Need a Cheap Merchant Account?

There are a large number of merchant account providers in the marketplace. Many have extremely good salespeople working for them and it is for that reason that you need to be very careful when you are looking for a cheap merchant account, because they are excellent are not telling you all that you need to … Continue reading “Need a Cheap Merchant Account?”

There are a large number of merchant account providers in the marketplace. Many have extremely good salespeople working for them and it is for that reason that you need to be very careful when you are looking for a cheap merchant account, because they are excellent are not telling you all that you need to know.

The cheapest accounts are not necessarily the ones that advertise the lowest rates. Your account will be subject to a number of fees, including transaction fees and percentage rates as well as extras like statement fees.

Very often the rate that is advertised or that they tell you about is also a discount rate that applies for a limited period of time or only under certain conditions.

The reality is that the actual rate can vary on many things such as where the transaction takes place, and type of card and customer that places the order.

Also, many providers require people to sign onto long term contracts which keep them tied into accounts and have hefty termination fees. This is never a good thing.

That is why I always advise my clients to speak to merchant account providers that offer a consultation to prospective clients, rather than high pressure sales tactics.

This means that they can explain to you all the potential charges that a merchant account will incur. Only when you fully understand everything yourself can you make a decision on which one is is really the cheapest.

Only when you reach this point are you in a position to make the right decision for your needs.

Don’t Choose a Merchant Account Without Reading This

If you want to do successful business whether it’s online, wirelessly, or in the normal world, you need a merchant account that not only can you rely for great service, but one that has good rates as well.

However, getting one of these is not easy. Out in the marketplace you will be bombarded with advertisements and offers from many different providers offering cheap merchant accounts.

The trick is to know exactly what is being offered to you so you can stay away from the companies whose offers are not what they might seem to be.

To do this you need to understand the whole fee structure of a company. Often they will just advertise a headline or discount rate. This is never the total fee that will need to be paid.

Other fees include statement fees, transaction fees, cancellation fees and changes to the percentage charged after an introductory period.

A company like Merchant warehouse for example do not advertise fees because they only believe a customer can understand the full financial implications of a merchant account from a proper consultation on a one to one basis.

They will also give you an unbiased appraisal of any other account offers and tell you how they compare with what they offer, putting you in a proper situation to make a decision.

To find out whether a company has good service to back up their accounts check to see if they have won industry awards and read present or previous customer reports.

Merchant Account Recommendation – Consider the Source

The Internet is replete with sites that provide a merchant account recommendation, ranking so-called elite providers based on a set array of criteria. However, one must determine whether these are objective sites or ones that have a hidden agenda.

Trying to keep abreast of the happenings in the merchant account field, I visit a great number of industry-related sites, particularly those that purportedly offer merchant account recommendations and even reviews on merchant account providers. Knowing our competitors – at least those that enjoy a high degree of optimization – I am able to separate the wheat from the chaff. (While reputable companies exist, there are too many merchant account providers whose programs and services are not palatable – providers who shall remain nameless.)

Still, it never ceases to amaze me that such suspect providers frequently rank among the best credit card processors on so-called objective sites. Such sites declare, for example, “Company X has the best rates in the industry.”

Invariably, when I compare our rates with Company X, I realize that this merchant account review site forgot to indicate that there exists at least one exception. In an absolute fair world, the site would be able to compare all providers (and all relevant rates) to offer completely accurate information.

At times, I contemplate calling these merchant account comparison sites – the ones that do not list us – to say, “How about us?” Occasionally, when I am feeling a little brave, irritated at the slight, or just plain bored, I actually do so. Recently, I called a webmaster about her confounded #1 selection, and requested that she examine our program to make an informed choice. To her credit, and to my utter astonishment, she did so, and after exhaustive review, now tabs us under the heading, “merchant account recommendation.”

My communication with another merchant account review advisor did not materialize into a successful result. The owner of a rather large company listed two of our competitors as the best choices and even recommends them on business forums. When I emailed this owner, urging him into looking into the specifics of our program, he replied that advertising space was available for about $500 – $600 per month. Now this owner may actually believe that his advertisers happen to be the best in the industry (a coincidence, I would say), but it appears likely that such recommendations reflect the need to retain advertising profit.

If a given credit card processor could start forking over money to such website owners, it would be declared the best merchant account provider that money can buy. Certain vendors may opt to take the higher, ethical road, refusing to pay for compliments and more justly earn a referral or recommendation.

Please note that I need to differentiate tried and true advertising (e.g., now, a word from our sponsor) to advertising, masquerading in the form of “objective and helpful” recommendations. I would not have a problem if the merchant account review advisors believed that they were selecting the best merchant account choices – even if they were profiting from such a recommendation. The moral problem exists when such advisors have not truly examined programs and dispense advice, based on the highest bidder. I also aver that certain merchant account companies are actually buying such sites themselves, and in the guise of objectivity, present themselves as the best merchant account choice.

Owners who are trying to glean information about providers should consult a variety of sources. Reviews and comparisons may provide useful data but should not automatically be “accepted as gospel.” Continue to perform your due diligence once you receive a merchant account recommendation.