There are many tasks small business owners need to complete when setting up a new business. If you’re just starting a business, you’re probably well aware of this fact.
Whether filling out and filing paperwork, ordering and stocking product or building out an online store, new business owners can understandably be overwhelmed.
One question that business owners are rarely sure of is how to take credit cards. Of course they realize that eventually they’ll find a company to handle their payment processing, but they usually wait until the last minute.
Often, more critical issues get the attention and finding a merchant account provider is the least of their concern. Time creeps up and before they know it they need a credit card processing solution immediately to accept payments from customers for their first sales.
Unfortunately for some businesses, owners can be quick to sign up with the first merchant account provider they come across. This can be their first mistake in running a successful small business.
Business owners spend time on important decisions such as choosing the right location, suppliers or even employees. Choosing a merchant account provider also deserves that same careful selection.
So, how does a business owner find a provider that offers services to new businesses? That’s the easy part. A simple Google search will reveal hundreds of them. There are no shortages of credit card processors that want new business. Selecting the best provider for a business’s needs is the more difficult part.
Merchant account jargon and rates and fees can be very confusing. Unfortunately, some providers use that to their advantage. Telling merchants what they think they want to hear and mentioning low rates can be convincing enough to get merchants to sign up right away.
Shopping around and getting multiple quotes is a good idea. However, what seems like the best rate may not be, as comparing merchant account providers is not always apples to apples.
Some merchant account providers charge seemingly low rates, but make up for it in additional or hidden fees. With these providers, it ends up costing the merchants more money than it should.
Merchants may question their rates even after just a few months of processing, and attempt to find a better provider. If a merchant signed an agreement, it may not be that easy.
Getting out of a merchant account agreement after signing is nearly impossible without paying hefty early termination fees. A business must then decide between paying higher rates or paying to terminate the agreement and finding a new credit card processing solution.
The good news is that getting set up to take credit cards at a new business doesn’t have to be a headache. It just requires the same careful consideration as other important decisions. Selecting the right provider from the beginning can save time, money and frustration.
If you have a small business and need a credit card processing solution or advice, give us a call at The Transaction Group. We’ve been helping businesses with business financial services since 2004 and are experts in the merchant account industry.
We’d be happy to help you set up a merchant account or answer any questions you may have to help you get your new business off on the right foot.