If you're a Web business person that is new to the credit card processing world, it can seem too complicated to be worth pursuing. But with the explosion of credit-card use for internet shopping, e-retailers can no longer afford not to process plastic. However, with hundreds of companies offering merchant services, how do you choose.
One way to sort through the scores of providers is to find sales reps willing to take their time and talk you through the process and relevant fees. This is a great way to separate the great companies from those who are just trying to hit a sales quota. Plus, it gives you multiple chances to hone your expertise as a merchant account services consumer, thus, make a wiser decision.
However, before you cogitate over some of the processes, as well as the fees you will be paying, regardless of what company you choose, let's spend some time looking at items you should never have to spend money on.
Merchant Account Application Fee - This is a fancy way of saying you're submitting an application for credit card processing services. It's not radically different from applying for a credit card. The company you're applying to will look at your financials, as well as your business, and make their decision from there. Some of the more established companies will be able to have some approved e-retailers processing plastic within 24 hours. Others may not be processing that quickly, but the approval should come in a day or so.
Internet Credit Card Processing Software with Web Terminal - Another tumble of words that basically says they have you set up, via your computer, to handle credit card transactions. Some of the lesser players have a price tag of as much as $150 for this. Again, why pay for this when there are some great companies that provide it for free?
Checks by Web/Phone/Fax - Allows you to process checks as payment for those customers that don't want to use their credit cards or simply want another way to pay for their purchase from your Web store. This means you don't have to take a check, deposit it into your account and wait for it to clear. Some vendors price this fast-approval ability set-up at $300, while the established companies provide it gratis.
Web Shopping Cart - A valuable tool that allows people shopping your site to select a product, then keep browsing and pay for all items in one transaction. If this didn't exist, customers would be more likely to buy one thing and leave. This feeds into the internet shopper's profitable habit of making impulse buys.
Technical Support - You hope you never need it, but it is a lifesaver when you do. Some companies charge for this, which makes some e-merchants hesitant to call on a small problem, which means what might be a minor glitch might grow into a major issue if it doesn't get the immediate attention. Nothing should ever get between you and the smooth operation of your Web-based business - certainly not having to worry about the meter running while you're trying to solve problems and keep your business running.
One non-financial merchant services qualifier is the length of the approval cycle. Any company that needs a week or more to reach a decision on your application is not competitive. Indeed, that long a window for approval usually means you're dealing with a company that outsources everything, which means you'd be "dealing" with several companies, and that means a lot of costs will be getting passed along to you.
