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This article
is primarily written for business owners who
already see the benefits of obtaining Merchant
status. Hopefully this article will assist
you in avoiding unnecessary costs and will
prevent you from becoming an unwanted victim
of a scam artist.
Does
Every Business Need
A Merchant Account?
Although most
merchant account providers will tell you "yes."
The answer is no. Not every business will
necessarily profit from obtaining a merchant
account. The key way to determine if your
business will profit from obtaining merchant
status is to look at your monthly business
volume.
If
you are producing less than $500 a month in
sales, wait until your sales volume increases
before you apply for Merchant status.
A Merchant account is meant to increase your
profits. It can possibly even triple them.
However, if
you are a new or very small business, the
monthly lease/fees you may accrue may not
be a smart business move for a business just
starting out. A "third
party service" may be a wise choice for a
new business until the business profits increase.
Eventually,
a business can "upgrade" to a merchant account.
Should
You Buy Or Lease Equipment?
This truly
depends on your current financial state. If
you can afford to purchase the equipment outright,
you can save a bundle, and only have to pay
a small monthly fee for transactions and other
fees that may apply to the nature of the equipment
you will be using. If you cannot afford to
buy the equipment, your other alternative
would be to lease.
If you are
a bargain hunter, there are many great software
programs on the market that allow merchants
to avoid purchasing equipment and only use
their merchant account for credit card transactions.
This can save
you thousands in avoided fees...but of course
read the fine print for everything. Make sure
you completely understand before you sign
the dotted line! Always be informed!
How
Do I Know This Is Not A Scam?
Research! Don't
hand your hard earned money to just any company
that offers you a good deal. If it sounds
too good to be true, sometimes it is! Trust
your gut instincts. Ask for referrals from
your friends and business associates. Check
the Better Business Bureau. Ask questions.
Do your due diligence. Find out how long the
company been in business. Look for "Red flags"
such as:
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Hefty Application Fees
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* Exorbitant Fees
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No Refunds Under Any Circumstances
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* No Customer Service Number Provided
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Authorization To Debit Your Bank Account
At Any Time And For Any Reason
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***WARNING!!
DON'T OVERLOOK READING THE FINE PRINT UNLESS
PROTECTING YOUR MONEY IS NOT IMPORTANT TO
YOU!
Legitimate
Charges: Expect to pay higher fees for bad
credit ratings, mail-order, telephone and
travel related and internet businesses. Any
business where the credit cards may not be
manually swiped through a physical terminal,
or may have a higher incidence of chargebacks.
A higher rate of fraud can occur because the
Merchant may not be able to physically "see"
the cardholder and therefore cannot verify
that the information given by the cardholder
is really true.
Questions You
Should Ask Before Applying For Merchant Status:
| *Discount
rates for your particular line of business.
(If your business is considered "high
risk," your rates will be higher.)
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* Reserve Fees: (Do they withhold a percentage
of each sale as a protection against chargebacks?)
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| *How
long does it take for money to be deposited
into your bank account? (2-3
business days on average).
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*Are there penalties for exceeding your
approved monthly sales volume? (you would
think they would be happy about this,
but some will charge you for it)!
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| *Any
"hidden" or extra fees? (Again, read the
fine print!)
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| *Can
You Accept ALL Major Credit Cards? |
| *How
long does it take for the account to be
set up? (Average
7-10 business days.) |
| *Reprogramming
Fees: (If You want to change the information
programmed on your equipment or change
the products you were approved to sell). |
| *Is
the lease noncancelable? How long is the
lease? (Average:
36 or 48 months.) |
| *Any
prepayment penalties If you lease? (Will
they charge you for paying off the remaining
balance of your lease early?) |
Can you accepts
checks as well? Are you protected in case
you get a "bad check"?
Protect Yourself!
If it is internet related, does the company
offer real-time processing and a secure gateway
to protect you, the merchant from fraudulent
purchases? Look for "merchant friendly" providers.
Avoid getting "kicked to the curb" by your
credit card provider if you are scammed!
Alternatives
For New/Small Businesses
Research these
services until you are ready to upgrade to
a merchant account. I don't personally endorse
them, but you may find them useful in the
meantime. Always read the fine print!
http://www.Paypal.com
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http://www.ccnow.com
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http://www.ibill.com
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http://www.clickbank.com
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http://www.ccslide.com
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| Save
On Equipment Purchases With A Merchant
Account! |
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http://www.icverify.com
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http://www.dydacomp.com
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http://www.versacheck.com -Accepting
Checks Through Email! |
A Merchant
Account I WILL recommend!
This merchant
provider is a real winner! They offer low
discount rates, NO Monthly statement fees,
NO set up fees, NO leases, And SAME DAY deposit
of funds. Very affordable! You can cancel
at anytime if you change your mind! How can
you beat that? Check this company out by visiting:
http://strictlybu.evsholdingco.com
Author: K.
Marie Parker is a full-time wife and mother
of 3 lovely children, and a part-time online
marketer and personal home-business coach.
You
can visit Marie's web site by logging on to:
http://www.youshowmethemoney.com
Or mailto: travelbiz@usa.net To subscribe
to Marie's free biweekly business opportunity
Ezine, "Cyberlife", which is full of free
online and offline marketing tips for the
new millennium business. Send a blank email
to: coastalteam@getresponse.com
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