There is little doubt that you need a merchant account to run a successful business. Without such an account you can't process credit card payments; and most customers pay with plastic. That said, it is important to take the time you need to get the right terms, or you will regret your decision every day. Avoid these common errors and you are likely to make the right choice.
Forget to Ask Important Questions
In your enthusiasm to start your new business it is tempting to skip right to the signing part. Don't! Ask for clarification on any part of the contract you don't understand. Find out exactly what fees will be charged for which actions. Ask questions about customer support, check companies' reputations online and off. Call the Better Business Bureau. Consider making a list of all the questions you want answered before you sit down with your application and representative.
Among the most dangerous fees to overlook are cancellation fees, which can cost you an arm and a leg if you terminate your contract earlier than originally agreed upon.
Don't Compare Offers
If you can get one offer, you can get more than one. That is why comparison shopping is so important. Have every offer presented to you in writing and then sit down, preferably at home, and evaluate the offer properly. There is no way to go through your contract line by line while at a bank or service provider. A valid offer will be available tomorrow, too.
Don't Ask for it in Writing
With no intent of implying that merchant account providers are dishonest as a group, it is still critical to get everything you discuss in writing. One representative may be willing to cut you a deal on equipment prices, while another may be unaware of your discussion. A deal may sound perfect, but without all the details in black and white you have no recourse if you sign something that doesn't outline your arrangement accurately.
Fall for Free/Great Incentives
A free terminal may seem like a great deal, but the $100 you save on the purchase may be paid for many times over when you pay higher transaction or discount fees. Evaluate offers without consideration for specials and incentives and the picture you get of your total costs will be much more accurate.
Obtaining a merchant account isn't all that difficult, if you take your time and do your homework. Remember, the decision you make today will be with you for a long time, so make sure it is the right one.
Michael Rupkalvis owns the Transaction group. The Transaction Group offers credit card processing solutions and other services including high risk merchant accounts for all types of businesses.
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