Credit Card Processing: Myths versus Facts

Article Written By: marcialopez

With so many consumers turning to credit cards for all types of purchases – both big and small – today, it s a wonder every business is not accepting credit cards for their goods or services. In fact, opening a merchant account can yield big profits for even small businesses. Today s they are less expensive and simpler to establish than ever before; yet many business owners have misconceptions that may be keeping them from opening it and enjoying all the benefits credit card processing can offer. Consider the following myths – and the corresponding facts:

MYTH: Merchant account applications are complicated and difficult to fill out.

FACT: While the merchant accounts of a decade ago may have required substantial documentation and a protracted application process, today s accounts involve a simple online application process that takes only moments to complete.

MYTH: They have exorbitant fees and costs.

FACT: Thanks to the increasing number of account providers offering services today, many providers have decreased or eliminated fees and costs once associated with opening and operating an account.

MYTH: Merchant accounts have costly hidden fees.

FACT: By law, all providers must provide their customers with a complete list of all fees and costs associated with them. Some providers can make it more difficult to locate fees; like any business agreement, take your time and read the contract thoroughly, and ask questions about any fees or terms that are unfamiliar.

Also steer clear of providers with artificially low rates, or companies that make it difficult to determine all the fees and costs associated with their accounts. Reputable merchant account providers will make sure you understand all the costs associated with your account.

MYTH: Merchant accounts are only for specific types of businesses.

FACT: Today s merchant account providers have a broader range of services and products than ever before, and can create a program of services and features that are right for your business. They can also accommodate new and growing businesses, ensuring your company can continue to thrive and evolve for years to come.

MYTH: Merchant accounts are too expensive for small businesses and businesses that are just starting out.

FACT: Many account costs are based on the amount of business you do, meaning your costs will remain lower while your business is just starting out.

MYTH: Fewer consumers are using credit cards today, so the advantages are limited.

FACT: Consumer spending studies show more and more consumers are turning to credit cards for even small purchases, thanks in part to incentive programs that can actually pay” card holders for using their credit cards. As a result, card usage is up, meaning your business stands to profit more than ever by accepting credit cards.

MYTH: Merchant accounts are only for retail and online businesses.

FACT: Today s merchant account providers offer options for any type of business. In addition to retail and online businesses, there are accounts that are designed specifically to meet the unique needs of mail order and telephone order companies, as well as companies that want to do all or part of their business on the road. These new mobile accounts use the keypad of your mobile phone or other mobile device, a handheld terminal, or your laptop keyboard to enter credit card data for processing, allowing your business to be conducted virtually anywhere, including trade shows and conventions.

MYTH: The account approval process can take months to complete.

FACT: Depending upon the merchant account services provider, the type of business you operate, your business financials, and the type of account you re opening, approval usually takes anywhere from 48 hours to two weeks in most cases, meaning your business can be accepting credit cards and competing with the big boys” in no time at all.

Accepting credit cards is a great way to keep your business competitive, and to grow both your customer base and your bottom line.

About the Author

Marcia Lopez - credit card processing.

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