If you are running an e-commerce business you need a merchant account. Lots of merchants don’t know what to look for in a merchant account. So before you sign up for a merchant account you need to ask few crucial questions with your payment processor to understand what features are available for your business.
In case if you understand these what features are available and what is required for your business you will be able to protect your business in better manner.
What Are The Terms And Conditions Of The Contract?
There are some Merchant account providers who provide month to month contract and there are few Merchant account providers who provide yearly contract. So you need to understand what exactly you need based on your business needs. You need to ask your provider clear questions such as how long the contract will be for, and what are the consequences in case if you discontinue, also what you need to do to cancel your contract when the term is up. You need to be careful about auto-renew clauses when you sign-up for your merchant account. If you do not read this clause you will be inadvertently being signed up for another contract. Read through the fine lines of your contract to avoid any kind of misunderstanding and frustrations later.
What Is Processing Fee Of My Merchant Account?
There are some instances where there will be an introductory offer where the processing fee is low and as soon as the offer is over the processing fee increases. You need to ask if the merchant account provider can offer a “rate guarantee”. The credit card processing fee will be different depending on various reasons such as type of transaction, business monthly processing volume, etc. In case if you find that the rate which the payment processor has offered is less than what you expected to cross-question them and clarify exactly which transactions the rate does, and does not, apply to.
Are There Any Hidden Fee That I Should Be Aware Of?
There are several types of fees that are applicable on a merchant account such as early termination fees, PCI Non-Compliance fees, account change fees, chargeback fees, etc. If you get a clear understanding of what the fees are and how can you avoid the fees will benefit your business in the long term. Also, keep in mind that you need to ask the merchant account provider whether the fees are a flat rate or a percentage of your processing volume. It totally depends on How a payment processor calculates their fees and it can bring in a big difference in how much you need to pay.
If I Need Help With Any Kind Of Issue How Can I Get It Rectified?
There will be customer support available with each and every merchant account provider. But what really matters is that whether it is on-call support, is it 24/7 support, is it chat support, email support, etc. You need to check what’s best suitable for your business. Sometimes the customer service is only available 9 to 5 EST and if you are in the opposite time zone then you might struggle to get help when you really need it. Also, check if the customer service team is outsourced instead of an in-house customer service team which brings in a huge difference. When it comes to technical support you need an ace team who can help you with your query. Knowledge is the key.
What Integrations Or Software Do You Offer?
It is really important to get an easy to use and compatible system in place. Look for easy to use integrations. This helps to streamline your business and make you more efficient. If you are setting up an online store or if you need shopping cart integrations always confirm what software your payment processor offers to avoid misunderstanding later.
Make sure you ask the right questions before you choose a merchant account provider. This helps in unravelling surprising fees later. Also, if you understand what the merchant account provider offers and what you need it is going to help you in a long run.
iPayTotal can assist you in creating your high-risk merchant account and provide you with customized credit card processing solutions. We can guide you through the banking underwriting process.