Choosing the Best Merchant Account Service

Posted by Confidential Banking
3
Mar 24, 2021
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Once your eCommerce business is up and running, you will need a merchant account to collect payments using the most popular payment options today—Visa and MasterCard. However, with so many merchant account providers to choose from, how do you decide which one is right for your eCommerce business? Here are some tips that might come in handy:

1. Do your due diligence.

If you look up “merchant account services,” you will most likely be inundated by the results, which will show a huge list of different providers that work with low-risk merchants or high-risk merchants, or both. It is critical that you understand who you are applying with. Check to see if the provider you are considering partnering with has already processed payments for other businesses in your industry—for example, if you want to open an online pharmacy merchant account, make sure your provider has experience working with merchants in the high-risk pharmaceutical niche.

2. How’s their customer support?

An uninterrupted cash flow is critical to your eCommerce business’s success, so make sure you have someone to assist you at all times. Keep in mind that you are running a business, and any downtime with your equipment and/or systems will result in an interrupted cash flow. You never know when a minor issue or a major crisis will spring up. So, whether you are able to dial in or receive assistance via live chat, you should ensure that your merchant account service provider can deliver prompt customer service to you 24/7.

3. What about the rates and fees?

This is usually the focal point of any merchant account application and the first question you should ask your merchant account service provider. Make sure to inquire about all fees, including setup fees, transaction fees, and chargeback fees. It is worth noting that high-risk merchant processing services are often more expensive than traditional payment processing.

4. What’s the payout time?

You know that you will receive your money, but you must also know when. Remittance turnaround times can vary depending on the processor and acquiring bank. It is primarily determined by your risk category and the type of merchant account you have set up—for example, there is usually a one-week lag before the first payout for a high-risk merchant, and subsequent payouts are granted every 1-3 days or weekly.

5. How easy is the integration?

The shopping cart is the most critical aspect of any online store. So, make sure to inquire with the provider about if (and how) you will be able to integrate your shopping cart with their payment gateway. Many providers support WooCommerce (a popular eCommerce plugin for WordPress) and CMS platforms like Shopify and Magento; check if they can support what you use because this means your shopping cart can be integrated with their gateway with a single click.

Before you choose your new merchant account provider, you will need to do a lot of research. You don’t want to go with the first provider, and you don’t want to go with the cheapest either. Doing your homework and asking all the right questions will save you from trouble down the line and ensure that the payment processing solution will work for your business.

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