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How to Choose a Merchant Account
When choosing a merchant services provider, there are things to consider.

Defining the Different Merchant Account Types

In the payment processing industry, every merchant is classified into a specific "merchant account type" category, based on how they collect card information and conduct transactions. To learn which category your business is classified under, we have defined the characteristics of each merchant account type in this article. There are two main merchant account type categories, "Swiped" and "Keyed," which reflect the basic methods used to capture card information. Within these main categories are sub-categories, broken down according to the business environment and processing technique.

"Swiped" or, "Card Present" merchants directly interact with their customers face-to-face and capture card information by physically swiping cards through a terminal or point-of-sale system.

"Keyed or, "Card-Not-Present" merchants indirectly collect their customers' card information, and, depending on the business environment and technology used, can process transactions in various ways.

Benefits of a Merchant Account

With cash less commonly carried, and checks gradually becoming obsolete, credit and debit cards have completely revolutionized the industry, becoming the most common forms of payment. The majority of merchants world-wide are now accepting these cards because of the benefits of a merchant account, and to maintain your business' competitive edge, you should accept plastic too.

By providing alternative payment options to cash and checks, a merchant account can be extremely advantageous for any business. Although some merchants tend to hesitate in signing up for a merchant account due to cost factors, the loss in sales and profits may be far more costly. The fact is, besides all the other benefits of a merchant account, people tend to spend more money when paying with a credit or debit card than when paying with cash. By accepting these payments, your increased revenue will compensate for more than just merchant account costs. So, to make your business more successful, take advantage of the benefits of a merchant account, and accept credit cards today!

Reasons to Avoid Credit Card Terminal Leases

Businesses often look at leasing as a viable alternative to purchasing high priced equipment. After all, not many small businesses can foot the bill for a $15,000 color copier. But would you lease a $200 cell phone or a $300 cash register? Of course not! So why do some businesses lease $150-$300 credit card terminals? Most credit card terminal leases involve a 48 month term, and at least $20 a month. That totals $960 in payments! If you buy this same terminal for $160 from us, and charge it to a credit card, you could have it paid it off in nine months, with interest, for the same $20 monthly payment.

That's not the only bad news. Here are a few more facts about leasing credit card terminals:

  1. Credit card machine leasing contracts are binding
  2. You have to return the equipment
  3. Leasing has costly strings attached

5 Ways to Save on a Merchant Account

  1. Never focus exclusively on percentage "Discount" Rates. Companies who quote extremely low rates are usually trying to distract you from additional fees they charge that can have you paying much more in the long run.
  2. Look to save on processing equipment. Most equipment can function with any processor, so there are plenty of product and pricing options to choose from. Shop around to find the most suitable solution for your budget and processing needs. Never lease. Leasing is extremely costly, and involves long-term agreements.
  3. Don't sign a contract. Signing a contract commits you to staying with a processor regardless of your level of satisfaction with them. Contracts allow processors to increase your rates at any time. With contracts, some processors feel that they can neglect to provide the service you demand. Cancelling in the midst of your term means paying a steep termination fee.
  4. Avoid termination fees. Some companies may not focus on developing a long-term relationship with you and instead, rely on a termination fee to keep you from leaving. To some processors, a termination fee may be more profitable than providing the service necessary to keep merchants satisfied for years. They may actually prefer that you cancel so they can collect the huge fee.

Ensure You Have the Right Type of Merchant Account for Your Business

There are different types of merchant accounts based on the way credit card transactions are accepted. It is always cheaper to have the right merchant account type for your business. Always work with a firm that can explain the differences between the different merchant account types and that teaches you to process credit card payments the best way for your business. Merchants should always look for the best overall pricing, while not neglecting the service they deserve. By referring to these 5 guidelines when shopping for a merchant account, you can find a merchant service provider who will give you everything your business is looking for.

Call today at: 877-810-4747 for more information. A representative is available Monday - Friday 9:00am - 7:00pm EST

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