Opening up a merchant account is a great way to expand a business. In a world where many individuals and businesses rely on credit cards for their transactions, having a merchant account makes it easier to do business and bring in more customers.
Even if you’re a high-risk merchant, such as a telemarketer, e-commerce, or a travel merchant, a merchant account is still worth the legwork it takes to open. The longer a business has been operating, the better the options are for dealing with the banks and merchant processors that provide these accounts. Business experience shows that the business owner knows how to prevent fraud and manage payments from customers.
One of the first things considered is credit history. Credit reporting bureaus can give business owners a good idea of where they stand before opening a merchant account. If there have been past issues with bankruptcies, it is important to be upfront about it. Credit issues are a matter of public record and will be discovered. By owning up to problems and addressing changes going forward, a business owner demonstrates credibility and adaptability. Some fees and special account requirements might apply moving forward, but it will be worth it in the long run. Bringing in more customers creates growth and will balance out any fees that might be incurred with a merchant account. All of which are tax deductible.
There are a number of credit card processors, so make sure to do some research as to what these processors offer and what the costs will be. Some of the important things to ask about are discount rates, transaction fees, types of equipment, monthly minimum fees, reserve fees, and chargeback fees. List what each credit card processor requires and decide which of these rates and fees are best for the business.
Having a merchant account and being able to process credit card transactions makes a business more professional and better able to deal with the modern consumer.
It’s an important and worthwhile step in growing a business.