Merchant Services

By Carlos Monteiro

Often businesses think they’re too new or too small to take credit cards. In today’s marketplace, as soon as you have a customer, you’ll be asked: Do you take credit cards?

There are several ways your merchant account can be setup. You should have a good overall view of what is possible with pricing and technology so you’ll know how to respond as you grow. Do you have the right fit for your business needs?

Here is What Every New Business Should Know about merchant services:

1) Your customers expect you to accept electronic payments. Whether it’s a credit card, debit card, EFT (Electronic File Transfer) or ACH (Automated Clearing House – or e-check), you have to be prepared to do business the way your customers want.

In fact, you should be aware that there is a generational change taking place in how people want to pay for things. If you’re marketing to Generation X and Ys and Millennials; they barely know anything about checks. They’ve always used debit and credit cards. Remember, most of them have never had a land line phone and their preferred means of communication is texting.

2) Your company is never too small to use merchant services. Many entrepreneurs are scared away when they hear about monthly fees, minimum volume requirements or contracts. I spend a lot of time explaining to clients that the key is to find what works best for where their present needs and that may not include contracts or leases. If your business volume is up and down then ask for no monthly minimum, it is possible. Ask questions for what you need. Find a provider who will help you sort it all out and set your account the best way for you.

3) Know your terminology. To get the best rates, you need to know the difference between wholesale and bundled rates. ClearPay uses wholesale rates to get the best deal for our customers. Your rates will also vary depending if the transaction is key entered, card swiped, etc.

a) Acquirer: the merchant service company/rep who sells you the plan.

b) Provider: the company that will underwrite, provide support, and process all your transactions.

4) Understand your statement or your quote. Ask for explanations for all discounts, surcharges or additional fees that will appear on your statement. Most people struggle with this because of the jargon and technical detail. Ask your rep to give you a review. Ask for an annual review so you are always getting the best value based on your changing needs.

5) Use the technology to best fits your needs. Retail locations may need a Point of Sale system or a terminal on a high-speed connection. A service business may only need a mobile terminal or a phone application. A B2B may want to do reoccurring billing or have a virtual option for payment if they have sales or service guys out in the field. You have more options than ever before and you’ll get paid faster and no bounced checks.