Credit Card Processing: Myths & Misconceptions

Deciding to initialize service between a small business and a credit card processing account is vital to making your small business legitimate in the eyes of customers. It is simple fact that almost all customers today pay with some form of debit or credit card, necessitating that a small business adopt a merchant account or potentially lose significant amounts of business. Unfortunately for some small businesses, their owners are hesitant to proceed down this route due to a bevy of misconceptions regarding the perceived perils of having a credit card merchant account. Reviewing several of these misconceptions and rectifying them with the truth, can insure that those you are able to make an informed decision on the true benefits of enroll in a merchant account.

Most small business owners believe that merchant accounts can only be had by paying outrageous fees and processing costs, but the truth is that the merchant account provider market is vast and varied. With so many providers, finding a great deal is very possible. Even without a good find, the cost of merchant accounts is very manageable, and many merchant account firms have even eliminated many standard fees.

Still others believe that the application process for a merchant account requires a preparer considering it’s difficulty and length. This is simply not true. While archaic merchant accounts used to demand a significant paper trail be presented as well as a certain length of time before being approved, the merchant services of today are easily available online and can have approval offered in minutes.

Another myth states that merchant accounts are specifically suited for certain businesses and subscribing to a merchant account cannot possibly suit the needs of any small business. In reality, merchant accounts can be customized substantially to include or exclude many different features that will make a business’ account almost a personal affair. Even a starting business can have it’s needs met by today’s merchant account providers. A further offshoot of this myth is that merchant accounts are just too expensive, and are not suitable for smaller businesses or those that are new. Tailoring an account to the needs of a particular business will aid in dispelling this myth greatly. Combine this with the knowledge that most fees associated with merchant accounts occur through transactions, and small businesses have nothing to lose and everything to gain from a merchant account.

Some even go so far as to claim that fewer consumers are using credit cards today, when the actual opposite is true. With the adoption of many “rewards” cards by consumers, more and more are using credit cards for a variety of purchases. Even minuscule purchases are being made to take advantage of these reward programs. Customers have not slowed in any way from using credit cards to assist in purchases, and those who do often spend larger amounts and frequent stores more often.

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