3 Essentials Steps If You Are Comparing Merchant Account Providers

A merchant account can get your small business started in accepting card payments. It is your current or holding account for processing cashless transactions. However, it is crucial to compare merchant account providers to ensure the most reliable and secure service that can protect the privacy of your customers, and secure your earnings. As more consumers are using their debit and credit cards to pay for goods and services, the more you should consider accepting cashless payments. Here are some steps to help you compare providers:

1. Know how it works – Before you proceed to compare merchant account providers, it is important to understand how they work.

Whenever you make a sale, the money will not go directly into your bank account. It must be authorised by the customer’s bank and then processed by the merchant account. This way, both you and your customers can be protected from fraud, as the process ensures that the customer has sufficient funds for payment. After checking their card payment, the money will go to your merchant account. It should take a few working days (often one to three) for the funds to reach you, but certain companies ensure instant availability of the funds in your account.

2. Explore the fees – Merchant account fees will differ from one service provider to another, and of course, according to your business. Determine how much it will cost you to process card payments by finding the sum of the price of the card machine and the credit card processing fees. Note down the costs of the card machine, payment gateway, interchange process, authorisation and transaction processes and chargeback. Likewise, find out the early termination and monthly minimum fees.

3. Compare the types – You are likely to come across aggregate, ISO, and high risk as you compare merchant account providers.

Aggregate accounts are also known as payment service providers or facilitators and they are typically ideal for small businesses because they have no monthly or setup fees, and you are charged only when someone pays you. Compare merchant account providers with ISO accounts, which are more flexible, but come with monthly and setup fees, making them suitable for businesses that get a lot of sales every month. High-risk merchant accounts may be best for you if you have an excellent credit score and your business has to do with online healthcare, subscription services, and travel.