What to ask BEFORE getting a merchant account or changing providers! Getting the right merchant account for your business can make a huge difference in your profits. Don’t pay more than you have to! Here is what you need to know…..
Q: What should I expect to pay for set-up and application fees?
A: Don’t work with any merchant provider that charges application fees.
Q: What is the cost of equipment?
A: Free is the best price for a terminal, but be prepared for the processing rates to be a little higher then purchasing or leasing a new terminal. On the other hand, the slightly higher rates are usually lower then a monthly lease payment.
Q: Is there such thing as a ‘reprogramming fee’?
A: No. Most terminals can be reprogrammed for no cost depending on the age of the terminal.
Q: How much is the monthly service charge?
A: A monthly service charge or monthly fee usually ranges from $15 to $25 per month, but can also depend on how much you process.
Q: Is there a monthly minimum of transactions?
A: Usually $20 to $30 a month and you will also want to calculate if there is an individual minimum transaction. Sometimes the company or fees for an individual transaction will be cost prohibitive.
Q: Will you receive a monthly merchant account statement? What is the cost?
A: A monthly merchant account statement details your transactions and can range in cost from free to $10 a month. Ask about downloadable online statements, which are usually free.
Q: How much are the processing percentage fees?
A: Processing fees have a range depending on your volume. Mapclicks.com can refer you to processors that have Retailer rates starting from about 1.19% for check cards. If you are a high volume restaurant or retailer your rates can be a lot lower.
Q: How much is the per-transaction fee?
A: Usually expect to pay .15 to .35 per transaction.
Q: Where can I see a chart of all of the fees and charges?
A: Before signing anything, read the merchant agreement CAREFULLY about charge backs, fraud protection, batch fees, technical and customer support.
Q: How long does it take to receive my payments?
A: In most cases the merchant account processor releases the money to your bank within 24 to 48 hours. Your bank might be the one holding your funds. Check with your bank on their policies.
Q: How long is the contract length?
A: Expect to sign a three year contract. That lock-in your rates for three years. Short contracts mean the rates will change more often.
Q: Will the rates change?
A: Be sure that your contract is about specific how and when the rates and fees can change. Rate changes are determined by Visa and MasterCard, which affect all processors and therefore your rates.
Q: What about other services that might be offered by the processor?
A: Having a processor that offers additional services can be advantageous. You have already established a business relationship with them and they are familiar with you, making it easier and faster to get certain services, Including
- Point-of-Sale terminals
- QuickBooks credit card processing
- Cash Advances
- Credit Lines
- Equipment Leasing
- Automatic Teller Machines (ATM)
- Online shopping carts or e-commerce
- Gift Cards
Need More? Call Local Biz Solutions for detailed answers to your credit card processing needs. Their merchant services experts are usually able to lower your rates and would be glad to answer your questions and explain the full-line of services that are available to you. Call today for your Free consultation. (503) 922-3032
