If Merchant Accounts Confuse You, Read This

Sep 17, 2015 by

If Merchant Accounts Confuse You, Read This

Merchant accounts are not an easy business decision to make, and they can be overwhelming for those who are just starting out in business. After all, you’re in business to make something. You’re not a bank and shouldn’t be expected to operate like one. Fortunately, there are some questions you can ask yourself that might help you determine which merchant account is best for your needs.

Are Loyalty Programs Important to You?

As businesses scale, they tend to find customer loyalty an important quality to maintain and nourish. Smaller businesses might be more reliant on the quality of their craft. Whatever stage your business is in, you need to determine whether loyalty programs are an important part of that growth. If so, you need to pay attention to the second tier in you pricing structure.

What About Volume of Transactions?

If you don’t expect to make many transactions every day, which is common with big-ticket establishments, then you might have some flexibility in taking a higher transaction rate for lower monthly minimums or lower batch fees. Pay attention to the variables offered by each solution, and don’t be afraid to negotiate a bit in order to find a plan that better suits your needs.

What About Termination Fees?

Some accounts come with a contracted term. It’s common to find merchant account contracts that extend one to three years, with some going as high as five. It’s also common to see those types of accounts include a one-year termination clause. You’ll also see annual fees as well. Be sure you carefully project the future of your business before you make this decision.

Bio: Firoz Patel directed and oversaw operations for AlertPay Inc., a company he founded in 2005. Currently, Firoz Patel oversees operations for the Payza platform and resides in Montreal, Quebec.

Related Posts


Share This