Bank or Merchant Services

Do You Need a Bank or a Merchant Services Account? As a small
business owner, you certainly need a bank account; no one is
suggesting that you put your money under the mattress. But when it
comes to accepting credit cards, you have other options. The bank
where you have your business account may be the first place you
think of when youre ready to take credit card payments. However,
there are some aspects to bank-based credit card processing
services that may make your bank less than ideal for credit card
processing. For one thing, if youre a small business or a new
business, they may not approve you for their credit card processing
services, even if you have been a good customer. Their prices may
also be higher. Any credit card processing service will charge a
fee for their services, but a bank may charge you extra fees. You
may also have to arrange for an online payment gateway separately
and at an additional cost. In fact, if you need a credit card
processing machine for your brick and mortar business, plus the
ability to accept payments online or by phone, you may face
multiple separate fees. Some businesses work with their banks to
accept credit card payments at their store or office location, and
use a third party processor such as PayPal to accept online
payments. A third party processor gives you an account which you
can use to accept credit cards. Usually, there will be a button on
your website that takes the shopper to the third party site, where
they complete their transaction. The money goes to your account
with the third party, and you can transfer it to your bank account.
Youll face more fees, of course, but there are other drawbacks,
too. Some shoppers are alarmed by having to go to another site
instead of paying directly on your website. Third party sites may
take twice as long as a merchant services provider or bank to get
your payments to you, creating issues with cash flow. Some also
have transaction limits or will flag or even refuse larger
transactions. Many require extra fees for certain credit cards.
Merchant services accounts are usually the best option for small
businesses needing credit card processing. These services
specialize in processing credit card payments for small businesses,
and usually provide support for online payments as well as payments
at your physical location. Some also accept wireless processing, a
help for companies with remote sales people or those who sell at
trade shows. The one clear advantage of sticking with your bank may
be that you have people to talk with when you have a question. Some
merchant services companies offer this type of support as well. For
example, Merchant Perfect, a merchant services company based in
Miami, provides live chat at their website as well as tech support
and personalized account representatives. When merchant service
providers offer personal service, the advantage of being able to
walk into...