Merchant Services: Why Your Small Business Needs It Today

Merchant services also known as credit card processing enables you to handle electronic payment transactions from your customers. An account is tied to the processor of your credit card which helps route payments in your bank. Almost all businesses need a way to process their payments. It is important that you pick the right merchant services since this can have an impact profit and sales revenue.

The process involves acquiring information from the sales merchant, having the transaction authorized, getting the funds and transferring payment to the merchant. These kinds of services are provided by specialized businesses known as merchant service providers. Financial organizations are also sources of merchant accounts.

It is important to know what kind of company is best for your business. The standing of your business plays a huge factor. There is a higher chance of being turned down by a bank if your business is home-based or not established yet. However, independent organizations are more lenient. Some credit card processors also offer rates which are lower.

The acceptance of credit cards does not require a merchant account. You may get into a contract with corporations which provide payment processing services. However, their fees may be higher because they get a bigger ticket price percentage. Almost all providers of a credit card may charge your business a certain percentage for every time they receive payment for a credit card.

Merchant accounts selling online have a more professional-looking image. So it is something that can be considered by small businesses. Once you allow any third party business to be in-charge of processing your payments, your order form will be displayed on the website where payments are processed.

Your funds may only be accessed twice or thrice a month. This may limit your flow of cash. However, having your own merchant account will result to faster transactions. Remember to always select what is significant to your business’s needs.

Benefits

There are many benefits when you open a merchant account. There will be even more perks when you choose to work with one if the top merchant service providers. Merchant accounts utilize a well-developed of services and products that can contribute to the success of your business.

How you process your credit card payments greatly depend on the size of your business and which industry you belong to. Different merchant providers offer different types of payment processing specific to a particular business. They will make sure that your credit cards are accepted online. Your check payments will be processed affordably and quickly.

People nowadays are always searching businesses with mobile apps. Some merchants make it easy for their clients to transact payments through your smart phone. Most of the time, a card reader and a mobile app are all you need. It is an important factor in a business to be accessible to people even if they are constantly on the go.

Requirements

For your payment to be processed you must meet certain requirements. Whenever a customer tries to enter the information from their credit cards, an unencrypted message is sent to the webhost. SSL encryption is used to secure a server that prevents data from being intercepted. This also ensures that the website is protected from unauthorized decoding.

An order form is also necessary for customers to put their banking and personal details. This order form is also on a secure server. A mechanism that allows management, processing and authorization of credit card services is also essential. This is possible through a gateway which serves as a tunnel that can transfer a customer’s information so that you will be able to receive payment.

It is also important to have a shopping cart that gives small businesses access to an e-commerce store of where their purchases are calculated automatically for them. Make sure that your shopping cart is compatible with your gateway.

Lastly, you must have your own merchant account. Processing will not be able to take place if you don’t have your own account yet. An account gives access to a processor that will capture, authorize and settle your transactions on credit card.

Payment Options

There are also other ways that you can accept payments for credit card. You can try outsourcing your merchant services to a third party. They will collect all of your customers’ data and it will be up to them to do the work. This includes processing of the payments in your business.

Another method is through processing of deferred payments. In this method, credit card payments are collected online whenever a customer manually inputs their data. This data no longer enters the gateway. The advantage of this type of payment is that you can inspect every order that comes in. However, payments processed on this kind can consume a lot of time especially if there are a huge number of orders coming in.

Pricing

Prices vary from one merchant to another. Sometimes it is difficult to pick a merchant service provider because they all offer competitive packages. You must select a provider that would cater to your particular business type. It is also important to look at the service and products they are offering. Online reports, compliance to PCI support and fraud management are vital services to look for.

Finding the right pricing model can greatly affect the performance of your business. It is not an easy undertaking to find a merchant that you can trust to process your credit cards. The three standard pricing methods in processing credit cards are interchange plus, fat rate and tiered pricing.

For merchants who process small volumes once a month, the flat pricing is highly recommended. In this pricing model, you pay more for every transaction but you don’t have to pay any additional fees any longer. For tiered pricing, there are three known levels – the qualified, mid qualified and tears that are not qualified. The processors group the rates in bundles and are offered to the customers in tiers. Flat pricing is easier to understand but costs more.

Most businesses today prefer the interchange plus pricing model. In this model, the card brands charge credit card processors with wholesale costs for your transaction to be processed. These are your pre-negotiated rates while getting access to wholesale costs. This model may be a little bit confusing, but it allows you to save more money. Make sure that you compare and contrast the different pricing structures.

There are several potential fees that can be added to you but most of the time these are not really necessary. You must check different service providers first to see which offers reasonable prices and charges. Some of the fees included are transaction fees, discount rates, monthly statement charge, refund fees, annual fees and an application fee. However, some of the fees mentioned are deducted whenever you make a sale.

Customer Support

The right merchant service provider will offer you a valuable and personalized service that would help your business grow. Merchant services have highly skilled teams that will help you identify which services will best fit the needs of your business. They are eager to answer every question you have regarding merchant accounts. Whether it is about your statement of account or chargebacks, they have representatives that you can rely on for assistance.

Reputable providers usually offers 24/7 technical support and customer service without additional charge. Look for this kind of service since it will be helpful in pointing you to the right direction whenever you need it.

Reputation

It is important to make sure that you find an agency that you can really trust. Go for a provider who is already established has experience in the field. They must have the ability to explain the jargons of this industry into layman’s terms. Be careful of salespeople who are slick that might take advantage of your lack of knowledge and experience.

Also, you must know what questions you should ask before working with a merchant provider. There are so many additional fees that can be associated with a merchant account and you want to avoid these as much as possible. It is critical for you to be armed with the right questions while you negotiate.

In order to get started with the processing of your credit cards, you need to establish a merchant service account. Knowing the right account is the first step to find the right solutions to your payment processing needs. This will help you ensure that you’ll be able to grow and manage your business. You should get the merchant account that will help you control your costs.

It can be overwhelming to select the best option for merchant services out there. You should always make sure that you always review your options. It also makes sense to take a look at your business’s operating expenses. Your decisions should always be based on how much your business can afford and your customers’ preferences.

Do you want to hire a company that offers the best provider for merchant services? Go to CrowdReviews.com and read their merchant service provider reviews.