This article was written by one of our amazing contributors! Content may include promotional links.
Setting up a merchant account can be a headache, especially if it is high-risk. A lot of payment processors don’t offer high-risk merchant accounts, so finding one may not be easy. But whether it is a high-risk merchant account or not, setting up one requires a lot of caution. These are five important things you should put thought into when setting up such an account;
1. Acquaint yourself with the fees
Before making a choice, ask your provider to provide you with a full disclosure of all the fees in the agreement. Understanding all your processing requirements will also help cut on unwanted cost. While a lot of business people emphasize on the merchant account’s discount rate, it is equally important to pay attention to other extra fees. Then, you will clearly understand your account expenses in the long run, how to manage them and when to change your provider if need be.
2. Consider customer service
As a customer, you want all your burning questions answered and all your needs met. Is support available 24/7? Is there an available test transaction to familiarize with the system? Is there a standby solution in case of system failure? If more questions arise, who do you reach out to? These are some of the questions you can ask before setting up an account. A good provider will offer sufficient customer support and this translates to value, look for that.
3. Compare, then choose a dedicated service
With the many payment processors, you need to be careful to choose one which is specialized in a particular service. If they are not specialized in it, chances are that they charge higher fees. Look for different providers and weigh your options. In most cases, a high-risk merchant account, for instance, a cbd merchant account could be the best option. But remember, the higher the risk, the higher the fee. Which is affordable? And is the money you are paying for worth the kind of services offered? If not so, move to the next and only set up an account if it meets all your needs.
4. Get the required equipment
You will likely be required to get some equipment e.g. POS system when you sign up for a merchant account. You may be tempted to lease instead of buying this equipment, which is a bad decision because it will cost you in the long run. It may look like the cheaper option but realistically, buying is the best option.
5. Inquire about the contract period
A month-to-month contract is usually the best option. This is important especially if you are not planning to use the service for long or if there is need to terminate your business. Unfortunately, most of the high-risk merchant account services don’t offer this option. Most of the time the contract period is longer, usually three years. Ensure that you inquire about termination fees because some contracts charge high fees that may be detrimental to your business.