High Risk Merchant Accounts

Merchant accounts are necessary for processing payments whether you have an online store, a storefront, or both. You need to choose a merchant account that will fit all of your needs, be affordable and reliable. You also have to consider the fact that when you apply for a merchant account the company you apply with is going to want you to have decent credit and low risk. If you don't have decent credit or have a high risk business there are some alternatives such as high risk merchant accounts.

Merchant accounts can be hard to come by if you have had problems with a merchant account in the past or if you run the following kinds of businesses:

1. Travel agencies
2. Amusement parks
3. Bail bonds
4. Pawn shops
5. Cell phone sales and/or service
6. Timeshares
7. Consultation services
8. Dating and escort services
9. Insurance
10. Infomercials
11. High ticket items for sale
12. Home businesses
13. Used cars
14. Gyms or other weight loss centers
15. Check cashing/Payday loan companies

If you own a business like the above you will need to look into companies that will deal with high risk merchant accounts. Don't be discouraged, there are those companies willing to take a chance, you just may pay a little more.

To avoid having problems with your merchant account be sure to offer your customers clear guidelines regarding returns and refunds (store credits are best), read the fine print in your merchant account agreement (too many problems are caused by people who didn't read these terms and conditions), ask your merchant account provider if they have special services for new businesses or small businesses that may help you.

The key is to shop around and find what suits your needs and get it for as little money as possible. Merchant account fees can really add up so be sure to do your homework.

Consider Cost When Choosing a Merchant Account

Merchant account fees can be very confusing. There can be so many hidden fees that you really need to be smart about what questions to ask before signing up.

Some of the costs that you will likely incur:

• Set up fees - Many merchant accounts charge around $200 for set up. You can find some that will really vamp this up and charge near $1000. Be very careful here. Make sure you know what this fee is. This set up fee can change depending on the services that you select to receive from the company. The more services, the more the set up charge is bound to be.
• Discount fee - This is usually somewhere around 2%. That means that for each sale that you make 2% of the cost will be taken and go directly to the merchant account provider. All companies have a discount fee. It is just the name of the game. Merchant accounts provide a great service to you and your customers and you have to pay for it.
• Transaction fee - This fee is usually a set cost. Many times it is right around .30 per sale or transaction. This is in addition to the discount fee. Don't be mistake and think that there should be one fee or the other. Typically, there are both fees. Keep in mind that .30 per transaction is an estimate as is the discount rate estimate above. Companies can charge what they see fit.
• Monthly fee - Most companies will charge a monthly fee. Some will make the monthly fee dependent on your level of business. They may say that you have to do "x" amount of business or you will pay a monthly fee.
• Statement fee - So many merchant accounts will have you agree to the fact that there is a statement fee. If you are not okay with paying for a statement fee you can always find a company that doesn't charge such fees.

Our pick for great merchant account services:

Charge.com

Accept PayPal Payments

PayPal is one of the most versatile and inexpensive merchant services on the Internet. You can literally accept any form of payment, handle your invoicing, process payments online or by fax, mail or phone. The service is extraordinary. Here is a brief description of how PayPal helps merchants with their payment processing.

Accepting payments online: Whether it is your eBay account or your website you can accept payments. All major credit cards and e-checks are accepted. You have no set up fees, no monthly fees and the transaction fees vary from 1.9% to 2.9% + .30 per transaction. This is very reasonable pricing for the ease that it affords you. Some merchant fees can really add up. One thing to keep in mind is that this does not include a shopping cart for your website and it directs traffic to the PayPal site for payment processing. This package is called "PayPal Standard"

To avoid having customers leave your site for payment you may consider a plan called "Website Payments Pro". Here you pay $30 per month flat fee with a 2.2% - 2.9% + .30 transaction fee. You are able to accept payments right on your website and this is compatible with PayPal ready shopping carts that your web developer can put in place.

If you are an online merchant that already has a merchant account you can use PalPal as a payment gateway. A payment gateway allows your website to interact securely with your merchant account. PayPal is very secure and allows information to flow from your website to their gateway. It is then sent through a network of financial institutions and the card (or bank account) issuing bank will send the message of whether or not the payment is approved. All of this only takes about three seconds total. You then finalize the purchase.

PayPal offers two payment gateway solutions. Payflow Pro and Payflow Link. One enables customers to complete the full transaction on their website, the other lets them complete it on the PayPal website.

PayPal even offers a wizard to help you decide which program may meet your needs best. Not many programs offer you so many solutions as well as affordable pricing.

Choose the Best Merchant Account

Running a business can be stressful enough. The last thing you need is to have hassle after hassle when it comes to choosing the best merchant account. Not only do you need reliable services from your merchant account provider, you need them to esentially be a business partner. It is crucial for most business owners to have a merchant account so that you can accept credit cards from your customers.

Just a few things to consider before you decide which merchant account company you are going to go with.

• Get to know other business owners and ask them who they have for their merchant account. Ask if they like their service and why the do or don't. Get as much information as possible.
• Look up the companies that you are looking at online and at the Better Business Bureau. This is your money they will be dealing with after all. Make sure that they are reliable and honest and don't have complaints against them.
• Consider what you are willing to pay. When business owners realize how many online solutions (like accepting payment through PayPal) there are for businesses that are only online based it would be ridiculous to pay more than is needed.
• What services are included: Are there statements at regular intervals and is there a statement fee? How does customer service communicate with you? What are the procedures for charge backs? Are there hidden fees or fees that you can avoid?
• Ask smart questions and find the best merchant account for you.

There are many reviews on merchant accounts. We think that most people would be happy by choosing Charge.com. They offer great services for competitive rates. They are customer service oriented and know how to serve your needs.

