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Merchant Account Tips
- Determine what software you are going to use to process credit card payments before you get a merchant account. This will determine whether you will need a card present or card not present type of merchant account.
- Be sure to shop around in order to get the best value from your merchant account provider. Remember that price should only be one factor in your selection process. Service, reputation and policies should be evaluated as well.
- Ensure that your merchant account provider connects to a processor that your payment gateway also connects to.
- Minimize your charge-backs by employing the latest fraud detection technology and exercising good business judgment before shipping products.
- Be sure to calculate total costs when comparing merchant account providers. Often fees are “hidden” in the discount rate to make it appear that, for example, transaction fees or setup fees are being waived. Understand the various components that will determine your cost and take a few minutes to do the necessary calculations. It could save you a lot of money down the road.
Summary
Obtaining a merchant account is a necessary step in providing your merchants the convenience of paying by credit card. If you haven’t gone through the process before, it can be somewhat confusing, since many players and fees are involved. Shop around, understand all of the related fees and policies associated with the merchant account, and ensure that you’re dealing with a reputable company. Your business deserves nothing less.
This article is contributed by Robert Levings of TransActive (http://www.TransActive.ca.com).
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