Tips to lower your merchant account fees

January 15, 2013 | Author: | Posted in Finance

If you are a small business you will be hesitant to open a merchant account enabling you to accept credit card payments when you consider all the costs and fees that it entails, however careful planning and research will enable you to have a merchant account with a reputed merchant bank as Solid Trust Pay without the related costs devouring your profits.
Not accepting credit cards will put your business at a distinct disadvantage in this very competitive business world where card sales account for a large proportion of consumer spending and therefore accepting credit card payments is vital to able to be competitive and make the business profitable.

Here are some tips on how to reduce merchant account fees and costs.

1. Understand your business and the category of account and rates that apply to it.

There are various types of merchant accounts offered by merchant banks such as solidtrustpay that have different fee structures assigned to them. You need to identify which category your business falls within and decide on the necessary account. This will prevent you from paying extra fees by selecting a wrong type of account.

Familiarize yourself with the interchange rates published by Visa and Mastercard every April and October as these fees affect the bankcard processing charges.

2. Compare different quotes

Get quotes from different merchant banks and compare the rates. You could check rates and offers online by going to solidtrustpay.com and check rates offered by Solid Trust Pay. When you are aware of the different rates offered by different providers you can negotiate to get the best deal.

You should continue to compare current rates in the market even if you already have a merchant account and try to minimize the costs.

3. How does the bank deduct charges

Does the merchant bank deduct charges for transactions from your account on a daily basis or on a monthly basis? You will be at an advantage if it is deducted once a month in order to minimize use of your credit line. Talk to solidtrustpay to arrange a preferable method for you.

4. Does the provider charge a recurring fee?

Will your merchant account incur any recurring fees other than transaction fees? Most banks charge a fixed monthly fee irrespective of whether or not a credit card transaction took place during the time period or not, while some may charge start up fees and annual fees. Make sure to ask about all the fees involved before signing a contract. Go online to solidtrustpay.com to find out about their fee structure.

You should continue to monitor the monthly statements carefully and look out for any unexplained fees included.

5. How will you be charged for customer returns?

If your business is a retail business which involves a high rate of returns of sold items check on how you will be charged.

Solid Trust Pay bank will of offer a very competitive rate for your business to commence credit/ debit card transactions. Join Solidtrustpay and watch your business go from strength to strength.

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