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Merchant Account Charges
![*]() Even though an Internet
merchant account Setup and purchase costs have drastically
fallen over the years, processing rates and fees for an Internet
merchant account have pretty much stayed the same. Also check
range of discount rates and transaction fees. Most places
charge a monthly gateway fee as well. It is vital that merchant
account service providers post properly and clearly all their
rates and fees on their web site. Scrutinize the merchant
agreement. Scan it thoroughly and raise doubts about those
aspects that you are not satisfied with.
There are plenty of merchant service providers on the market
that will provide you with the same quality service at a low
cost. You might even find a company that doesn't charge a
lot of the typical monthly fees charged otherwise. Using a
low cost merchant service is the best way to go. Don't think
you'll be getting poor service just because you're spending
less money on a merchant account. Companies that charge a
lot for their services are just trying to extract more money
out of you.
You should ask your prospective merchant account providers
if rates are introductory or fixed. Some merchant account
providers will try to give you really super rates up front,
then as the months go by they'll slowly increase your processing
fees. Be sure rates are fixed and not introductory. Check
out whether merchant account providers are willing to put
all your rates and fees in writing. Get sure their paperwork
shows all rates and fees you will have to pay. They should
never keep this information from you.
Find out whether there are any hidden fees. Make sure those
fees not mentioned on their web site are shown in their agreement.
Ask about any imposition of a cancellation fee if you decide
to move to another provider. If the provider is more interested
in your business, rather then themselves, they won't impose
a cancellation fee. However, not every company values you
that highly once you choose to leave it. So, look over their
agreement carefully and ask them about cancellation fees.
Do you require a reserve to be setup? A reserve is when a
provider will hold on to part of your credit card earnings
each month, and eventually release them to you later. This
should be avoided if at all possible.
Last but not the least, don't get carried away by great rates
and then forget about customer service. Customer service is
king for long-term success and smooth transaction processing.
You don't want to be suffering from busy signals and long
hold times. Your time is valuable and downtime will cost you
money. Don't get fooled by providers who claim that they charge
high rates because of the superior customer support they give.
It's true that just might account for a few dollars extra,
but paying double or treble fees than the prevailing market
rates makes no sense.
Also, be wary of suspicious clauses that will put you in trouble
later on. Search the Internet and newsgroups at a reputed
search engine like Google for any unfavorable past records
or remarks made about the company by its customers.
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