In order for your online business to generate a profit, you must be able to accept payments from consumers. And since you don't have an in-store location where consumers can use cash instead of credit, you're faced with the task of getting an eCommerce credit card processing account.
But you may find yourself questioning the merchant service provider you chose after you discover certain warning signals that you didn’t notice at first. While many providers want to help their clients, others are more interested in helping themselves.
Here are six red flags that should tell you whether you need to look for another eCommerce credit card processing account.
1. Hidden Fees
If you notice that there are unexplained fees on your merchant statement, you’re being charged more than you should be. Unfortunately, hidden credit card processing fees are a common occurrence, and unless you know what to look for, noticing these discrepancies can be next to impossible. This is also why carefully reading the contract you have with your merchant service provider is vital. You can catch these unnecessary costs before you sign on the dotted line.
2. No Next-Day Funding
Having next-day funding is convenient for merchants, because they can receive the funds from purchases made with credit and debit cards within 24 hours. For example, any transactions processed on a Tuesday and settled by 7 p.m. that night will be in your bank account by Wednesday morning. Merchant service providers that do not offer this service are putting their clients at a disadvantage because their company’s cash flow and operating efficiency will be affected.
3. Unanswered Questions
Although you—and every other online business owner—have probably heard a thousand times about the importance of being able to process credit and debit cards, that doesn’t necessarily mean you understand exactly what you’re paying for or what an eCommerce credit card processing account entails. This is why it’s imperative to ask questions, so you can become familiar with industry terms and get to know your merchant service provider better. But when your questions are not being answered thoroughly, it can be aggravating. No one wants to be left in the dark, especially when it comes to business expenses.
4. State of Indifference
Going a step further, your frustration may soar if you realize that not only are your concerns not being addressed properly, but that your merchant service provider doesn’t seem to care about your needs as a client. Since you go out of your way to make your customers happy, you want that same courtesy when you’re the one paying for a product or a service.
5. Lacking in Partnerships
Merchant service providers who have direct partnerships with major companies in the industry have the ability to deliver faster, more effective services to your business. A provider doesn't work alone to complete card transactions, but in conjunction with banks and processing platforms. This means that you cannot just look only at the credentials of your provider. You also have to review the organizations your provider is working with. Those organizations might make the difference between an exceptional credit card processing experience and an awful one.
6. Upset Customers
Since online businesses do not get any face-to-face interaction with their customers, the shopping experience can make or break a company. Consumers who find the checkout process to be too slow or confusing may not even bother finishing the purchase. So, if you notice that customers are dissatisfied with this particular aspect of your business, you may want to rethink your eCommerce credit card processing account and explore other options that would create a better experience for them. Happy customers are satisfied customers--and they're the ones you want to keep.
MPX offers eCommerce merchant accounts to various online businesses. Contact us today to find out more about our services.