How to Choose a Merchant Account

Benefits of a Merchant Account

With cash less commonly carried, and checks gradually becoming obsolete, credit and debit cards have completely revolutionized the industry, becoming the most common forms of payment. The majority of merchants world-wide are now accepting these cards because of the benefits of a merchant account, and to maintain your business’ competitive edge, you should accept plastic too.

After all, you could be missing out on more than just sales….

By accepting credit cards, you get all the Benefits of a Merchant Account:

• Boost sales and improve customer satisfaction by allowing customers to choose their preferred form of payment.
• Increase your average sale because the customer doesn’t need to have the cash on them.
• Speed up the check-out process with efficiency and convenience.
• Protect yourself from potential losses caused by bad checks.
• Avoid the risk and inconvenience of having large sums of cash.
• Accept payments from virtually anyone, anywhere.

By providing alternative payment options to cash and checks, a merchant account can be extremely advantageous for any business. Although some merchants tend to hesitate in signing up for a merchant account due to cost factors, the loss in sales and profits may be far more costly. The fact is, besides all the other benefits of a merchant account, people tend to spend more money when paying with a credit or debit card than when paying with cash. By accepting these payments, your increased revenue will compensate for more than just merchant account costs. So, to make your business more successful, take advantage of the benefits of a merchant account, and accept credit cards today!

Reasons to Avoid Credit Card Terminal Leases

Businesses often look at leasing as a viable alternative to purchasing high priced equipment. After all, not many small businesses can foot the bill for a $15,000 color copier. But would you lease a $200 cell phone or a $300 cash register? Of course not! So why do some businesses lease $150-$300 credit card terminals?

Most credit card terminal leases involve a 48 month term, and at least $20 a month. That totals $960 in payments! If you buy this same terminal for $160 from Metro Merchant Services, and charge it to a credit card, you could have it paid it off in nine months, with interest, for the same $20 monthly payment.

The Games Lease Providers Play:

Most merchants are given inflated costs to make them more inclined to lease. For instance, some companies will say a terminal, which costs $160 at Metro Merchant Services, costs $500. With no frame of reference, many new customers will simply assume this is accurate, but may not have the cash or credit for that amount.

Also, some companies claim tax advantages to leasing. This is simply false. It is true that lease payments are deductible, but any business purchase is deductible. Would you rather deduct an expense or have the cash in your pocket?

That’s not the only bad news. Here are a few more facts about leasing credit card terminals…

• Credit Card Machine Leasing Contracts are Binding.
  • Regardless of your circumstances, you cannot terminate the lease before the term ends.
• You Have to Return the Equipment.
  • After you spend your $960, you then have to return the terminal
• Leasing Has Costly Strings Attached
  • Terminal leasing companies sometimes continue to charge monthly fees beyond the contract term unless you contact them to cancel.
  • Equipment insurance is required for all leases, adding to monthly fees.

5 Ways to Save on a Merchant Account

Although accepting credit card payments may seem like a costly business expense, it certainly doesn’t have to be. Following are five ways you can save money on your merchant account, and avoid frustrating traps.

1) Never Focus Exclusively on Percentage “Discount” Rates. Companies who quote extremely low rates are usually trying to distract you from additional fees they charge that can have you paying much more in the long run.

· Thoroughly assess each quote and consider the many other cost factors, because getting the lowest rates doesn’t necessarily mean that you’re getting the best deal.

2) Look to Save on Processing Equipment. Most equipment can function with any processor, so there are plenty of product and pricing options to choose from.

· Shop around to find the most suitable solution for your budget and processing needs.

· Never lease. Leasing is extremely costly, and involves long-term agreements.

3) Don’t Sign a Contract. Signing a contract commits you to staying with a processor regardless of your level of satisfaction with them.

· Contracts allow processors to increase your rates at any time.

· With contracts, some processors feel that they can neglect to provide the service you demand.

· Canceling in the midst of your term means paying a steep termination fee.

4) Avoid Termination Fees… Some companies may not focus on developing a long-term relationship with you and instead, rely on a Termination Fee to keep you from leaving.

