Merchant Processing Plans: Which Suits Your Company Best
Merchant processing is not just some optional service a business contracts with as a convenience or a luxury – it’s far more than that. While you may already understand this – perhaps a little too well as an experienced business owner – there are still many newcomers out there who are just starting up a business of their own and who don’t quite know the ins and outs of entrepreneurship well enough to decide on merchant processing partners and programs that benefit them – not take advantage of their naivety.
Of course, as with any industry of modern persuasion, there are a lot of choices when it comes to establishing, customizing, maintaining, and ending a merchant processing contract and relationship – so many choices, in fact, that some just throw up their hands and call it quits after only having been in the game a few weeks. Although it can be initially overwhelming to find and secure a merchant processing solution that works for your business without wasting your money, there are unquestionably basic program fits for certain types of companies.
Let’s discuss a few of the more common merchant processing solutions offered by most merchant service providers. While some companies just need a typical stationary terminal for swiping cards, others may need online processing solutions for their Internet store, some might want merchant processing for their mail-order business, or some just need to be able to process on the go. As you peruse these merchant processing options, take into account the needs of your own business, and decide on solutions that have such needs in mind:
Standard – or conventional, to some – merchant processing set-ups are the most common payment solutions, as many business owners operate physical stores. Known as brick-and-mortar operations in today’s modern digital lingo, these establishments require the least technical prowess and have the lowest risk of fraud.
Merchants who run online stores require shopping carts, payment gateways, and other specific software applications and contract terms, as risk is typically higher with online transactions. However, the profitability of an online store is likely to surpass that of a typical store if current trends are any indication.
Any business owners who implement mail-order or telephone-order transactions will need MO/TO merchant processing. This variety of course carries increased risk, and therefore higher costs, but if you’re doing well in that business format, keep with it!
Lastly, and likely most importantly as time goes on, is the mobile merchant processing needs of businesses and individuals who have to process their patrons’ payments via mobile devices like smart-phones, tablets, and more. This is lower risk, but slightly higher cost due to mobility.