Learn how to talk a merchant account sales person and negotiate a better deal.
The more you understand about merchant credit card processing, the better equipped you are to avoid the common pitfalls of a pricey deal. These tips should help you find ways to reduce your costs, and run a more efficient business online.
What to Ask
Most people think it’s a good idea to ask a sales person about the rates they offer, and they’ll usually get an answer that sounds really great. The problem is you’re asking the wrong question. Instead, ask the merchant account provider which pricing model they use to accept credit cards online. The answer you’re looking for is “interchange plus”.
It’s the most transparent pricing model for credit card processing, because it tells you the difference between the interchange and the assessment. This gives you a clearer picture of where your money actually goes and prevents the payment gateway from meddling with your charges to increase the costs you pay.
Say “No” to Certain Fees
The basic rule is to make sure the fee pays for something you can understand. If the answer is nebulous, say no and see what you can negotiate. One fee to avoid is the cancellation fee, which most credit processors will waive if you ask and are polite.
High risk accounts are for merchants that fit certain criteria that present a greater probability of default. Those selling intangible products, or those in the entertainment market, for instance, all have to confront this issue in some form or another. Look for volume sales discounts, if applicable, and shop around. High risk doesn’t mean you must take the first offer.
Charge.com Payment Solutions Inc. provides merchant credit processing for businesses of all sizes, enabling more companies to accept credit cards online.