· To some processors, a Termination Fee may be more profitable than providing the service necessary to keep merchants satisfied for years. They may actually prefer that you cancel so they can collect the huge fee.

…and Reprogramming Fees. Many processors use scare tactics, to convince you to purchase or lease their equipment. They threaten that if you buy equipment elsewhere, they “need” to charge a reprogramming fee.

· Truth is, most reprogramming procedures are simple and inexpensive, regardless of where equipment is purchased.

5) Ensure You Have the Right Type of Merchant Account for Your Business. There are different types of merchant accounts based on the way credit card transactions are accepted. It is always cheaper to have the right merchant account type for your business.

· Always work with a firm that can explain the differences between the different merchant account types and that teaches you to process credit card payments the best way for your business.

Merchants should always look for the best overall pricing, while not neglecting the service they deserve. By referring to these 5 guidelines when shopping for a merchant account, you can find a merchant service provider who will give you everything your business is looking for.

Does My Business Need to Accept Credit Cards?

In today’s competitive marketplace, it is almost a necessity for any business to accept credit cards. 80% of all retail customers pay with their credit and debit cards, and they will go to one of your competitors if you don’t accept credit cards.

To accept credit cards, what you need is a merchant account. Companies, such as Metro Merchant Services, give businesses the ability to accept credit cards as well as debit cards, smart cards, and electronic benefits transfer (EBT) by providing them with merchant accounts.

When you call or complete Metro Merchant Service’s online form to request a merchant account, you will be assigned a sales representative. He or she will ask a few questions about your business, and answer any concerns you might have. Your application to accept credit cards will then be submitted for approval. Merchants are typically notified of approval or decline within 24 hours of submittal.

Once the submitted merchant account is approved, your assigned sales representative will contact you immediately. Any credit card equipment ordered will be directly shipped to your business site so that you may immediately begin to accept credit cards.

Merchant Account Rates

What are your Merchant Account Rates?

This is a question our sales team hears throughout the day. So why Metro Merchant doesn’t Services just post our rates for merchant accounts on our website so that customers can compare pricing? The answer is a bit more complex than you may expect.

Simply stated, if you shop for a merchant account by focusing only on rates, you will end up paying too much.

For many merchants, the merchant account rates can amount to only a small portion of their overall cost. If you only consider merchant account rates, you are excluding a long list of potentially costly factors such as credit card equipment, start-up or termination fees, annual fees, contracts, monthly minimums, statement fees and many other expensive pitfalls.

Contrary to what some companies would like you think when they boldly advertise seemingly low rates, there is no “standard” rate for merchant accounts for pricing comparison. Visa and MasterCard each have over 100 different merchant account rate categories based on the type of card, environment in which it is accepted and whether or not all the cardholder information is collected properly and accurately. These categories are then consolidated by each processor into groupings with averaged rates called “qualified,” “mid-qualified” and “non-qualified.” The less “qualified” the transaction, the more you are charged.

So, the next time you are looking for a merchant account, remember to avoid the, “What are your rates?” question. Instead, try to focus on the overall expected cost of processing and factor in all potential fees. If a company guarantees to have the lowest rates, ask to see it in writing. If they have the guarantee in writing, you will quickly realize that these low merchant account rates only apply to a very small fraction of your credit card transactions.

Hopefully, it is now easy to understand why we do not post rates for merchant account on our website, as advertising them can become confusing and potentially deceptive.

Metro Merchant Services guarantees to have the lowest overall costs of processing and we put it in writing here. You can count on our professional staff to educate you on all your options and advise you on how to get the best possible rates for your specific business situation.

What You Should Know About a Merchant Account

Unfortunately, merchant account providers are not always 100% straight about the service they will be providing to potential merchants. This article provides an overview on what to look at before you commit to a merchant account.

You could sign up for a merchant account, with what appears to be a very low rate, but end up stuck in a messy contract riddled with inflated fees, timed rate increases or extremely high rates for different types of transactions. If a low rate is all you look for, you could find yourself paying a lot more in the long run.

