By Joe Mears
"So, Give me your best rate." Those are the words that are heard more than any others by customer service reps at merchant account companies. If you ask that question the reply you get will tell you a lot about whether you should be doing business with them.
A 'cheap merchant account' is ultimately about much more than just a rate, because there are many other things that need to be considered.
It is true however, that most people are drawn to an company web page on the basis of the figures. However, the idea of 'what you see is what you get', does not apply to merchant credit card processing services.
For example, let's say a company offers a rate of 1.3%, however they do not tell you that the rate is based on a $25 dollar monthly minimum and a 3 year contract with a $200 termination fee.
Suddenly the complexion of things changes significantly. Many people get burned in this way from only paying attention to the 'low rates'.
That's where Merchant Warehouse comes in and is the reason for Merchant Warehouse Review, because their approach is refreshingly different. They do not present a headline number to get people to sign on the dotted line.
They offer a consultative approach, which involves telling people all of account charges involved, not just for them but for all the industry. This really allows people to be able to understand what is the best company for them, because they can now compare 'apples with apples' by doing a proper comparison.
Their service is also excellent. They have just been voted Sales Organization of the year by the Electronics Transactions Association, an industry regulator, because of the overall quality of the accounts that they provide. Simply put it is a recognition of being the best merchant account services provider in the country.
Tuesday, June 23, 2009
Sunday, June 21, 2009
Do the Best Merchant Account Services Equal a Cheap Merchant Account?
By Joe Mears
Everybody who has decided that they need to use credit card processing services wants to get the best merchant account. It's not rocket science, but it seems that a lot of people still do not understand what to look for from their next merchant account services.
There is no doubt that the processing costs for transactions play a big part. If you get it wrong and the fees are too high, a business that runs on low margins can go from profitable to not profitable and from success to failure.
However, it is very important not to only focus on the 'headline' rate. This is often what is advertised first by a company.
Overall processing fees depend on a lot of factors including what card is used and how the payment is taken, as well as statement costs and flat transaction fees.
If you really want a cheap merchant account, it is vital to get any prospective company to explain these different factors in full, so that you can properly compare and contrast effectively between different providers.
Another important consideration and again one that can turn a cheap merchant account into an expensive one, is the quality of support and service a company can provide.
If the system goes down, you are not taking any orders, so this part of your research needs to done well. However, It can be very difficult to judge this and that is why I always suggest reading independent reviews of any potential company.
Also, some providers will put large charges on things like canceling your contract. This type of tactic should always set alarm bells ringing. After all, why would they need to do so if their service is good?
Everybody who has decided that they need to use credit card processing services wants to get the best merchant account. It's not rocket science, but it seems that a lot of people still do not understand what to look for from their next merchant account services.
There is no doubt that the processing costs for transactions play a big part. If you get it wrong and the fees are too high, a business that runs on low margins can go from profitable to not profitable and from success to failure.
However, it is very important not to only focus on the 'headline' rate. This is often what is advertised first by a company.
Overall processing fees depend on a lot of factors including what card is used and how the payment is taken, as well as statement costs and flat transaction fees.
If you really want a cheap merchant account, it is vital to get any prospective company to explain these different factors in full, so that you can properly compare and contrast effectively between different providers.
Another important consideration and again one that can turn a cheap merchant account into an expensive one, is the quality of support and service a company can provide.
If the system goes down, you are not taking any orders, so this part of your research needs to done well. However, It can be very difficult to judge this and that is why I always suggest reading independent reviews of any potential company.
Also, some providers will put large charges on things like canceling your contract. This type of tactic should always set alarm bells ringing. After all, why would they need to do so if their service is good?
Sunday, June 14, 2009
Getting the Lowest Price Possible on Your Merchant Account
By Alfred X Kirkland
I talk with merchants on a very regular basis and the one thing I always here is how much they hate paying Visa & Mastercard... and sometimes I heard complaints about American Express too, but not as often.
I usually make the comparison that credit card processing fees are a lot like taxes. You simply have to pay them even though you don't want to pay more than your fair share. I don't know what is hated worse, credit card processing fees or taxes.
I'm a merchant myself and I don't like paying 2%+ to the credit card companies, but I'll be the first to admit that I like paying that percentage a lot more than I like accounts receivable. The convenience of getting paid sooner than later definitely justifies the cost. However, that doesn't change that I want to pay as little as possible.
What I've done as a merchant service provider is to get the rates that I offer as low as possible. This is the thing... All merchant account service providers have the same rate from Visa and Mastercard called interchange.
Because of interchange, all merchants can usually compete on price up to a point. They obviously can't go lower than interchange and if they do, I guarantee they're going to make up their money some other way. So, what most merchants are looking for is someone they can trust to give them a low rate without trying to make up for it some other way.
I have a program where I pass through interchange to the merchant with a "basis point" fee that covers the cost I incur in setting up the account as well as compensate me as an independent sales agent to care for the account and make sure the account isn't a problem for my merchants.
This service is invaluable and in my mind is truly the only thing that sets one merchant account provider apart from another. Because I believe this, I also strive to make this the best possible experience for you by way of customer service.
