Summary: Don’t let your money go to waste by signing up with a shoddy provider. Read these tips beforehand as it can save you a significant amount of money.
If you’re starting a business, it’s likely you’re going to utilize an Internet credit card processing service from a firm, in order for you to manage transactions between you and your clients.
More often than not, you’ll find that merchant account providers aren’t as honest as they should be – consider it like a used car dealership. The seller will typically have more information than the buyer, and as a result, the business will be confused with complicated fees and schedules.
Here are some things you should keep an eye out for when choosing a merchant account provider.
Early Termination Fees
Typically, you’ll want to go with a processor that will not charge any cancellation fees. However, if you must go with a company that does have a fee, it should be no more than $200 to $400 maximum. Avoid processors that utilize a liquidated damages termination fee which essentially means that the processor will charge you for the estimated amount of the full contract if you decide to opt out early.
Is the payment processor you’re using compatible with your online shopping framework? Many processors have software that might not work with your online shopping cart, so be aware of this before you sign up. Remember, the software that connects your shopping care and your processor is know as the gateway. Be sure that you follow up with this when you discuss details with the merchant account provider. Transparency is the most important, yet hardest to find, detail that you’ll want in a firm.
Be sure that interchange-plus pricing is an option for your business. This way, you’ll ne able to see the interchange fee and what you are paying the processor. If you’re consider a tiered-payment system, fees aren’t exactly identifiable, leading to some questionable monthly bills and hidden fees. Be sure that you’re dealing with a processor that offers this. Furthermore, you could potentially be charged one of three different types of fee levels for each transaction the consumer makes. Processors tend to overcharge you with this type of pricing structure, so be sure that you recognize this before you immediately sign the contract.
The Bottom Line
Whether you opt for a processor like Charge.com or any other providers, be sure that you fully understand what you’re signing up for along with what fees are associated with each transaction. This way, you’ll be able to allocate the proper amount of funds and save your business money in the long run.