Merchant Account Provider: How Do I Choose One?
This is probably the most frequently asked question to date (and an important one).
First, do a lot of reasearch on the merchant providers you are choosing from. There are a growing number of merchant account providers, ISO's and resellers getting into this business daily. Why? Because the long term & recurring revenue from each account can be lucrative.
Well then, how do I select the right provider?
There are three main bullet points to consider when choosing your merchant account provider.
1. Pricing / Rates
2. Reputation & Integrity
3. Customer Service
Pricing / Merchant Account Rates:
When choosing a merchant account provider, it is very important that you both understand and compare all of the rates that they charge.
- application fee
- setup fees / equipment / installation
- discount rate (mid and non-qualified rates)
- transaction fees
- batch fees
- chargeback fees
- AVS fees
- gateway fees (monthly and transaction fees)
- terminal programming fees
- customer service fees
- annual membership fees
- and more...
Integrity & Reputation:
Having been in this business for years, I can tell you wothout a doubt this business can be sleazy. There are a number of providers in this merchant services industry that can't be trusted.
Below are some red flags that you must be aware of while shopping for your merchant account.
- If you get an answering machine when you call, take this company off your list.
- If the company's web site states "free merchant account" or "lowest prices on earth," it goes without saying that you need to read any FINE PRINT on the site and in the application. Nothing is free. This provider will make it up somewhere. How else can they profit and stay in business?
- If they are not able to answer your questions without a song and dance routine. In other words, they avoid answering the question entirely but dance around it with a whole lot of words.
- If their rates are not posted on their web site, go somewhere else. This is a very competitive industry and rates are expected on their web site (NO EXCEPTIONS).
- If you do a search engine query for a company and the internet reviews are overwhelmingly unsatisfactory (or if they are blacklisted, listed on the FTC site, etc.)
Customer Service:
Toll free, 24 x 7 customer service is absolutely vital for your transaction processing. If your potential merchant provider doesn't offer this, go elsewhere.
You WILL have at least some small problems in the course of your merchant account processing. It's inevitable. If you choose a provider that has poor or inconsistent customer service, you'll regret it later and may lose customer sales.
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