When comes the time to choose payment solutions for their small business, many business owners are completely in the dark when it comes to merchant accounts. However, many business owners find out that the process is much easier than expected. In this article, we’re going to expose five common myths and misconceptions people have about merchant accounts.
Merchant Accounts are Almost Impossible to Get
For new business owners, just the fact of applying for a merchant account can be nerve wracking. But merchant accounts are much easier to get nowadays. In many cases, even business owners with little to no credit can get approved through high risk merchant accounts. Many companies offer merchant accounts to companies involved in high risk businesses, such as gambling sites and online merchants, and people with bad credit.
The Application Process is Strenuous
Many business owners may be apprehensive about getting a merchant account because they assume the process will be difficult. However, in this day and age, most applications for merchant accounts are pretty straightforward, provided you work with a reliable company. While it was once customary for applicants to have at least an incorporated business to be eligible, most of the time, all that is needed nowadays is a legal business name. As a matter of fact, many sole proprietors now have access to a wide variety of business merchant accounts.
Individual Merchant Account Providers Decide who’s on the High Risk List
Individual merchants do not decide which business is considered high risk. As a matter of fact, businesses are deemed high risk after a provider places them on the MATCH list, which was originally created by MasterCard and used by account providers to gauge potential clients. There might be various reasons for a company to be on the MATCH list including possible fraud, overcharges, identity theft or bankruptcy.
If you’re on the High Risk List, it’s Almost Impossible to get a Merchant Account
Again, that is not true. There are tons of companies that specialize in high risk merchant accounts. HighRiskPay.com is one of them, but there are tons of others that specialize in the same service. While charges are usually a bit higher than regular merchant accounts, high risk account providers will evaluate the level of risk for each client’s and set their rates accordingly. In some cases, charges might be almost identical to those of regular institutions.
Merchant Account Equipment is Expensive
This used to be true not too long ago, but individual point of sale technology is much more affordable these days. Most point of sale terminals can be found for under $500 these days. Furthermore, some companies will allow users to rent terminals on a monthly basis or even give them away to merchants who sign an annual agreement.
Merchants accounts are more accessible than ever with many companies offering different packages for a variety of industries. Being able to accept credit card payments is essential and merchant account providers are making it easier for business owners to transact with clients. So if you were still on the fence about merchant accounts, or thought you weren’t eligible because of you situation, you should definitely give them a second look to see if they’re the best solution for your business.