Finance & Loans

Three Things to Keep in Mind When Choosing a Merchant Services Provider

There are so many choices when it comes to picking retail merchant accounts that it becomes confusing unless you have a clear picture about what your business needs. To say the least, this is a vital process because since most merchant transactions are conducted with credit cards, you can be sure that this mode of payment will become more and more important as your business continues to expand.

But how do you know which service works for your business the best? The answer lies in being able to know what your business needs. Here are three vital aspects to consider before opting for a merchant services provider:

#1: Knowing your business

Let’s say the products that you sell don’t cost that much and are sold in high volumes. What would make sense is to find a provider who will charge you low transaction fees. While there is a set limit of transactions that need to be completed in a month, some providers will charge you an extra fee if you aren’t able to accomplish that target. You’ll have to be cognizant of the financial statistics related to your business in this way, and this is perhaps one way you can save money.

#2: Processing of payments

Most merchants have two choices: real-time or batch payment processing. While the former is suited to merchants who have a low volume of sales, the latter will be best suited to those who have a large volume of sales. Additionally, keeping the price factor in mind, batch payment processing is cheaper than real-time, but there is also a time lag involved. In some cases, where the merchant does not have the latest machines to process payments, some providers offer them a free credit card terminal in order to do so, which is a nice little bonus.

#3: Fees and rates

This is an aspect that is most vital as different merchant service providers have different ways of charging application or transaction fees.