Online Payment Processing: Questions to Ask Merchant Account Providers
It’s pretty standard that if you are an online merchant who want to offer customers the convenience and security of paying with a credit card you must apply for a merchant account. Since not all merchant accounts are created equal and with so many providers to choose from, it can be difficult to find one that meets all of your needs. Here are eight questions to ask prospective merchant account providers to ensure they offer online payment processing that suits your needs.
1. How much does the merchant account cost?
Discuss monthly costs of the account with a customer service rep. Some providers charge a flat monthly fee while others charge a percentage of each transaction on your site. The provider should give you a clear idea of how much you should expect to pay. You should also know if you prefer a flat rate or a percentage is what is taken out of your profit margin.
2. What start up fees should I expect to pay?
In addition to regular fees, find out what start up costs are involved with the service, especially since many payment gateways have “hidden fees”. (Think in terms of activation costs for the majority of cell phone providers.)
3. What customer service options do you provide?
If something goes wrong with your online payment processing, find out what options you have to contact the company in order to resolve problems when they arise (and trust me, they will). Avoid providers that only offer customer support via email. The best option is to always find one with phone support that is as close to being covered 24/7 as possible.
4. What is the fee for charge-backs?
Find out the fee for charge-backs since they vary among merchant account providers. Charge-backs are going to happen in many product based online businesses and you should have an idea of how much may come out of your pocket.
5. How many merchant accounts can one user have?
If you have more than one e-commerce website, find out if you can have more than one merchant account under the same user. In addition, find out if there is a reduced or discounted cost for second merchant accounts.
6. What are the contractual obligations?
Many merchant account providers require users to sign a contract, binding users to their service for at least one year. On the contrary, some providers offer their service month-to-month. Determine a budget beforehand to see which option will best suit your needs.
7. What is the process to apply for a merchant account?
Find out what steps you must take with prospective providers to apply for a merchant account and figure out whether or not it is a long, intensive process that’s worth the time.
8. Is an online merchant account necessary if I already have a retail merchant account?
If you already have a retail merchant account for a brick-and-mortar store, ask your provider if they can also provide an online merchant account for your e-commerce website. Sometimes merchant account providers will even offer discounts for using both services.
