If you are setting up a new business and need retail merchant services, there are a few points you will need to consider before you sign up with the first merchant account provider who calls or walks through your door.
Why is that?
Well, check out this comment we received recently regarding the problems you can run into by signing up with the wrong company…
“As a business owner, I signed a lease with a company. The problem is that the terminal didn’t work at all. And the agent who said he would be at my disposal was very unprofessional and didn’t answer my calls when I called him to help me fix it. Also, he wasn’t knowledgeable about the terminal at all.
I chose to go back to the company I was originally with. Now the representative decides to show up and say I am still legally bound, even though when I originally asked him if I would be legally bound to the contract even if the terminal doesn’t work, he said NO. What do you think?”
~ Brian
Believe it or not, this kind of thing happens everyday. You can check out more comments regarding credit card terminal lease issues by clicking the link.
Four Critical Issues to Consider
So what are the four main points to consider when you are talking with a merchant account provider?
In no particular order they are:
- Equipment
- Supplies
- Service
- Contract
Let’s discuss each of these in a bit more detail.
1. Equipment
Your decisions when it comes to equipment are: buy, lease or find free equipment deals. If you need or want a POS system you’ll pretty much have to buy or lease.
But if you need a credit card terminal, look for providers offering free equipment programs.
Whatever you do avoid credit card terminal leases. They don’t make financial sense, and the term of the lease runs for 48 months.
Finally, you’ll need to ask what recourse you have should you end up with damaged or defective equipment.
2. Supplies
Though this might not seem like a big deal, you’ll want to ask if the company you are talking with provides any free supplies (i.e. thermal paper) for you terminals.
Some credit card terminal burn through paper pretty quickly.
And though you can find paper at Staples or Office Max (to name a couple of places), you might be able to get your terminal paper needs taken care of.
It’s worth asking about.
3. Service
Okay, here’s a big problem retail businesses run into from time to time: What do you do if your credit card terminal or POS system is down?
You’ll want to ask about replacement or repair procedures. Namely, how long can you expect to be down when your equipment runs into a problem.
Some businesses get 85% of their revenue from swiping credit cards.
And trust me, even credit card terminals can break down from time to time. So be prepared to know in advance what kind of support you can expect should you need a replacement terminal.
4. Contract
Finally, you’ll want to make sure that there are no early termination fees regarding your contract or agreement.
Demand — and get it in writing — that you will not be penalized should you decide to close your account and choose another merchant account provider.
Finally, the last step is…
Choosing the Best Retail Merchant Services Company
To find a credit card payment processor for your business, 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 and reputable providers, saving you time and aggravation:
CLICK the link and compare free
merchant account quotes today >>>
Or you can visit our new merchant account set up tips page for more information about how to find the right credit card payment processor.
The choice is yours…
Comments? Questions? Other merchant account issues you’d like to share?
We do value your opinion, and would like to hear from you. Kindly leave a real comment for us and we will respond to you as soon as possible.
When you get right down to it, there is basically only ONE reason to have a merchant account for your small business.
