5 Free Merchant Account Mistakes Merchants Make

September 7, 2008

Nobodys perfect.

And in the world of business, mistakes are made on the way to success that can either hinder or delay the planned success of a business and never has this been truer than for an ecommerce business. Merchants are too quick sign contracts or agreements from ecommerce helpers such as free merchant accounts.

Free merchant accounts are not the culprit here. And this wasnt meant to point a finger on whos to blame.

Before entering into any business – whether retail, MOTO, or Internet – agreements & contracts are always present. Some merchants who see free on the paper dont account the fine print on the contract. Thats one of the downfall of merchants. After a month or two, they go running back to their providers with contracts in hand, only to admit defeat that they have no escape from the dreaded contract.

So what are the common mistakes merchants make when getting a free merchant account? Educate yourself on some you can easily avoid:

They dont look out for hidden charges/fees
As long as summer days are long, and nights are short, so will anybody whos ever been in business has to make money – and free merchant accounts providers are no exception. Its sooo cliche, but there is seriously no such thing as free lunch. Merchants can avoid committing this mistake by asking for all charges and fees they might incur when they start processing. This includes but isnt limited to the discount rate, transaction fees, and monthly processing fees.

They dont poke around the FINE print.
Our rates are FREE! Often, just a mention of the word free and anyone in the FREE world will scurry to see what they can get without giving. Unfortunately in business, this isnt the case. Some can give you free coupons but you have to buy the whole newspaper, or get a free lunch but pay for dinner – the point being merchants easily see the word free but they dont poke around the FINE print. If theres another word starting with F that merchants should be wary of – it should be Fine with the word PRINT to follow.

They dont ask when they can access funds
Your merchant account provider should free you of restrictions when it comes to having access to your funds/revenue 24/7/365. Start scouting fast for a new one if they impose restrictions.

They dont make a background check of the company
Everywhere theres a thief. Its up to you to make the necessary precautions. Whether its a credit card processing provider, a payment gateway, or a shopping cart, always make background checks. The features of Web 2.0 has made the world a smaller place, as well as placed consumer information within reach. Easily you can get free reviews of merchant accounts, payment gateways, the latest news on celebrities, and what-nots within seconds!

They dont look for freebies
Although there is no such thing as free lunch, there is such a thing as appetizer! Consider the freebies offered by free merchant account providers as appetizers – free setup, application fees, monthly fees, etc, depending on your provider, can be tasty and make you want to get ahead with the whole meal – or service. Of course, as a merchant you should always be on the look out for providers who normally change their freebie offerings from time to time and take the best deal out there.

When you get an offer sheet, it helps to be a bit skeptical. Dont look at it with doe eyes – innocent and believing every word spouted by the agent. Knowledge is also powerful – with it, you can attack the agent with a barrage of questions. If you feel they havent successfully answered your questions, then start shouting... NEXT PLEASE!

Its your business after all.

netinfoseek.com | edit