Convenient Payment Processing Solutions For Wireless Businesses
When it comes to merchant
accounts, some wireless business owners will sign up with the cheapest service
provider they can find. If you want to make an intelligent decision about which
credit card processing solution is best for your wireless business, you must
first educate yourself on the basics of merchant account choices.
Businesses who receive
payments over the phone or fax lines or through e-mail or traditional mail
services. The customer enters the credit
card information into a secure website, and the data goes directly to the
processing entity. Internet businesses or companies who conduct a high number
of transactions on a daily basis. Service providers like repairmen or
landscapers who accept payments at their customers' locations.
The credit card number is
punched into any touch tone phone. Requires a minimum of training for employees
and allows credit card payments to be processed anywhere.Service providers who
conduct a small number of high-dollar transactions away from their home office.
To do that, you must
understand the pricing structure of merchant services providers. Almost all
merchant accounts have what is called a discount rate (also known as the
periodic rate). This is the percentage of each transaction amount that will be
paid to the entity that processes credit card payments. Some accounts also
offer a qualified rate, which is the lowest discount rate category on a given
account. To maintain this rate, companies must meet a certain set of criteria,
which may include a minimum number of transactions, full compliance with the
merchant services provider's regulations, and a low chargeback rate. If these
criteria are not met, the provider may raise a company's discount rate (much
like credit card companies do with consumers who exceed their credit limit or
don't pay their bills on time).
Another common expense
associated with merchant accounts is the transaction fee, which is a flat rate
that is charged every time a credit card is approved. Other fees which can be
assessed by a merchant services provider include monthly or annual fees, an
interchange fee for the use of the credit card processing network, and a
minimum balance surcharge for the failure to process a certain number of
transactions in a given time period.
Therefore, if your wireless
business processes a high volume of transactions daily involving low-cost items
(like an online retailer that sells T-shirts, for example), you would likely
opt for a merchant account with a low transaction fee (or none at all). Tony
Gottleib is a freelance writer who writes about a range of topics including
wireless businesses and credit card processing services.
By: Tony Gottleib
Related Articles :
No comments:
Post a Comment