Are you considering a new merchant account processing provider? Or are you just taking the first steps on the way to processing credit card payments online? No matter where you are on this way, once you dive into the search, you’ll definitely face several myths about merchant accounts processing.
They are almost ubiquitous, and, in most cases, quite wrong. To prevent you from being misguided, we have decided to show you the most popular stereotypes and debunk them with the objective truth.
5 myths about merchant accounts 2018
Myth #1: All merchant services providers are scammers.
This is #1 on our list of misconceptions about a merchant account. Of course, smart business owners should be very careful when looking for a processing solution provider. However, if you believe that all PSPs are scams, then you couldn’t have been further away from the truth.
Several things make some companies more reliable than the others. And we recommend you to look for them when choosing a long-term processing partner.
First of all, reliable merchant account processors comply with PCI DSS certificates. This means that they use a set of security controls inside a payment gateway that protect credit card data passed through the system.
Second, make sure that the merchant account provider of your choice uses fraud and chargeback prevention systems. It is extremely hard to avoid fraud and chargebacks without such software in place. Therefore, having special software installed to protect the data you transfer inside the system is a great option.
Finally, check out who has already trusted them before you. There is no one-size-fits-all solution in this case. However, knowing that someone has chosen this PSP before you is a sign that you can trust them too.
Also: Take a look at 14 common misconceptions on payment gateways
Myth #2: It’s better to work with a local bank without merchant account providers’ help.
While it is true that some local banks might offer reasonable rates to your business, it is not always the case.
The thing is that merchant account providers typically work with several banks from all over the world. They continuously grow their acquiring network which allows them to meet the expectations of even the most demanding businesses.
Therefore, it is better to check out the specific rates various PSPs offer to your business. You’ll see that some offer better conditions than your local bank. So, why not using this chance?
Myth #3: They all offer similar rates.
One of the myths about merchant accounts in 2018 states that there is absolutely no need to shop around to know all of your options. “No matter what PSP you choose, you’ll end up with the same price your competitors in the same tier are charged.”
Well, this is definitely not true.
Several factors impact the rate level.
First, the rate depends on your type of business. If you own a business qualified by the authorities as “high-risk” due to an increased chance of fraud and chargeback cases or a larger average check size, then the rates offered to you will undoubtedly be higher.
Besides, it is important to note what card was used to make the payment – credit or debit. And finally, the rate depends on the bank a PSP will process your business payments through.
And sure thing, you can always negotiate the rate and see if your PSP is flexible.
Myth #4: The cost of the setup and payment processing is too high.
Not necessarily. It might be, but it doesn’t have to be. It all depends on the payment service provider you choose. Surprisingly, if you choose the right company to process your payments, its rates might keep your pockets full.
Moreover, you can always opt for equipment leasing if purchasing all the credit card processing equipment is too much for you at the moment.
Just remember that there are plenty of ways to make payment processing affordable without breaking the bank.
Myth #5: The biggest merchant account providers are your top choice.
The last on the list of 5 merchant account myths we wanted to debunk is the following.
A lot of merchants assume that hiring the most popular PSP is their best choice. However, it might not be so.
Not only large PSPs might be less flexible than their smaller competitors, but they might also have higher processing fees.
It is essential to do your research first and make an informed decision. Compare the conditions, rates, and success stories of all the companies on the market. The big size of a processing solution provider doesn’t equal a higher number of service offerings.
Over to you
We truly believe that credit card processing is essential to all those who want to succeed in their business. So, you have to give it a try, and the sooner, the better.
But as you dive into the search, don’t fall victim to all the popular misconceptions we mentioned above. Do your research and stay on top of things!