GLOSSARY TERMS

When it comes to many financial services, including merchant accounts, some providers and brokers take a “one size fits all” approach. Unfortunately, one size does not always fit all, and you may need solutions that are unique for your business situation. When choosing a merchant account, do not just go with anyone. Instead, look for a merchant account provider that fits your individual needs. You are paying for a service, and you deserve to be treated as more than just another number.

Consideration #1: Cost

The first consideration for many business owners when choosing a merchant account provider is cost. This is important because one goes into business to make money – one does not want so many fees and costs that it all goes elsewhere. Here are the steps you need to take to get a good cost efficiency from your merchant account provider:

· Decide how much you can spend on fees. All merchant accounts come with standard fees. These include application fees, monthly minimum fees, transaction fees and so on. Figure out how much of you monthly sales you want to go to fees. Most businesses can reasonably expect to pay between 3 percent and 7 percent of their monthly sales on fees. Something around 5 percent is probably very reasonable.
· Shop around. Look around for merchant account providers. You would be surprised at how much merchant account providers can vary in cost. Compare the costs and the benefits and services offered by merchant account providers. Look for the best value. (Hint: The best value may not always be the cheapest provider.)
· Look for package deals. One way you can save on costs associated with merchant accounts is by getting package deals. If you can find account providers that also offer payroll services or other business necessities, sometimes you can get a discount. Integrated service providers may be able to waive certain fees or combine services to increase cost efficiency.

Consideration #2: Customer Service

You provide good customer service to your clients, and the same should be said of any merchant account provider that you choose. You want an account provider that will work with you, and that will help you make the most out of your business. You also want service that is:

· Personal: You do not want to be treated like just another number. You should look for service that treats you as an individual. No recommendations that do not fit your company. Instead, look for service that treats your company like the unique business it is.
· Timely: Do waste your time with a merchant account provider that is slow. When you are initially shopping around, does the representative get back to you quickly? Does he or she contact you when he or she said to expect a call or email? If the representative does not know an answer, does he or she find out as fast as possible and get back to you? If the representative is slow when you are shopping around, chances are that the company will be slow to respond once you are a client. Make sure you are getting a company that resolves issues and concerns in a timely manner.
· Offers good communication: A good merchant account provider will communicate with you effectively. Whether through email or phone, good communication is necessary. Check to see if the merchant account provider confirms receipt of your questions and concerns. Additionally, your merchant account provider should alert you quickly if something is wrong, either with your account specifically or with the system.

Choosing your merchant account provider

When it comes time to choose your merchant account provider, carefully consider the items listed above. Additionally, in order to get a better feel for the merchant account provider, you can do a few other things:

· Find other customers. Look for other customers of the merchant account provider. Contact them and ask how they like the service, and whether they think that the cost is reasonable. Do not just contact those that the company provides as “references.” Do a little research and see what you can find. No merchant account provider is going to satisfy all its customers perfectly, but you can get a general idea of how the provider operates, and trends amongst its clients.
· Look online.  Check online. You can do a search for the merchant account provider’s name, and see what sorts of things come up. How do people discuss their experiences on forums and blogs? Have there been some serious problems? Are customers generally satisfied? The Internet can also let you find reviews and ratings for the merchant account providers you are considering.
· Better Business Bureau. Check with the Better Business Bureau over the phone or on the Internet to see if there have been serious complaints against the merchant account provider.

If you take a little extra time to do some research, you will be more likely to choose the best merchant account for you.