Compare Merchant Account Services Before Selecting Provider

If you are a business owner, you probably already know the importance of accepting credit cards as a form of payment and may be trying to compare merchant account services.  Consumers expect to be able to make purchases with a credit card.  Taking credit cards as a form of payment is beneficial to merchants since studies suggest that the average ticket will increase by up to 27% if a credit card is used.  Even though starting the service may seem like a hassle, it will add both convenience and security to your day-to-day operations.

When you begin to shop and compare merchant account services have as much information as possible about your business readily available.  If you already know what kind of account you will need and give the impression that you know exactly what you want or need you will be less likely to be sold on something that you didn’t intend to buy. 

There are several different types of merchant accounts and you should figure out what category your business falls into before making any calls to merchant service providers. There are the basic retail accounts that are defines as a regular brick and mortar store that will swipe the majority of the credit cards on a terminal.  This type of account poses the least risk of fraud so the rates should be relatively low.

The next type of merchant account is a MOTO account, or mail order/telephone order.  This type of business takes the majority of the credit card transactions either over the phone or through the mail, such as with catalog orders. This type of transaction holds a higher possibility of fraud and will carry a higher rate than a swiped transaction.

There are also internet merchant accounts and ecommerce accounts.  This type of merchant account will be necessary if the business sells products on a website with a shopping cart interface.  Obviously this type of transaction poses a significant risk of fraud so higher rates are to be expected.

With any type of high-risk merchant account, the processor will want to protect their best interests when agreeing to process these transactions on their platform.  Many processors will require a reserve of funds that will be used to covering chargeback claims that cannot be covered by the merchant.  This is commonly known as a “Chargeback Reserve”.

Most merchant service will be able to provide a merchant account that fits your needs.  If you have a storefront and representatives in the field, they should be able to easily accommodate your needs.   In this case, a terminal that is placed in the store coupled with mobile terminals for the field reps would be the perfect solution.

Rates are always negotiable.  Don’t be afraid to request a lower rate or to have an application fee waived.  Some of the fees are mandatory and cannot be negotiated, but many of them can be reduced.  When you compare merchant account services, you should not make rates the standard by which you choose providers.  While the rates are important, the merchant service provider must be a company you trust.  They do not have to be the biggest in the business to provide merchants with a high level of service. By comparing merchant account services, you could save money in the long run!