What free merchant accounts are, what facilities they provide and some of the myths that are associated with this kind of accounts.
Merchant accounts are absolutely necessary for any type of business, whether a physical store or an online store. Being able to accept cards from customers as a mode of payment can not only make your customers happy but can also increase your profits by a huge ratio.
However, retail merchant accounts are not easy to obtain. Most banks have very strict criteria for approving a merchant account and not only will the processing take a lot of time but also once the account is approved you would be paying very high fees for utilizing their services.
Banks and financial institutions are not the only options when it comes to merchant accounts, there are plenty of online service providers that are flooding the internet today that provide payment processing services to customers. These services providers generally have a very high approval ratio, less processing time and a lot many times they provide free merchant accounts.
Yes, there is such a thing like free merchant accounts. But you must still be careful and do merchant account comparison well since in most cases free merchant accounts are also not absolutely free.
If you are not careful enough rather than getting a cheap merchant account you would end up with an account with a lot of hidden costs. Here are a few facts that you must know about free merchant accounts:
• A free merchant account would mean that you would not have to pay a set up fee at the time of opening an account. But you would still have to pay the transaction fee which would be charged on every single transaction that you make. So free merchant accounts are actually not completely free.
• Again free merchant accounts do not always offer terminals as a part of the package. You might have to get a terminal at your own cost. In cases where the terminals would be provided free of cost to you, you must be careful since these would not always be of good quality and would usually only accept visa and MasterCard rather than all types of payment modes as you would require.
• Free merchant accounts might seem to be very tempting but the internet is full of service providers that are out to dupe people. There are high chances of frauds taking place and with some of the lesser known service providers you never know when they might go bankrupt. If a service provider goes bankrupt you should not expect to see your hard earned money again since it would definitely go down with your service provider.
• Several types of free merchant accounts put a higher transaction fee so as to enable them to cover up for the set up fee that they do not charge from customers. Do a little research and compare the transaction fee charged by various service providers.
Free merchant account can be a good thing if you get one from a service provider that is reliable and has a good reputation. Getting a free account from a scammer only means inviting disaster.