A merchant account for credit cards can help your business achieve financial success. If your business does not yet accept credit card payments, you are missing out on a significant revenue stream. Many business owners who began accepting credit card payments report that their revenue doubled while their overhead costs decreased. When you become eligible to accept credit card payments, your sales volume is likely to increase and you will chase fewer bad checks. However, in order to accept credit card payments, you must apply for a merchant account.
Begin by locating a reputable lender. This could be a bank with which you already do business, one that helped get your business started or grow to where it is today. If this is the case, there is a good chance the lender will continue to work with you on this critical operative. However, if you do not have access to such a lender or if the one you do have appears unwilling or unsuitable to underwrite your merchant account, you will need to locate another reputable bank, credit union, or other financial institution to facilitate this account.
Because your card merchant account has the potential to make or break your business, it is prudent to invest time in locating the best possible lender for this purpose. Do not simply take the first deal that presents itself. Prior to making a purchase, take the time to shop the numerous available offers and compare terms. All too frequently, a new or small business owner is dazzled by the array of benefits that become available when a merchant services card is purchased. Then, after implementing this account, expenses increase while income remains stable or declines, resulting in a shortfall for the business. Around 80% of small businesses fail within two years. Avoid becoming a victim of this predictor. If your merchant account application is approved, use it in accordance with your business plan or company budget. Avoid investing large sums in dubious ventures. Purchase or lease a basic credit card processor for your physical location to begin. Alternatively, purchase a wireless unit for deliveries or remote locations. You do not need to invest thousands of dollars to begin. Proceed incrementally until you see how your customers respond and what your potential growth looks like. At that point, you can always add additional services, such as an electronic check processor or a pager, if they are determined to be necessary for continued growth.
After receiving approval for your card merchant account, you can usually immediately begin accepting credit payments. Ascertain that you understand your account’s terms, which frequently boil down to a per-transaction fee of around 20 to 25 cents. Alternatively, you may qualify for a low-interest monthly fee that may or may not require you to meet certain minimums. In other words, you will be assessed a flat fee for up to 1,000 credit transactions. If your business does not receive that many, you will still be charged the baseline fee, but you will not be charged more, even if you receive 2,000 or 3,000 credit card transactions, although this varies by lender. For more information on applying for a card merchant account, contact local or online lenders.