Why You Should Read the T&C of a Merchant Account Service Agreement

by Jason Simms Opening a High Risk Merchant Account

After the initial reluctance e-commerce has become one of the most booming industries in the present day. In the early days, it was very costly to set up and with too many complications. Modern day technologies have made it very affordable and easily accessible to businesses of all sizes. E-commerce is now not regarded as high risk by the banks and credit card processors too. Merchants need to be careful of the following.

1. Better understanding

Merchants need to have complete understanding of the contract before getting into it. This is the most common mistake that all business owners tend to make at the start up stage. He needs to do his complete research before making the final decision about the processor.

2. Have clarity

Be very clear about why you need a merchant account and what all it can do for you. It will be used to accumulate credit card sales and after paying a fee to the processor you will get to keep your profits. The fees and the profit margins should be clearly defined on paper.

3. Read the T & C repeatedly

The terms and conditions will advise a merchant about the actual relationship between the processor and his business. It is the most important piece of document and should be well scrutinized. Do not let the complicated terms and language baffle you, consult an expert, but do not sign without complete clarity.

4. Look for the red flags

The merchant is not just looking for the rates, but also checking for any red flags or hidden clauses that he might have missed. Be sure to know the fluctuating rates inside out to avoid frustration later on.