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Things To Keep In Mind When Selecting Merchant Account Providers

It’s possible to sustain a business on cash-based sales alone. However, when Americans carry paper cash in their wallets, your development possibilities might stay limited. If you don’t offer the payment choices that clients prefer utilizing. This is where merchant account providers can help.

Otherwise called Merchant Account Providers, are the associations that assist you to establish a special type of business bank account. Also known as a merchant account, that enables you to safely accept a range of electronic payments – including credit, debit, gift, and loyalty cards. Nonetheless, not all merchant service providers are made similarly. Before committing to one provider over another, it’s critical to invest ample research to avoid any information migration problems and possible early termination charges. Making a simple, stress-free checkout process for one’s clients is an absolute necessity for entrepreneurs.

It takes a ton of work to carry a possibility to the point of sale, and one thing any business visionary doesn’t need is for a client to choose not to buy because of a clumsy or imperfect checkout process. This is where Merchant Account Providers come in. A merchant service provider empowers organizations to accept credit card and debit buys in-person and online. There are a large number of merchant service providers out there. Picking all that one for one’s business can appear to be an overwhelming task. Following are four critical things to remember while choosing Merchant Account Providers.

Meaning Of Merchant Account Providers

To understand what Merchant Account Providers are, you first need to understand the term merchant services. As an entrepreneur that sells items or services online, you’re a merchant. Merchant services are the hardware and software solutions that enable your transactions. For example, credit card processing tools, POS solutions that accept credit cards, and online forms for card transactions are a wide range of merchant services.

Before the age of eCommerce, Merchant Account Providers were an exclusively offline concept. You used to take cash from a card with a piece of hardware, and you would track your purchases that way. Your POS would send cash to your bank account, and there was no requirement for any complicated payment gateway solutions. Presently, to accept payments from around the world, you want something other than a point-of-sale system. Merchant Account Providers have evolved for the digital age, allowing for virtual terminal items, and credit card payments that happen online.

Certain individuals even include inventory tracking tools under the umbrella definition of merchant services because they assist organizations with managing their online sales. Merchant service providers or Merchant Account Providers are an organization or service that gives you access to every one of the tools you want to handle those all-important transactions. Your merchant service provider is liable for everything from your point-of-sale, to your payment gateway.

Key Things For Selecting Merchant Account Providers 

1. Customer Reviews

In the present web age, it is genuinely simple to figure out how an organization treats its clients. Visit different forums and message boards where individuals are talking about the merchant service provider. One’s goal should be to find Merchant Account Providers who have generally sure surveys and feedback.

Keep in mind that competitors will frequently post negative surveys about one another, and, simultaneously, organizations will pay individuals to leave fabricated, positive reviews. Most importantly, most reviews should be positive. Utilize common sense.

2. Fees Comparable

Since there is a large number of Merchant service Providers out there, expenses are often similar between significant organizations. Most per-transaction fees range between 1.5% – 2%. Be careful with organizations that sound too good to be true. If the rates sound unrealistic, then they are!

For the most part, service providers will differ on how they charge for upfront fees, for example, application charge, equipment expense, and setup expense. So organizations that charge lower upfront expenses, will frequently charge higher per-transaction expenses, and reverse for organizations that don’t charge higher upfront expenses.

3. Hidden Fees (Merchant Account Providers)

This is where some Merchant Account Providers will attempt to take advantage of unknowing clients. On top of the headline per-transaction expense, a merchant account provider may likewise have scores of different charges, including cancellation charges, customer service charges, minimum month-to-month volume charges, maximum month-to-month volume expenses, and so on.

These charges are typically all included in the contract, however, they are typically in the fine print. Therefore try to read the whole contract to guarantee one understands all expenses that might be assessed, and guarantee that one agrees with them.

4. Customer care

Merchant Account Providers are one of those relationships where an entrepreneur will possibly talk with the service provider when something is off-base. In this manner, customer care is fundamental. The last thing that ought to happen is trouble with a customer’s credit card. Afterward, a merchant service provider that isn’t accessible or helpful.

Test the customer service quality of the Merchant Account Providers by calling during top business hours to try out the quality of the customer service.


