A stress-free checkout process is something that both business owners and consumers desire. Fortunately for everyone, merchant service providers make it possible for businesses to process card payments both in-person and online.
If you’ve been looking for a new merchant service provider here are the main areas you should consider.
Transparent Fees
Merchant service providers like Stripe are upfront when it comes to the types of fees they charge, so here are some of the fees you’ll encounter.
Account setup Fees
Setting up a merchant account isn’t cheap. However, look for a service provider that offers reasonable account creation fees. Things that should be included in your account include hardware and software for credit card processing and the fees for providing these important tools should be visibly listed in the contract.
Early Termination Fees
Some merchant service providers offer long-term contracts of three years and more. If you decide to close your account before the contract ends, you’ll get charged an early termination fee.
To avoid early termination fees, find a service provider that allows you to run your account on a monthly basis.
Monthly/Annual Fees
These fees are charged when you fail to meet the minimum monthly or annual amount of transactions stated in the contract. These fees don’t really affect large businesses, but if you’re a small business owner, be keen on the amount you’re paying to ensure your revenue isn’t being affected.
PCI Compliance Fees
PCI compliance fees are charged to ensure that your merchant account meets all the security standards required for processing card payments. Some service providers may also charge a PCI non-compliance fee.
This is a red flag. If your provider can’t keep your account secure and compliant, find one that will.
Chargeback Fees
Chargeback fees are common when running a merchant account. Every time a refund is issued, you’ll get charged a small fee even though it wasn’t your fault.
So as you look for your new merchant account provider, check their chargeback fees and ensure they’re reasonable before creating your account.
Security
Fraud and data breaches can happen at any time when accepting card payments. So, ensure your potential merchant service provider offers the following.
PCI Compliance
Your merchant account should be PCI-compliant. This means you must meet the security standards set by card processing networks to ensure that your customers are protected.
Only opt for the service providers that keep your account PCI compliant by protecting your business and customers from malicious third parties.
Encryption and Tokenization
Merchant account providers should offer a seamless encryption and tokenization system. Encryption scrambles data and protects sensitive card information while tokenization involves replacing sensitive data with non-sensitive ones.
For instance, instead of your customers providing their credit card numbers, they can provide a unique personal identifier and make the payment.
Fraud Prevention
A good service provider should offer several fraud detection tools such as proxy piercing technology and Address Verification Service (AVS). With AVS, you’ll be able to confirm billing addresses while proxy piercing technology will help you detect shoppers using VPNs and expose their real locations.
Off-site Data Storage
Another important area you should consider is a service provider’s off-site data storage. Remember that you’ll be collecting important information from your customers which should be safely stored in vaults.
Therefore, avoid merchant account providers that don’t have off-site data storage and keep digging until you find one that does.
Customer Support
Customer service is just as crucial in merchant accounts as it is in other areas of our day-to-day lives. Things can go wrong at any time and you need to be sure that once you contact your provider, they will embark on fixing the issue.
Chargebacks can occur, and POS systems can fail, so take a look at the company’s support before creating your account. Ensure they offer support through email and telephone and that support is also available 24 hours a day and seven days a week.
Experience
Experience is needed in processing credit card payments. Yes, there are new merchant account providers that do a great job facilitating these payments, but at the end of the day, if you’re a first-time business owner, settling with an experienced provider is the best choice.
You’ll need a company that knows all the key details of running a merchant account. From POS systems and virtual terminals to payment gateways and mobile wallets, they should have all this at the tips of their fingers.
Conclusion
The type of merchant account your business needs will mainly depend on your consumers, products, and location, and a good merchant service provider is the key to running a successful business.
