Choosing your Merchant Account Provider.

When it comes to choosing a merchant processor to handle your transactions and deliver your money to you, the decision can be confusing. After all, not all merchant account providers are created equal. Names in the processing industry come to mind such as: PayPal, 2checkout.com, ProPay, and Cardservice International (Of course). All of these companies can provide you with credit card processing, but which one is right for you?

What is the difference between PayPal and a regular Merchant Account?

PayPal is referred to as a 3rd party payment processor. This means that PayPal uses their Merchant Account, and will process your credit card transactions for a fee slightly more than what they are paying. Last we checked, paypal charges 2.9% + $.30 per transaction Vs. our charge of 2.39% + $.25 per transaction (Cards swiped with a terminal have a lower rate with us of 1.69% + $.20 per transaction). One of the advantages to PayPal is that there are no credit checks, no monthly minimums, no monthly service fees, no contract, and their shopping cart is FREE*. For a small business venture who is just staring out, this is an attractive cost-effective method of conducting online business. Currently there are other processors such as ProPay and 2checkout.com which are based along this same concept; however some competitors charge setup or monthly fees in addition to per transaction fees that can run as much as 5%. You must also consider how 3rd party processing looks to your customer. For details regarding this, please view our "What about PayPal" page.

Some things to beware of if you use PayPal. In exchange for the FREE*doms from contract periods and monthly fees, you are consenting to process your transactions through a Merchant Account that does not belong to you. This becomes important when you are dealing with issues of charge backs or fraudulent transactions. At some point a fraudulent purchase may be made from your website. PayPal’s Terms of Service agreement gives them unrestricted rights to FREE*ze and remove all funds from your PayPal and checking accounts in the event of a dispute or fraudulent transaction. Your best bet is to read the entire agreement cover to cover and be prepared to ask questions if you are uncomfortable with anything listed.

With a traditional merchant account from Cardservice International, you have total control over your bank account and how transactions are conducted.

How to evaluate a merchant account provider:

1. Assess your processing needs first:

Do you want to accept Visa, MasterCard, Discover and American Express or perhaps just Visa and MasterCard?
What is your monthly budget for card processing fees?
Are you comfortable paying signup or annual fees?
Would you prefer to apply online, via mail or fax?

2. Consider a handful of merchants who meet your initial criteria:

Create a spread sheet to track merchant fees and assess your overall costs at zero transactions and 100 transactions.

3. Assess the merchant:

Are they available to answer your questions promptly?
What is their track record?
What do customers say about their service and support?
Are there any “hidden” fees? These may be listed in the merchant contract but not provided up-front and online for your consideration.
Do they require a contracted commitment…1, 2, or 3 years?
How do they handle charge backs and fraud?

4. Investigate Fraud Detection Services:

Request information from the merchant processor on methods which reduce fraud and charge backs. These may be security measures such as Address Verification Service (AVS) or Credit Verification Value (CVV).

5. Call the toll-FREE* number and speak to a customer service representative about any contract/fee concerns or questions you have. It’s better to inquire about all fees now than to find out on your next monthly bank statement!

6. Read the ENTIRE Merchant contract. This means cover to cover! The full details are sometimes buried in the very fine print. These contracts can be intimidating; go slow and highlight areas which may be of concern.

7. Merchant Accounts generally require a credit check. Be picky about which companies you allow to access your personal and business information.

8. The decision to allow “offline” payments is an important option.

Not all customers will be open to paying online. There are many who feel that it is not safe to place personal credit card information on the Internet, and no amount of security or encryption notices will convince them otherwise. Does that mean you simply cannot do business with them? Absolutely not! Cardservice International is uniquely setup to accept “offline” payments?

The main idea behind selecting a good merchant processor is to assess your needs closely prior to selecting a merchant and read the fine print to be sure you completely understand your commitments as a merchant. This ensures that you are equally matched with a merchant processor and hopefully starts your business relationship off on the right foot.

You will have a good experience when you do business with Cardservice International. As you can see from our website, we make every effort possible to encourage you to contact us and ask questions. On the left side of every page you see a "Quick E-Mail Answers" form and a live chat button. At the bottom of each page you see an option to e-mail a question and at the top of every page you will see our toll FREE* phone number.

We are totally confident that there is no competition when it comes to credit card processing. Our contracts are fair and honest. We encourage you to ask questions and examine every little detail along the way. We look forward to talking (and working) with you.