Top 4 Ways to Correct Your Merchant Services Mistakes

Merchant services are one of the most important aspects of running a business. It doesn’t matter what industry your business is in, being able to accept customer payments should be at the top of company’s priorities. While most companies search for the best providers they can find, there are a lot of mistakes that your business can make without even knowing it. Keeping your accounts up to speed with the latest innovations and fees will give you business a huge advantage in and save you some money in the process. Here are the top 4 ways to correct mistakes with merchant providers.

There are a lot of things that go into a merchant account and the rate is probably one of the most important. However, there are a lot of other factors that you should look at when you are deciding on your account. Are you getting gross processing rates of net processing rates? Does your merchant provider offer daily or monthly discounting? These are just some of the things that you should be looking into when you are choosing a merchant provider. Check your rates against other lenders and ask about lowering the rate if your current provider doesn’t measure up.

There are a lot of different processors that you can use for merchant accounts. Many providers will give you terminals, pin pads, POS software, customized printers and credit card processing machines. But what if you’re overpaying to use their equipment? A lot of companies overpay to use merchant processing equipment every month. Check with your providers and ask about getting a lower rate for the processing equipment. You can also cut this cost by only using the equipment that you really need. A lot of companies have processing equipment that they never use. Send it back and stop being charged for it per month.

This is something that a lot of businesses fall into. A merchant provider will offer you a very low rate for the first 90 days and the business jumps on it without looking at the rates after the 90 day period. Do not fall into this trap. Look at the TOS contract very carefully before you sign. You should also make sure that you are getting the entire paperwork on all fees associated with the account. Some providers will try to sneak in hidden fees. Look over the contract and question anything that doesn’t look right.

A long term contract can be great if you’re getting a good deal, but there are a lot of long term contracts that you should stay away from. Early termination fees are one of the biggest aspects of a long term contract. Some termination fees can be as high as two thousand dollars. Watch out for these types of fees if you are signing a long term contract as they can easily put your business in debt.

Charles Dovbish is a freelance writer that specializes in business and finance.

Image Credit: Credit Card Merchant Services Online TOS Contact