Merchant Account is used while acquiring credit card payment or getting business financing when required. When choosing a merchant account, businesses leap right into an agreement and finalize it without even going through it properly and thoroughly.
5 common mistakes which businesses should avoid when choosing a merchant account are listed below:
1. Signing Without Comparison or Research:
Never sign any agreement without first reading it. This is the most careless mistake ever in businesses. Shopping around and researching for comparison is the best way to do it. This assists in making a distinction between an expensive and a reasonable deal. Before signing any contract, conduct a complete market research with respect to business rating by analysing the company’s profile with the Better Business Bureau.
2. No paperwork involved:
Business agreements should always be based on paperwork. There are many marketing experts who convince small business owners easily. So before purchasing or signing an agreement always ask for something in written form for future reference and for security purposes. Through this paperwork, you can have a written proof of your discussions.
3. Deceived by freebies:
Merchant companies are working within an extreme competition. It’s a fact that a free offer can grab anyone’s attention. However, credit card processing is a very competitive market and merchant companies will do everything to get potential customers attention. And offering free giveaways always work. While getting these freebies you must check for any hidden charges in it. Beware of any sales tactics while engaging with the card merchant consideration.
4. Neglecting cancellation fee:
Contract cancellation fee purpose is to keep you intact with the company. Keep a close view on the amount of the cancellation fee. Otherwise, you might end up paying an expensive price for turning in a used credit card processing machine.
5. Afraid to Inquire:
Many businesses are afraid to inquire about their contract even if they are already confused with the jargons. They assume and ignore, whereas they should inquire for the purpose of clarifying fees, service, and any other related issues.
Though merchant account is an effective business tool but businesses should always research about them before signing any contract. Inquire about the contract and take a look at any paperwork that you might require. This will help you in preventing the usual mistakes before signing any long term contract.