Every type of business transaction, whether financial or otherwise, requires close attention and awareness of common mistakes. Merchants and merchant account processors deal with a substantial amount of sensitive information every day, the most important being personal credit card information. With so much important information at stake, it is critical for merchants and merchant account providers to avoid making critical mistakes that could put both companies and customers at risk. Here’s what experts suggest you look out for:
- Not Getting Everything Down in Writing: This is a common mistake made on both sides of the transaction. It is important for merchants to read any and all contracts thoroughly before signing, and only expect deliverables that are put in writing. Any agreements between the merchant and the merchant account processor should be put in writing with multiple copies, both physical and digital. On the other hand, it is critical for merchant account processors to promise and deliver only things that have been agreed upon in writing.
- Trying for a Low Ball Deal: As a merchant, it can seem appealing to try talking a merchant processing company into a better deal. However, it is not uncommon for many merchant account providers to offer a promotional introductory discount, then increase prices and fees once you are locked into a contract. Always look into long-term pricing with potential merchant account providers before any formal commitment has been made.
- Not Offering/Accepting Fraud Protection: As a merchant account provider, it is important to consider offering fraud protection services for your merchants. As a merchant, you can avoid major problems by not doing business with merchant account processors who do not offer fraud protection services for your company or your customers. Without fraud protection, you could be looking at serious financial consequences down the road.
- Not Watching Out for Early Termination Fees:Some merchant account providers sign merchants for long-term contracts. In the event of an early termination, merchants could be subject to excessive fees. Always make sure that you thoroughly research merchant account processors before committing to any, and understand the terms of any contract you are about to sign.
- Not Asking the Right Questions: Merchants and merchant account processors should maintain open communication, especially when it comes to clarifying the details of your contract. When will billing occur? By what means? Is the merchant’s account high-risk?
- Customer Support: Experts suggest that 24/7 support is the way to go if you’re interested in keeping customers around. Failing to provide the proper support can decrease merchant satisfaction and prevent easy fixes. For merchants, it is important to seek account providers who offer constant and live customer support, especially in the event of an emergency.
To learn more about merchant accounts and how we can help you get the most out of them, contact us today.