Tuesday, September 4, 2012

Questions You Must Ask Your Merchant Services Provider

By Kelley Moore


Regardless of the size of your business, payment processing is a very important part of it. And before partnering with the right merchant service provider, you should know the different offerings other providers can give you. Here are five important questions you should ask before deciding which is the right merchant service provider for your business.

1. Is there a set up fee?

Many companies will charge a set up fee to get your account started. This can range from $30 to over $100. Many companies in order to earn your business will waive this fee, so be sure to ask if they can work with you. Tell them you are shopping and got a better deal elsewhere and often times this can be waived.

Q2. What are the rates they charge for the different types of credit cards?

Some cards like American Express charge merchants a higher percentage (3.5% or 4%). Other cards charge lower. Know the rates you'll be implementing for the different cards you will accept. That way, you can have an idea of how much profit you can make from each credit card transaction more accurately.

Q3. What are the monthly fees?

In servicing your account, these companies charge a monthly fee. Take note that different companies have different rates for their monthly fees. Be sure that you can get or negotiate the best rate there is.

4. Do they have a 24-hr. customer service?

Most companies will have this, if one you are talking to does not, run for the hills particularly if you are running online payments.

Question 5. What are their security measures?

You need a payment processing company that can assure safety. With all the fraud in online payments today, this is probably the most important question to consider.

Google Search Tip: If you've already narrowed down the number of merchant service providers you are considering, you can do an online research to read their company profile aside from visiting their websites. This is helpful in terms of finding out the company's online reputation. Sample search terms may be "merchant services direct" or "merchant services direct, spokane". Adding a location (Spokane) to the company name (Merchant Services Direct) filters the search results. Terms like "merchant services direct review" and "merchant services direct profile" will be useful, too.




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