The Top Mistakes Businesses Make with Merchant Account Providers
Most payments are made digitally today. Because of this, business owners have to partner with merchant account providers to take payments. However, because the average business owner has no experience in payment processing of any kind, it’s common for mistakes to be made when it comes to selecting a merchant account provider.
If you are an entrepreneur who’s in need of the support of a payment processor, this post has you covered. In this article, you will learn about some of the top mistakes that businesses make when selecting payment processors.
Ignoring Your Credit
Your credit score can impact your ability to open a merchant account. Some providers will refuse to work with you if your credit history isn’t good enough. If you have a bad score and need to take ecommerce payments in risky industries, you need to find a provider that’s going to work with you.
There are many providers offering bad credit merchant accounts to business owners whose companies are established in risky industries, so you shouldn’t have trouble finding one. Make sure you shop around so you don’t get unnecessarily denied, though.
Not Shopping Around
One of the biggest mistakes you can make when it comes to selecting a merchant account is failing to shop around. You need to compare different providers against each other and weigh up the pros and cons of certain accounts. If you do not have the time to do this yourself, there are comparison services available.
Comparison sites will tell you about the advantages and disadvantages of merchant account providers, as well as break down their features and corresponding costs. Always read reviews before choosing a merchant account provider, too. A provider’s reviews can give you a lot of insight into what they are like to work with.
Choosing Based on Cost
Don’t make the mistake of choosing a merchant account provider based on cost alone. While finding one whose services fall within your budget is important, you shouldn’t make cost your only priority. Some offer very affordable rates but don’t offer things like chargeback protection or next-day funding.
The first thing you should consider when you are looking for a merchant account provider is the features on offer, not the cost. The fees merchant account providers charge are seldom excessive, so cost isn’t that important.
Overlooking Fees
Finally, don’t overlook fees. While mention was made of the undeniable fact that most merchant account providers charge reasonable rates, you shouldn’t overlook fees. More often than not, account providers charge a small fee on every transaction made through their service.
The amount charged is usually negligible, but it can be high if the payment amounts themselves are high. To find out how much a payment processor charges per payment, get in touch with them and ask or read their Q&As page. Finding out how much you are going to have to pay before opening an account can save you a lot of trouble.
With digital payments becoming the norm, businesses have no choice but to open merchant accounts. These accounts can facilitate payments and e-transactions, which makes opening and managing ecommerce stores easier than ever. Find the best merchant account provider you can.
