Finding the Right Merchant Account Provider - not as Hard as You Think

If you are a business owner, you probably already know how important it is to accept credit cards as a form of payment.  Some studies suggest that a business can increase its revenue by nearly twenty-seven percent when it accepts credit cards.  Customers have come to expect this convenience.  Businesses that post signs stating that credit cards are not accepted will often see potential customers turn around and walk out.  Additionally, this is an open invitation to potential robbers; it's advertising that there is nothing but cash in the register.

Even though there are fees involved and it may seem intimidating to finding the right merchant account provider, the cost is actually very reasonable and choosing a provider is not difficult at all.  When beginning to look for credit card payment services, you should educate yourself a little bit prior to contacting any processors.  Determine what type of business you have so you can determine what type of merchant account you will need.  Being prepared will prevent being sold a service that you do not want or need.

If your business is a storefront retail location, you will likely need a regular retail account.  A retail merchant account will enjoy the lowest rates of all types of merchant accounts.  The rates are lowest since the transactions are taken in a face-to-face manner and swiped through a terminal.  A transaction of this kind has a very low possibility of fraud.

You will need a MOTO account if you take mail or telephone orders.  The rates will be slightly higher than a standard retail account due an increased risk of fraud.  You will use either a terminal or an online payment gateway to process the transactions.  The processor will likely suggest putting some sort of fraud protection parameters such as an address verification feature on the transactions.  While this may be an inconvenience to the person processing the transaction, keep in mind it is for your own protection.

If you have a website that takes payments for orders for products or services, you will need an internet or e-commerce merchant account.  Most processors will offer this as well as the shopping cart software in the event you need it.

Finding the right merchant account provider should be more about the service that the processor will provide rather than the rates.  Ask other merchants that have businesses similar to your own for recommendations.  Be sure that there is a help desk available during the hours that you are open for business in case you need any help.

Merchant service providers want your business and will do almost anything to earn it.  Don't get stuck on the rates, they can be negotiated.  Remember to choose a processor that has a good reputation.  You don't have to choose the biggest or best known processor; there are many merchant services that are smaller and offer a high level of customer service.  Knowing these tips will help tremendously in finding the right merchant account provider.