Merchants who want to accept credit and debit cards need to acquire a merchant account and sign a contract with a credit card processing company in order to offer this payment option to their clients or customers. If you are considering opening up a merchant account, especially for an online business, there are certain questions that you should ask the processing company before committing to any specific one. Consider asking the following questions:
• Does your company support online payments? You will need a virtual online credit card terminal if you want to accept plastic. Not every company out there supports online shopping carts. • What credit and debit cards will I be able to accept? All processing companies handle MasterCard and VISA transactions. However, a number of companies now handle American Express and Discover as well. • What fees will I be charged? Every credit card processing company charges a variety of fees. There’s no getting around that. However, no two companies are alike where these fees are concerned. Be sure to determine what types of fees you are going to be charged and how much they are. • Will I be required to sign a contract? That depends on the credit card processing company you sign up with. In some cases, processing companies require a contract so the merchant has a difficult time trying to cancel their services and change companies. If you can avoid a contract, you are encouraged to do so. However, if you cannot, be extremely careful before you sign that document.
In addition to asking each processing company representative the questions listed above, there are other factors that you want to be concerned with, the most important of which is security. As an online merchant, you want your customers to have peace of mind knowing that their financial and personal information is safe and secure whenever they are purchasing your products or services.
For the most part, the credit card processing software that the company provides takes care of all transaction security. However, it is recommended that every merchant takes additional steps to boost their level of security on their websites. This will reduce the number of credit card thefts, fraud, and hacking that occurs. Finally, the merchant should also ask for the 3 or 4-digit CVV (Card Verification Value) number on the back of the customer’s credit card as this code protects the consumer from fraudulent activities.
Posted in Uncategorized on Dec 31, 2013