Merchant Account Fees Are They Worth It

Merchant Account Fees Are They Worth It



Merchant Account Fees: Are They Worth It?
Merchant account services are the​ services that allow you to​ accept credit cards as​ payments, both online and​ off, and​ help you handle the​ credit card transaction processing .​
Without merchant accounts, your customers would have to​ pay with cash or​ check- and​ believe it​ or​ not, most customers will spend more if​ they can swipe their card and​ worry about the​ bill later.
The Cost of​ Accepting Credit Cards
Merchant accounts can be costly .​
There are numerous providers of​ merchant accounts that are reputable and​ offer good value for​ their service- but there are even more providers of​ merchant accounts that charge excessive fees and​ have hidden expenses that you were not aware of​ when agreeing to​ use their service to​ accept credit cards online .​

Fees range from per transaction fees (usually a​ percentage or​ a​ few cents on each card processed) to​ monthly or​ annual maintenance fees that can range from a​ few dollars to​ a​ few hundred dollars .​

Online Businesses Need Merchant Accounts
Online merchant accounts are crucial to​ having a​ successful online business venture .​
Consider it​ from the​ eyes of​ a​ customer: if​ you were on a​ website, looking to​ buy a​ widget, would you want to​ take the​ time to​ mail a​ check or​ money order, or​ do you plan on making a​ purchase right then with your debit or​ credit card? Most people don’t want to​ take the​ time to​ write and​ mail a​ check or​ money order for​ an​ online purchase- not having the​ ability to​ accept credit or​ debit cards will severely hurt your business as​ an​ online merchant.
As the​ merchant, credit and​ debit cards make your life easier, as​ well .​
You get your money much faster than waiting for​ a​ customer to​ write and​ mail a​ check or​ money order; and​ you don’t have to​ wait for​ the​ payment to​ clear the​ bank before you can mail out their purchase .​
Credit card payments offer you payment within a​ day or​ two of​ the​ customer putting in​ the​ card details .​
Deciding if​ a​ Merchant Account is​ Worth the​ Fees
So are the​ fees that are paid for​ merchant accounts worth the​ value the​ accounts provide your business? It all depends on the​ type of​ business you are operating and​ the​ volume of​ sales you process on a​ given month, as​ well as​ the​ merchant account provider you choose to​ go with .​
Merchant account providers are not a​ one-size-fits-all solution for​ every business, and​ you really need to​ do a​ little research before selecting a​ provider .​
Consider the​ per transaction fee, the​ application fee, monthly maintenance fee, set up fee, and​ any annual membership charges you must pay .​
Do you have to​ purchase or​ lease any special equipment? is​ the​ software for​ processing online credit card payments included in​ the​ service, or​ is​ that an​ additional fee?
Once you have that information for​ a​ few different merchant account providers, you can determine what you believe your credit card sales will be each month .​
This may be difficult to​ do, but make your best estimate based on your current level of​ sales and​ the​ idea that people typically spend more with a​ credit card than they do with cash .​

Determine what fees you’ll pay on your estimated amount of​ sales each month, and​ see if​ it​ makes sense to​ pay for​ a​ merchant account .​
as​ mentioned previously, if​ your plan is​ to​ operate an​ online business- you really need a​ way to​ accept credit card payments online in​ order to​ become successful.




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