Those days when cash was considered as the king of the business has long been gone. We have now entered an era where plastic cards reign because of the numerous perks that anyone can get when using it. We no longer need to bring wad of bills in our purse when buying products or services especially those that are costly. In businesses, there is no doubt that merchant services are vital and having the best merchant service provider is a necessity.
Due to the booming utilization of credit and debit cards, various industries are now using merchant services to meet the demands of their clients. Adapting to changes in payment options and cash evolution is required if companies want to stay ahead of the game. Those companies that stick to the old ways are nearing extinction just like what happened to the dinosaurs millions of years ago.
In an article published by BBC, Professor Richard Foster of Yale University stated that the average lifespan of leading US companies listed in the S & P 500 Index dropped from 67 years in the 1920s to just 15 years today. It was also predicted that by 2020, three quarters of the S&P 500 will include companies that we never heard of.
In order to survive the constantly evolving industry, a rule of thumb in business is to adjust to innovation. Therefore, if businesses want to live for a long time, changes should be considered as opportunities in disguise.
There are thousands of merchant services providers available. Though choices can be helpful for comparison purposes, it’s such an overwhelming task to choose the best merchant service provider that is right for your company. It is very important to shop around for reviews of merchant service providers in order to know the type of services they offer, available merchant service packages and client recommendations.
Here is a guide in choosing the right merchant service company for your business.
24/7 Customer Support
Most of the merchant service firms today are offering technical support for their customers. However, a company needs to put in mind that a reliable 24/7 customer support is necessary for the business because issues and concerns can occur anytime. Since technology is now advanced, providers of merchant services have the ability to interact with their customers round-the-clock through email, social media or customer service call centers. If a merchant service company are not going the distance to provide clients with a quality customer service, better find another wherein positive product and customer service experience is guaranteed.
A number of merchant service providers are offering the same services at a lower cost. If that is the case, the efficiency, availability and accessibility of technical and customer support will make a difference. If customers give positive reviews to the support team of the provider whether through online reviews or personal recommendations, there is a big chance that the company will survive in the service merchant industry which is also another point to be considered by merchants. Therefore, companies which are looking for merchant services should research about unbiased client reviews on merchant service provider’s technical support.
Security Features
In any industry, security should always be a priority. Businesses should not leave the door open and let thieves enter the perimeter. Not every merchant service provider have the same security features. Some offer affordable services but do not provide up-to-date security features. Today, credit and debit cards theft is one of the fears of customers using merchant services.
According to Nilson Report in July 2015, debit and credit card fraud led to losses worth $16.31 billion in the year 2014. In addition, Federal Trade Commission stated that “credit card theft accounts for approximately 26% of all reported identity theft cases which make it the most common type of fraud.” Around 11.7 million of people in the United States age 16 and up were victims of identity theft in the year 2006 to 2008 as indicated by the latest Bureau of Justice statistics.
Several features to secure merchant service customers’ data are now in the loop. For instance, data encryption algorithm are now utilized to protect information of electronic data while in transit especially for online shoppers. Moreover, chip and pin system is another way of ensuring safety because even if the card is stolen, it will not be used since a four-digit pin number is required to access it. Furthermore, merchant service providers should be PCI compliant and provide fraud protection services.
In a nutshell, companies should look for merchant service companies that provide new security methods to prevent compromise.
Cost of the Service
In order for a business to accept credit and debit cards, a merchant account is needed. It will serve as contract between the company and the merchant service provider. Some of the fees included are transactional fees, flat fees and incidental fees.
It is necessary to ask questions to disclose hidden charges and other extra payments. There are merchant service providers which set caps per month on credit card transactions that you can accept and the amount of money on process. It is interesting to note that there are merchant service firms which allow trial period for companies to test-run their services and offer money back guarantee if they are unsatisfied.
Before setting-up a merchant account, companies should do the homework first including the cost involved to make sure that the business will profit from the merchant services.
Track Record
Just like in purchasing other products and services, it is necessary to learn everything that you can about the merchant service company. Read online reviews on merchant service providers, call their customer service center, research for the company’s reputation and find out how long they have been in the business. Keep in mind that your company’s electronic payment transactions will be handled by your chosen merchant service provider that is why you have to be wise in selecting and deciding which provider to trust.
Assess the credibility and reputation of the service provider. Are you going to entrust your merchant account to a merchant service business who is still starting and lacks experience in the business or would you rather partner with a company who knows the ins and outs of the merchant service industry? Proven track record and solid reputation are critical in the selection process.
Misconceptions
Choosing the right merchant service provider can be a daunting task and misconceptions about merchant services are all around the corner which makes the selection process more confusing. It is hard to know which is true and which is not.
Here is a list of several myths and facts about merchant services.
1. Credit and Debit Card Charge the Same Fees
FACT: Swiped debit transactions cost much less than swiped credit card transactions. A number of service providers are advertising about their low processing fee for debit cards but are not mentioning about the credit card rate. Before signing a contract, make sure that all fees are uncovered.
2. The application process is difficult.
FACT: According to David Goodale, the CEO of merchantaccounts.ca, “the process of merchant account application can be easy or difficult depending on the criteria of your business and the merchant service provider chosen.”
3. Banks are solely responsible in processing credit cards.
FACT: Third parties such as large payment processing providers and ISOs can process your transactions too. Moreover, their services are often considered as more economical and faster.
4. Merchant accounts are not for small businesses.
FACT: This misconception goes hand in hand with the belief that merchant accounts are costly. In fact, merchant accounts can be tailored based on the needs of the business which may include or exclude some features.
5. Hidden rates and fees are unavoidable.
FACT: Merchant service providers must disclose all service processing fees as mandated by law. Sometimes, merchants overlook fees that are included in the merchant service agreement or the contract is very confusing. It is a must that the agreement is reviewed carefully word per word before the contract is signed.
6. Only few are using credit cards
According to Jamie Gonzales of credit cards.com, multiple studies reveal that out of 10 Americans, seven have at least one credit card. Moreover, in 2015, Federal Reserve data revealed that 70% of consumers had at least one credit card.
Conclusion
Because of the fact that there are numerous merchant service providers which are offering merchant services at an affordable price, the selection procedure can be overwhelming. Companies have to do their homework first and should take the process of choosing seriously. None of the vital things to be considered should be taken for granted because all of these are necessary to the success of the company.
Read reviews on merchant services providers at CrowdReviews.com and find out which among your shortlisted firms are included in the best merchant service providers.
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