How to Secure the Lowest Possible Costs


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Merchant service providers are very experienced at marketing to small business owners. They will try and grab your attention by advertising the “lowest rates” available. Many offer available rates on their websites, such as “Rates as Low as X.YZ%”. Their approach can be very effective in signing up small businesses. However, this can be a trap that leads to businesses far overpaying on their processing costs. Visit the above to find out how to secure the lowest possible costs for merchant services.

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How to Secure the Lowest Possible Costs

  1. 1. How to Secure the Lowest Possible Costs By
  2. 2. How to Secure the Lowest Possible Costs The Following is Our Advice for Securing the Best Deal for Your Business:Avoid Worrying About Rates – Focus on CostAs mentioned above, the merchant service providers are veryexperienced at marketing to small business owners.So they try and grab your attention by advertising the “lowest rates”available. Merchant Account
  3. 3. How to Secure the Lowest Possible CostsMany even offer available rates on their websites’, and you’ve likelyseen banners offering “Rates as Low as X.YZ%”.This approach from a small businesses owners perspective is veryeffective, compare rates, find the lowest, sign up.While an effective marketing tool, it is exactly the type of trap that leadsto businesses far overpaying on their processing costs. Merchant Account
  4. 4. How to Secure the Lowest Possible Costs The reason for this is that the processor’s advertised rate only applies to a single card and transaction type. Visa or Mastercard, Business or Personal, High Risk or Rewards, each card type is unique and has its own rates; which rate is determined by the transaction type, was the card swiped or keyed in, does the business keep receipts, are the transactions handled online? Each of these impacts the type of rate the processor can offer. Merchant Account
  5. 5. How to Secure the Lowest Possible CostsThis is a long explanation for why focusingon rates is a trap that many business ownersfall into, when what they really need to lookat is overall cost.This is not easy, but a trained and qualifiedsales representative should be able tounderstand your business, the type oftransactions and typical card types thebusiness will see.They can then craft a merchant account thatfits the business and has the lowest overallcost. Merchant Account
  6. 6. How to Secure the Lowest Possible CostsAt All Costs Avoid Specified Length/Term ContractsOne of the most frustrating parts of the merchant account industry isthe use of contracts.Many processors have standard 3 year contracts with hefty cancellationcosts. Merchant Account
  7. 7. How to Secure the Lowest Possible Costs These contracts have no place in the industry, yet have somehow become the norm. Worse yet is that some processors are actually devious enough to have no “cancellation” fee, but do have an “early termination” fee, or perhaps a clause that entitles them to a monthly minimum payment each month through the remainder of the contract. Avoid contracts at all cost. Merchant Account
  8. 8. How to Secure the Lowest Possible CostsCustomer Support and ServiceOften this is one of the most overlooked items when comparingmerchant service providers.Many small business owners assume that if they have a problem theprocessor will “just take care of it”.Unfortunately these are exactly the types of assumptions that havemade this industry so reviled, as those same merchants find out veryquickly that not all credit card processors are created equal. Merchant Account
  9. 9. How to Secure the Lowest Possible CostsMany processors are small operations, maybe even a single sales repworking out of his basement.Customer Service is outsourced to the cheapest bid, with the hope thatissues will not arise, and even if they do when the merchant is signedinto a 3 year contract, what is the penalty to having a poor customerservice experience. Merchant Account
  10. 10. How to Secure the Lowest Possible Costs Level of Trust You are entrusting one of the most critical aspects of your business to a third party. It is a relationship that you need to trust in, and to do so you need to trust that you are working with a processor that realizes their success is dependent on your success. The higher your profits the more you can invest in your business, which in turn will lead to more sales and processing in the future. Merchant Account
  11. 11. How to Secure the Lowest Possible CostsWhile difficult to quantify in a phone call, one of the best measuringsticks you can use is the level of knowledge the individual you arespeaking with has about your business and credit card processing.As noted there are so many factors that go into setting an account upcorrectly, any call that does not involve the processor learning moreabout your business, the type of cards you will see, and the ways youwill processing credit cards is not one to put much trust in. Merchant Account
  12. 12. How to Secure the Lowest Possible CostsWe hope that this guide on what to look for, and look out for, can helpyou find the merchant processor that with best fit your specific needs.Each business is unique and finding the best merchant account for yourbusiness is not a cookie cutter process, by asking the right questions youcan put yourself in a great position for success. Merchant Account
  13. 13. How to Secure the Lowest Possible CostsWe here at CheapestMerchantAccounts.comhave also attempted to grade many of thetop and most popular credit card processingcompanies on the market today.Our full list of reviews is available here, eachhas been graded on their standard rates, anydues/fees typically assessed to merchants,along with the customer service offered andany contract/cancellation fee concerns.Please use these ratings as a guide, but mostimportantly make sure you feel comfortablewith the company you speak with. Merchant Account
  14. 14. How to Secure the Lowest Possible Costs If you are not being asked the right questions, or the answers to your questions are not what you expect to hear, try someone else! Ideally finding a merchant account provider will be a one time process for you; set your account up with the right processor and with very little maintenance you will be happy with the results, while rushing through the process quickly or comparing rates through emails means risking potentially thousands of dollars a year. Good luck and please let us know if we can help in any other way. Merchant Account