A good merchant service company can save you thousands of dollars every year. Your customer experience will be affected by the choice you make. A win-win situation is one which benefits both your customers and you. A modern merchant service provider is cost-effective and efficient. They are also helpful with chargebacks, and doesn’t have to charge surprise fees. Every customer who walks through your doors enjoys a positive experience at the checkout. You shouldn’t have to compromise on quality to save money or in the opposite direction.
We’ve compiled what we think are the most important questions you should ask anyone you’re contemplating working with. These are the questions which help you make better decisions than bad ones. But before we dig deep into this, let’s be sure we’re all clear on what merchant service providers or merchant account provider even is. Once you would like a useful reference on credit card processing Los Angeles, look at here.
What is a merchant service provider?
Merchant services companies are firms offering a range of products and services focused on accepting all forms of payment.
These are the guys that set you up with a merchant account selling terminals, install POS systems, help you combat chargebacks, provide the ability to invoice online and sales information -You name it. Each merchant service provider has a unique offering, but they all act as a bridge between your business and payment processing. They should be your first source for all things related to payment.
Okay! Let’s get to the questions.
Questions to ask a Merchant Services Provider before you commit
Are there any setup fees?
Some MSPs do. Some don’t. If it’s a steep slope then ask why.
Do you charge cancellation fees?
It is not advisable to deal with anyone who has cancellation fees in the event of a 7-8-figure business that handles more than $100k transactions per month. If they’re not earning your business month after month, why should you be punished for quitting?
Is there a truly lengthy contract length?
Similar concept. There are a lot of bottom feeders in the merchant services industry. That’s how it works. But, anyone who asks for a commitment for 5-7 years with a substantial cancellation fee is probably one of them. You should avoid these companies.
Are there any processing or transaction quota for each month? If yes What are the sanctions?
This is another red flag. If you’ve had poor month, merchants will charge you for it. Tidal thinks that is absurd, as they make profits on every transaction. This means they can earn more from your good months. It’s an association, not one that the merchant service provider can beat your back when you’re struggling.
Similar to the first question Is there a specific limit on transactions? If yes then what are the costs for surpassing it?
Similar concept. They already make more! So why should you be charged?
Do you have a staff member who can assist me with chargebacks?
Merchants are constantly faced with chargebacks. Highly regarded MSPs such as Tidal provide chargeback assistance to fight fraud and customer chargebacks.
What’s your company’s policy to PCI Compliance?
Even if you’re using PCI-compliant software doesn’t guarantee that you’re PCI certified. PCI compliance is its whole tiny world. Some merchant services providers leave it all to you, while other actively equip you with the top tools and software. Make sure it’s the latter.
Why would they have an entry fee that is so low? Why can’t they provide an entry rate they can count on?
This is the truth. No one gives away software, hardware or incredibly low processing fees without knowing that they’ll have to make it up somewhere else. If you find a rate or offer that seems too good to actually be true, it probably is. That’s the area that you must be checking for charges. If someone offers free terminals and 1.5 percent flat rate, they’re profiting from you or will go out of business quickly.
Are you eligible for assistance with breach?
Some Merchant Service Providers like Tidal provide breach assistance in the event of PCI compliance violations. This is a great thing to have in in case of the possibility of a breach.
What kind of software and hardware do you sell or provide?
The top merchant card, processing service providers can provide customers with everything they need including PCI and HIPAA compliance dashboards and sales analytics, to mobile and smart terminals to PCI & HIPAA compliance dashboards, to sales analytics. You should ensure that the MSP you are considering has everything you require at a price that is affordable.
What kind of technical assistance can they provide?
There’s nothing more frustrating than experiencing an outage in rush, and your service provider isn’t available to help. Technical support is available 24/7.
Are they flat rates? Flat rate or a combination? Interchange plus? Both? What will they do to help your business decide what’s best for you?
Your MSP needs to sit down with your statement to determine the most suitable pricing structure for your needs. All businesses are not created equal, and depending on your type of transactions and frequency you may be a better fit with one type of pricing system than another. It is important that they spend the time to address this question.
Core Payment Solutions
6513 Hollywood Blvd.
Suite 211
Los Angeles, CA 90028
Phone: (323) 332-9423
