How a Merchant Account Could Help Your Business

In today’s cloud oriented business world, almost every company needs an online presence. Once that website is up and running, the natural next step is make online sales. If your customer is accustomed to shopping from home and finds the only way to buy from you is to physically come in to the store or place a phone order, they may just move on to your competitor.

In today’s market, that might be someone in another town or even another country. Most of your shoppers may be local, but they are not limited to using local businesses. To stay alive in today’s economy, the smart move is selling online. However, this is almost impossible without the ability to accept credit cards and for that you will need a merchant account.

A merchant account is a special bank account for handling credit card sales. There are many independent merchant account providers available. Don’t just sign up with the first one you find. Shop around for the one most likely to fit your sales figures.

A good merchant account service will provide you with a reliable platform and professional specialists to help grow your business in today’s globally competitive market place. They should also offer training and a variety of fee schedules to fit your selling needs. There are several factors to consider when choosing a merchant account vendor.

Compare their pricing models and fee schedules. Interchange rates are usually scaled. Check on the requirements to qualify for the lowest possible end of the scale. Even if your website has been active for some time and gets lots of hits, online sales may be slow getting started and a high monthly minimum could eat up your profits in fees. On the other hand, if you anticipate an immediate high volume and the transaction fees are too high, you might have the same result.

Ask if they deduct fees on a daily or monthly basis. Monthly deductions will probably give you a better cash flow situation. Ask for information about the monthly minimum and try to get it lowered. If the total of your credit sales falls below that minimum, you will be required to make up the difference.

If you need equipment for a brick and mortar store, don’t get into a lease situation. Make sure the equipment is yours and that it will work with other vendors if you should decide to change companies. Also refuse to accept cancellation fees, annual fees, or PCI compliance fees. These should be the cost of doing business for the merchant account vendor, not for you.