Merchant Credit Card Processing Tips
Merchant Credit Card Processing Tips
Welcome to my Merchant Credit Card Processing Tips blog. Here you will learn about Merchant Credit Card Processing Tips.
When searching for a merchant account, credit card processing, you will find that there are thousands of companies who can provide you with service. All offering special deals that are better than other companies, at least that is what they say. So how do you know which company really will provide what they say? Answer, you don't. While researching for the best deal, you can only hope that everything in the merchant account setup process will be revealed to you, the merchant.
So how do I, the merchant, know what I am not being told? Hopefully, after this article, you will know what to look for when choosing a credit card processor. After all, why should accepting credit cards be so complicated? It shouldn't and withNational Processing Services, processing has never been easier.
First of all, know your industry. Know exactly what your selling, know your monthly sales volume, know your average ticket amount, and know you realistic goal for increasing your monthly volume in sales. This will help speed up the process and help processors know how to place your merchant account to meet your business needs.
Second, again know your industry. Find out if your are a high risk merchant or a standard merchant. Example, adult stores or websites are definitely high risk, while grocery stores are standard. This will change the merchant account process dramatically. It will also save you time. After 7 years in this industry, I have had hundreds of merchants not tell the whole story about there company and what they sell, just to have them declined because they were a high risk merchant. They had to fill out all of the necessary paperwork, and wait for approval, just to be declined and start all over again.
Third, understand that there is no such thing as a free account. All merchant accounts have fees and percentages taken off from transactions. Do some due diligence and find out how your rate varies from processor to processor. You will find quite a range. Also, don't fall for the rates that are way lower than the industry standard. Its simply not true. There are 2 factors when understanding the rates quoted to you by processors. 1: Processors have a "Buy Rate." A Buy Rate is the industries Visa/MasterCard rate. It is the lowest possible percentage a merchant can get for processing credit cards. 2: Rates are never given to merchants at Buy Rate. Reason, processors need to make money to stay in business. They have to raise the percentage above the Buy Rate to make money off of your transactions. There are also Statement Fees, a fee charged to the merchant for processing credit cards on a monthly basis. The merchant receives a statement showing the transactions processed, and the fees within for those transactions. The Monthly Statement Fee usually ranges from $8 to $10 a month. There is also a Monthly Minimum charge. The Monlthy Minimum is an amount set by the processor that requires the merchant to process enough transactions to equal at least the minimum amount, usually $25. If the merchant doesn't reach the Monlthy Minimum, then the merchant will owe the differnce of fees not processed to equal $25. Example, if a merchant processes $20 in fees during a month, then the merchant would owe $5 more at the end of the month to equal $25, the Monthly Minimum. Some accounts will have a Monthly Minimum, some will not. It all depends on the processor and the type of merchant account that you are setting up.
Forth, know what type of merchant account your company will require. There are 3 types of merchant accounts. 1: Retail Account, this tpe of merchant account is considered the most secure. You will receive the lowest rates from the processor. Reason, because the merchant is face to face with the customer. Cards are swiped 90% + of the time, and signatures are received by the merchant at the time of the transaction. The proecessor feels most comfortable with this so you the merchant get a low rate. 2:MO/TO Account, this type of account is mainly transactions received by phone orders, email, or catalog orders by mail. MO/TO means mail order/telephone order. Your rate will be higher for this type of account because your customer is not face to face. The processor sees a higher risk for fraud in this type of account so your rates are higher. 3: Internet Account, this type of account is exactly what it says. Transactions are processed over the Internet. This type of account is equivilant to MO/TO. You will have the same rates, because the customer is not face to face.
Familiarize yourself with these four basic categories and you should be much better equipped to understand and choose your processor. Please realize that getting a merchant account, or accepting credit cards is actually very simple, and there shouldn't be any worries about doing so. You will increase your income, and with understanding the basics of Merchant Credit Card Processing Tips, you will feel more comfortable with getting your merchant account setup. If you have any questions, please post them so I can help you, or you can go to my website and fill out your contact information, such as email, and I can help you that way.
Merchant Credit Card Processing Tips
Welcome to my Merchant Credit Card Processing Tips blog. Here you will learn about Merchant Credit Card Processing Tips.
