“Recognize that there will be failures, and acknowledge that there will be obstacles. But you will learn from your mistakes and the mistakes of others, for there is very little learning in success.” – Michael Dell
Merchants should be well aware of both deceptive practices and good options in the field so to reach success. It is extremely important to read the terms and conditions of a merchant agreement before signing the document.
- Choose The Right Processor For Your Business Needs
When negotiating an account, discuss what is being offered to you with your second-in-line choice provider if the offer is too good to be true. Choosing the right processor in the field, merchants can enjoy the best possible rates and support for their businesses.
- Focus On The Contract Term and Early Cancellation Penalties
The processing agreement builds a contract between a merchant and the given processor. The duration of this contract is the very contract term that business owners should focus on by all means. Almost always, processing agreements have an early cancellation penalty. Early cancellation fees are usually based on monthly fees.
Especially startups should be well aware of the early cancellation fee before entering an agreement. Not every startup business achieves success. Processors like EMB are very good at working with startup businesses and can be flexible with merchants starting their own businesses.
EMB is considered as the #1 credit card processor in the field. With its professional team of specialists, EMB offers the best payment processing services to your business needs. Open your eCommerce merchant account with EMB.
- Don’t Forget About Rates, Assessments And Downgrades
Pricing is one of the main factors when deciding on the right payment processor for your business needs. Get a proper understanding of merchant industry costs and read the contract to be sure you’d get what was promised.
The rate you’re going to pay depends on the type of payment card you’re using. The reason is that the cost from Visa or MasterCard (“interchange” cost) depends on the type of card used.
If you’ve received a pricing rate that sounds too low, and if corporate, premium, and foreign issued cards haven’t been discussed by the sales person, you should consider these points as doubtful. Pricing tactics cause damage when an unexpected surcharge is added to the cost increase from Visa and MasterCard.
- Be Aware Of Volume Commitments
Processing agreements may have volume commitments that merchants must satisfy. If they fail to satisfy them, increased discount rates or other financial penalties can be applied.
It is unfair to have volume commitments for most small and mid-sized businesses. As for startups, volume commitments are just unacceptable. Thus, it is important to make sure your processing agreement has no volume commitments.
Note that the above-mentioned volume commitments shouldn’t be confused with monthly minimum fees. The latter fees are considered as standard and are to help processors cover costs on inactive or dormant accounts.