If you’re like me, you want to be able to choose a suitable merchant account provider when you are looking for the best deal. We tend to look for all the popular payment services available to us and so we find ourselves very confused as to which ones actually have the lowest costs. In this article I’ll explain the common payment services that provide the lowest payout costs to us and the differences between them.
– An arrangement called ‘fixed fee’ (also called ‘short term’) means that your service provider charges you a fixed monthly or yearly sum each month for their services. You then pay the sum of money at the beginning of each month until the end of the month. It’s not cheap but it also has the advantage of letting you have immediate access to a payment processor, unlike some of the other options available.
– A ‘variable’ (also called ‘per transaction’) payment service lets you choose a pre-set amount per payment that your processor will accept on your behalf. This is usually cheaper than a fixed-fee payment processor but only as long as you’re actually paying the correct amount of money.
– An ‘equivocal’ payment service is one where you choose how much you wish to pay each month. Your service provider sets the price in advance and you simply pay the total sum on the day your services come to an end. This isn’t really a good option for someone with lots of money to spare – though if you’re very good at managing your money it could be one of the cheapest options available.
– A ‘no deposit’ payment processor is one where you can either choose a fixed-deposit (which you pay in advance) or choose a percentage deposit. You’re not obliged to put any money at all. If you’ve a good credit score, it’s a very good option for finding a merchant account provider.
For example, what I’ve just described are three of the most popular options available to me when I’m looking for a merchant account. There are a number of more complex payment services that allow you to manage your funds better and save a lot of money, but these are too technical to explain here.
When it comes to choosing a merchant account provider, the very first thing you need to do is to understand your requirements. Most consumers are looking for a very simple solution to their problems, so they don’t realize that the most expensive solutions are not always the best. Of course, it’s worth spending some time looking at the more expensive options before you settle on anything because there’s absolutely no point in signing up for something that doesn’t suit your needs.
First of all, don’t worry about whether you can actually process a credit card. Most merchant account providers will let you process a debit card, which is usually the best option for anybody with a lot of money to spare.
Secondly, if you can process a credit card, you should look for a merchant account provider that offers it. And if you can’t, then take a good look at your other options. There are a lot of different merchant accounts providers that aren’t really well-known but will have a lot of value to your business, so use your judgment.
Thirdly, if you have your own financial problems, do what you can to improve your situation. After all, it is quite possible to have a successful business even with a poor credit score, if you’re patient. For example, you might be able to access secured credit accounts, apply for a smaller line of credit with a financial institution or open a new savings account.
You might also be able to open a credit card account that lets you pay a low rate of interest. This is extremely useful when you’re starting out and you’ve got to be careful about the amount of money you put down each month, but that type of credit card is unlikely to have any benefits for your overall finances. Credit rating.
I could go on forever about the benefits of credit card processing but I’m afraid I’d be here for ages!