Getting the Best Out of Your Merchant Services: Top 5 Things to Consider
Did you know that there are about 600,000 new businesses in the United States each year? However, many of these businesses tend to fail within the first few years.
As you might expect, part of operating a successful company includes investing in effective business strategies. More specifically, working with the right merchant services is something every entrepreneur should prioritize, but not everyone knows where to start.
We’ve created a brief guide that outlines the key factors you need to know to find the best merchant service for your credit card processing needs.
Effective Rate
Also known as the “qualified” or “swiped” rate, this is the lowest possible fee charged by a merchant services provider.
If you process most of your transactions using a card reader, this is the fee you’ll pay. You can calculate the effective rate by taking your total processing fees and dividing them by your total sales volume.
It’s important to understand that choosing a service with the lowest fee isn’t always the best option. You often get what you pay for when it comes to merchant services and cutting corners could cause you issues further down the road.
Customer Service and Support
You should always inquire about customer service and support before signing up for a merchant services account.
Find out what hours they’re available, what channels they can be reached through (phone, email, chat, etc.), and how responsive they are. It’s also a good idea to read online reviews to get a sense of what other businesses have experienced.
The last thing you want is to be stuck with a problem and have no way to get help. Even a brief period of downtime could cost you thousands of dollars in lost revenue.
Overall Security
In today’s digital world, security is more important than ever. When it comes to merchant services, you need to make sure your provider uses the latest encryption technology to protect your customers’ data.
You should also confirm that they are PCI compliant. This means they adhere to the strict security standards set by the credit card industry.
Unfortunately, the cybercrime industry is expected to be worth over $10 trillion by the end of 2029. This means that more hackers than ever before are beginning to focus on procuring sensitive data from businesses.
Without a solid level of security in place, your company will be at risk of a data breach. not only can this impact your revenue, but it can also cause your customers to lose the trust they have in your brand. In cases like these, it can be nearly impossible to recover.
Ease of Use
Another important factor to consider is how easy the service is to use. You don’t want something that’s so complicated that it takes hours to learn. At the same time, you don’t want something so basic that it doesn’t have all the features you need.
The best way to gauge this is to try out the service yourself. If possible, set up a test account and run through some common tasks. This will give you a good idea of what to expect once you start using the service.
Flexibility
As you might guess, it’s essential to make sure the service is flexible enough to meet your needs. This includes things like being able to accept different types of payments, integrating with your existing systems, and scaling as your business grows. If a service isn’t flexible, it could cause complications for you later that are difficult to overcome.
For instance, let’s assume that you cannot scale your service as you begin to scale your company. You may then find it difficult or impossible to handle larger volumes of orders. A constraint like this could prevent your company from reaching its full potential.
Terms and Agreements
Always read the terms and agreements before signing up for a merchant services account. This document will outline your rights and responsibilities, as well as those of the service provider.
Pay close attention to things like early termination fees, automatic renewals, and other potential traps. You don’t want to be stuck in a contract that’s not right for you.
What Red Flags Should I Watch Out For?
There are a few red flags you should watch out for when choosing a merchant services provider.
Be wary of any provider that doesn’t seem to have a solid reputation. If you can’t find much information about them online or their customer reviews are mostly negative, it’s probably best to steer clear. Second, be careful of any provider that doesn’t seem to offer much in the way of customer service and support.
If they’re not available 24/7 or they only offer limited channels for contact, it could be a sign that they’re not willing to go the extra mile to help their customers.
Finally, avoid any provider that seems to have hidden fees. Make sure you understand all the costs associated with using their service before signing up.
If there are any unexplained charges, ask for an explanation. If the provider can’t give you a satisfactory answer, you should look elsewhere.
Finding the Right Merchant Services Doesn’t Have to Be Complicated
Although finding the right merchant services to work with might seem difficult to understand at first, it’s much easier than people think. Keep the above tips in mind when moving forward so you can avoid mistakes.
Want to learn more about what we have to offer? Feel free to get in touch with us today and see how we can help.
