Get the edge on your competitors

When potential clients prepare to make a purchase they will look at a few key factors. First they will look at ease of purchase. Second they will look at security. If you make it easier and you can provide security in that purchase then you will most likely earn the business over a competitor even if your costs are slightly higher. A merchant account will give you nationally known names like American Express, Visa, Discover, and MasterCard that have spent billons of dollars to promote the ease and security of using their cards. By using the logos of these companies you give your business instant credibility that has proven to boost sales.

Increase your sales potential

There is an old saying that "Cash is King" unless of course you do not have enough cash. We have all experienced a situation where we have too many items in our cart for the cash in our pocket. Most sales are emotional in nature (That's why they put the candy on the check out isle). The average cash sale is only $30. Check sales average $52 and credit card sales average $76. When you accept major credit cards you can create additional revenue streams by "adding fries" or by setting up "payment plans". Accepting credit cards gives your client the flexibility to say yes to a purchase that they may not have made otherwise.

What you need to know!

The ability to accept credit cards has never been easier to obtain, BUT you need to be a wise consumer. There are a few things that you should know about merchant accounts before you choose a vender.

Discount Rate, Transaction rate

First you need to know that each of the credit processing banks will keep a percentage of every sale, this is known as a discount rate. The type of business you conduct will determine the type of discount rate that you have. For example if you are a retail store that can capture the signature of the client then you will pay a much lower rate then an internet site that will process sales with out a signature. You will also need different equipment to process the sale. Merchant companies also charge a transaction rate; this is a flat fee that is charged on a per transaction basis. Discount rates will range from 1% to 4% and the determining factors are the type of business you conduct, how you collect your funds and the merchant account company that you are working with. Transaction rates can run from 10 cents to 35 cents on average. This rate is generally based on the type of risk that the bank views your business to be.

Getting Paid

Most merchant account companies will have your funds deposited into your account with in three business days. This will help you with your own cash flow and if you are shipping an item you can fulfill quickly knowing that you have the funds in your account.

Chargeback's

Although they do not happen often you need to be aware of the fact that a client can dispute any charge made to an account. When this happens you will receive a notice from your merchant company with the details of the chargeback and how to respond to the chargeback. It is important that you manage these charge backs as they come in.

A final word to the wise

When it comes to choosing a merchant account company it is important that you choose a company that will take care of you and your needs. All the merchant account companies must adhere to the same restrictions, work with the same banks and card companies so if one company is offering a rate that is much lower then another know that they are making that money up somewhere or they are not disclosing all the fees. So if the rates are all the same then how can you choose a company to work with? You need to look at service, knowledge and reliability. First, look for a company that is going to work with you and can provide you with the best type of equipment for processing your type of business. Second, make sure that the merchant company has worked with businesses similar to yours so they will understand any special needs you may have. Third, work with a company that has a history with card companies and consumers. Your merchant company should work with you to make business faster, better and more profitable.

Do Your Homework

Having a merchant account can make business more profitable, easer and exciting so do your homework. Look for a company that is eager to help, has the services, equipment and knowledge to help you but this powerful tool to work for you. If you have additional questions about merchant services please contact out customer service department.