Accepting credit cards at your business, whether online or at your physical location, can be a challenging task. The Credit Card Processing Industry is highly fragmented, with many companies offering conflicting or a confusing range of services. This fact filled paper will provide you with a framework to make an informed decision for your payment system including; Equipment Costs, Rates, Types of Processing and Terms of the Agreement.
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Choosing the Right Merchant
Essential Factors Every Business Owner Must Understand Before CAhococsinog ua Pnaytm Penrt Porovceisdsineg rPr ovider
Choosing a Merchant Account Provider
5 Essential Factors Starting to accept credit cards at your business can be a challenging task. The Credit Card Processing Industry is highly competitive, with many companies offering a broad range of services it is important for any business considering Merchant Services to understand these important factors; Benefits, Equipment Costs, Rates, Types of Processing and Terms of the Agreement. What is a merchant account? A merchant account is an account that enables merchants to accept credit card payments. Any merchant who wants to take credit card orders must establish a merchant account. A merchant account can be obtained through a bank, credit card company, or the direct payment processor. Keep in mind that banks are not merchant providers; they use third parties to set up merchant accounts. Once you are set up with a merchant account you will have the ability to accept all forms of payments including credit cards, debit cards and electronic checks. 1. The many ways a merchant account will benefit your business. Boost Sales Most everyone pays with credit or debit cards. Our society is all about convenience. If you make it easy for your customers to pay they will appreciate it. Most all businesses find an immediate increase in sales after they start accepting credit cards. Receive Immediate Payment Rather than waiting for weeks or months to receive payment, funds will be deposited directly into your account in a matter of days. Money goes directly into the checking account of your choice. Reduce Staff Overhead In receiving payment via credit card your business forgoes excessive time spent in sending overdue notices and making awkward phone calls to request payment. Avoid Non-Payment Many business owners are reluctant to pay a small percentage of profits to credit card processing companies, however, most find that the service quickly pays for itself in avoiding loss from non-payment. Expanded Customer Base The modern consumer expects to be able to pay via credit card and is often without cash, check, or other means of payment. Credit Card processing is a convenience for your customers and a professional foot forward for your company.
1 Choosing a Merchant Account Provider
Go Virtual Business has moved online. With the Internet, small and large businesses alike can have a global customer base. However, credit card processing is a requirement for effective ecommerce. Auto Charge Your Clients For customers or clients on a revolving payment schedule it is usually easier for them and for your business to simply auto charge their credit cards each cycle. According to data from the U.S. Census Bureau, there were 159 million credit cardholders in the United States in 2000, 173 million in 2006, and that number is projected to grow to 181 million Americans by 2010. (Source: Census Bureau) It is estimated that there are 10,000 payment card transactions made every second around the world. (Source: American Bankers Association, March 2009) 2. Equipment Costs Buy When you buy equipment you have complete control over the machine, but you are stuck with equipment that you have to maintain and update yourself. This also raises the start up costs tremendously. Expensive Start Up Buying equipment can be expensive. Terminals can cost up to $1,000. If you are looking for low start up costs this will not be the right option for you. Training You want to make sure that training of some form is included with your purchase. A quick introduction to using the advanced features of your terminal can help you get your money's worth. Keeping Up With Technology You don't want to get stuck with an out-dated machine. Technology is constantly changing and you want to keep up-to-date with the changes. You want to make sure the machine is compliant and can be used with the processor of your choice.
2 Choosing a Merchant Account Provider
Lease A lease payment will often cost you far more than purchasing your equipment outright. You could be paying more than the machine is worth and usually you have to enter into some sort of contract. Make sure to read the entire contract. No Replace or Repa... [download for more]
