What To Consider When Choosing Your Merchant Services Provider

Merchants who do business without accepting electronic forms of payment handled through a merchant service provider cannot usually keep up with their competition in terms of revenues and foot traffic.

Although the recession prompted many consumers to turn to cash when making necessary and impulse purchases, debit card usage has increased and credit cards are still a popular payment method.

A merchant services provider doesn’t simply provide basic payment assistance. The right provider can also help you accept Electronic Benefit Transfer (EBT) cards and gift cards, process checks on-site and provide wireless processing services.

What should you look for when choosing a merchant one that provides electronic payment services?

Reputation – Consider the provider’s local, national and international reputation. Research the company’s history. Speak with bank representatives affiliated with the company and read reviews by other merchants.

Processing Rates – Compare the processing rates you’re offered with the rates offered by other merchant service companies in the area for your business type and industry. Look at standalone rates and rates packaged with other services, such as equipment and on-site repair calls.

Equipment Pricing – Make certain you’re not about to pay an arm and a leg for a processing terminal, software or e-commerce package. Check out the equipment pricing offered by competing providers, and companies that only sell new and used processing equipment online without services.

Transfer Options – Many merchant service providers offer proprietary equipment designed to work only with their programming. Before you sign a contract, check that you can use purchased equipment anywhere you like should you decide to switch providers.

Contract Terms – As merchant service contracts often have early contract termination fees, thoroughly review all contract terms and compare those terms with others.

When considering these factors, keep in mind that merchant service sales representatives are often willing to negotiate, lower pricing and change contract terms. Although they won’t tell you this fact, their goal isn’t to make as much money from you as possible up-front, but to establish instead a long-term relationship between your business and their employer. It is important that when looking into a review it should not be a deciding factor. Read multiple reviews to find the best merchant services provider for your business!