Merchant Account - Buyers Guide

Merchant Account Services Do's and Don'ts

Signing up for merchant account services is not a simple process and it holds you to a business agreement, just like any other business deal. This is why the first thing you should do is take the agreement before you sign and study it. If necessary, ask for professional business advice on the matter. Sign the agreement only after you understand fully how the business relationship between the provider and you is going to be. Following are a few helpful "do's and don'ts" that can assist you with acquiring merchant account services.

DO - Sit down and make a complete financial breakdown of your business before you decide if you actually need a merchant account or not. Do your best to pinpoint exactly how much potential revenue you are losing by not accepting credit and debit cards, and talk to your fellow business owners to get a complete breakdown of the fees and costs of having a merchant account. Once you have the plusses and minuses in front of you, you can make an educated decision.

DO - Go with a professional company if you have never had merchant account services before. One of the nice things about shopping for the best merchant account for your business is that there is a lot of competition and a lot of companies jockeying for your business. But that also means that there are a lot of disreputable companies out there offering merchant account services. If this is the first time you have ever done this, go with a big name so you can learn the ropes from someone who is not going to take advantage of you. Once you know how the system works, you can shop around for a cheaper rate.

DON'T - Think you know everything. You might be a financial wizard and a pro at keeping your books balanced, but there are dozens of potential fees and problems that come with merchant accounts. Everyone from the issuing bank to the credit card companies themselves want a piece, so make sure you read every scrap of paper that is provided to you and make sure you ask questions if you do not understand something.

DON'T - Be afraid to ask for help. While your competition may not be jumping at the chance to help you out, chances are, you know others who are in a similar situation as you. Find out how their first merchant account services experiences went and you might gain some valuable insight into possible pitfalls that you might avoid. Remember, there is no shame in asking for advice, especially with a complex financial agreement like this.

DON'T - Forget about your agreement once you start to make money off of it. It is common to see an initial spike in credit and debit transactions once you finally agree to accept them, but that doesn't mean you should forget about your merchant account. Keep track of your monthly expenses in relation to your merchant account and compare it with your monthly income. If costs end up overriding revenue, you might need to shop around for a different provider or stop accepting credit and debit cards all together.

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I immediately got a call from a moving company who was very professional. We've had good communication, the survey was punctual and they returned a quotation the following day as promised. So far, so good!

Kate, Buyer
Adelaide, Australia