Merchant Account Fees You Can Avoid

There will always be fees associated with merchant accounts. The merchant account company provides you with a service and therefore you pay for it. However, there are merchant account fees that you can avoid. We will discuss what those fees may be and how you can possibly avoid them.

There are companies such as Charge.com that offer no set up fees, fast approvals and no excessive fees. If you can possibly use a company that offers these kinds of promises then it would be best. Be sure to watch out for the following:

Card Swipe Terminal Fee - Most merchants find that they need to have the ability to swipe credit and/or debit cards. This requires the card swiping terminal. Naturally you have to acquire one of these. The merchant account company would like you to lease the equipment or make monthly payments. Merchants may want to look into buying the equipment outright. This may end up costing a lump sum up front but in the end may save you quite a substantial amount of money.

Gateway Fees - Merchant accounts charge a fee for you to access the network to determine whether the customer really has credit enough for the item during each purpose. This can be charged on a per purchase charge or a flat rate monthly fee. If you ask the company you go through if you can avoid these fees by processing the payment without doing it in "real time" they may have solutions for you. Most people do not even know to ask about this feature. You do need to be careful as this means you will not really know if the purchase is approved or not until after the fact and you could lose some merchandise because of it.

Batch Fees - Each day you will submit the purchases made through your terminal or software. When you submit these, the day's business is considered a "batch". Most merchant account companies will charge fees for submitting the daily batch. It is always good to know to ask about these fees. It also can't hurt to ask if they can wave these fees. Be sure to get it in writing if they do claim that they can wave them.

There are other fees such as annual fees, programming fees, reserve fund, and more that you need to watch for. Be sure to ask the person you deal with what they offer and what they don't. It is a good rule of thumb to remember that it never hurts to ask what they can do for you. If you would like them to take fees off just ask. If you find two companies that have similar services for the same money you may ask what they can do to convince you that one is the right company for you by having them wave certain fees. Always remember to get things in writing. Companies like Charge.com are competitive and will try when they can to work with a customer.

Merchant Account Fees

Merchant account fees can be confusing. It is important to understand clearly what you are paying for before choosing a merchant account. Fees that you need to ask about are:

• set up fees - this is where shopping around is key, all banks are different, be sure that you watch out for these fees.
• equipment fees/ monthly lease rates - Be sure to find out whether it is better for you to own your equipment or to lease it. Be sure to find out what the costs are if you have to terminate your lease or return the equipment, or credit card terminals.
• statement fees - most companies will charge you a monthly statement fee. It can be easy to begrudge this fee but in reality the bank is doing an accounting of your transactions for you. They also take their money out of the account and just deposit the remainder into your account. This can be very convenient for you and save you time, thus the statement fee.
• discount rate - this will vary depending on the merchant account you get, it is usually a percentage rather than a flat rate. Depending on the type of credit/debit card you accept the fee will vary.
• payment gateway charges - providers will charge for security, the use of the software and more.
• transaction fees - most providers will charge you a transaction fee. So, if your transaction fee is .19 you will be charged that .19 every time a customer makes a purchase from you.
• misc. charges - this can even be a minimum monthly fee
• possible rate changes for different payment types (debit, credit, check, e-check)

The merchant account fees that you can incur can add up fast, make sure you keep track of what this is going to cost you and shop around. If you are in limbo or unsure as to what step to take but need a solution fast you may consider PayPal.

Merchant Account Equipment

Merchant Accounts and merchant account equipment vary with the needs of your business. You need to assess the needs of your business and then shop around to make sure you choose a merchant account that will be what is best for you.

If you have a store presence you will need merchant account equipment for card swiping. Most often, banks will charge you less for transactions which require the customer to swipe their card. Keeping merchant account fees to a minimum should be a priority. It is a great convenience but don't pay more than you have to. You may need more than one machine for your store and you may need pin pads for customers to enter their debit/credit card numbers. Many machines now are all in one where it is basically one hub where the customer can choose credit or debit and then either enter their pin or sign their names to secure the transaction.

If you have an online store presence you will need a payment gateway. In other words, you will need a secure way to let your customers pay online while trusting that you keep their information private. Payment gateways vary and you will want to do your research here as well, to make sure that you get the right product for your customer's needs. Most often you are going to need software. You want to make sure that it is as secure as possible. One solution for this is to use a web based company for these needs such as PayPal.

Getting the right merchant account equipment for your business right at the beginning can save you a lot of time and hassle. As your business grows you should be able to fit your merchant account to it's changing needs. Be sure to ask questions about what you do when you need more terminals or better software or upgrades.

How Merchant Accounts Work

In this post we will discuss briefly how merchant accounts work.

Most business owners want to know how to accept credit cards, how to have the ability to accept credit cards online with a payment gateway, what merchant account fees can they expect and more. It is important to do your research so that you don't pay more for your merchant account than necessary. There are many features that make this all very easy whether you are a new business or a seasoned business. Just be sure to choose a merchant account right for your needs.

The whole process of receiving an electronic payment only takes a matter of seconds. Modern technology has made it so that your customer swipes their card or enters their number online, the data and amount go to the bank, the bank approves or declines the funding and sends a message back to the vendor. As technology gets better, this process takes less and less time. It is amazingly fast.

Merchant accounts are set up to enable a vendor to offer these forms of payment. If you are online you either need to choose a solution like PayPal or you need to accumulate software so that you can offer your customers the ability to pay online in a secure manner. In a bricks and mortar store you will need a machine that has the ability to swipe the card. All of this requires a merchant account where the money for the day (or whatever interval you have it set at) batches out and sends all the data and funding. It is a form of bookkeeping that is done for you and naturally there are merchant account fees that are required for the service.