When you are working with customers who need to set up merchant services, or when you are looking for a business that can provide this type of service (most commonly, credit card processing), it's helpful to know what's involved. Some businesses will only process credit cards; others will also handle debit cards and gift cards. A few go even further, offering mobile card processing, virtual terminal, online shopping cart integration, printable invoices and more.
The following are some helpful tips to keep in mind when you are either looking for someone to process credit cards or trying to find customers who need this type of service.
General Overview of Merchant ServicesIn order for a business to accept credit cards, they must have merchant services. These are the companies that work with businesses to allow them to accept credit card payments on their websites or in person.
Typically, this means that you will need to sign up for an account with a merchant services company, enter some information about your business and then pay a monthly fee plus some percentage of each purchase you receive. This is known as the interchange rate, and it's usually between 2-4%.
Your merchant service provider will send you a credit card terminal (you can also use your own smartphone or tablet but this is more expensive). You may need to sign contracts with each customer; some companies allow monthly billing while others require full payment up front.
You can also offer gift cards and loyalty programs to increase revenue and customer satisfaction, and receive detailed reporting so you know where every dollar is going. Many companies will handle all of this for you if you sign up for an ongoing contract with them.
There are many merchant service providers throughout the world; I'm based in Canada so the remainder of the article will be specific to North American providers.
Choosing a Merchant Service Provider?When choosing a merchant service provider, you should ask yourself these questions: Do they offer all types of credit card processing? Is there an interchange fee? What's included in the monthly fee? How do their pricing terms compare to the competition? And how do they handle refunds?
How to Find Customers Who Need Merchant Services?If you want to work with merchants directly, you will need to find customers who either own retail locations or need an online shopping cart. You can also market your services to other business owners; for example, computer repair companies and restaurants might take credit cards but many still don't offer this service. They could use your help.
For retail customers, you might try to get them to switch their business credit cards, or get them to offer gift cards so that customers can come back again and again without carrying cash. You should explain why this is important for their business success. For online merchants, you need to explain the benefits of including a shopping cart and how it can help increase sales. You might explain that including a secure checkout option and integration with PayPal, for example, will also reduce the number of abandoned shopping carts.
There are many ways to find customers who need merchant services; it just takes time and effort to get started. If you're not sure where to begin, you can hire a marketer on a contract basis to come up with a plan.
How to Find a Merchant Services Provider?There are many ways to find a merchant services provider, including searching online and asking for recommendations from business associates. You should investigate at least three companies before making a decision, and read reviews of each company on sites like Google, Yelp and BBB. This way you can weed out the scammers and choose what's best for your business.
