5 Questions to Ask Your Merchant Services Provider

by Brendon Degner | Jun 16, 2022 | Education, Merchant Services

Before you decide to go with one merchant services provider or another, it is important to have an honest and thorough discussion. The right fit is crucial in helping your business save time, money, and stress in the long run. Asking the right questions is a great place to start, and a good merchant services provider should have no reservations addressing any of these concerns.

1. What Do You Do?

As a business owner, you’ve probably been told that you need merchant services. But that doesn’t tell you much about what, exactly, a merchant services provider does. Ask your potential provider for specifics about what services they offer and how it will benefit your business.

In a nutshell, a merchant account enables a business to accept payments by credit or debit card. Card data is handled by a payment processor and transferred securely to the business bank account, where it is received as funds. Beyond this, your merchant services provider should be willing and able to answer all your questions about the specifics of payment processing, including security, data storage, fees, and more.

2. What Security Steps Do You Take?

Security is of the utmost importance when processing credit card data, which can be subject to all manner of fraud. Ask your merchant services candidate to explain any and all security measures they take to prevent data breaches.

Your merchant services provider should also be willing to help you work toward PCI compliance. This is a set of twelve security requirements developed by the Payment Card Industry Security Standards Council. PCI certification can take time, but it will help you avoid additional fees for non-compliance.

3. What is My Contract, Exactly?

There is no reason why your merchant services provider should want to hide anything from you within your contract. He or she should disclose all fees and thoroughly review the contract terms with you. Watch out for shady clauses like low introductory rates that will double or triple after a trial period. Ask about locking in your rate and if you are eligible for any discounts.

A good merchant services provider should want to help your business succeed so you can have a long-term relationship. Hidden fees, unreasonable contract lengths, and too-good-to-be-true intro offers are red flags that you will want to watch out for.

4. What Happens if I Have a Problem?

The best merchant services providers will be communicative. If you have an issue, your provider should have a way for you to discuss it with a live person and in a reasonable amount of time. Generic customer service lines or chat bots that have you on hold for thirty minutes at a time are no good in an emergency. Ask your provider to be candid about their customer service protocols.

You can get a good idea of how well your potential provider handles customer service through their online reviews. Check for key words like “responsive” and “above and beyond.” This is a solid indication of their attitude towards helping established clients.

5. How Long Will it Take to Get Set Up?

The time it takes for your merchant account to be approved will ultimately depend on your type of business and your financial standing, including credit score and any prior issues with merchant services. That being said, the process generally takes anywhere from a few days to a few weeks. If it is taking any longer than that, you may want to try a different provider with more experience in your type of business.

If your business is considered high risk, for example, you will want to be sure you are working with a merchant services provider who has experience in getting approval for these types of businesses. Otherwise, you run the risk of your merchant account being denied and having to restart the process.

Help Choosing a Merchant Services Provider

Selecting the right provider is essential in helping your business grow. With so many companies to choose from, this can be a daunting and time-consuming task. A merchant services broker is a great place to start to help you filter out the best candidates for your business. Brokers have relationships with many different providers and can help find the best match for your needs.

If you are a business in need of merchant services, contact Brendon Degner at Summit Payments. Brendon is highly knowledgeable about industry requirements, trends, and common security issues. Call our office today to get started.

Difference Between Merchant Services and Payment Processing

by Brendon Degner | Apr 6, 2022 | Education, small business

Merchant Services vs. Credit Card Processing

While the terms “merchant services” and “credit card processing” are often considered synonyms, they are not actually the same thing. Both concern the processing of payments for your business, but the capabilities and support available for each is quite different.

What Is a Credit Card Processor?

A credit card processor is also called a payment processor. The primary role of a payment processor is to route data from a credit or debit card to a merchant’s bank account.

A payment processor is often paired with a point of sale (POS) system to facilitate payments. The POS is the physical or digital place where a transaction occurs (e.g. where the credit card is swiped), and the processor is a component of the POS system that routes the information from the card.

In some cases, the payment processing company will provide POS equipment, customer support, and assist with things like PCI compliance. Generally speaking, however, credit card processors are limited to simply moving data from one place to another.

What is Merchant Services?

Merchant services takes the credit card processing system a step further by adding a human element that focuses on helping you cut costs, remain compliant, and stay secure. A good merchant services company offers several direct benefits to your business:

1. Merchant Services Is Your Personal Payment Expert

A good merchant services provider will be well-versed in anything related to a business accepting payments. From the best POS systems to security compliance, you will have someone you can contact to help you navigate the complexities of electronic payments.

Having someone you know you can count on to handle the entire payment process not only alleviates stress, it frees up valuable time. You can focus on actually running your business and let merchant services worry about the headache of accepting payments.

2. Merchant Services Know the System

As a business owner, you are probably always looking for ways to cut overhead costs. Merchant services can help you save money by negotiating better rates and minimizing fees. Your provider will also be aware of common “hidden charges” associated with payment processing and try to eliminate or reduce these charges. This rate and fee reduction can result in significant savings for your business.

3. Merchant Services Keep You Secure

One of the most important aspects of payment processing is keeping client information secure. You must obtain a certification stating you are compliant in this respect. If you do not have a certification or your certification lapses, you are subject to fines ranging from $5000 to $500,000.

This may sound scary, but a merchant services provider can demystify the certification process and ensure you adhere to regulations. They will know what you need to do to maintain compliance based on the types of transactions you accept each month.

Additionally and very importantly, a merchant services provider will be informed of the latest trends in cybercrime. This is an ever-growing threat and there are literally hundreds of ways data can be stolen. Your provider will teach you what to watch out for to avoid a security breach.

Finding a Good Merchant Services Provider

Finding the right merchant services provider can seem daunting. There are many, many companies to choose from, all with varying costs and capabilities. The best place to start when selecting a provider is by going to a qualified broker. He or she can suggest the merchant services provider that suits your individual needs.

If you are in need of merchant services but aren’t sure where to start, give Summit Payments a call. We have years of experience in the payment processing industry and love finding ways to save you money. Contact us to schedule a consultation today.