Research is an important thing in most everyday undertakings, and this is something you would indeed have to do thoroughly before you make a decision and apply on a merchant services account – you would not want to be “duped” by somebody who overcharges or resorts to devious business practices.
Indeed, the rectitude of a merchant account service would be something to prioritize, but you must also consider the price and customer service.
Rates and fees for merchant accounts
One thing you must research on would be the different fees and rates that merchant account providers charge. There are a number of fees you may have to pay for, including the monthly fee, plus application fee, transaction fee, installation fee, and you may have to pay costs related to discounts.
Depending on whether you meet your monthly transaction minimum or not, the monthly fees for these services would be about $25 or so. Discount rates are a percentage taken from a sale that the merchant pays to cover the transaction costs and the risk involved. Normally, discount rates would be about 1.5% to 3.5%.
The transaction fee, which ranges from about 20 cents to $1.00, is a flat fee that is charged on a per-transaction basis. Not all merchant account providers charge an application fee, but if there is one, this is the fee required so a merchant account can be opened.
The installation fee would be the fee the merchant charges to install software. Sometimes there wouldn’t be a charged for this, but if there is, it could cost you around $1,500 depending on whether batch or real-time processing is used. Expect to pay around $500 to $1,500 for POS terminals – prices, depending on the model, may vary.
The reputation of merchant account services – what to consider
Again, we must remind you to be mindful of the merchant account service’s reputation.
Consider the following guide to judging the most reputable merchant account:
Beware of merchant service providers who have misleading ads offering things like “free merchant accounts” or “lowest prices guaranteed.” Read the fine print on the website to find out what they really offer.
You would want to think twice about the company if you keep getting voice mail when you call them.
If a merchant account service uses a free domain or free web hosting service to host their site, they are likely none too credible. If they can’t afford a domain name, how are they in business?
Be careful of providers who can’t answer your questions.
Be wary of merchant account sites whose websites contain no information about rates and fees.
Use the Internet to find reviews of merchant account companies and take note of all unsatisfactory remarks
Solid customer service must always be kept at the forefront of your search for a good merchant account service.
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