Most new business owners assume that when it comes to processing credit cards they can choose any merchant services provider to process their transactions. They assume the only thing they need to do is choose a processing company, set up their new system, and then they’ll be ready to start accepting payments from their customers. While the process of establishing a credit card processing system at your business does not have to be difficult, the credit card merchant services company you choose should be something you should carefully consider. Keep in my mind that as you apply to accept credit cards at your business, the processing company will also need to do their fair share of examination.
As you do research to find company that best fits your processing needs, each credit card merchant services provider will also have to make sure that they will be able to provide services to your company by researching your business. After September 11th, qualifications for processing companies to provide merchant services became even stricter. It became very important that the third parties processing credit card transactions knew exactly who they were dealing with and the nature of the business. The background checks and qualification process has become more in depth. Processing companies are now more cautious; they consider the chances of fraud being an issue and want to do whatever they can to protect themselves.
When it comes to assessing your potential as a customer, there will be several factors the processing company will need to consider. The first thing they’ll need to know is what what type of establishment you’re running; most prefer businesses who deal with providing services over retail product establishments. The reason for this is returns and chargebacks. The more returns and reverse charges a business makes, the greater the likelihood they’re in the middle of fraudulent activity. As a retail establishment, attaining a low-risk status could mean lower costs to process through any credit card merchant services programs.
If you have a newer business, then your chances of being labeled a high risk company are higher. That doesn’t mean you will automatically be denied credit card merchant services programs, but you can expect to pay a higher service fee when you’re first starting out. This will not be a permanent situation. The longer you’re in business and the fewer chargebacks you make can actually establish a more appealing ranking for you business and the service fees will eventually become less expensive.
You also need to be aware of both yours and your businesses credit rating, because you can be sure the company handling the credit card merchant services will be checking into this as well. You need to do everything you can to keep your credit history clean, or else you will be facing sky high service fees each time a customer uses their credit card.
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