed to so review your documents carefully and ask questions if you don't understand something. Credit card terminals can be purchased for $400 or less with all sorts of extras. Before jumping into a lease agreement on your equipment, shop around for different prices and deals. You may find you can get better equipped programs for a lot less than that lease will cost you.