A merchant receives a billing statement and the rates do not reflect the fee schedule that was outlined. Another merchant receives the news that her funds are being held until the transaction’s authenticity can be verified and bank statements collected to ensure that she can cover any potential customer dispute or chargeback. Another business owner learns that his merchant account has been closed due to inactivity and excessive rejects.
As a merchant account agent for over the last decade, I have heard and witnessed the aforementioned scenarios and quite a slew of others – most of which could have been prevented by an enlightened merchant who researches the merchant account field before opening a merchant account and looks over the contract before providing a signature. Of course, it is also imperative to sign with a merchant account provider, noted for honesty, integrity, and full disclosure. But the purpose of this article is to outline steps you can take to avoid potential merchant account minefields.1. Know Thy Rates
Before calling a host of credit card processing companies and asking about their fees, you should take some time and learn about all the possible fees. (more…)