In addition, the service commitments a company provides can prove just as important as rates and fees. If you have questions or problems with your merchant account and can’t get any assistance, the last thing you’ll be thinking about is your rates. Just think what it would cost you to lose the ability to process charges for a few days!

In summary, when you are considering different merchant accounts, you should think about what will benefit your business the most in the long term. Whether you choose Metro Merchant Services or another merchant services company, we want you to be able to make informed decisions.

Factors to Consider When Choosing a Merchant Account

There are several factors to look at as well as traps to avoid when choosing the best merchant account for your business. This article should help guide you in making the best choice for your business when choosing a merchant account.

Suspiciously Low Rates

• Make sure the rate you’ve been quoted is for the type of transactions you’ll be processing. For example, many mail order merchants have mistakenly signed up for a retail merchant account with low rates and found themselves getting charged much higher fees because they were not swiping their customers’ cards.

• Ask whether the rate you’ve been quoted is an introductory rate. Some processors automatically raise your rates after an initial period, resulting in unexpected credit card processing costs down the line.

Average Ticket and Monthly Volume

• Every processor will ask you to estimate your average sale and monthly credit card volume. This, in part, allows the processing company to determine the level of risk they are taking by extending you a merchant account. If you estimate far too low, you may run into trouble, as you are now a higher risk than the processor initially estimated. On the other hand, if you guess far too high, you may be required to file some extra paperwork and provide significantly more business or personal credit-related materials. Talk it over with your account representative; he or she should have plenty of experience estimating volumes and average tickets.

Understanding Fees

• When you first get a quote for merchant accounts, some fees may seem a bit confusing. Take the time to go through your application and ask questions about the fees you don’t understand. Taking the time to go through the fees may prevent unpleasant surprises when you get your first merchant statement. Remember, a quote is not the same as a statement of fees. Many quotes do not list all possible fees, so make sure to do your homework and get the statement of fees.

Contracts & Cancellation Fees

• Before you even set up a merchant account, ask for details on how you would go about canceling. Is there a termination fee or time commitment? Some processors may have contracts for their merchant accounts that automatically renew if you don’t give written notice more than a month before your contract expires. Also, beware of claims such as “even though you have a fee in your contract, we never charge it.”

• Not all processors require a contract, so unless there are some special circumstances, it is usually best to go with a company that is flexible and doesn’t require you to make a long-term commitment. Think of it this way: if you can cancel your merchant account at any time, a good company will work hard to keep you a satisfied customer.

Customer Support

• Many companies use the same employees for sales account service and technical support, or worse, don’t even have an internal support staff. A company that has dedicated departments for each will be able to offer you expert help, whether you have questions about your statement, or need to get your terminal back up and running in a hurry.

• A processor that offers 24 hour support will be there whenever you need them, meaning you won’t be at the mercy of someone else’s business hours. 24 hour support is also a good indicator of the company’s commitment to its customers beyond the application process.

Discover the Difference with Metro Merchant Services

Metro Merchant Services has offered great rates and service for credit card processing services and merchant accounts for every type of business since 1997. More than 3,000 merchants later, we now set the standard for price, customer service, ethics and integrity. Whether you’re a small business or a large enterprise, you can expect:

24/7 Toll Free Customer Service

At Metro Merchant Services, we have invested in dedicated departments for both account service and equipment support. These in-house teams will do whatever it takes to keep you up and running with as little down time as possible.

Besides our top notch internal team, our network of service providers has over 900 customer service representatives ready to assist you with your merchant account at any time.

Real-Time Account Access

Many merchants want more access to their accounts than just getting a statement once a month. Our merchants can get online merchant account data, including transaction summaries and batch detail reports, meaning no more waiting for statements to balance your books!

No Down Time

A state-of-the-art-network ensures your credit card processing transactions go through when you need them to.

Peace of Mind

Our expertise and personal service allow you to run your business without worrying about your merchant account or your credit card processing services. Most importantly, since we don’t require contracts and don’t charge any termination fees, you can trust that we will constantly do anything we can to keep you satisfied.

Your satisfaction is our top priority. We’ll give you an honest review of competitive quotes or offers — whether you choose us or not!