Questions You Need to Ask Before Getting a Merchant Account
There are several questions that a person needs to ask when getting a merchant account.
The first question is: Are there any fees or rates with a merchant account? This is because a person needs to understand all of the fees or rates involved with a merchant account. To find the cheapest merchant account, a person needs to look for the account that has the lowest interchange rates.
The second question is: What type of pricing model does the merchant account use? A person needs to ask this question because there are a variety of price models that come with different fees. The most common pricing models are tiered, interchange plus, and enhanced recover reduced.
The third questions is: How to get the best interchange rate? A person should quality for the lowest possible interchange. These charges made up the majority of a person's fees.
The fourth question is: Will the merchant account have a daily or monthly settlement? All merchant accounts will have at least one of the settlements. A daily settlement will cost a person less money in the long run. A monthly settlement allows a person to hold on to their money longer than a daily settlement.
The fifth question is: Will the equipment be owned or leased? It is better to buy the equipment. It is never a good idea to lease the equipment. This is because a lease will lock a person into an agreement that they probably do not want to be in.
The sixth question is: Is the equipment used or new? Most merchant account providers will only offer used equipment because it is harder to update the old equipment. Let them know that only equipment that can be used in many different processors is necessary.
The seventh questions is: Will there be a cancellation fee? Try to avoid paying any cancellation fees by not signing a contract. There is no need to sign a contract so it is not recommended.
The eighth question is: Will there be any annual fees? Most merchant accounts will have an annual fee. But try to talk the provider out of the annual fee.
The ninth question is: What is the monthly minimum? This is not a fee but instead it is a way of getting a certain amount of money in the account. If there isn't a certain amount of money in the account then the minimum will be charged to the account.
The last question is: What level of customer service can you expect once signing your merchant account agreement? While negotiating yourself a low rate is important, signing an agreement with a company you do not wish to truly work with, means you are in fact doing yourself and your business a disservice.
The first question is: Are there any fees or rates with a merchant account? This is because a person needs to understand all of the fees or rates involved with a merchant account. To find the cheapest merchant account, a person needs to look for the account that has the lowest interchange rates.
The second question is: What type of pricing model does the merchant account use? A person needs to ask this question because there are a variety of price models that come with different fees. The most common pricing models are tiered, interchange plus, and enhanced recover reduced.
The third questions is: How to get the best interchange rate? A person should quality for the lowest possible interchange. These charges made up the majority of a person's fees.
The fourth question is: Will the merchant account have a daily or monthly settlement? All merchant accounts will have at least one of the settlements. A daily settlement will cost a person less money in the long run. A monthly settlement allows a person to hold on to their money longer than a daily settlement.
The fifth question is: Will the equipment be owned or leased? It is better to buy the equipment. It is never a good idea to lease the equipment. This is because a lease will lock a person into an agreement that they probably do not want to be in.
The sixth question is: Is the equipment used or new? Most merchant account providers will only offer used equipment because it is harder to update the old equipment. Let them know that only equipment that can be used in many different processors is necessary.
The seventh questions is: Will there be a cancellation fee? Try to avoid paying any cancellation fees by not signing a contract. There is no need to sign a contract so it is not recommended.
The eighth question is: Will there be any annual fees? Most merchant accounts will have an annual fee. But try to talk the provider out of the annual fee.
The ninth question is: What is the monthly minimum? This is not a fee but instead it is a way of getting a certain amount of money in the account. If there isn't a certain amount of money in the account then the minimum will be charged to the account.
The last question is: What level of customer service can you expect once signing your merchant account agreement? While negotiating yourself a low rate is important, signing an agreement with a company you do not wish to truly work with, means you are in fact doing yourself and your business a disservice.
About the Author:
If you are looking for a merchant account solution for your company, you have a daunting task of comparing hundreds of different merchant account providers. To narrow your search you consider the merchant processors listed at Cheapest Merchant Accounts, where the top processors have been ranked from best to worst giving you a look at the best priced options for your company.