Secure trial to gear credit card processing online
Know your business accountant: It is very common for accountants to have personal relationships with payment processing companies, especially if the accountant manages multiple businesses. Often accountants are given bonuses for referring new merchants and for keeping their businesses with the merchant service company. Your business may be paying more because your accountant is getting a kickback from a merchant service provider.
Stay away from the bank: Banks provide merchant services. Yes, this is true but all but a few very large banks sign their customers with a private merchant service provider. Banks that do not provide their own merchant services mark up fees from a merchant service provider, so they can also make money on your business. You are basically paying extra for a middle person when you don't have to be. Those banks that do provide their own merchant accounts have much higher fees and poor customer service when compared to merchant service providers. They also have much higher equipment prices and will almost always try and push or force equipment leases on their customers. Let your bank handle your checking account, but keep your merchant account separate.
Fixed Rates: Make sure when you sign up that your provider will not raise your rates. The only time that you should see a rate change is when Visa or MasterCard raises the credit card processing interchange rate. This means that Visa or MasterCard raises the amount that they collect from each transaction. Your rate will go up proportionally because the entire industry has to pay this extra amount. No company anywhere is excluded from an interchange increase.
Bundled Rates: Another very common pitfall is for a business to accept a bundled rate offer. These offers have a very low or zero transaction fee, and an increased credit card processing percentage. If you have a history of processing and statements, a bundled rate 'can' save you money, but if you are a new business you will almost always pay more with a bundled rate. Bundled rates are based solely from your average ticket size. If you have a highly variable ticket size or you are a new business stay away from bundled rates.
Trust your own feelings: If a company makes you feel uneasy or you feel like they aren't being honest with you, you should trust your instinct. Shop around and investigate the company. There are hundreds of providers out there, so if a company brings up questions, find someone else.
Stay away from the bank: Banks provide merchant services. Yes, this is true but all but a few very large banks sign their customers with a private merchant service provider. Banks that do not provide their own merchant services mark up fees from a merchant service provider, so they can also make money on your business. You are basically paying extra for a middle person when you don't have to be. Those banks that do provide their own merchant accounts have much higher fees and poor customer service when compared to merchant service providers. They also have much higher equipment prices and will almost always try and push or force equipment leases on their customers. Let your bank handle your checking account, but keep your merchant account separate.
Fixed Rates: Make sure when you sign up that your provider will not raise your rates. The only time that you should see a rate change is when Visa or MasterCard raises the credit card processing interchange rate. This means that Visa or MasterCard raises the amount that they collect from each transaction. Your rate will go up proportionally because the entire industry has to pay this extra amount. No company anywhere is excluded from an interchange increase.
Bundled Rates: Another very common pitfall is for a business to accept a bundled rate offer. These offers have a very low or zero transaction fee, and an increased credit card processing percentage. If you have a history of processing and statements, a bundled rate 'can' save you money, but if you are a new business you will almost always pay more with a bundled rate. Bundled rates are based solely from your average ticket size. If you have a highly variable ticket size or you are a new business stay away from bundled rates.
Trust your own feelings: If a company makes you feel uneasy or you feel like they aren't being honest with you, you should trust your instinct. Shop around and investigate the company. There are hundreds of providers out there, so if a company brings up questions, find someone else.
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