Merchants have a few options when it comes to setting up their merchant accounts. Gone are the days where they had to beg a bank for a piece of the action and a reasonable rate for account management. Because of advances in technology, merchants can decide between setting up a standard merchant account and using mobile processing to manage account activity. The following is a brief look at these two related but very different processes.
Standard Merchant Accounts
Some standard providers will specialize in mobile processing, and some may offer mobile options along with traditional merchant services. This approach offers individuals better account stability (an account less likely to have holds), the ability to process bigger transactions in bigger weekly volumes, the ability to use a virtual terminal for processing, and the possibility to use interchange-plus pricing. In addition, using standard mobile processing may give merchants the ability to negotiate better rates.
However, setting up a regular standard merchant accounts has some disadvantages. These accounts often have higher startup costs and maintenance fees, could come with early termination fees, and may require the purchase of additional equipment. Plus these accounts must be approved by the new payment processor. If your business is on the TMF list, then it’s possible that you’ll be blackballed by many credible processors and be denied an account.
Some merchants want to hit the ground running and start processing payments as quickly as possible with little hassle. In the last few years, more services have been created to enable this strategy like mobile payment processing. Mobile providers don’t connect merchants with merchant accounts. Instead they provide pay as you go pricing. Merchants are placed in a large pool and their transactions are monitored. There are several benefits to this method.
Firstly, merchants get instant access to payment processing technology, they have lower setup and maintenance costs, won’t have early termination fees, and they won’t have to worry if they are on the TMF list. However, merchants who go this route also face potentially higher rates, lower processing limits, the inability to negotiate rates, and a higher risk of experiencing account holds and terminations.
If you want to experience competent, long lasting merchant care that won’t limit how many transactions your company can have or limit your growth potential, choose a standard merchant account. If you are on the TMF list EMB can still get you a merchant account. Unlike other financial institutions, EMB doesn’t judge your business based on credit history or risk status. eMerchantBroker will work with you to get your account back on track with their secure payment gateways.