Merchant Account

Mistakes 101 When Surfing For Merchant Accounts

Okay here goes… as a merchant when surfing for a merchant account provider your first instinct may be to pick up the phone and make calls to various merchant account companies demanding the lowest rate possible. Big mistake! That’s what got the credit card processing business in the boat it is in now. A merchant provider simply cannot meet that obligation. However, they want your business and are in the market to please the customer.

A credit card processing representative can easily throw any rate out to you that you are going to be happy with. But, it will never be an accurate quote. Think of calling the bank for a loan, giving them your conditions prior to even filling out an application. A financial institution can give you the best case scenario and possibly the worst, but never an exact quote.

As a merchant wanting rates up front this approach will not achieve a result that you are wanting, well it may initially then you will wind up disappointed to find that you didn’t qualify for the rates that they initially quoted and may even be bound to a long term contract. This becomes the evil cycle creating that negative impression on your merchant representative and merchant account companies alike. It is not fair to the merchant company nor is it fair to you as a business owner.
Let’s think about it this way. You wouldn’t call your insurance company and ask them to give you an exact quote and demand a certain rate without them taking the time with you to do an appropriate validation. An approval and a precise quote are impossible without very specific information and certainly not in thirty seconds or less. There are so many factors involved. As with any financial product the bank must process a strict analysis to make any determination. Qualification for any financial product is always based on risk. Without a full determination can the risk be ascertained, this is what calculates a clients rate. This process needs to have the same respect as working with your financial institution for a loan. There are stringent conditions that must be met.
Merchant providers obviously want to earn customers and the very best response from a provider should be, “I will work on your behalf to get you the best possible credit card processing rates for your particular situation.” Keep in mind that rates are determined by the bank based on the merchant financial history and corresponding documentation. Merchant services are not a product a provider can price out. A risk assessment must be completed to determine the result of your rates. They look at several things; business type, credit, financial paperwork, business materials, years in business, processing volume and merchant history. Not until this is carefully reviewed by several departments will final terms be made. One may also go through this process with several banks to negotiate fair terms, which can take some time and patience, a willingness to go through thorough procedures.

If you are a business that is considered high risk or offshore and need a merchant account this process is even more stringent, expect the rates to be higher and the procedure will be lengthy.

Everyone can agree that this process is frustrating at times and somewhat confusing.

Getting the very best rates and the lowest fees possible is good business sense, especially in the market today. As a merchant you must work with your provider and utilize that person as your merchant account financial advisor as only with careful analysis can they get to know your business, what the best product is for that business resulting in the very best rate for your particular scenario.
Hi there, High Risk Mad Rich here specializing in merchant accounting and I will be happy to work with you as a partner in achieving your full business potential. Give me a call today at 1-866-949-8472 or you may opt to fill out a quick and easy application at to get an analysis started right away. Thank you for giving me the opportunity to earn your business.

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