It is important for a new business to be able to accept credit cards in the world today. While a handful of companies might be able to scratch a profit only by operating on cash and checks, any business that needs to take online orders or make large transactions must be set up to take their credit cards clients. To do this, a business must first set up a merchant account.
Get an offshore merchant account allows a business to have someone else process their credit card transactions. These services collect and forward the data to the credit card to several banks then send the payment to a business bank account. There are hundreds of merchant account services now available, and the choice that is right for your business can be difficult. Before you choose, ask a merchant account service to these five questions…
- What fees are charged for the processing of credit cards in store? This is one of the most obvious questions to ask, but it is surprising how many companies’ signs up for a merchant account, without reviewing the fees carefully. Some service providers charge a flat monthly fee regardless of how many transactions are processed, while others charge a percentage of the total transaction amount. Some charge both. Think about the number of your business processes transactions each month before you agree to any of these payment plans.
- That taxes do you charge for processing credit card and mobile on-line? The development of the mobile and online payments is fairly new, causing some merchant account providers to pay more for this service. Some tack on a fee for each transaction that does not occur from the “home”. Other merchant account providers charge the same rate, no matter where the sale took place or the credit card was swiped. Consider how and where the majority of your business’ transactions take place before deciding on a merchant account provider.
- How quickly will money deposit into my account? Many years ago, it was common for credit card companies to wait several weeks before mailing a check for a store or refund their business for their credit card expenses. Today, most of the places take care of everything electronically. However, some service providers claim they can deposit funds into your bank account in a few minutes, while others argue that it can take up to 24 hours. If you do a lot of transactions and you need money from them to cover immediate expenses, you might want to look for a service with immediate payment.
- Such as disputes with customers are regulated? Every entrepreneur knows that no matter how things are managed, a customer may have a billing dispute. Some high-risk merchant accounts providers have immediate refund policy the customer’s money and then resolve the problem. Others put the money in the escrow account, while the problem is resolved. Think carefully about how you want the provider of merchant services to handle these disputes, and then find a supplier whose policy correspond yours.
- How satisfied are your current customers? With so many providers to choose from, it can be difficult to choose the right one. Be sure to ask for references or read the review sites to know which companies are thinking about their customers and what trouble is.
Choosing a merchant account provider can be difficult, but making the right decision can save you and your company thousands of dollars a year. Be sure to read as much as possible before making this decision.