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Secure trail to gear credit card processing online
By: Jack Chevalier, Fri May 26th, 2006
Know your business accountant: It is very common for
accountants to have personal relationships with payment
processing companies, especially if the accountant manages
multiple businesses. Often accountants are given bonuses for
referring new merchants and for keeping their businesses with
the merchant service company. Your business may be paying more
because your accountant is getting a kickback from a merchant
service provider.
Stay away from the bank: Banks provide merchant services. Yes,
this is true but all but a few very large banks sign their
customers with a private merchant service provider. Banks that
do not provide their own merchant services mark up fees from a
merchant service provider, so they can also make money on your
business. You are basically paying extra for a middle person
when you don't have to be. Those banks that do provide their own
merchant accounts have much higher fees and poor customer
service when compared to merchant service providers. They also
have much higher equipment prices and will almost always try and
push or force equipment leases on their customers. Let your bank
handle your checking account, but keep your merchant account
separate.
Fixed Rates: Make sure when you sign up that your provider will
not raise your rates. The only time that you should see a rate
change is when Visa or MasterCard raises the credit card
processing interchange rate. This means that Visa or MasterCard
raises the amount that they collect from each transaction. Your
rate will go up proportionally because the entire industry has
to pay this extra amount. No company anywhere is excluded from
an interchange increase.
Bundled Rates: Another very common pitfall is for a business to
accept a bundled rate offer. These offers have a very low or
zero transaction fee, and an increased credit card processing
percentage. If you have a history of processing and statements,
a bundled rate 'can' save you money, but if you are a new
business you will almost always pay more with a bundled rate.
Bundled rates are based solely from your average ticket size. If
you have a highly variable ticket size or you are a new business
stay away from bundled rates.
Trust your own feelings: If a company makes you feel uneasy or
you feel like they aren't being honest with you, you should
trust your instinct. Shop around and investigate the company.
There are hundreds of providers out there,so if a company brings
up questions,find someone else.
About the author:
For more information on credit card
processing,please visit http://www.paynetsystems.com<
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