You decided to offer more payment options for your customers but where do you start? If you are thinking about setting up your business to accept credit card payments, your first step is choosing a Merchant Account provider.
Keep in mind that merchant services are good for higher-volume sellers because they offer lower credit card processing fees. Essentially, you need Merchant Account because when a customer makes a purchase, the credit card processor will transfer the funds from the account of the cardholder to the Merchant Account.
There are many Merchant Account providers out there but how do you choose the right solution according to your business needs? Here are the things to look for when choosing a Merchant Account provider:
Length of the application process
The provider must expedite the process of the application so you can get into business immediately. For providers like PayPal and Square, they can immediately set you up within a few minutes. For other providers, you should expect it set up within 2 to 3 days. With this, you have to ask and evaluate according to your urgency.
The average processing time
The next thing that you should look into is the fund average processing time. You do not want the funds to take time. As much as possible, the clearing should be done quickly and smoothly. In the end, this can help you predict cash flow, which is crucial in the success of the business.
Customer service should also be a priority. Although most providers offer some level of customer service, you should look for 24/7 customer support with several communication platforms you can reach with ease.
When it comes to fees, the first thing you should look into is the discount rate. This is the percentage of sales that will be subtracted as your fee. The fee will vary but in general, it starts at 1.5%. Of course, you do not want a higher discount rate. The best thing to do is to shop around and compare the rate before settling.
Other fees involved
You must understand that there are other fees involved. Some providers try to hide fees. If you are not careful, you will be surprised when you receive the bill. The practical thing to do is ask the provider for other fees involved. Also, make sure that you understand everything.
Fraud protection services
Security should be the top of your list. At the bare minimum, the provider should have fraud protection services. Bear in mind that thieves will not stop to get payment information so the provider should put in place fraud protection to reduce the risk of compromised data.
To complete the process, you need to purchase card payment machine for small business. This machine will allow you to swipe the credit card physically. For online stores, this machine is not necessary because of Payment Gateway, which is usually in the store’s checkout page.