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How do I Choose the Best Discount Merchant Account?

Article Details
  • Written By: N. Madison
  • Edited By: Jenn Walker
  • Last Modified Date: 17 August 2019
  • Copyright Protected:
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    Conjecture Corporation
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A discount merchant account offers discount rates on credit card processing. To choose the best discount merchant account, you’ll typically want to start out by making a list of reputable merchant account providers. Then, you may compare accounts based on the discounted rates they offer, the types of credit cards they will allow you to accept, and their setup requirements. You may also look for a discount merchant account that offers reasonable lease terms. Once you’ve compiled a list of providers that seem to be a good fit for your company, you may choose an account by selecting the company with the best terms and the lowest prices.

When you're deciding whether to do business with some types of companies, you may make rates your most important consideration. When you’re trying to choose the best discount merchant account, however, you may do well to consider provider reputation first. Unfortunately, some merchant account providers have a poor reputation for dealing with business owners. They may be known for applying hidden fees, creating misleading ads to draw business owners in, or freezing accounts without warning. For example, some merchant account providers freeze accounts once they reach a particular sales volume, which means a business owner may have trouble accessing his money.

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It’s also important to consider fees and charges when you’re trying to choose the best discount merchant account. Even among discount providers, rates can vary widely. You may do well to compare merchant account providers not only based on the fees they charge for transactions, but also on any monthly or set-up fees they charge. You may pay fees for everything from payment refunds and software to account cancellations and bank setup. In general, the best discount merchant account will offer the lowest rates and the fewest fees.

You'll also need to consider the types of credit cards you want to accept as you attempt to choose the best discount merchant account. Depending on the particular needs of your business, you may decide to restrict credit card payments to the most commonly used credit cards, or you may want to accept all major credit cards. In some cases, however, you may prefer a merchant account that allows you to accept a broader range of payment methods.

You may also consider setup requirements and lease terms when you’re attempting to choose the best discount merchant account. In general, you’ll likely want to choose the company that makes it easiest for you to get set up and begin processing credit cards. If you have to lease processing equipment, you may also do well to compare lease terms and costs. To choose the best account, you’ll likely seek the shortest lease terms, the lowest costs, and the lowest lease cancellation fees.

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