Need a Merchant Account? Focus on Service

Choosing a merchant account provider, whether you’re just getting started or are a seasoned pro, can be overwhelming.  So what should you look for when wanting to set up a merchant account?

Well, since I get asked this question all the time, I’ll share a few thoughts with you here.

Rate Games

For starters, don’t be fooled by rates. In a previous post (which my buddy Rob said was a bit “dry” – not to mention better suited to the Wall Street Journal), I tried to explain how one type of rate structure works.

Well, let’s just say that it does get complicated. And more than you can imagine.

So why do I warn you against focusing on rates? There are 3 reasons:

1. most merchant account providers do NOT guarantee their rates
2. most sales people do NOT fully disclose all the rates, fees, and rate classes to you
3. some rate classes will NEVER apply to your account

Bottom line, before signing up solely on rate, you need to know what your true costs for accepting credit cards will be. And working with someone who is willing to educate you about the process is the best way to go.

Sales Pressure

Next, resist the sales pressure to “sign up.”

Simply put, most sales reps for the banks and large merchant account providers are paid based on quota.

Which means, they need you to sign up quickly so they can move on to “the next.” In my opinion, this does not put your best interests first.  If you think this is a bit of an exaggeration, read this quote from an  article by John (you can read the entire article by following the link)…

“Here’s what bugs me. I think the choice of a merchant account vendor, a credit card processing company is a big deal. Once selected, I’m pretty well locked into their technology and system not so much by contract as by momentum….  I will say that one of the other people that I’ve made inquiries to called me today with a lets-get-this-thing-signed attitude. I asked a few questions about how the technology interfaces and was told that I could speak to technical support after I signed the contract.”

Why the rush to sign you up?

To lock you into a contract and meet quota, of course.  So, resist the rush to sign up. And look for merchant account providers that do NOT have contract.

Focus on service

The “service gap” depends on who you decide to sign up with.

Since the majority of merchant account providers use sales reps on commission with quotas, you can expect that they will NOT be stopping by if you have a problem. If you sign up with them, you’re left is an 800 number and hours left on hold.

Good luck.

So what options are left to you? Using an ISO.

Independent business owners probably represent 5% of the merchant account industry. But the difference for you and your account is huge.

Since their revenue is tied up with your business success, they often provide personal service if/when a problem arises. And the reason is simple…

1. if your account is down, they’re not making any money
2. if you are unhappy and switch to another company, their monthly income is cut

Request a Merchant Account Review

Are you ready to discover just how much you might be able to save each and every month?

If so, there are a couple of ways you can get started.

You can request a merchant account quote.  Simply fill out the short form and we will contact the appropriate merchant account providers for you.

You can download a free report of the Merchant Account Guide.  Just follow the link to download your copy today.

Finally, you can follow the link to scan a list of merchant account providers in your area that can help you set up a virtual terminal.

Comments?  Questions?  Other merchant account issue you’d like to share?

We do value your opinion, and would like to hear from you.  Kindly leave a comment for us and we’ll respond as soon as possible.