Avoid these pitfalls when choosing a merchant account

If the merchant account provider charges the same rates for MasterCard and Visa, you’re being overcharged or they’re hiding charges. You’re also probably paying too much if the merchant broker only gives you one qualified rate or only offers mid and non qualified rates. Anytime you lease credit card terminal equipment from the merchant account provider, you’re getting a bad deal. In a matter of months you’ll end up paying more than if you’d have purchased the equipment outright.

Long term contracts with early termination fees also smell of a bad deal. Once you are locked into the contract, you may find yourself stuck with rates that are higher than quoted, poor customer service, and delayed funding. Remember that the Interchange is not controlled by any one company so there is no guarantee that the Interchange rates will stay the same.

Hidden fees can also blindside you if you didn’t read all the fine print and legal terms. There is almost no limit to how many fees merchant account providers can charge. Try to stick with merchant account providers who don’t have long term contracts and early termination fees. Watch out for yearly fees, equipment fees, gateway fees, statement fees, security and fraud prevention fees, and transaction fees.