The Fine Print of Merchant Account Agreements

When running a business, a person will probably need to open a credit card processing account. With this, an entrepreneur can keep customers happy. However, when signing up for merchant accounts, a company owner should read the fine print. With that in mind, here are...  

 

When running a business, a person will probably need to open a credit card processing account. With this, an entrepreneur can keep customers happy. However, when signing up for merchant accounts, a company owner should read the fine print. With that in mind, here are three things to look for when reading the customer agreement.

Statement fees: Some companies charge customers a statement fee. This can cost a customer over $20 a month. Luckily, most providers will send the statement via email at no cost. This is the perfect option for a business owner who does not want to overspend. Fortunately, most people prefer receiving it in their email as it is more efficient and easier to manage. In fact, when working with a company that sneaks these costs in, a customer should look elsewhere for merchant services.

Equipment: Some companies will charge lower prices for credit card processing fees, but they will overcharge for the equipment. With the rental prices over $100 a month in some cases, a shopper must read the fine print and try to avoid overpaying for an equipment rental. To save money, some opt to use their own credit card terminal or their computer or iPad. When a company forces a user to rent a machine, a client should take his or her business to another company who will not charge too much for equipment.

Chargeback fees: When dealing with a bad customer, one may see the transaction reversed. This will cost the business owner some serious money as he or she will not get the money for the transaction. Furthermore, most providers also charge a fee for every chargeback. Over time, this can cost a business owner a lot of money; sadly, this fee is nearly impossible to avoid. However, when reading the fine print, a client can determine if the chargeback fee is excessive. If this is the case, a customer should try to ask for changes as most companies sadly deal with chargebacks all the time since customers are often finicky.

When looking at merchant accounts, a smart entrepreneur must read the fine print carefully. When doing so, a customer can find the best deal for his or her organization. Remember, costs will vary, and it is up to a shopper to find the best deal for services.

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