When it comes to the process of selecting a new service provider for your business, at times it can become a challenge that you’re not necessarily ready for. Of course, don’t get any false hopes of getting out of paying transaction fees and in addition to that, you may run across more additional fees that can slowly disintegrate up your profits.
This article will mention several things to avoid when it comes to additional merchant account charges:
Avoid the Chargebacks
A chargeback happens when the customer asks you the card issuer for a refund; In addition to the refund amount, there are other processing fees that will also be charged. The most frequent and common cause of chargeback requests happens when the customer does not recognize your company’s name on their monthly statement. The easiest way to prevent this from happening is to reassure your customer’s that they will have a clear recognition of your trading name because it will be highlighted on your checkout page, terms & conditions and confirmation pages.
Make Improvements to Your After Sales Service
Accepting refunds can get tricky. Be sure to clearly post your refund policy and stick with it. Unnecessary delays will end up costing you hard earned money. The best way to avoid a mess is to issue a refund and lose that one sale than to loose a deal not only with a lost sale but also having to tack on additional chargeback fees.
Having Cost Effective Settlement Terms in Place
Be aware of your payment service provider’s settlement policies. They should be using your companies’ funds in the most cost effective way possible, having your best interests at heart. Several Internet Merchant Account providers will try to offer a settlement of your funds with a check and will add additional fees for this process. Have a clear understanding of your settlement terms and, if at all possible, authenticate yourself with a BACS transfer (banks automated clearing system) directly into your clearing account. BACS services are operated alongside all the leading high street banks and helps process millions of direct payments each week for business, local council and financial institutions. BACS is universally trusted as the highest risk-free form of payment processing and many businesses now regularly make use of convenient BACS payments for electronic money transfers. They are easy to use and very efficient. It’s the right solution when having to pay invoices that are transferred into your bank account with your direct credit. It’s easily the most economical way to release your funds.
Sign up for E-Statements
If you receive a monthly invoice in from the post office then you should sign up for electronic statements if the opportunity presents it self. In most cases, Internet Merchant Account providers will charge a monthly fee that can run usually up to 10p a month. Your monthly statements will also reflect this.
Finally and Foremost:
Remember, merchant accounts will always have fees no matter what. Avoiding it is nearly impossible. This is the price you must pay for having convenient service at your disposal and the help you need in order to accept credit cards. But have no fear; there are certain merchant account fees that you can avoid. The trick is, speaking with your account representative. Remember, they are working for you and it’s their duty to guide you through determining the different ways to save money on the costs of using a merchant account. Also, doing your own research can put your mind at ease. Investing time into your investment is important, wouldn’t you agree?