Step Three:
Choosing A Retail Merchant Account Provider
It is important that you conduct your due diligence before
settling on one particular merchant account provider. The reasons are
obvious. You certainly don't want to be stuck paying high monthly fees.
Plus, I'm sure you wouldn't want to overpay on a terminal solution. Don't
let price be the only deciding factor though. We'll look at this in a
minute.
Never hurry through when trying to find a merchant
account. If you move too fast you will surely miss on a really great
deal. I can't stress this enough. Don't wait a week before opening your
doors to customers to find a merchant account provider. Not only could
you miss out on a good deal, but in some cases it can take up to a week to
approve your application once it's been submitted. Then you need to factor
in the time it takes for the merchant account provider to ship you a
terminal (or multiple terminals). And on top of that, you have to set up
your terminal(s) correctly and make sure they work.
Three main factors should be considered when choosing a
merchant account provider (in no particular order):
We'll look at each determining factor, in detail, so you
can get the scoop on what to look for.
Integrity of the Merchant Account Provider
Don't automatically assume a provider is legitimate just
by what they have posted on their website or conveyed to you over the
telephone. The merchant account industry has a number of ruthless and
greedy sales representatives who are more interested in themselves then
helping you.
Here are some red flags to watch out for and suggestions
to test a provider's integrity:
-
Repeatedly getting an answering machine every time you
call.
-
Representative seems to give you the run around every
time you ask them a question about rates or their agreement.
-
If they use one of those free web hosting services for
their website and/or a free domain name (i.e.
www.xyz.com/merchantaccounts/4876/5thave/index.html), look the other way. If they
can't afford a real domain name and website, then they shouldn't be in
business.
-
Their website doesn't show which bank(s) they
represent. It is unlawful for a merchant account provider not to show
what banks they represent on their website. Visa and MasterCard cracks
down hard on those who don't.
-
They don't post all their rates and fees on their website.
Here are some additional ways you can avoid unscrupulous
sales tactics:
-
Scrutinize their merchant agreement, go over it with a
fine tooth comb and question anything that appears "loose" or
suspicious. You certainly don't want to get caught in a loophole.
-
Check out the MerchantSeek
Merchant Provider Reviews section to see if there were any reviews
posted for your merchant account provider.
-
Check the
Better
Business Bureau (BBB) database for complaints.
-
Search
http://www.complaintsboard.com (they're the most reputable complaint
board as they only keep valid complaints active) for any unsatisfactory remarks made about the company.
Go To Next Page: The Right Price for a Retail
Merchant Account; Customer Service; Requirements
Retail Merchant
Accounts & POS Swipe Terminal Guide
(page 2 of 6)
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