So far, in our Accepting Credit Cards blog series, we have discussed the specific considerations businesses need to ask themselves prior to accepting credit cards:
- How much am I really paying and could I be paying less?
- Who are my potential buyers?
- Will accepting credit cards increase my sales?
And last week, we shared the necessary components (building blocks) for accepting credit cards:
- Block 1: The foundation – The Merchant & Business Bank Account
- Block 2: The solid and sturdy second level – The Online/Offline Store
- Block 3: The necessary and unavoidable third floor – The Merchant Account & Provider
- Block 4: The top floor and observation deck – Online/Offline Gateway
Today, we want to take a deeper look into choosing the appropriate vendors once that small business owner decides it’s time to start accepting credit cards.
But before we get started, remember that everything discussed in this post is in reference to a card not a present type of account.
Block 1: The foundation – The Merchant & Business Bank Account
Much like the merchant, the business bank account will serve as the foundation of accepting credit cards. We suggest choosing a bank wisely, making sure online banking exists AND that the institution and account type does not charge for inbound ACH Transactions.
We recommend using a local bank, rather than a large national bank, as local banks usually express more of an interest in building a relationship… this increases the chances that they might extend additional discounts on other services where needed.
Block 2: The solid and sturdy second level – The Online/Offline Store
For the purpose of today’s post, we will discuss using Content Shelf (our ecommerce software for digital downloads and more) as the online store of choice—duh.
However, if looking at other options, remember to choose a vendor that is PCI Secure because it will be required by the Merchant Account Provider.
Block 3: The necessary and unavoidable third floor – The Merchant Account & Provider
Although a Google search will produce more results than a small business owner will care to explore, the basics of choosing a good Merchant Account Provider include:
— Make sure the provider representative explains everything, including all fees. Reasonable fees associated with a Merchant Account include:
- One Time Start Up Fee – From $0 – $99 (the lower the better)
- Monthly Account Fee – $5 – $10 (includes statement fee)
- Monthly PCI Non-Validation Fee – $9.95 (maximum)
- Charge-Back Fee – $9.95 (maximum)
- Annual Compliance Fee – $0 – $49.95
- Per Transaction Fee – Interchange + .20% for MC/V/DISC and 3.00% Max for AE
Note: Using the interchange rate will keep the costs lower than using the qualified tier scale. The qualified tier scale charges for qualified, mid-qualified, and non-qualified transactions, which gets progressively more with each tier.
Note: Verify that all monthly fees are billed once a month instead of with every transaction. This feature is a lifesaver when it comes to reconciling bank statements.
More tips for choosing a good Merchant Account Provider include:
— Make sure the provider representative follows through on what is promised.
— Make sure you are comfortable working with the assigned provider representative.
So who do we recommend for the Merchant Account and Provider?
First Data/Sam’s Club – Their pricing is excellent and the support is the best that we have found. To request information about First Data/Sam’s Club click here.
Block 4: The top floor and observation deck – Online/Offline Gateway
For the purpose of this post, we will only discuss our online Gateway of choice. Most Merchant Accounts come with an online gateway… but the costs can be high.
We recommend using TrustCommerce. TrustCommerce provides services for both single transaction purchases and recurring transaction purchases. The support is fantastic and the pricing is extremely affordable:
- One Time Start Up Fee – $99.99
- Monthly Account Fee – $24.95 (includes 165 transactions)
- Per Transaction – .15 cents after the first 165
To request information about TrustCommerce, click here.
If it’s not already obvious, choosing the right vendor is not only about pricing, it’s about the quality of service that accompanies that pricing. With a little homework and trusting those gut feelings, any small business should be able to accept credit cards in about a week after all of the paperwork is complete.