Charles Baratta, The Merchant Service Group Blog

If you have a business and you want to attract more customers and even increase the amount of the average purchase, accepting credit cards are the way to go. This is also the most convenient way for customers to make purchases in your store. But to accept credit cards either online or in person, you need an account with a credit card processing provider. This is a company that makes the transaction between your credit card terminal and the credit card network possible.

Searching for a provider can be confusing and you’re likely to get a lot of offers. But before deciding on one, make sure you understand what you’re getting your business into. Since your provider gets a portion of every transaction that’s made in you store, know the services it offers and the amount you’re going to pay for these services.

Inquire about fees. You can expect to be charged twice for each transaction. One charge will be based on a percentage of the total sale. The other charge will be a flat rate per-transaction fee. Before deciding on a vendor for this service try to negotiate for the best rates possible.

Often, the fees are dependent of the kind of product or service you have and the average sales. Use this as your guide in looking for a good provider. Choose one that gives you the best value for the least amount of money.

Always be aware of hidden fees. In most cases, you’ll be required to pay a service fee every month in addition to your transaction charges. But some companies may charge a processing fee and other additional charges. Stay away from these companies. To be on the safe side, check if the provider has been blacklisted or reported to government or consumer groups.

Let Merchant Service Group help you expand your business by accepting credit cards and other electronic payments. Visit us at BusinessCreditCardProcessing.com.

Article Source: http://EzineArticles.com/?expert=Melvin_A._Campbell

Accepting credit card payments from customers as part of your daily business practice may seem like an intimidating prospect but it’s really not that difficult. However, before you decide to take the leap away from operating a cash-only business, there are some things you need to know when choosing a merchant services provider.

The first thing you should know is that the first vendor you approach probably does not have the perfect package to meet your needs. You really have to shop and when you shop, do so on the basis of what is the best account for your needs rather than who is the best provider. If you manage to combine both it will be icing on the cake.

If the bottom line is the most important factor in choosing a merchant account, you will need to know there are four common pricing structures in the merchant account industry. These include flat rate, interchange-plus, tiered and enhanced recover reduced (ERR). The flat rate and interchange-plus rates are usually better because they are less expensive and easier to compare than tiered and ERR. However, almost all interchange-plus accounts require a contract and cancellation fee. For now all you need to know is that the flat rate and interchange-plus fee structures are most commonly used by small business.

To determine what account pricing structure best suits your needs there are some factors to consider. As MerchantCouncil.org states, “No single account will have the lowest merchant account rates and fees across the board – and it doesn’t have to, it just needs to have great rates where it matters to you. Dealing with providers is a game of give-and-take. They’re in business to make a profit, and so are you. When you ask a provider to lower one fee, you should be prepared for them to raise another.”

Among the fees you will have to contend with include monthly processing volume, average ticket, monthly minimum and statement fees. If your business does significant volume, you will have more leverage to ask for a lower rate on your volume. If your business tends to have a high average ticket but lower volume, it is in your best interest to demand a lower discount rate. If your business is almost entirely seasonal, avoid accounts that charge monthly fees.

Other features to consider before choosing a merchant account are the cost of equipment, software or maintenance fees. Some providers will throw in the credit card terminal reader at no cost for signing on to their services. Watch out for long term contracts and proprietary equipment. If customer service is important, check with your potential provider as to their quality of service ratings. Finally, having a merchant account that is local may be a huge plus when there is a need to deal face-to-face with someone who knows your name and your business needs.

Now that you have a good sense what to expect as far as cost and features, the hard part may be finding the right provider. An immediate internet search of merchant account providers draws literally thousands of hits. For the beginner, this could be overwhelming to the point that settling on the first provider may be the easiest choice. Don’t. Instead, here are some tips to avoid being corralled into the first provider that comes along. Ask other business associates. Try networking and comparing notes with others. Your bank may also be a good starting point as well. Another option would be to try an online quoting service that can compare rates based on your business profile.

Once you’ve narrowed down your selection to several vendors, compare rates between your selections. Feel free to share your options with each of the vendors and let some competition take place between them. Once you’re ready to settle on a final choice, read the fine print carefully and make sure you understand all the details when it comes to cost and features. The next thing you’ll need to do is submit your application. This will take a little time as underwriters assess risk. Much of this will be based on whether your customers are present when they submit their credit card information or whether they are absent. Once approved, make sure you stay up to date on the account. Maintaining the account is important to control costs.

Let Merchant Service Group help you expand your business by accepting credit cards and other electronic payments. Visit us at BusinessCreditCardProcessing.com.

Article Source: http://EzineArticles.com/?expert=Melvin_A._Campbell

Did you know that utilizing a merchant account is likely to increase both business traffic and your average ticket sale? According to several studies, consumers are likely to disassociate any “pain” felt from relinquishing their money in a purchase if the transaction is conducted using a credit card. As odd as that may seem, it’s true. Without getting into the psychology of it, using a credit card tends to lead to more spending and more spending leads to more business. That makes having a merchant account essential for your business’ success.

It’s also becoming increasingly difficult to conduct financial transactions in this day and age without using a credit card. Although cash remains king in this economy, credit and debit cards are the most common means of payment. If your business has woken up to the reality that you need to embrace plastic, There are a few things you ought to know.

The first thing you’ll need to do in order to start accepting credit card payments is to set up a merchant account. This usually requires that you submit to a credit check (although it’s not always necessary) so that the provider can be sure they will be paid (I’ll get to that in a moment). Merchant account providers may also request legal documentation to confirm that you are a valid business entity. These are certainly reasonable requests but they also give an indication that the provider is doing their diligence in setting up your account.

Before you settle on a merchant account vendor, make sure you do your research on exactly how much their services will cost you. Providers can charge a handful of fees as part of their services. Some of these are charged once but most are recurring. Most vendors will charge a one-time application or setup fee. (Watch out for those who may try to charge you both!)

When it comes to processing the transactions, expect to pay two different fees. The first fee, typically called the discount rate, is a flat percentage of the transaction sale. The second fee is usually based on the number of transactions you process on a monthly basis. This is called the transaction fee and is typically a flat fee.

Other fees you may encounter include statement and minimum monthly fees. The statement fee covers the cost of providing you a detailed list of every transaction during the month while the minimum monthly fee charges you if you don’t process a minimum number of transactions. As a business trying to minimize costs, it is always in your best interest to shop diligently and choose a merchant account provider with the lowest fees or no fees at all.

Once you’ve decided on a service provider for processing your customer’s credit cards, you’ll probably want to make sure you have all the proper equipment and software in place. Card terminals, pin pads and check readers will help allow the transactions to process smoothly and efficiently. Having the proper software installed on your business’ PC’s will also allow you to finalize, print and batch your transactions. And of course, these items should be a part of the contract you set up with your merchant account provider.

Let Merchant Service Group help you expand your business by accepting credit cards and other electronic payments. Visit us at BusinessCreditCardProcessing.com.

Article Source: http://EzineArticles.com/?expert=Melvin_A._Campbell