Merchant accounts are fairly complicated, even when the rates look very simple on paper. It’s very important that a merchant fully understands the contract he or she is binding a business to. Merchant accounts are not inexpensive to set up for the customer, so merchant providers will typically request a contract period to allow for the opportunity to recoup those losses. Here are the biggest mistakes retailers make when signing up for a merchant account system.
Failing to Read the Contract
These contracts are not altogether too long, but many merchants still don’t read them thoroughly. This is a mistake. You should read this contracts like a college textbook, carefully highlighting sections you’ll need to know for later. If you don’t understand the terminology used, look it up on the Internet. The more you understand about the contract, the fewer hidden fees you’ll suffer from. In fact, you’ll find most mistakes merchants make can be traced back to this fundamental rule.
Failing to Recognize Hidden Fees
Hidden fees carry that name for a reason, but there are a few flags to look for to help you recognize these fees for what they are fairly early on. Look for low introductory rates, and examine how the merchant provider arrives at those rates. If you’re getting low rates for transactions where you swipe the credit card, you may be looking at a sign the merchant is making you an offer you’ll never use. Failure to read the agreement also leads to confusion regarding premium cards, which often carry higher interchange fees to cover the benefits the card issuer offers.
Bio: With Charge.com Payment Solutions, Inc. you can accept credit cards with affordable rates, using free software for credit card processing over the phone, by fax, or via the World Wide Web.