You don’t want to know anything about your merchant account

Merchant accounts are a vital service that most businesses need to survive. Merchant account providers can be some of the most deceptive companies in the world, because they can prey on business owners with little knowledge of how not to get ripped off. Merchant accounts haven’t changed much in the past 10 years, and surprisingly business owners haven’t changed either.

It is still common to see people get duped into deceptive and expensive rates, sign overly priced equipment leases, pay high annual or monthly fees, or purchase additional equipment when none of it is necessary. Just a little research could save many businesses hundreds or thousands of dollars a year.

Why nothing has changed:
The main reason that business owners are no wiser now than they were ten years ago is that they don’t want to know about their merchant account. I find this sad, but completely understandable. Every business owner that I know has more important things to do than learn about merchant services. Merchant services are also boring. There is very little excitement in the day-to-day operation of a merchant account.

Businesses want something that operates invisibly beneath their company, allowing them to accept payments from their customers. The only time that many take time to learn about merchant services, is either when they think they are being over charged, and when something breaks. Coincidentally, making sure that you process with a good company from the start will minimize both of these situations before they can get out of hand.

Do a little research:
I know it hurts to do research on something that you would rather not have to know about, but believe me, it is more than worth it. Especially if you are a new business, do research weeks before you will actually need to accept credit cards.

Learn the basics:
Take an hour or two out of your schedule, even if it has to happen on a weekend. Do some basic research on merchant accounts including the types of merchant accounts, the fees associated with each type of account, and take a look at common pitfalls that many new businesses fall into. These few hours of research could save you thousands of dollars and days worth of headaches in a few years time.

Check your rates:
I have signed up many customers that didn’t even look at the rate that I gave them before signing their contract. They had a good rate, and they are happy with their service, but I could easily have thrown in extra charges and they would never have known. Even if you trust the company you are signing up with, check the application and make sure you understand all of the rates.

Don’t rush:
Businesses most often get ripped off, when they remember two days before opening, that they need to be able to accept credit cards. They instantly go with the first company that guarantees they can be setup by tomorrow. As far as sales go, urgency has probably sold more products and services than all other selling points combined. Start looking for a merchant provider about a month before you need to accept credit cards, and submit your application about two weeks before you need to be setup.

If it sounds to good to be true:
As with just about everything, if it sounds too good to be true, it most likely is. Always look for things like miscellaneous fees, yearly fees, monthly fees, and other flat rate service fees. Things like free terminal programs may seem like a great program, but there are always strings attached, and you should know exactly what you are getting into before you sign the contract.

Some resources for business owners looking to research merchant accounts:
This website…
The Merchant Account Services Website
Wikipedia Merchant Account Article (Very Basic)

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