Select a merchant account which suits your business

A merchant account is a bank account which allows business payments through credit cards or debit cards. It is based on an agreement with the acceptor and bank for the settlement of card transactions. Sometimes a merchant service provider is also a part of the agreement.

Selecting a high risk credit card processing which best suits your account is an important criteria. There are various types of merchant accounts for various types of business. Decide on the type of merchant account based on the nature of transaction and the volume of your business.

Steps to choose a merchant service

There are number of merchant services available these days. it is important to be clear about the services your service provider will offer you before entering into a contract. There are many charges related to availing a service provider. A thorough research is required to choose your service provider because their service should benefit you in your business and not ruin your business. If there is no profit in your business and you land up paying your service provider your income then it doesn’t make sense.

The fees involved in availing a service provider is

  1. The application fee and the fee charged for any cancelation of the contract.
  2. The monthly fees
  3. The monthly minimum
  4. Any other non qualified rates.

Credit cards vary in their processing costs. Not all credit cards are the same. So based on your business transactions choose the credit card which will best suit your business. Debit cards are used in common these days.

The rates are decided on the basis of your transaction whether it is online or offline. Online transactions are charged at an online rate. Offline transactions are processed through the debit card network which is charged a flat per transaction fee. It is better to process your low cost items through offline rate and other items through online rates and reduce your cost.

But there is no way you could avoid these costs when you use credit and debit cards for transaction. Keeping a clear record of the transactions and auditing on a regular basis will help to maintain your own standards. Credit cards are unavoidable in business, but they should undermine the basic terms of your business.