I work directly with a support team that has 24/7 terminal support and world class support staff with a state of the art support ticket system to make sure any problems are resolved very quickly and efficiently. As much as I'm promoting the awesome support, the best merchant accounts you won't have to call at all, but when you do, you aren't on hold forever with someone outside the US.
We have our support staff located in Michigan who do an excellent job assisting any of our merchants to make sure they are processing cards fast and efficiently.
So, yes, price does matter. Getting a low price matters with accounts, but don't overlook the cost of a merchant account that creates a ton of hassles for you. Your time is valuable, every minute you spend dealing with a problem merchant is time you aren't spending building your business or reaping the rewards of doing good business.
Sign up with us and you'll have me as your service account manager and easy convenient trouble-free access to our incredible support staff. With us you'll get extremely competitive low rates AND the peace of mind that comes with an account that just works.
I talk with merchants on a very regular basis and the one thing I always here is how much they hate paying Visa & Mastercard... and sometimes I heard complaints about American Express too, but not as often.
I usually make the comparison that credit card processing fees are a lot like taxes. You simply have to pay them even though you don't want to pay more than your fair share. I don't know what is hated worse, credit card processing fees or taxes.
I'm a merchant myself and I don't like paying 2%+ to the credit card companies, but I'll be the first to admit that I like paying that percentage a lot more than I like accounts receivable. The convenience of getting paid sooner than later definitely justifies the cost. However, that doesn't change that I want to pay as little as possible.
What I've done as a merchant service provider is to get the rates that I offer as low as possible. This is the thing... All merchant account service providers have the same rate from Visa and Mastercard called interchange.
Because of interchange, all merchants can usually compete on price up to a point. They obviously can't go lower than interchange and if they do, I guarantee they're going to make up their money some other way. So, what most merchants are looking for is someone they can trust to give them a low rate without trying to make up for it some other way.
I have a program where I pass through interchange to the merchant with a "basis point" fee that covers the cost I incur in setting up the account as well as compensate me as an independent sales agent to care for the account and make sure the account isn't a problem for my merchants.
This service is invaluable and in my mind is truly the only thing that sets one merchant account provider apart from another. Because I believe this, I also strive to make this the best possible experience for you by way of customer service.
I work directly with a support team that has 24/7 terminal support and world class support staff with a state of the art support ticket system to make sure any problems are resolved very quickly and efficiently. As much as I'm promoting the awesome support, the best merchant accounts you won't have to call at all, but when you do, you aren't on hold forever with someone outside the US.
We have our support staff located in Michigan who do an excellent job assisting any of our merchants to make sure they are processing cards fast and efficiently.
So, yes, price does matter. Getting a low price matters with accounts, but don't overlook the cost of a merchant account that creates a ton of hassles for you. Your time is valuable, every minute you spend dealing with a problem merchant is time you aren't spending building your business or reaping the rewards of doing good business.
Sign up with us and you'll have me as your service account manager and easy convenient trouble-free access to our incredible support staff. With us you'll get extremely competitive low rates AND the peace of mind that comes with an account that just works.
Saturday, June 13, 2009
What is the Best Credit Card Merchant Account Service?
By Joe Mears
It's a tough question and can depend on your specific requirements. However, there are certain characteristics that everybody needs to have in a merchant account.
First up is low transactions costs. Now when I say transaction costs, what I actually mean is the total fees you will be paying to process credit card orders. It sounds simple and it should be, but it's not.
Rates are a great way for companies in the industry to get a little 'creative' with their advertising campaigns and hide some of their charges that you only find when your first statements come through.
Next is the contract length, why sign a long term contract with a company you don't know? I certainly have no idea, if a company wants you to sign one it would send alarm bells ringing in my head. If they provide great service at low rates, why would you leave anyway?
Then you've got the service levels. Can a company provide for your full business needs? Maybe you are an online business and need an internet merchant account, but what if you want to expand, will your provider be able to offer different payment terminals, or even mobile terminals, to be able to take orders at a big exhibition for example.
The list goes on, but it ultimately ends with a company that will get your transactions done with no fuss, because you won't make anything if you can't take orders. That means there has to be an absolute dedication to customer and technical service and support.
It's a tough question and can depend on your specific requirements. However, there are certain characteristics that everybody needs to have in a merchant account.
First up is low transactions costs. Now when I say transaction costs, what I actually mean is the total fees you will be paying to process credit card orders. It sounds simple and it should be, but it's not.
Rates are a great way for companies in the industry to get a little 'creative' with their advertising campaigns and hide some of their charges that you only find when your first statements come through.
Next is the contract length, why sign a long term contract with a company you don't know? I certainly have no idea, if a company wants you to sign one it would send alarm bells ringing in my head. If they provide great service at low rates, why would you leave anyway?
Then you've got the service levels. Can a company provide for your full business needs? Maybe you are an online business and need an internet merchant account, but what if you want to expand, will your provider be able to offer different payment terminals, or even mobile terminals, to be able to take orders at a big exhibition for example.
The list goes on, but it ultimately ends with a company that will get your transactions done with no fuss, because you won't make anything if you can't take orders. That means there has to be an absolute dedication to customer and technical service and support.
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