Paying for a Merchant Account: How to Get the Best Value for Your Money

Feb 28, 2017

The number of payment service companies is currently on the rise, and as a result, acquiring a merchant account is no longer that much of a challenge for most businesses. Many firms offer fast and easy online-based applications; whose approval takes place in only a matter of days.

However, the process of opening a new account is often marred by pricing technicalities. Negotiating for fairer rates is never easy, and merchant agreements are a bit too complicated to understand. Consequently, many traders end up dissatisfied with the services they get from their processors.

To that effect, below are some tips to help you get the most out of your merchant account.

Hidden fees

Some merchants will be swayed into doing business with a budget-friendly payment processor, only to be later caught by surprise when the monthly statement comes bearing unforeseen charges.

To elude the frustrating and financial losses that come with hidden fees, read the terms and conditions of the contract carefully. Demand for a list of all the fees your provider might charge and watch out for names like application fee, setup fees IRS fees, statement fee, etc.

Some might sound essential but are actually just a means for the firm to get more money out of your business.

Rates

Your processor of choice might be transparent, but if the rates charged are too high to justify the services rendered, it might be time to consider another firm.

When opening an account, therefore, request the merchant services company to elaborate as much as possible on pricing. Relate the fees to known industry standards, and don’t be afraid to negotiate where you can.

Auxiliary features

On occasion, the merchant accounts provider may try to woo you with a bunch of additional features, some of which have no use to your business.

To avoid being billed for services you’ll never get to implement, identify your business needs and ask the processor to base the features of your account around them. A company like eMerchantBroker will be ready to use your ideas to craft a payment servicing account that is tailored specifically for your business.

Customer support

As the holder of a merchant account, you’re entitled to quality customer service.

An account provider may claim to have great support but to be safe, get a name, an email and a direct phone number to an actual customer service staff member, who will be ready to handle your problems at all times.

Let us help you get a high risk merchant account today!

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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