Finding the right merchant account for you

Finding the right merchant account for you

Whether you're running an e-commerce or bricks-and-mortar operation, you'll need to set up a merchant account with a reputable company for credit card processing services. Yet there are so many merchant account providers to choose from, how do you find the one that's right for you? Here are some quick points to consider.

Merchant account provider's reputation. A quick check with the Better Business Bureau and a basic online search of the credit card processing company's name will help you learn more about its track record and confirm whether it has a favorable reputation. Check the merchant account provider's website for any testimonials and seals of approval from relevant agencies and associations.

Customer service options. Does the merchant account provider offer customer service 24/7? Does it have a toll-free customer service or technical support number in case you run into problems with your credit card processing software or equipment? Choose a merchant account provider that offers timely assistance so that you don't have to worry about compromising your own retail or service operations.

Merchant account fees. Fees vary significantly between merchant account providers, so take the time to find out about rates and hidden fees. Some merchant account providers will require you to pay a setup and installation fee, application fees, and even maintenance fees for certain types of equipment. Fee schedules may also be different for online and in-store transactions. Do your research so you understand exactly what the total costs involved will be.

Credit card processing caps. Each merchant account provider will set up a fee schedule based on a certain number of credit card transactions. Consider the volume of credit card transactions you are dealing with each month or quarter so that you can select the package that is right for you. Make sure that you're aware of any fees and charges that you will incur if you go over your monthly limit.

Chargebacks process. Some merchant account providers will charge a nominal fee for each chargeback, or return, during credit card processing, while others will impose higher fees for each chargeback. Make sure you understand the policies on chargebacks and if you will be responsible for paying a reserve fee as insurance against these types of transactions.

Published: June 4,2023