If you are one of those that are planning to enter the business, there are some things that you need to know to avoid committing mistakes that would cost your business investment. Let this considerations serve as your guide to merchant accounts and choosing a merchant account provider.
1. To lease, to rent or to purchase. This is one of the factors that greatly affect merchant account providers. Experts say that one of the least options in this case is to lease because you will be forced to pay more than what you should have. Unlike if you purchase it, you will be paying just enough for the processing solution and all other stuff that needs to be dealt with. Renting can also be an option usually on a month-to-month basis.
This can be a good option because when you find that the terms are no longer working for you and you have found another set of terms that will suit your needs better, you can always cancel it any time you like. This is also ideal for those that dont have enough money to purchase a merchant account because it can offer you initial solution options right away.
When placed in this situation, always consider your needs, the time element to answer to these needs, how will the terms work for you and weigh the advantages and disadvantages before you finally decide.
2. To use another person’s merchant account in doing any transaction. This is definitely “no-no” when it comes to merchant account providers because doing this is considered as an illegal practice called “factoring” or “credit card laundering”. Merchant account providers that allow somebody to use another person’s merchant account in dealing with any transaction should be reported to authorities immediately so they won’t to lead people to commit mistakes that can lead to more complicated financial troubles.
3. The kind of processing solutions are available. This is also another major consideration in merchant account transactions because it can define the options for the client as early as possible. The most common kinds of processing available include the “real-time internet processing,” the “retail swipe terminal,” and the “computer-based processing.”
To choose which one is best for you, you can check out the “Solutions Guide” available in most merchant account sites so you can have a detailed list of information depending on the type of solution available. Aside from giving you early options, you can also have an idea which solution will work best on the nature or type of business that you have.
4. The list of credit cards that can be accepted. In the world of merchant accounts, the list of credit cards that can be accepted will mainly depend on the merchant account provider. Usually, the most common ones that are processed and accepted include the “Visa”, the “MasterCard,” the “American Express” and the “Discover accounts”. Others also use the “Diner’s Club” as well as the “JCB” merchant but not all people opt for it.
5. The length of time that will take for an account to set up and to be processed. In terms of merchant account, more and more providers are requiring people to run either a week sometimes even lesser. Although there are those that usually take longer span of time due to more complicated processes but it should not take more than one month.
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