Merchant accounts are a necessity for businesses of all sizes. More than 80 percent of consumers use credit cards or debit cards to make most of their purchases. Therefore, every business could increase its profits by using credit card processing machines and accounts. Merchant accounts are special accounts that allow a business to accept endless credit card transactions. A business owner can obtain one of these accounts by completing an application with a reputable company. The business will be capable of accepting credit card payments shortly after the account becomes active.
Credit card processing companies help a business to run smoothly. These companies provide bank accounts into which the merchants can receive credit card funds. The processing company usually charges at set fee per transaction for the merchant. That fee is somewhere between 2 to 4 of each total transaction. New businesses will have higher charges because of a limited credit or business history.
The charge varies with each processing company, which is why it is imperative that a business owner conduct thorough research before signing up for any merchant account. The person must be extremely careful by reading all the fine print in the agreement. Some card processing companies charge fees that are much higher than the ones that other companies charge are. One company may charge “additional transaction fees,” which can add up fast for a busy business. Additionally, the processing company may charge fees for chargebacks and such occurrences.
A merchant account may have a monthly maintenance fee if the business does not conduct a large volume of credit card sales. In such a situation, a merchant account may cost the business owner an additional $10 to$25 per month.
Referring Merchants to Credit Card Processing Companies for a Fee
A business owner who has an established merchant account may be eligible to earn additional money by referring other merchants to the same processing company. Processing companies that issue these referral bonuses usually state such on their front page. The terms of different processing companies may vary. Some of them state that they will give a $100 bonus shortly after the new customer creates a merchant account. Other companies ask the merchants to wait a certain amount of time before they receive their referral bonuses. Some companies may have a limit on the amount of referrals one client can perform. Information on referral bonuses is available through the processing company.