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It
is important that you conduct your due diligence before
settling on one particular merchant account provider.
The reasons are obvious. You certainly don't want
to be stuck paying high monthly fees. Plus, I'm
sure you wouldn't want to overpay on a processing
solution. Don't let price be the only deciding
factor though, we'll look at this in a minute.
Never
hurry through when trying to find a merchant account.
If you move too fast you will surely miss on a really
great deal. I can't stress this enough.
Don't wait a week before opening your doors to customers
to find a merchant account provider. Not only
would you miss out on a good deal, but in some cases it
can take up to a week to approve your application once
its been submitted.
Three
main factors should be considered when choosing a
merchant account provider (in no particular order):
- Integrity
of the provider
- Price
- Customer
Service
We'll
look at each determining factor, in detail, so you can
get the scoop on what to look for.
Integrity
of the Merchant Account Provider
Don't
automatically assume a provider is legitimate just by
what they have posted on their website or conveyed to
you over the telephone. The merchant account
industry has a number of ruthless and greedy sales
representatives who are more interested in themselves
then helping you.
Here
are some red flags to watch out for and suggestions to
test a providers integrity:
- Repeatedly
getting an answering machine every time you call.
- Representative
seems to give you the run around every time you ask
them a question about rates or their agreement.
- If
they use one of those free web hosting services for
their website and/or a free domain name (i.e.
www.xyz.com/user/4876/5thave/index.html) look the
other way. If they can't afford a real domain
name and website then they shouldn't be in business.
- Don't
post all their rates and fess on their website.
- Scrutinize
their merchant agreement, go over it with a fine
tooth comb and question anything that appears
"loose" or suspicious. You certainly
don't want to get caught in a loophole.
- Make
sure their website clearly shows what bank(s) they
represent. It is unlawful for a merchant
account provider not to show what banks they
represent on their website. Visa and
MasterCard cracks down hard on those who don't.
- Search
Better Business Bureau, consumer reports, or online
newsgroups for any unsatisfactory remarks made about
the company.
Top
Notch Customer Service is Paramount
Don't
get carried away by great rates and forget about
customer service. Customer service is king for
long-term success and smooth transaction processing.
You don't want to be plagued with busy signals and long
hold times. Your time is precious and downtime
will cost you money.
Before
signing up with a company, try out their customer
service number. Give it a ring and ask them a few
questions. Take note of their attitude, do they
seem interested in wanting to help you? Are their
answers fully-detailed, yet easy to understand?
Some
aspects that should be met for superior customer
service:
- Reliable
availability
(and yes, even on holidays too, if possible.
Definitely if your business operates 365 days a
year.)
- Hold
time 5 minutes or less
- Friendly,
courteous representatives who are knowledgeable
- Toll-free
number
One
last note before we move on, don't get conned by
providers who say the reason they charge high rates is
because of the superior customer support they give, that
other companies don't. Sure, a slight price
increase (most likely, never), but don't go overboard.
Customer service is important, but shouldn't cost you
hundreds more than with another provider. This
type of scam is just so they can fill-up their pockets
more.
Joe Thompson - Thompson Merchant
Services
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