In today’s business climate, it is virtually a necessity that you accept credit and debit card payments from your customers. Failing to have that capability could seriously financially cripple your store and cause even your most loyal patrons to go elsewhere. Setting up your store to accept plastic involves a number of steps that are important to understand.
DEFINING MERCHANT ACCOUNTS
A merchant account is the mechanism which you will use to accept customers’ credit card payments. The companies that provide these services either are member banks that have a direct relationship with MasterCard and Visa, or they are authorized agents of those member banks. No matter which merchant account provider you choose, you will be required to enter into an agreement that you accept and will follow the credit card companies’ rules and regulations.
DO SOME SELF-EXAMINATION
Before you sign any merchant account contracts, however, it is important to take stock of your business, its needs and how credit card payments will be incorporated into it. Ask yourself the following questions:
- What brands of credit cards should you accept? Are Visa and MasterCard sufficient, or do you also want to take American Express, Discover, etc.
- What are the primary and secondary ways that you will accept payments? These may include virtual terminals, mobile payments, online shopping carts and solutions that can integrate into your current point-of-sale system.
- Estimate the volume of sales you will be getting via credit cards before you talk to a merchant account provider.
INTERVIEW AND COMPARE PROVIDERS
Finding the merchant account provider that’s right for you is an important undertaking with consequences that could have ramifications for years to come. Therefore, take whatever time you need to get answers to the following questions:
- What fees will be charged? You could be required to pay a flat fee per swipe as well as a percentage fee based on the total amount of the transaction. Other charges may include monthly fee, setup fee, monthly minimum fees and charges for cancelation, statements, customer service, chargebacks, batches and annual costs. Everything that you will be expected to pay should be included in the paperwork you receive from your potential provider or find online. If you find that you are confused or overwhelmed by language and charges you don’t understand, you may want to consult an attorney.
Beyond an examination of costs, there are some other factors to consider about merchant account providers. The one you choose should furnish you with all of the software and payment options you want such as recurring billing, virtual and website payments and email invoicing. Also, look for customizability to address your customers’ unique needs, ease of use, solid security and readily available customer service in the event that questions arise or your system goes down.
SET UP YOUR MERCHANT ACCOUNT
Once you have chosen the provider that’s right for you, you will need to go through an in-depth application process. It will involve providing a good deal of business information and even personal details about your credit history if you have a small business. You may also be required to personally guarantee the account. Because the process can seem cumbersome and even overly intrusive at times, it is important to recognize that the bank is taking on risk by opening this account and therefore needs as much information about you as possible.
BEGIN ACCEPTING PAYMENTS
Once you have successfully navigated the tedious application process and been approved, take a moment to congratulate yourself. You can now sell products to your customers and accept their credit card payments. Assuming that you have gone with an excellent merchant account provider, you should now be able to simply log into your software, enter the customer’s payment information and click the “collect payment” button. Before you know it, the money should appear in your account as if by magic.
While it might at one time have seemed like a magical process, you now know all of the meticulous steps that go into paying with plastic. Once you have a quality, reputable merchant account provider, your customers never need to know everything that goes into securely accepting their payments. It can remain a secret between you and your account provider.