A merchant account provider facilitates payment between you and your clients. But they also do much more. As such, your choice of provider is very important.
Let’s go over 10 priorities and requirements you need to know about your merchant account provider before you move forward.
10 Priorities and Requirements for Merchant Account Provider
1. What is the Discount Rate
The discount rate is the fee paid by you to the merchant account provider. It typically includes credit card interchange fees as set by credit card providers and includes other markups.
This fee is typically between 1-3% of the transaction.
2. Can They Support Your Preferred Payment Method
With so many consumers available in so many markets, you need a merchant account provider that can support your preferred payment method. Choose a merchant services provider that offers a wide range of payment options like:
3. What is the Fee Structure
The discount rate may not be the only fee your account provider charges. You may be required to pay a start up fee, support fees, or other regular fees.
4. Do They Offer a Wide Range of Accounts
Not all merchant accounts are the same—some are online only, some are brick and mortar only, and many offer a combination of both online and offline transactions. Ensure your account offers the service your business requires.
5. Do They Offer High Risk Accounts
Merchant account providers are in business just like you. So they don’t like to take risks. If your business is considered high risk, you may need a high risk account.
If your business gets labeled high risk you may be required to pay higher fees, a higher discount rate, or even maintain a floating reserve.
6. How Long Have They Been in Business
Choose a merchant provider who has a proven track record of delivering safe, secure, reliable performance. If a deal sounds too good to be true, and the company has no established history, it probably is.
7. Can They Provide Analytics and Data Reporting
Every sales transaction presents an opportunity to learn more about your clients. Your account provider should offer data reporting. This will help you understand your customer’s buying and returning habits and help you develop a more focused business plan.
8. Do They Provide Strong Security
Security is important to everyone these days. With so many data breaches and thefts in the news your clients want to feel safe when they give you their personal and financial information. Make sure you partner with a merchant service provider that offers state of the art security.
9. Do They Offer Customer Support
Your eCommerce site is open for business 24/7. Your merchant account provider should be too. Make sure they offer you the support you require. A faulty payment portal can derail a competent sales plan, make sure your provider can fix an issue quickly.
10. What are the Termination Costs
Some merchant account providers charge termination costs. Before you agree to work with a provider make sure you can affordably leave on your terms.
Your merchant account provider is the backbone of your ability to process and accept payments. Before you partner with a merchant account provider ensure they offer the services your business requires and you fully understand the terms and costs of the agreement.
Author Bio: Arthur Jones is a freelance writer and marketing consultant at Allied Wallet. His passion is helping people understand the intricacies of business finance and empowering new business owners with the knowledge for success. In addition to writing, Arthur is an avid guitar player.