The Important Factors to Consider When Selecting a Merchant Service Provider


Owners of small business who are searching for a merchant account have several factors and a wide selection of merchant services companies to take into consideration. Before you start comparing or investigating any merchant services company, it is vital that you have a solid understanding on the primary areas of interest to work out the best offer. If you merely concentrate on the rates provided, you might be tricked into signing an agreement merchant services agent   with hidden contracts and fees. Even worse is settling on with a credit card processor with lousy customer service, while you are running into a problem and the fact that you think you have a small rate will be of little significance.

The four primary areas to go over during your merchant service provider search are the customer service provided, the processing rates given specific to the kinds of credit cards and kinds of transaction your small business will venture, the fees and dues assessed within the monthly statements, any Payment Card Industry (PCI) fees, start-up costs and above all, the cancellation fees in the agreement.

Customer Service

While the fee is vital, the quality of service that you get for your fees can play an important role in figuring out the actual lowest fee the credit card processing solution for you and your business. The financial implications of signing with a low fee merchant service provider will only make your credit card processing system unsuccessful and miss a day, week, or month of processing because of a problem with your merchant account, can immediately affect your bottom line.

Credit Card Processing Costs

Every time an owner of small business processes a debit or credit card, the costs that they are billed on that particular card are based on a variety of factors. Is the credit card present during the time of the transaction? Is it a business or rewards card? What kinds of services or goods are being given? All these elements are exclusively related to the cost a merchant will be billed. The base charges are set by MasterCard or Visa. On the other hand, credit card processing firms put in margins to those charges and locating the right merchant service provider can be the distinction between having to pay margins that are far more than of what you ought to be paying.

Fees and Dues Assessed

In addition to margins, merchant account service providers have also discovered that by assessing merchants along with other fees and dues and assessing monthly minimums, they can increase their earnings even more. If a merchant is not aware and inadvertently or knowingly sign a particular length agreement with a merchant account service provider that he or she do not fully trust, the merchant could discover that regardless of low fees, they are in fact paying a lot more money than they should be.

Payment Card Industry (PCI) Compliance, Application and Cancellation Fees

There are many merchant service providers that still charge PCI application fees. With this in mind, merchants need to avoid these merchant accounts companies at any cost. In addition, owners of small business must review their agreements along with their statement of fees and rates to spot credit card processors that have excessive compliance fees and contract cancellation fees.


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