Merchant accounts are essential for taking credit card payments and also for acquiring the required business financing. Businesses tend to enter agreements without taking it in consideration and then later face problems. We have created a list of common mistakes which small business owners make and which you (as a small business owner) should avoid.
Compare Before Choosing
Small business owners in need of loans make hasty decisions and choose the wrong funding option. This is the most common mistake of all because we do not make any attempt on researching the best suitable option. Shopping around and comparing is the best way to find the right source of funding. This will help in differentiating between the best suitable option and vice versa. Therefore, before you plan to sign any contract, conduct a complete market research and always cross check companies with Better Business Bureau.
Don’t Ignore Paperwork
If a merchant company has convinced you in becoming your account providing agent, then you have to make sure that you do the paperwork. Before purchasing always ask for paperwork and keep all facts and figures in writing, this will help you in keeping yours and their demands in solid format. Keep a copy with yourself and another with the merchant company you are dealing with. This way, you can evade certain charges not usually included in their sales pitch.
Don’t Get Excited About Freebies
The best way to attract customers is to use free deal and offer free products. It’s a fact that freebies can grab anyone’s attention. However, credit card processing is a very competitive market and merchant companies will do anything to get potential customers attention. And offering giveaways is the best suitable options. But there is always a catch, why would any company offer free stuff? Beware of any sales tactic while engaging with the card merchant consideration. You must check for any hidden charges in it.
Never Neglect Cancellation Fee
Contract cancellation fee is implied so that you remain intact with the merchant company. So be cautious, with regard to its cost, and write it down in the agreement. Otherwise, you might end up paying an expensive price for turning in a used credit card processing machine.
Many businesses are afraid to discuss and clarify their contract, even if they are confused with the jargons. Everything should be on paper and everything should be clarified.
Though merchant accounts serves as an effective business tool, but small businesses should know what they are getting into before signing any contract. Inquire about the contract and take a look at any paperwork that is required. This will help you in preventing the usual mistakes before signing any long term contract.