Despite all the stuff we hear on the news about credit card debt and credit card abuse, credit card use is still at an all-time high. Few people carry cash, and checks are becoming almost obsolete. Credit cards are especially important in the business world, making credit card processing and merchant accounts almost a necessity to business owners. However, what’s even more important to business owners is the ability and knowledge to understand their merchant account statements.
Why It’s Important to Understand Merchant Account Statements
When a business owner applies for a merchant account, he or she is informed of the regulations set by both the credit card company and the bank. They are also informed of the various fees that may be applicable to this account, and there can be many fees attached. It’s vital that business owners understand all these things at the time of application so when they get their merchant account statements they know what to expect.
This will prevent them from being blindsided when they see terms like chargeback fee, cancellation fee, monthly minimum, transaction fee or statement fee, among others. It’s important not only for business owners to understand what is expected of them as merchant account holders but also to be able to understand what they’re reading when they review their merchant account statement.
Why Business Owners Should Review Their Merchant Account Statements
Besides the very obvious of identity theft and Internet fraud and theft, there are various reasons why business owners should review their monthly merchant account statements. If they just pay the bill without reviewing their statements, they may discover too late that they’ve been paying much more than they should have been paying. Fees always are always a part of credit card processing, but they can be kept to a minimum by learning why they’re getting the fees.
It’s also been said that data is only as accurate as the individual entering it. Reviewing merchant account statements upon arrival can eliminate errors that could become costly and complicated if unnoticed. Merchant account statements include both the deposits and the fees. By reviewing merchant account statements, the business owner has a much understanding of not only what credit card processing is costing them but also if their business in making or losing money. It’s been said that knowledge is power, and only by knowing where the money is going can a business be successful.