Avoid this ONE common mistake.
More than any other industry or business type, retail is more sensitive to costs & fees. And the reason is understandable.
With astronomical rents to pay each month along with COGS (cost of goods sold) margin is the name of the game just to survive. Let along thrive.
And when it comes to searching for the best merchant account, the same rules apply.
So what is the most common mistake made when setting up a retail merchant account?
Signing up with a merchant account provider based on “Rate” alone.
Why is that a problem?
Merchant Account Fees 101
Merchant account providers mainly sell you on RATE.
I’m emphasizing the singular because most companies talk about, advertise, promote their “rate.”
They also claim to be the lowest.
So what’s the problem? Well, the advertised rate is NOT the only rate you’ll pay.
Not by a long shot.
And that’s because the majority of retail merchant accounts are set up with either three tier or four tier pricing.
It’s a bit complicated to discuss this in greater detail. Just remember that there are different credit card TYPES (i.e. rewards cards, corporate cards, “world” cards – along with different WAYS to process credit cards (swiped rate, keyed in rate).
And these different factors, TAKEN TOGETHER determine what you’ll actually pay.
What that means is that the other rate categories (called mid-qualified and non-qualified) are not disclosed to you. So you won’t actually know how much you are really paying.
Additionally, these other rate categories may account for 80% of your overall processing volume.
It all adds up and makes a huge difference.
So, when you are talking to different merchant account providers about getting merchant account quotes, be sure to ask about these other rate fees.
Does that make sense?
Choosing a Merchant Account Provider
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 visit the Retail Merchant Account providers listed on the website by following the link. Once there click on your state and review the providers listed there.
Comments? Questions? Other merchant account issue you’d like to share?
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