How Do
I Choose
a Merchant Account Provider?
by iMerchantNetwork.com
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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