Getting a new business up and running is by no means an easy task. In fact, it can be an incredibly stressful time in the lives of the people behind that business. During this exhausting startup period, the last thing most business owners want to do is take on even more worries.
Many businessmen and women out there forego credit card solutions because of worries about processing fees. Of course, on many occasions these worries are misplaced, misunderstood, or just false. Fears of the unknown dissuade far too many business owners from utilizing the beneficial universe of credit card processing. The following myths and misconceptions are often the cause.
Myth #1 - Merchant Account Providers Charge Exorbitant Processing Fees
Probably the biggest fear out there today is that accepting debit and credit cards will cost your business too much money. Many people out there would probably love to accept credit cards, but are afraid that the fees might be too high. They know that more people will come to their business if they accept credit cards, but fear that the fees would make it less than worth their while.
The truth is that fees and costs are far lower than you might expect. One reason for this is that there are an increasingly large number of merchant accounts providers out there today. This competition helps keep prices down for you and your business.
There is also a big difference between various processing machines and forms of payment. Online payments are more expensive because of the heightened risk of fraud. Payments in person are far lower because studies show that fraud is reduced when people deal with each other in person. Personal payments with debit cards are even lower than with a credit card.
Myth #2 – Merchant Account Providers Have Expensive Hidden Fees
Legally, merchant account providers must offer their clients a thorough list of each fee that comes included in their package. You do have to be careful to read the fine print, however. Just like any business, they might make it more difficult to find these fees in the contract.
If you find yourself reading a contract and the pricing doesn’t seem to make sense, call and ask to speak to a customer service representative. This will serve as a good way to make sure that a potential provider is reputable and ready to assist its clients.
Should you encounter a company that tries to hide their fees and won’t give you a straight answer on the phone, just take your business elsewhere. There are plenty of honest merchant account providers who will be happy to explain all of the fees and costs.
Myth #3 – Setting Up a Merchant Account is Too Expensive for New and Small Businesses
Businesses of every shape and size can benefit from credit card processing through a merchant services account. In most cases, an account provider charges you according to the amount of business you conduct. This way, it grows depending on how much business you actually do. Small businesses can easily accept credit cards even if they do less business than a big corporation.
When you finally learn a little bit about the merchant account industry, you will quickly discover that many commonly held fears are misplaced. The truth is that credit card processing fees aren’t nearly as frightening as they may seem.
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