In terms of banking, “merchant account” refers to a contract wherein the bank the bank that aims to acquire prolonged line of credit to a merchant that accepts payment transactions through card of a certain card association or brand. Merchant account is a very important factor in credit card transactions because the absence of which, nobody can purchase anything because the paymentsregardless of the credit card brandcan’t be accepted.
Making the right decision when it comes to of merchant account providers
These days, there is a wider selection of merchant account providers. Since there is competition with other providers, it can be hard for a person to choose a merchant account provider since the different providers offer options that can be quite attractive. For some people, one option offered by a specific merchant account provider can be overwhelming since others offer basically the same value but with greater advantages.
In choosing a merchant account provider, people must always consider their utmost and immediate needs. As much as possible, they should not entertain other benefits that would not help them in the long run. Here are the things that people should look for in a merchant account provider:
1. The fee structure. All merchant account banks have their own fee structures. This fee structure generally involves the fees per month as well as the transaction fees. To attract more clients, many merchant banks offer comparatively lower fees but this does not mean that they are offering more benefits and they are at par when it comes to other merchant account providers. If you are on the process of choosing a merchant account provider, it is always best to ask for a “sample contract” so you can compare the rates and terms offered by other different merchant banks.
Through this, you can come up with your priority services and you can enjoy the benefits that you deserve. When it comes to discount fees, bear in mind that these should not exceed to 2.25% and $0.30 in each transaction and they vary depending on the types of credit cards available. You should also look for a merchant account provider that does not have monthly minimums and only charge not more than $25 for monthly statement fees.
2. The turnaround time. This is a very important factor to consider because this will give veer you away from financial hassles caused by time delay. When it comes to the deposits to your account, the time between a transaction such as sale and the deposit of the proceeds in your bank account is should not be more than 70 hours. Financial experts say that turnaround time is the best option especially if the merchant account comes from your own business bank.
3. The customer service. When applying for a merchant account, the ability of the provider to ensure your safety and credentials should be at hand. Good merchant account provider will ask for the domain registered to the account holder, for the “SSL” or the security, copy of the homepage, and at least two product pages.
4. The favorable terms. This is very important because it can give you more advantages as time goes by. One of the favorable terms includes the length of contract so you won’t be locked in unfavorable terms later on. And the bank reputation which include the operation hours, the tenure or the length of time in the industry or in the business, alternative options for payment processing when there is a system failure of course, its customer service and support.