Are merchant services worth it
If the company is successfully invoicing customers, you may put off the costs of merchant services, which take a percentage of all your sales. However, avoiding potential loss from non-payment can quickly make up for the expense. Credit cards allow funds to be transferred to your bank account in less than a week. If you are selling to consumers, merchant services will allow you to expand your customer base and provide a more convenient method of payment than cash or checks. And if you are interested in selling over the Internet, credit card processing is a must-have.
It is possible to accept credit cards over the Internet without establishing your own merchant account. Third party merchants like PayPal can accept credit cards on your behalf, without requiring a credit check. However they typically batch your money into regularly scheduled payments, negating the advantage of quick turnaround. In addition, their rates tend to be higher - significantly higher, in some cases - and they can make your business seem like a small-time operation. Not every company needs to accept credit cards, though. If your per order cost is typically in the thousands of dollars and your customer base is stable or subject to credit checks, you may find it cheaper to continue invoicing your customers.
Merchant services buying tips
1) Learn how long it takes for funds to be transferred: Providers differ on how long it takes for funds to be deposited to your account.
2) Compare variable fees: Check on fees that tend to vary between providers and may be negotiable. Such fees include set-up, cancellation, and monthly minimum.
3) Get the complete picture: Once you know all the fees a provider will charge you, figure out what your total cost would be based on your best and worst recent months.
4) Read the contract: Make sure to read the contract in detail to understand all fees, minimum charges, the term of the agreement, and termination clauses.
This article is sponsored by Jack Chevalier at Paynetsystems Credit card processing and Merchant services provider.
It is possible to accept credit cards over the Internet without establishing your own merchant account. Third party merchants like PayPal can accept credit cards on your behalf, without requiring a credit check. However they typically batch your money into regularly scheduled payments, negating the advantage of quick turnaround. In addition, their rates tend to be higher - significantly higher, in some cases - and they can make your business seem like a small-time operation. Not every company needs to accept credit cards, though. If your per order cost is typically in the thousands of dollars and your customer base is stable or subject to credit checks, you may find it cheaper to continue invoicing your customers.
Merchant services buying tips
1) Learn how long it takes for funds to be transferred: Providers differ on how long it takes for funds to be deposited to your account.
2) Compare variable fees: Check on fees that tend to vary between providers and may be negotiable. Such fees include set-up, cancellation, and monthly minimum.
3) Get the complete picture: Once you know all the fees a provider will charge you, figure out what your total cost would be based on your best and worst recent months.
4) Read the contract: Make sure to read the contract in detail to understand all fees, minimum charges, the term of the agreement, and termination clauses.
This article is sponsored by Jack Chevalier at Paynetsystems Credit card processing and Merchant services provider.
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