Small Business Merchant Accounts
Learn about merchant accounts for small businesses and whether they may be right for your business.
Finding the right credit card processing company is a major factor in whether or not you’ll be able to sell over the internet. Read this post to learn more about small business merchant accounts and decide if it will help your business.
-What are Merchant Accounts? A Merchant Account is a service that stores your information so customers can use credit cards without any hassle. This can help you earn more money by allowing customers to pay through online transactions such as sales, purchases, subscriptions, and donations.
-What are The Most Important Things to Look For
1. Does the company have the processing power to handle your business? With CRM (Customer Relationship Management), accounting and other products taking up a lot of space, make sure there’s enough room in the account for your product needs. You want a merchant account that’ll allow you to use different programs and tools so you can track and manage your sales easily.
2. Do they have enough sales volume to be able to handle your business’s needs? If you have a lot of customers but there’s not enough volume, it can take time to get through all the payments.
3. Do they charge enough? Many companies charge high rates.
4. Do they offer a good level of customer support? It’s not always easy to deal with an individual company that you don’t know and who may or may not be waiting for your call or email. Have it all delivered in one place and you can get better service overall. Also, if there are issues with payment processing, make sure the company will help you resolve them and support you when needed.
5. Are there any hidden fees? Some companies like to charge you for not processing enough transactions and others will charge you for additional products like web services or mobile services that you weren’t aware of.
6. Is there a free trial in your area? Don’t pay anything up front, look into their demo system (if they offer online trials). Run through all the functions that are important to you and see how well the system runs with your business. You may find out that this is the right program for your business or maybe it isn’t right for your business. If it isn’t, you can cancel before you pay anything and move on to looking at other programs.
7. Does it have the technical support that you need? You may not know a lot about merchant accounts but you or someone in your company should be able to use the program if there’s any issue. Make sure that they offer phone support, live chat and email support as well as free online help and tutorials for their product.
8. Do they offer payment options for all types of customers? Some products might require a lot more money upfront than others. Determine how much the product is going to cost before you buy it and make sure the company will be able to provide the service at a price that makes sense for your business.
9. Does the company provide business credit cards? Businesses may want to pay for their payments through their business credit card. Make sure the company offers that option.
10. Do they provide sign-up incentives? Some companies offer sign-up bonuses or other perks such as waiving processing fees for a certain period of time. These incentives can help your business save money so it’s a good idea to look for them if they are available.
11. Is there an online system that you can use to track your payments? Many companies will let you track your payments so you can see where the money is coming in and going out to. This is good for any business owner since it’s obvious where the money has gone when you look at your account.
12. Can you get multiple account solutions from a single company? It adds convenience if you don’t have to deal with multiple companies for each of your needs. You can potentially do all of your needs through a single company and manage everything from one place.
-What are the Different Types of Merchant Accounts? Merchant accounts come in 3 different varieties: Credit Card Processing, Invoicing, and POS services.
1. Credit Card Processing. A lot of companies charge 1.25% for every credit card transaction for the service, but you will find some that charge lower and higher rates. You want to make sure you are getting the best deal possible on your merchant account so look through a lot of them to find one that offers a price that works with your needs. 2. Invoicing Services: This is when a company uses an invoice instead of your merchant account. They have an agreement with a bank so they can deliver cheques to you and then you attach the cheques to your invoices and get paid by your customers this way. 3. Point of Sale (POS) Services: This is when you have a point of sales terminal in your store or business, so customers can pay in person with the card rather than online. This allows you to avoid paying high processing fees and to make sure your customers are satisfied because they don’t have to use their credit card online.
-What Are Some Good Small Business Merchant Accounts? We found several merchant accounts that are worth looking at for small businesses. Each one offers different features and virtues so compare them to find out which one is best for your business.
1. First Data Merchant Services: First Data offers lower rates, a nice sign-up bonus, and various products for merchants in the US and abroad. We found a variety of services from this company like Bill Payment, Payment Gateway, and ACH Transfers. You can choose the level of services you want for your business and they have products that fit your needs. The higher level of service or product you choose from, the more expensive it will be.
2. Zeus Merchant Services: This is a great merchant account for small businesses in the US and Canada due to their rates and free online tools that help you manage your business. Their main service is eChecks which allows you to send cheques directly to a bank account for funds to be delivered within 24 hours of payment being processed. They also have a mobile app, online payment gateway and Bill Payment.
3. PayPal Business: This option is helpful for businesses that are set up to accept credit card payments through PayPal. You can track your business by signing into your account and check out your transaction information, sales data, and more. If you have an eBay business, you can also accept credit card payments through Paypal’s website. They offer all the standard services you would expect from a merchant account like Bill Payment, integrated credit card payments, and ACH transfers.
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Conclusion – What Is a Merchant Account? A merchant account is a company’s agreement with your bank or commercial bank to process payments from customers. The money that you get from the customer’s transaction goes through your business bank account and then electronically disperses it to the merchant account’s bank so that they can transfer the money to you. This process is easy and flexible for most businesses but you also have to make sure that your merchant account offers adequate services for your needs. Check with a few companies before signing a contract so you can find out how well their program works for your business.