Merchant Service companies are notorious for having great introductory pricing for new clients. Though these deals can be look good on paper, it is important for you to look into what they are offering and see if it is a good fit for your company. Here are some tips in what to look for when signing up for a new Merchant Account:
Tip #1: Introductory Rates
The introductory rates normally have a start and end date. Check to see how long you will receive the introductory rates and what the rates will be after the introductory rates have expired. You will also want to look into the requirements in order to obtain the introductory rates. Some companies will advertise a special that says something like – get 1.9% on all transactions*. The key is to read the * that goes along with the introductory rates. The merchant company may only allow swiped transactions to be processed at the rate, so if you are an online business you will need to look at the other rates that you will receive with this account.
Tip #2: Cancellation Fee
It is customary for a merchant account to have a cancellation fee. For example, our cancellation fee is $295.00 if you do not provide 30 day notice. If you give 30 day notice, then you will not receive a cancellation fee. A cancellation fee can be something that is negotiated, so if their cancellation fee is high try to see if you can get it waived. If they are not willing to work with you, I would keep looking for a merchant service company that would be willing to work with you.
Tip #3: Hidden Fees
When you are applying for a merchant services account you should receive a pricing sheet. The pricing sheet will list out all of the fees that you will be charged. Make sure you look over the pricing sheet and understand how and why you will be charged these fees.
Tip #4: Talk it out
You should be able to contact your merchant services representative with any questions that you may have. Make sure you are able to ask all of your questions before you sign anything. Talking with your account rep before you sign will also give you the chance to get to know them and this should also give you a clue as to what kind of service you will receive from the company. Make sure you like their service now, because if you are unable to get a hold of the account representative during the application process, just think of how they would handle the issue if you had a problem.
Tip #5: Feel Comfortable
Merchant Services is a big deal for any business, so make sure you are confident with your decision. If you feel apprehensive about the merchant services company that you are working with it is ok to get a second opinion from another company to compare.
Finding a merchant services company should take time. This decision is not something to take lightly. Cart32 has been in the merchant services business for a number of years. We are available to answer any questions you may have regarding our merchant services or any questions that you may have about merchant services in general. Please feel free to contact us at 417-865-1283.