Tips for Choosing a Merchant Service Provider
There are two things that define success for a merchant: what is being sold and how he or she sells the product. To maximize sales, merchants need account options from independent selling organizations (ISO) that provide excellent account service, particularly concerning pricing and account diversity. If you need a provider of merchant accounts, but you are not sure how to choose one, the tips below can help you to choose a right merchant service provider:
Avoid ISOs that do not List an Acquiring Bank
An acquiring bank processes the transactions that occur through an ISO’s merchant accounts. ISOs are required to list the name and address of their acquiring bank on their website and promotional materials. If a merchant service provider does not meet these requirements, it may be operating illegitimately.
Avoid Capped Accounts
A cap on monthly sales volume means you cannot exceed a certain volume of sales in a month’s time. Once you reach the cap, you must wait the remainder of the month before you can sell again, which could mean days or weeks of lost revenue.
Account caps are common. Always inquire about them before selecting a merchant account.
Do not Make Price the Deciding Factor
ISOs pay almost the same amount for the products and services that comprise their offerings. Therefore, an ISO has no reason to offer significantly lower prices than its competitors. ISOs that offer extreme bargains usually deliver poor services, if they deliver anything at all.
In the merchant service industry, if a deal seems too good to be true, it probably is.
Avoid Unnecessary Account Fees
Most ISOs impose several fees, including transaction fees, discount rates, monthly minimums, gateway fees, monthly statement fees, and early termination fees. Additionally, if an ISO charges a high annual fee or technical fees with vague explanations, it likely indicates an attempt to profit unjustifiably. These practices suggest caution is warranted when evaluating the costs associated with ISO services.
Avoid Brand New ISOs
New ISOs may possess the same potential as established ones, but their stability remains unproven. This distinction highlights the importance of evaluating their track record and reliability over time. If a merchant service provider fails, the cancellation of your accounts could interrupt your revenue stream. As with other types of service based businesses, choosing an ISO with at least two years of experience is the best idea.
Choose an ISO that Offers Multiple Solutions
Because your business needs could change, choosing an ISO that offers diverse account options is the best choice. As you shop for a merchant service provider, look for one that offers the following types of accounts: retail processing, Internet processing, mail order / telephone order (MOTO) processing, and wireless processing.
AVPS is Your Premier ISO
At AVPS, we have over twenty-five years of experience servicing Small Business Merchant Accounts and merchants, giving us unique insight into the merchant account industry and its practices. Out of thousands of ISOs—many of which profit at a merchants’ expense—we offer the simplest, most effective, forwarding thinking services for today’s merchants.
Whether you need to accept payment online in a store, or out-of-store, AVPS has you covered. Contact us today to learn how merchant accounts can help to boost the sales of your business.
