When a business owner begins their venture into eCommerce, it will be crucial that they contract with a merchant services provider. While there are many merchant services providers out there, picking the right one will take some research and a solid foundation of knowledge. Merchant services providers are all different; it is crucial to figure out your requirements to identify the best fit for your business.
Will your business require batch payment processor real-time payment process? With batch processing, the order is then handled by an individual either by getting in touch with the payment processing company to confirm the legitimacy of the credit card number or by utilizing a point-of-sale terminal to swipe the card. The customer is notified immediately that the order is accepted when the credit card is verified, and the money is moved from the client’s account to the merchant’s account. When deciding, consider some transactions that may occur. If you are anticipating a low volume of sales, then this type of processing is something to consider. It is not as pricey as real-time processing. The main drawback to batch processing is the time factor. Real-time processing is more suited for bigger volume sales and for certain items that are sent over electronically.
Knowing Your Business
A business owner should be well-versed in their financial reports; because these statistics are going to weigh heavily on what merchant services provider is chosen.
Additionally, some banks have a set amount of transactions a month. Thus, if you do not meet this minimum, you could be required to pay a separate fee. Other banks will ask you to project how many transactions you think will occur on your site. Your business’s strengths and weaknesses will also influence the type of services you need from your provider. For example, if you lack state-of-the-art resources, then it would be in your favor to choose a merchant account provider that emphasizes customer service.
Rates and Fees
Web-based e-tailers and other eCommerce ventures need to be aware of the rates and fees they will be assessed when contracting with a merchant services provider. Typical costs include transaction fees, discount rates, and set-up or application fees. Fees vary among the merchant services providers based on credit history, type of business, and transaction volume. Merchant accounts have several fees, some that are time-based, and others that deal with a percentage format.
Assess your technology and service requirements. When an entrepreneur makes the jump to eCommerce, selecting a merchant services provider is only one of many aspects that have to be integrated together. Utilize a shopping cart solution and locate a merchant services provider, although many providers feature shopping cart solutions of their own.
Also required is payment system that processes transactions and a payment gateway to securely capture and process payments. Several merchant services providers offer systems that include each of these aspects. Many will bundle merchant services and other eCommerce services into their packages. Working alongside a merchant services provider that provide integrated services indicates that each level of the transaction works in conjunction with the other, meaningless difficulties on your end.
If the merchant services provider does not offer this type of service, the exact software that is used should be discovered. On occasion, a dealer account company will provide more affordable merchant services and then overcharge on software. A reputable merchant services provider will provide guidance about which type of software would be best for this situation.
Information such as this can be crucial to a business just starting out, that can not afford to make a mistake early on. Finding the right companies to partner with is a big step in the process of operating a successful business. Starting up an eCommerce venture is no easy task. If it were, everyone would do it! It is critical to know your own business inside and out; it will inevitably save you tons of time, effort, and money.