Ready to apply? Make sure you do everything you can to help your merchant account get approved.
For most casual buying and selling done online users do not need their own merchant account. Often times an aggregator such as PayPal (a service that processes payments through their own merchant account) is sufficient. But how do you know when the needs of your business warrant applying for a merchant account of your own? Here are a few things to consider before you spend time and money applying for a merchant account.
What does your business sell? The products and services businesses offer for sale are as vast and diverse as the people who run them. If your business offers typical products like cell phones, magazine subscriptions, t-shirts, or artwork chances are good your products or services will have no problems being approved for a merchant account. On the other hand, a business or individual who sells items or offers services that are considered higher risk or inappropriate may not be able to find a merchant account solution that fits their needs.
Do you sell in large volume? For a growing business getting the best rate possible is a constant goal. Business owners are constantly trying to save money and typically try to shave pennies off their per unit expenses. Aggregators like PayPal will often charge a higher percentage rate per transaction than merchant accounts. This means that a business with a dedicated merchant account may be able to save more money “per swipe” than a similar business that uses an aggregator. Not only does this save money, but it gives you a competing edge.
What does your personal credit look like? Although personal credit scores don’t affect the rates you are charged in relation to swipe fees, a poor personal credit score may prevent you from getting a merchant account all together. On top of that people with poor credit scores may be offered merchant accounts which are subject to other costly stipulations like rolling reserves or ACH delays.
How do you want customers to perceive your business? As an avid user of the internet I’ve come to realize that online image is everything. If I perceive a business or individual to be reputable, well-known, or trustworthy I will have no problem purchasing something from them. However, even the slightest misgiving or “red flag” may be enough to persuade me to purchase from someone else, even if the person I am avoiding offers the lowest price. That being said a merchant account may lend your business a higher level of credibility over an easier to attain service.
For a business that sells regular products or services, the decision to apply for a merchant account is a no-brainer. The money saved for selling in volume, and the higher level of credibility that a merchant account lends is well worth the application fee. However, ensuring your application is accepted is a matter unto itself. If you’re ready to apply, you’ll want to make sure you do everything you can to help your merchant account application get approved.
About the Author:
Janelle Pierce enjoys writing about issues facing businesses like online storefronts, online sales, shipping online orders, etc. In her free time she enjoys spending time at a local concert or enjoying the great outdoors.