Compatible Point of Sale Systems
You may be preparing to choose a point of sale (POS) system or you may already have one. Regardless, you need to understand which POS systems work with which merchant accounts. It is also important to have up-to-date hardware when opening your account. Hardware today needs to support EMV (EuroPay MasterCard Visa,aka chip technology). Whenever buying this technology, make sure you buy it upfront rather than lease from a merchant account company or a POS company. Leasing can lead you to paying far more than the hardware is worth.
Know the Pricing Model
There are three different types of pricing models when it comes to credit card processing: flat rate, tiered pricing, and interchange plus. Know which model works best for your company, so you can find a merchant account service best equipped to service your customers. Processors like PayPal have a flat rate model, which is the best for smaller companies that are generating relatively low
revenue totals each month. Tiered pricing is based off of a qualification system that determine which rate tier a merchant's transaction qualifies for. Finally, an interchange plus pricing model allows merchants to pay a flat fee regardless of what the wholesale processing rate and a small transaction fee. Make sure you know your company’s pricing model before you choose a merchant account company.
Know the Fees
When budgeting for a merchant account service, make sure you understand all of the fees involved. Many merchant account companies charge fees outside of the typical monthly charge, such as transaction or start-up fees. Carefully researching and asking questions is key in this industry because fees may not always be stated blankly on a company’s website. Before committing to a merchant account company, don’t be afraid to ask a lot of questions. It is better to be over prepared than to risk choosing a sub-par company or one that is ill-equipped to service your customers.