Just like any major business decision, choosing a merchant services provider should entail a lot of research and careful thought and deliberation. This is so simply because a merchant services provider can either be a great partner for growth or a hindrance on the prosperity for your business.
So when choosing a merchant services provider, there are some things that businesses should avoid in doing to prevent them from making a potentially fatal business decision.
Choose the first provider you meet
When choosing a merchant services provider, you must remember that you are choosing a close business partner for growth. Therefore, do your research on the merchant services provider. Use sites like Google to find out what other business owners are recommending and who they urge you to stay away from. As well, sites like the Better Business Bureau (BBB) are great resources that can offer unbiased views of how these potential partners are viewed by the business community. In addition, ask other merchants who they like using and who are the worst offenders to not do business with.
Believing free means free
Economists are usually quoted as saying there is no such thing as a free lunch. The question is why? This has to do with the fact that in order to have a free lunch you have to give something up which usually means the time you give to receive a free lunch which could have been used for something else. When it comes to merchant processing, many providers tout the benefits of their free terminals. Even though this sounds good, it usually is too much to swallow since nothing in life is free. These merchant services providers will usually hit you with higher than normal rates and fees which can cost your business considerably in the long run.
Not being honest on your merchant application
Benjamin Franklin once said that honesty is the best policy. Since a merchant services provider is actually a partner for growth it is best to simply be upfront with them about your business and its needs. Either not being completely truthful or simply lying on your merchant application can cause you to pay higher transaction fees or even your application to be rejected altogether. It's OK to be truthful with your merchant services provider since they want to do everything they can to help you and your business succeed.
Even though these services may seem like trivial day-to-day process a business owner may not need to worry about, choosing the right provider can have profound implications on your business. A good merchant services provider should not simply be viewed as a vendor but as a partner to help your business grow.