In order to succeed, businesses must adapt to changes in their customers’ expectations. Customers now expect to be able to purchase virtually every kind of goods and services online using a credit card or debit card, and financial experts agree that this won’t change any time soon. Even after the coronavirus lockdown is over, more people will likely continue to shop online now that they’ve become accustomed to it.
If a business doesn’t have an internet merchant account already, now is the time to get one. Of course, how to open an internet merchant account may not be self-evident. Read on to learn 3 important tips on how to open one.
1. Estimate risk
A merchant account is a bank account through which businesses can accept card payments. These accounts are essential for eCommerce businesses and any store that wants to process credit or debit cards online. Swipe machines aren’t enough anymore.
The first step to knowing how viable a business is for an online merchant account is to know its risk. Businesses in high-risk industries are those that have a statistically higher likelihood of chargebacks on transactions. Businesses in the gambling, travel, and pharmaceutical industries are typically categorized as high-risk.
Estimating this risk can help predict the online merchant account services that a business will need and what their rates will be.
2. The importance of financial history
Financial history is another factor that can influence the rates that an online merchant account will charge to a retailer for conducting its transactions. If a business is in the name of someone with bad credit or a bankruptcy on their record from within the last 10 years, this can potentially have a negative impact upon the rates they will be offered.
Paying off or consolidating debt could be a useful first step for improving credit, since the business owner’s credit history can have a potential impact on the fees.
3. Understand the fees
Make sure to understand any fees that may apply to a new account. Make sure to check carefully for any “hidden” fees. When comparing online merchant accounts, evaluating fees is a good preliminary step.
Online merchant accounts supply businesses with the technology and services they need to process credit card and debit card transactions online. Cardholders expect these services from businesses, particularly until the coronavirus pandemic is over, and will continue to do so. It is essential to be aware of how fees are processed and calculated, and to choose a merchant account that works with your needs.
Visit Charge.com or call (888) 924-2743 to find payment account service options and choose the one that works best for your business.