Many customers today prefer to use credit or debit cards for their personal and business transactions. This is a more convenient method of payment for many than using cash and checks, and you may find that your business loses customers if you do not accept the methods of payment that your customers are willing to use. This is true whether you are a plumber, a retail store owner, a landscaper or another type of service professional or vendor.
With this in mind, you may be wondering what steps are needed to accept credit and debit cards from your customers. You will need to open a merchant services account in order to accept these methods of payment, and it is important to understand more about these types of accounts.
A Closer Look at Merchant Services
Merchant services are a third party payment processor that essentially collects the funds for the transactions for you from the customers’ credit card companies or banks. To use merchant account services, your small business will need to open up an account with the merchant services provider, and with many companies, this requires you to have good to excellent credit (not with us though). In addition, you will need to purchase or lease the credit card processing equipment. It should be noted that you can obtain these accounts from Internet merchant service providers and independent credit card processing companies.
Why Small Businesses May Have Trouble Getting an Account
There are many factors that are reviewed before you are granted a merchant services account upon request. Your business credit rating, your years in business and other factors all come into play. This is because a merchant account is viewed as a type of line of credit for small businesses, and small businesses generally may have difficulty qualifying for a line of credit because of lower business credit ratings, reduced net income and more. However, independent credit card processing companies and Internet merchant accounts may have more lenient requirements.
Alternative Options for Merchant Accounts
If your business is a home-based business, a small start-up or a business that otherwise has limited cash flow or a poor credit rating, your application for a merchant services account may have been turned down by your local bank or some other providers already. One idea is to look for an independent merchant account service provider. These may be Internet-based firms that offer slightly higher rates and fees for services. However, with their more lenient underwriting and approval guidelines, there is a better chance that your application for a merchant services account would be approved by an independent credit card processing company or Internet merchant provider than with other sources.
The decision to apply for a merchant services account is a wise one, mostly because you want to be able to accept the forms of payment that your customers are more willing or more likely to use. There are many merchant service accounts that you could apply for, so make sure you compare the requirements and rules, the types of credit cards they accept, the fees and various other factors in detail. By making a thorough comparison, you will be able to find the right provider to work with.
If you’d like to know more about how we can help you accept credit /debit cards and get the absolute lowest rates, call us for a FREE Merchant Services Consultation at (800)416-7713
Rick Anderson @FundingExpert1
Rick Anderson is the CEO and Senior Small Business Funding Specialist with Small Business Money Solutions. A company that helps small business owners and self employed professionals get the financial solutions they need to GROW and thrive. Rick has been in business for over 22 years, and his company has helped 22,485+ small business owners and counting. Rick has also written a book on small business finance entitled 10 Easiest New Money Sources For Business Owners.
Connect with him https://www.linkedin.com/in/RickAndersonSmallBusinessLoans or if you would like to ask him a question, send it to [email protected] If you’d like a FREE ‘Business Funding’ Consultation, call him at (800)416-7713.