When looking for a good merchant services processor there are several things you need to be wary of:
Thief Practice #1) If you get a credit card processing rate that is too good to be true, for example a .98% discount rate, look very closely at the fine print. What you will probably find is a mid-qualified rate in excess of 3% and a non-qualified rate in excess of 5%. Most merchant services processors will charge a very low-qualified rate to make you think you are getting a good deal. Yet, in reality they are placing a huge mark-up on the mid-qualified and non-qualified credit card processing rate. They are tricking you into thinking you got a great deal, when in fact they are robbing you on your mid and non-qualified transactions. For most merchants, mid and non-qualified transactions make up in excess of 30% of their total volume. So a big mark-up here could cost you 1-2% of your total annual sales! Do you want to give up 2% of your margins to excessive credit card processing markup? I know I would not.
Thief Practice #2) Look at the fine print. Most merchant services companies state that they can raise your rates at any time and without warning. This is not fair, so ask for some protection from this.
Thief Practice #3) You monthly minimum fee, gateway fee, statement fee and everything else should be no more than $25 per month in total. Anything more than that is just plain thievery.
Thief Practice #4) Find out from your merchant services company what is an acceptable charge back rate and get that put into your contract. Almost every contract you sign with anyone states that if you have too many charge back,s your merchant services processor can withhold new funds from your bank account and actually go into your checking account and take all of your money and hold onto it until they feel like giving it back to you. Sound scary? That’s because it is.
At Choice Merchant Services, we move all of our credit card processing volume through A+ Better Business Bureau rated North American Bancard. When you get a merchant services processing quote from us you know it is done so with integrity and that we will use good and fair business practices with you. You can’t maintain an A+ rating with the Better Business Bureau in the credit card processing business unless you treat people right.
So only work with A+ BBB rated companies and be on the lookout for the merchant services thief by looking in the fine print for the 4 points above. When you do that, you and your business will be in much better hands.
