Merchant accounts: What to what to questions, looking for and why

Credit cards

As a small business or a small small business (employing less than ten) it is important to accept the credit cards, if you are not already doing this to consider.  People can expect to pay with plastic.  You pay by credit card at fast food restaurants, gas stations, coffee shops and more.  It is simple, fairly or not, expect that a business can accept credit cards.

The first thing you need to do is merchant acounts evaluate.  Of course, you can assume that it just easier to your bank, is set up to your account.  Now, it is convenient, but it's really in your best interest.

Many small businesses fall into the trap of closure on their first merchant account and remain the easier with them.  You do this to their Detrement.  In the past, the few years prices have reduced, while these small companies from loyalty or the simplicity sake glued numbers are the same price she had when she started.

Those of you familiar with credit card processing know, that it associated with multiple fees.  There are several things you need to know
before assigning a merchant account provider:
Discount rate: This is the percentage that receives the merchant account provider
Facilities: Terminals, printers, etc.,.
Monthly minimum: fees collected each month by the merchant account provider (usually waive, if your transaction fees and discount rates exceed it.)
Reserve fees: If you are a company with high risk may a reserve account that establish a way for the merchant account is provider, Proect from losses.
Fees back: cover charge disputes

These are all things, that you have going in talks with any merchant account provider should make.

Once you have your account, you need processing equipment.  Oh...I can here the groans now.  You can use from inexpensive a phone and an imprinter, but you may find that you get more favorable discount rates electronic card processing equipment, such as those that swipe a customer card and authorize with sales immediately.  They are more expensive, but save money in the long run.  One way to reduce these costs is your PC set up, to authorize sales instead of a Terminal.

Online merchant accounts are another consideration.  You have virtual versions of the above credit card processors:
Secure gateway: This means: the information entered in your site data that can be read by an electronic card processing system.
Virtual Terminal: This Eleminates the need for a physical point of sale card processing system.
In addition, are some "nice to haves" to expect the people of online merchant accounts:
Online shopping cart
Encryption
Virtual check processor
Wireless terminals

Go a merchant account to purchase with your eyes open.  It's a service that you need if you plan to be competitive, so make sure that you properly to make it.

Yolanda McDonald is a business system analyst in Baltimore, MD. She has 15 years experience in the programming, design and analysis on multiple platforms including midrange, client/server and the Internet. You can find more of her articles at http://www.ymcdonald.com.

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Posted in: Accounts,Merchant