How to Compare Merchant Accounts

As a merchant or small business owner, one of the things that we should scrutinize deliberately is the credit card processor or merchant service provider that we should choose. Comparing merchant account providers can be exhausting as we have to take consideration of so many factors, like the tables that compare merchant account fees, rates, contracts and other merchant account features from different processors and providers. But with the help of the basic tips, we do not have to bother looking and analyzing those mind-confusing tables.

Upon comparing several merchant accounts, one of the first thing that we should watch out for are those fees and charges that are not disclosed or those what we call as ‘hidden fees’. Typically, most merchants look for a merchant payment provider that offers the lowest discount rates. However, there are instances where a higher rate is preferred rather than a lower one because of the overall impact on an average ticket depends on the way a business owner account is setup. We should also take note of the rates of some important things like the tech support fees, monthly minimums, statement fees and gateway fee costs, and if they are offering the basic services like the 24/7 customer service. Other minor key points that should also be given consideration are if a credit check is performed, if the rates are negotiable, and if you can leave at any time without penalty.

In choosing a merchant processor, we should also be cautious of the provider’s advertisements that can be misleading or purely dishonest. If they are not committed with their ads, it is most likely that they will not care about their customers later on. It is always advisable to check and research first of the company, especially if they are using the convincing blurbs like, ‘Lowest Price Guaranteed’, ‘No Setup Fee’, ‘$500 Cash Reward if you can find a Better Deal’, and many others in which some are obviously just a gimmick. We should remember that Visa and MasterCard regulations require a company should disclose who their sponsoring bank is if they are mentioned in the website or advertisement.

The most important thing to consider upon choosing the best merchant provider that will best fit our needs and wants is to check the integrity and credibility of the company. Verify if the company become successful by supporting online gambling casinos and adult porn sites. Partnering with companies that are involved with gambling and porn sites might bring legal issues with the merchant’s company, and even the merchant himself.

With these basic tips, it will be a lot easier to check and compare several merchant account providers. Choosing the perfect processor that will best suit our company’s needs will surely make a great impact in our company’s future.

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SMBReviews is committed to providing small and mid-sized business owners with the information and resources they need to select the best service or product for their company.

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