My Merchant Account Blog

Merchant Account Agreements

Friday, March 23, 2007

When you sign up with a merchant account provider, they want a contract.  This contract helps to ensure the provider that you will do some type of business with them.  Most businesses start because people want to make money.  And to make money, businesses sell services and products to others.  This merchant account agreement helps to ensure that you, as a merchant, will provide a business to the provider and will also stay in compliance with regulations set forth by the provider, by the acquiring bank, and by Visa and MasterCard.

Some providers want you to sign an agreement for one year, two years, maybe even three years.  This not only protects the provider in knowing he will have a customer (the merchant) for a number of years, but it also protects, you - the merchant.  As the merchant, this contract ensures that you will have the processing capability that you will rely on.  Without this, you the provider could shut down at anytime without any recourse.  You, as the merchant, would be left without a merchant account provider, unable to process any credit card transactions and not making any money.

When getting a merchant account, look to see how long the company has been in business.  Check to see if they are a public company and to see how much they are worth.  You want to know that the company you are going to choose is stable and reliable.  You want to know that the company you choose to process your credit card transactions will always be there for you and is not a fly by night company.  Also check out Choosing a United States Merchant Account Provider to see what information to look for.

Merchant Account Fraud

Friday, March 09, 2007

When applying for a merchant account, merchants tend to look for the cheapest processor.  This might be OK for some, but for others, you might want to consider who you are giving your personal information to. 

Merchant account providers' websites should always contain the acquiring bank name and if they are an ISO or MSP.  I know I wrote about this last April, but it always bears repeating about this time of the year.  Why?  Because April is usually the month that the interchange rates are increased by Visa and MasterCard.  And merchants get the notification that their rates will be increasing and they think that if they go to another provider, they will get cheaper rates.  Usually this is not the case and you will have a better chance at getting a better rate if you contact your current merchant account provider. 

Check choosing a United States Merchant Account Provider to remember the most simplest rules set forth by Visa and MasterCard to help to identify the company you wish to do business with.  If the provider does not have this, think twice about giving this company your personal information. 

Always choose a reputable company when picking a merchant account provider.  Know who you are dealing with, after all, it is your money as well.  Spending a little extra might be worth it - you will be less concerned that the provider will go bankrupt.