Get The Best Credit Card Merchant Account

Before you can get a credit card merchant account, you'll need to know the difference between an acquiring bank and a processing company. An acquiring bank is the financial institution that provides you with an account so that you can accept credit cards, like Wells Fargo or TD Bank. A processing company handles all of the technical aspects for your business, like capturing and validating customer data as well as charging fees.

Keep in mind that every merchant account will have different rates for each one of these providers. You'll want to compare several companies until you get the best deal available for each aspect of your business.

If you're only looking for an acquiring bank, there are fewer factors to consider. For example, if you're planning on creating a physical storefront for shoppers to make purchases, it's important to find out whether an establishment is allowed by the bank. For example, if you want to get a credit card merchant account in California and your business is classified as a retail store, you must have less than $1 million in annual sales. You also must have enough cash flow coming into your business to cover operating costs and expenses. Having little or no cash flow will raise red flags with banks because they don't want their customers losing money. If a business is deemed risky, the bank will likely deny your merchant account application.

If your business is online only and doesn't require a storefront, you can be located anywhere in the country. You should also inquire about additional fees or costs associated with opening an account because these will vary depending on the institution. There might be an annual fee as well as other miscellaneous charges that you're responsible for. When you apply for a credit card merchant account, you might be required to provide information such as copies of licenses and certificates, banking history and personal financial statements. You'll also need to know about any charges or fees for using the account for international transactions.

Once you've been approved, your merchant account provider will provide you with all of the information you need to start setting up a merchant account. This can include the bank's basic policies and procedures as well as information on how you can use their services. You'll also want to contact them for any additional questions or concerns because it might take months before you receive a response from your processing company.

It's important to consider the pricing structure of your processing company and make sure that you're aware of any of their additional fees or costs. For example, you'll need to know about their refund and chargeback policies. You'll also want to find out if they offer any special discounts or promotions, like a multistate account discount. Depending on your industry, processing companies offer different payment options, so it's important that you take advantage of the one that best fits your business model.

If you're ready to apply for a merchant account, start by researching your options online by searching for local credit card processor reviews or information about merchant accounts on Google. The first step will be to fill out an application and send it to a processing company. You'll then need to wait for approval before you can create your merchant account agreement.

Obtaining a merchant account can be extremely beneficial for businesses that process credit card transactions because it allows companies to accept debit, business and prepaid cards. This can help businesses expand their customer base as well as generate additional revenue.[/ARTICLE END]

The purpose of this article is not to tell you which bank you should use but to provide some basic information so you can make an informed decision on where your credit card transactions should go. I get e-mail from time to time from people who need help choosing a credit card processor. In this article, I'll give you some basic information about what you need to know to help you make a decision.

First of all, let me make it clear that there are no perfect processors out there. It's just like buying a car. There is no perfect car on the market so you have to feel comfortable with the dealer and the vehicle before making a commitment on one they are selling before they can order it for you. In the credit card processing industry, the word processor is not always very descriptive. The definition of a credit card processor is a company that accepts payment for goods and/or services rendered by accepting payments from a consumer or business via credit or debit cards. This definition typically includes authorizing, clearing and settling the transaction (collectively referred to as the process of payment) and presenting the transaction to the cardholder's bank for settlement (referred to as payment posting).

So you must understand that in your search for a credit card processor, there are four things you should consider:

1. Your gross monthly processing volume 2. Your total monthly profit margin 3. Whether your processing is merchant-initiated or consumer-initiated 4. Your preferred method of payment

The first thing you must decide is your monthly gross processing volume. To calculate this, you can use a variety of sources, including:

1. Your credit card statement 2. Your consumer packaged goods sales 3. Your merchant point-of-sale (POS) sales 4. The number of transactions that would have been processed if you had maintained the same number of employees as in the past but did not receive any new account registrations 5. The average credit card transaction volume for your category 6. The average credit card transaction volume for all categories for all processors in your state 7. The average credit card transaction volume per person listed on your consumer's billing statement 8. Your average monthly sales 10 9. The average monthly sales per employee per month for all stores or employees in your state

The second thing you must decide is your monthly profit margin. This is the amount of money that you pay every month to each individual credit card processing company for the use of their services. This amount can be based on percentages of the transaction or a flat rate. For example, if your gross processing volume is $100,000 and your business has four merchant locations and a consumer who uses two cards, then it would make sense to do a 2.50% transaction fee split four ways as opposed to a percentage-based fee like 1% or 1.5%.

Conclusion

It's important to note that each credit card processing company offers different services in the areas of fraud detection, dispute resolutions, cancel fees and customer support. Each of these services will have different fees associated with them. For example, one company may offer a $5.00 dispute resolution fee for disputes over a pre-set amount and another company may charge a $200.00 fee for disputes over any amount greater than three times the monthly minimum payment due on the account. Most industry analysts say that there is no benefit to using companies that charge high fees for their services; however, there is an argument to be made that you shouldn't compromise on customer support in your search for a credit card processing company either.