Find the Best Merchant Account Available
>> Wednesday, August 31, 2011
Business owners searching for a merchant service provider have a wide variety of companies and factors to consider. Merchants looking for additional reviews on credit card processors and ways to find the best merchant account for their small business should focus on these 4 main criteria before making their decision.
Credit Card Processing Rates: The credit card processing rates that small business owners are charged on their transactions are determined by a variety of factors. Is the credit card present at the time of the transaction?/Is the credit/debit card a rewards or business card?/What type of goods/services are being provided? - All these factors are directly related to the rates a merchant will be charged. The floor rates are set by Visa/Mastercard, ho however merchant account providers add additional margins onto those floor rates, as a result finding the best merchant account provider can be the difference between paying margins that are far in excess of what you could be paying.
Dues/Fees Assessed: In addition too their margins, credit card processing companies have also found that by charging monthly minimums and assessing merchants with other dues and fees they can further increase their profits. If a merchant is not careful and knowingly/inadvertently sign a specified length contract with a merchant account provider that you do not fully trust, they could find that despite low rates, they are actually paying significantly more money than they should be.
Customer Service: While price is a major factor, the level of service that you receive for your costs can play a major role in determining the actual cheapest merchant account for you and your small business. The financial ramifications of signing with a low cost credit card processing company only to have your processing system fail and lose a day/week/month of credit card processing due to issue with your account, can directly impact your bottom line.
PCI Compliance/Application/Cancellation Fees: While unusual, there are some credit card processors that continue to charge application fees, small business owners should avoid these service providers at all costs. Also merchants need to review their contracts as well as their statement of rates and fees, to identify merchant service providers that have contract cancellation fees, and excessive PCI Compliance fees.
Credit Card Processing Rates: The credit card processing rates that small business owners are charged on their transactions are determined by a variety of factors. Is the credit card present at the time of the transaction?/Is the credit/debit card a rewards or business card?/What type of goods/services are being provided? - All these factors are directly related to the rates a merchant will be charged. The floor rates are set by Visa/Mastercard, ho however merchant account providers add additional margins onto those floor rates, as a result finding the best merchant account provider can be the difference between paying margins that are far in excess of what you could be paying.
Dues/Fees Assessed: In addition too their margins, credit card processing companies have also found that by charging monthly minimums and assessing merchants with other dues and fees they can further increase their profits. If a merchant is not careful and knowingly/inadvertently sign a specified length contract with a merchant account provider that you do not fully trust, they could find that despite low rates, they are actually paying significantly more money than they should be.
Customer Service: While price is a major factor, the level of service that you receive for your costs can play a major role in determining the actual cheapest merchant account for you and your small business. The financial ramifications of signing with a low cost credit card processing company only to have your processing system fail and lose a day/week/month of credit card processing due to issue with your account, can directly impact your bottom line.
PCI Compliance/Application/Cancellation Fees: While unusual, there are some credit card processors that continue to charge application fees, small business owners should avoid these service providers at all costs. Also merchants need to review their contracts as well as their statement of rates and fees, to identify merchant service providers that have contract cancellation fees, and excessive PCI Compliance fees.
About the Author:
If you are looking for additional analysis on any of these categories as they relate to a distinct merchant account providers, CheapestMerchantAccounts.com offers in-depth analysis on the top rated credit card processing for smbs.
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