If you are searching for a new merchant account, getting the best deal depends on ONE thing and ONE thing only.
Understanding the factors that make up your processing rate.
Why?
Because merchant accounts are typically sold on RATE alone.
And that means you may never know that there are several factors that make up the RATES and FEES you’ll have to pay to process credit cards.
Merchant Account Rates Simplified
The first thing you should know is that there is NO ONE SINGLE RATE for accepting credit cards. In fact, the rate sheets set by Visa and MasterCard make up more than 32 pages (called Interchange Fees).
Now, you don’t have to know every single detail in those rate sheets.
For starters, the language alone can be confusing, not to mention the various categories and what they may mean to you.
Instead, there are THREE points to understand with respect to merchant processing rates.
They are:
- How you process cards
- The type of card you process
- Your business type
Let me explain a bit more…
Whether you accept credit cards face to face or online makes a big difference regarding what you will ultimately pay. And most merchant processing providers will quote you the “face to face” (i.e. swiped).
What’s more, even if you accept credit cards face to face there are a few rates that will apply.
If you key in a credit card you’ll pay more.
If you fail to batch your machine on time you’ll pay more.
And even if you are able to swipe a credit card properly, and batch out your terminal each night (or opt for “auto-batch”), the type of card you swipe affects what you’ll pay.
Love those rewards cards?
Not if you own a business and your customers pay with those.
Rewards cards and corporate cards swipe a different (higher) rate. After all, someone has to pay for all those rewards and points being redeemed, and you can bet it won’t be the credit card companies.
Finally, the type of business you have and credit issues will affect how much you’ll pay.
If your business is characterized as “high risk” you will most likely pay more. What’s more, you’ll have to work with a company that specializes in high risk merchant accounts.
If you have bad credit, the same may be true for you as well.
Some businesses, however, get a break on rates.
Grocery stores and quick serve restaurants often get a better rate. It doesn’t happen often, but if you have a gas station or run a hotel, ask if any special rate categories apply to you as well.
Now that you have some knowledge to protect yourself, you’ll need to…
Get the Best Merchant Account
To find the right a merchant account provider, there are a couple of ways you can get started.
You can click on the link below to get a free rate quote from qualified providers, saving you time and aggravation:
CLICK the link and compare free
merchant account quotes today >>>
Or you can visit our new merchant accounts page for more information about how to accept credit cards for your business.
The choice is yours…
From time to time people ask about what is required for completing a merchant account application.
