How do I Choose the Best Merchant Account Service Provider?

Nicole Madison
Nicole Madison

There are many merchant account service providers from which you may choose. Each one may advertise itself as the best, but that doesn’t necessarily mean it is the best choice for you. To choose the best merchant account provider, you may compare those you are considering based on reputation; application procedures; fees and charges; and account restrictions. Contract terms may also prove to be an important factor as you work to select the best merchant account service provider.

Businessman with a briefcase
Businessman with a briefcase

One of the most important things to consider when choosing the best merchant account provider is reputation. Like all types of businesses, there are some that are known for fairness and prompt service as well as those that are not. You may check on the reputations of merchant account providers you are considering by reading online reviews and asking for recommendations.

Application processing is also important when you’re trying to select the best merchant account service provider. In order to avoid unnecessary confusion and delays, you may do well to choose a merchant account provider that has the most clear-cut application process. You may also prefer a provider that has the fastest application processing times and the lowest application fees. In fact, you may prefer to choose a provider that does not charge an application fee at all.

Most merchant account providers also charge fees for processing and setup and also add on a range of other charges. In the interest of saving money, you may prefer to choose a merchant account service provider with low setup fees or free setup. Likewise, you may do well to carefully consider the other fees and charges a merchant account provider applies to its accounts. Some providers seem less expensive because of low quotes, but tack on so many small fees that they are ultimately quite expensive.

You may also compare the restrictions a merchant account service provider will place on your account before choosing a provider. Some place restriction on a company's sales volume while others may restrict the type of goods or services you can sell. There are many merchant account service providers, for example, that are not willing to work with businesses that sell pornography.

Contract terms are also a critical consideration as you seek the right merchant account provider. Some merchant account providers require account holders to sign contracts that lock them into an account for an extended period of time. You may prefer a contract that is shorter, however. Some also charge hefty cancellation fees if you decide to switch to a new provider, so carefully reviewing contract terms is an important part of choosing a provider.

Nicole Madison
Nicole Madison

Nicole’s thirst for knowledge inspired her to become a wiseGEEK writer, and she focuses primarily on topics such as homeschooling, parenting, health, science, and business. When not writing or spending time with her four children, Nicole enjoys reading, camping, and going to the beach.

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