When looking to accept credit cards for business, there are five main factors that should be considered in order to allow you to make the best decision on which of the myriad of merchant accounts available is most suitable for you.
1) How Do You Want To Take Orders?
Different merchant accounts for accepting credit cards exist depending on whether you are planning to take cards in a face to face setting, by mail, over the telephone or on the Internet so carefully consider each of these aspects to decide in which ways you would like to accept credit cards for your business. Irrespective of the combination you choose there should be a merchant account that is suitable for you.
2) What Are You Selling?
Different merchant account providers often specialize in different products and industries. Those regarded as higher risk such as gambling businesses or those selling credit repair services will likely need a specialist merchant account whilst a business selling something more general like lamp shades or cicycle accessories would likely be paying higher fees than they need to with a merchant account like that.
3) What Country Are You In?
If you’re in the USA then you have the best possible range of merchant account providers. The UK and Canada have a reasonable number of options but many non-US countries have very few merchant account providers to deal with making it more of a challenge to get a good deal. Ensure the merchant account provider you apply to will accept business from your country.
4) What Volumes Will You Be Doing?
Higher volume businesses may be abke to negotiate lower fees with the provider of their credit card processing account as they are offset against the larger number of sales as a whole.
Equally, the reverse is sometimes the case and I have heard stories of companies that provide facilities to accept credit cards for business being more wary of higher volume clients because more processed sales can lead to more customer complaints if the client is doing something wrong.
5) What Is Your Average Transaction Value?
When accepting credit cards for business, be aware that fees can vary widely. Some will charge a higher monthly fee but lower transaction fees whilst others will do the opposite.
Work out what you feel will be the average transaction you will be processing (and how many of them you’re expecting per month) to work out which credit card processing account will be the most cost effective for your business.
Once you have these five simple points covered you are in a perferct position to make a final decision on exactly which merchant account will be best for you and your business over the long term.