There are several factors that might make having a merchant account
Your bank may initially feel like the most logical location for credit card processing and merchant services. After all, you’ve already established a relationship with them through your current banking relationship and you trust them to assist with your company’s needs. However, when it came to taking payments from your company, your bank’s relationship might not mean quite as much as you think.
Small Business Processing Options: Even though you’ve worked with your bank for years, many times they aren’t the best place to turn to for credit card processing and merchant cash advances. They have slightly different terms of service, charge slightly different fees, and generally don’t offer as much flexibility as larger banks do. For a small business owner who is looking for a quick and easy solution, this can often be a huge problem. They need to find a way to secure processing and merchant service providers without losing too much time and money in the process. As you’ll soon see, this can be a tall order.
Shifting Your Bank Account Location
Even though your current bank has been a long-standing and trusted financial partner, they aren’t always the best location for your credit card and merchant service providers. Often times, a bank that is used by many people as their local bank offers different services and fees to those who do business with them. Look at the different rates and terms for your merchant account providers. Are they better for someone who has a storefront in your local neighborhood? Or are they the same rate no matter where you shop for your products? If you don’t have a storefront, do you really want to have to pay more to have payment processing taken care of?
Look for Merchant Processing Fees: You may also want to consider the hidden fees that are associated with using a bank as your processing gateway. Some charge on a per transaction basis, charging every time that a customer uses your credit card. Others base the fee on the average dollar value of each sale that takes place using a card, but not every card user is paying this high fee. This can become an issue if you aren’t aware of the fees being charged.
Choose Gateways With Flexibility
Finally, choose your merchant service providers based on how flexible their set up is. A bank that allows you to set up invoices, make payments, and transfer funds is a good fit. A bank that is still working to fully establish its online payment processing capabilities is a less than ideal option. Look for companies that offer complete turnkey solutions for card payments.
All in all, it pays to do some research when choosing your merchant gateways. Credit card processors can be a powerful tool in business. If you know what questions to ask and what to look for when you’re shopping, you can’t go wrong. Good luck!