19 Jun Problems in Signing Long Term Merchant Agreements
When running a business and looking to take credit cards, people often rush out and sign up for a merchant account for the long-term. Here are four reasons why a business owner should sign up for short-term account agreements.
Cost in the future
First and foremost, when one wants to find a credit card processing account, one will want to pay the lowest price possible. Unfortunately, when signing up for a long-term account, a small business owner will struggle as the price is too high for long-term accounts. On the other hand, when getting an account for the short-term, one can negotiate a better rate in the future. Remember, corporations will exploit people who want a long-term solution. However, in reality, it’s wiser to look at one or two-year contracts.
Over time, the merchant accounts provider may make changes. Sometimes, when changing, a company will do so for the worst. When this happens, the credit card processing will suffer, and the business owner will face a tremendous problem. However, when one is not locked into a long-term contract, they can simply take their business elsewhere. Sadly, many don’t follow this advice. When this happens, an entrepreneur is stuck with a service not meeting his or her needs.
Technology will get better
Without a doubt, when running a company, large or small, one will want to take advantage of technology to the fullest. This is difficult when using a merchant accounts provider that doesn’t offer the latest and most up-to-date technology. Think about it, when running a cash register, one can accept payments via iPad, smartphone and other setups. If this is not possible, a company owner will miss out on a valuable opportunity to grow his or her corporation. Simply put, when using a company in the long-term, one can miss out on valuable technology.
Support from the provider
Finally, when hiring a company to offer credit card processing, one will want to find one offering the best support available. If a provider falters in this, a small business owner needs to consider making the switch. Remember, without decent support, one will struggle.
Remember, when signing up for a merchant services provider, it’s prudent to think of the short-term. For this reason, sign up for a one or two-year contract. Otherwise, when signing up for a long-term one, a business owner will miss out on a host of benefits.