You may not find a provider for your business type that meets these standards — at least not at first. A few providers could offer fantastic customer service but try to pressure you into equipment leases. Others could offer month-to-month arrangements but charge higher-than-expected rates. The key is to stick to your needs and avoid common risks like misleading rate quotes or long-term contracts. With a little patience and a little bit of research, you ought to have the option to land yourself a brilliant deal. To discover how 5 Star Processing’s Merchant Account Providers can help protect your customers, save you time, and grow your business, contact our team today.

Frequently Asked Questions

Q1. Why do I need a merchant account?

A merchant account is an exceptional kind of bank account that is dedicated to getting electronic payments, both from eCommerce platforms and retail spaces. It’s not a substitution of a private account or a business account, it is a complimentary financial space for the previous two.

It is vital to comprehend that organizations cannot receive electronic payments without acquiring a merchant account. In the payment processing flow, when a transaction is finished, the income is firstly transferred to a merchant account. Then these funds cannot be spent, they just can be redirected to a business account.

Q2. What if my business doesn’t qualify for a merchant account?

One of the greatest concerns for a bricks and mortar or online business is being declined for a merchant account. In the present’s marketplace, the ability to accept credit card payments essentially implies the ability to remain in business. B2B and B2C customers expect a credit card choice, and without it, a large number of prospects will purchase somewhere else, and your organization’s reputation will most likely endure an extreme shot.

A few factors that play being declined are within an association’s control, and others are not. As experts in high-risk payment processing, we have helped many organizations with beating difficulties and secure a merchant account or track down workable alternatives.

Q3. Which is the best merchant account? 

Whether you accept credit card payments via telephone, from clients online, or in person, it’s vital to have the option to accept each payment type, which is the reason choosing the right merchant services provider is fundamental. You likewise want to work with a payment processing organization that has transparent pricing, competitive rates and no lengthy contracts.

These are some of the best merchant accounts:

1. Square

2. Stripe

3. Stax

4. Public Processing

5. PayPal

Q4. Where can I get a merchant account?

A merchant account can be issued only by an acquiring bank. A bank processes credit or debit card buys for the benefit of a specific merchant. An acquiring bank can issue merchant accounts both for eCommerce organizations and retail ones. It is vital to comprehend that opening a merchant account is only one of the possible merchant services. Merchant services include different offline and online services that a merchant could require for a business.

Q5. What is an example of a merchant account?

Amazon is a completely 100% eCommerce merchant without a single physical location to sell their products. As a matter of fact, to develop their business they became affiliate merchants and permitted people to sell on their platform for a percentage of the sale. 50% of Amazon’s sales come from 3rd party sellers that pay Amazon an affiliate commission.

Q6. What are the types of merchant accounts?

At the point when you are beginning a business, one of the principal things you need to do is set up a merchant account. This permits you to process payments from your clients. There are various kinds of merchant accounts, and it tends to be confusing trying to figure out which one is appropriate for your business.

1. High-Risk Merchant Account

2. Multiple Merchant Accounts

3. MOTO Merchant Account

4. Traditional Merchant Account

Q7. How much does it cost to open a merchant account?

Applying and getting a quote ought to be free. If you really do choose to enter an agreement, there could be a one-time setup fee. Be that as it may, a great deal of providers these days don’t charge a setup expense any longer.

If you want processing equipment, that could be a bigger upfront expense depending on what you need. Even if you need the whole gamut (register, printer, scanner, cash drawer), that could cost thousands. If you as of now have the equipment, ask if the provider can reprogram it for free.

When you have your account up and running, you’ll be answerable for charges like:

  • Processing fee for every transaction
  • Month to month charges for different services (like payment gateway, PCI compliance)
  • One-time incidental fees, (for example, chargebacks)

As a rule, you can expect that the overall cost to be 2.5% – 3.5% of your processing volume. This implies if you have $10,000 in credit card sales every month, your processing costs will be $250 – $350. For high-risk organizations, your processing expenses will be higher to offset the risk to the providers. The general expense will probably be more similarly to 3.5% – 5%.

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