Today, almost every retail establishment as well as online vendors accept credit card payments. This is because the majority of consumers now make their purchases using credit cards as they are actually safer, easier to track, maintain and budget. As a result, establishments that do not accept credit card processing methods risks losing significant potential sales. Accepting credit cards will allow you and your business to instantly expand your customer base and provide a convenient method of payment other than cash or checks. Also, if you are interested in selling your goods over the Internet, accepting credit cards or debit cards is a must.
How To Set Up A Merchant Account
The first step you need to take to accept credit cards, is setting up a merchant account. This involves finding and locating the right merchant account provider/credit card processing company. A lot of small businesses go through their local banks where they do their banking. Be aware that this may be an expensive method and not every bank provide credit card processing services.
Do You Qualify For A Merchant Account?
Before you are approved for a merchant account, a credit card processing merchant provider will want to make sure you are a legitimate business. They will normally start with a basic background check, including a detailed credit history check and review, as well as requesting for credit references from two to three suppliers.
They are concerned about the type of business you operate as they want to avoid high chargebacks on their merchant accounts.
Some Tips On Choosing The Right Credit Card Transaction Service
– Find out how long it takes the merchant provider for funds to be transferred to you: Various providers differ on how the length of time it take for funds to be deposited into your bank account.
– Make sure you compare the variable fees: Check the fees that each merchant provider charges and yes, they may be negotiable. Fees may include charges such as: account set up, cancellation fees, and monthly minimum fees.
– Find out the Total Charges: Determine the total fees a merchant provider will charge you. Determine what your total fees and cost would be based on your best and worst months of income.
– Read the contract agreement: Make sure to read and study the contract agreement in detail to understand all the fees associated, as well as the minimum charges, the term/length of the agreement, and termination process and clauses. Be aware that some merchant providers will not cover every detail, so its up to you to find out.
– Get various rate quotes and compare them: Become familiar with the various merchant providers and what they have to offer. Get various quotes and compare the offers side-by-side to better prepare for your decision.
All business establishments today should have some form of credit card processing capabilities. This is because the majority of people make their purchases using debit or credit cards. Businesses that do not have a merchant account risk losing a significant number of sales. The good news is, it is increasingly easier for you to be able to accept credit card payments, as there are a large number of services that provide credit card processing.