27 Jul What Merchant Account Rates Mean For Your Small Business
More and more today, people are relying on their credit cards to make online purchases. This means that it is imperative for online businesses to have a merchant account for credit card processing. If a person cannot pay for his or her product online using a credit card, it is likely that he or she will turn to another business to fulfill the need for a good or service. Even if a business has a merchant account service, this service must be able to process multiple types of credit cards in order for the business to see a wide turnover of customers. There is no question an online business needs a merchant account to handle all of its online credit card transactions. The tricky part is knowing what service to choose.
Merchant account services charge different fees for different transactions. There are fees for registering, fees for each different type of credit card and fees for a different transaction amount. Some merchant services offer lower fees than others, and these are the services a business should pursue. If a business does not carefully choose a merchant service, it could end up being financially burdened by a merchant services’ fees. Many merchant services do not reveal certain fees until a business has signed up to use the merchant service. At that point, the business is paying more than it originally intended.
These hidden fees are often disguised in fine print on a contract, which is why a business may neglect to account for them in its budget. The merchant account has done nothing illegal; the fault lies with the business. That is why it is so important for a business to find out every fee a merchant service will charge when it does card processing. A business should not be afraid to ask questions about all possible fees that could be associated with card processing. A business should also do research about the rates of other merchant services and be able to compare merchant services. Reading reviews from past and present customers is also a good research tool.
Doing research is the key for a business to save money on merchant services. Many online businesses have gone under because they have not accounted for the fees merchant services charge. If the use of a credit card is popular on a website, but the website’s merchant service charges a high fee for transactions using that credit card, it is quite possible the website will not see a profit. Fees for merchant accounts can drag a business down. However, when used wisely they can be the key to a business’ success.