When searching for a merchant account, credit card processing, you will find that there are thousands of companies who can provide you with service. All offering special deals that are better than other companies, at least that is what they say. So how do you know which company really will provide what they say? Answer, you don't. While researching for the best deal, you can only hope that everything in the merchant account setup process will be revealed to you, the merchant.
So how do I, the merchant, know what I am not being told? Hopefully, after this article, you will know what to look for when choosing a credit card processor. After all, why should accepting credit cards be so complicated? It shouldn't and withNational Processing Services, processing has never been easier.
First of all, know your industry. Know exactly what your selling, know your monthly sales volume, know your average ticket amount, and know you realistic goal for increasing your monthly volume in sales. This will help speed up the process and help processors know how to place your merchant account to meet your business needs.
Second, again know your industry. Find out if your are a high risk merchant or a standard merchant. Example, adult stores or websites are definitely high risk, while grocery stores are standard. This will change the merchant account process dramatically. It will also save you time. After 7 years in this industry, I have had hundreds of merchants not tell the whole story about there company and what they sell, just to have them declined because they were a high risk merchant. They had to fill out all of the necessary paperwork, and wait for approval, just to be declined and start all over again.
Third, understand that there is no such thing as a free account. All merchant accounts have fees and percentages taken off from transactions. Do some due diligence and find out how your rate varies from processor to processor. You will find quite a range. Also, don't fall for the rates that are way lower than the industry standard. Its simply not true. There are 2 factors when understanding the rates quoted to you by processors. 1: Processors have a "Buy Rate." A Buy Rate is the industries Visa/MasterCard rate. It is the lowest possible percentage a merchant can get for processing credit cards. 2: Rates are never given to merchants at Buy Rate. Reason, processors need to make money to stay in business. They have to raise the percentage above the Buy Rate to make money off of your transactions. There are also Statement Fees, a fee charged to the merchant for processing credit cards on a monthly basis. The merchant receives a statement showing the transactions processed, and the fees within for those transactions. The Monthly Statement Fee usually ranges from $8 to $10 a month. There is also a Monthly Minimum charge. The Monlthy Minimum is an amount set by the processor that requires the merchant to process enough transactions to equal at least the minimum amount, usually $25. If the merchant doesn't reach the Monlthy Minimum, then the merchant will owe the differnce of fees not processed to equal $25. Example, if a merchant processes $20 in fees during a month, then the merchant would owe $5 more at the end of the month to equal $25, the Monthly Minimum. Some accounts will have a Monthly Minimum, some will not. It all depends on the processor and the type of merchant account that you are setting up.
Forth, know what type of merchant account your company will require. There are 3 types of merchant accounts. 1: Retail Account, this tpe of merchant account is considered the most secure. You will receive the lowest rates from the processor. Reason, because the merchant is face to face with the customer. Cards are swiped 90% + of the time, and signatures are received by the merchant at the time of the transaction. The proecessor feels most comfortable with this so you the merchant get a low rate. 2:MO/TO Account, this type of account is mainly transactions received by phone orders, email, or catalog orders by mail. MO/TO means mail order/telephone order. Your rate will be higher for this type of account because your customer is not face to face. The processor sees a higher risk for fraud in this type of account so your rates are higher. 3: Internet Account, this type of account is exactly what it says. Transactions are processed over the Internet. This type of account is equivilant to MO/TO. You will have the same rates, because the customer is not face to face.
Familiarize yourself with these four basic categories and you should be much better equipped to understand and choose your processor. Please realize that getting a merchant account, or accepting credit cards is actually very simple, and there shouldn't be any worries about doing so. You will increase your income, and with understanding the basics of Merchant Credit Card Processing Tips, you will feel more comfortable with getting your merchant account setup. If you have any questions, please post them so I can help you, or you can go to my website and fill out your contact information, such as email, and I can help you that way.
Merchant Credit Card Processing Tips
Labels: account_services_merchant_credit_card_processing, card_company_credit_ecommerce_processing, credit_and_debit_card_processing
Posted In Credit Card Merchant Account at
12:25 AM
