How Much Will a Free Merchant Account Really Cost?

When many business owners start looking into credit card processing, one of the most common mistakes that is made is a simple one: they search for free merchant accounts, but don’t fully research what is involved.

When you start looking at what others have to say about merchant accounts and the costs related to credit card processing, initially free merchant accounts sound like a great idea. Free equals saving money, right?

With merchant accounts, the answer is not always. If you start looking into free merchant accounts, you’re going to want to be absolutely sure that you read the fine print and that you focus on asking the right questions rather than simply making the assumption that “free” is the best deal that you are going to get.

Before signing up for a free merchant account, you are going to want to be sure that you have asked about all of the charges and fees that are going to be associated with the account and with credit card processing. You are going to want to be sure that you ask about the buy rate, that you are aware of monthly credit card processing fees, and that you are aware of the buy rate, return processing fees, transactions costs and even equipment charges that can quickly add up.

Similarly, before signing up for a free merchant account you are going to need to be sure that you know when you will be able to access your money. With some free merchant accounts, there are time restrictions and delays that are in place on both the first payout and of additional credit card processing settlement amounts. It’s your money; shouldn’t you be sure that you are able to access it?

Finally, before you sign up for a free merchant account - or, for that matter, any merchant account or credit card processing services - you are going to want to be sure that you are doing your research. Take the time to look into the reputation of the merchant account provider and to look at the ways in which other merchants have been affected by their processing fees, the security of the provider’s payment gateway and other key points that could lead to expenses for you down the road.

Ultimately, what you are likely to find when you focus on doing your research is that a free merchant account is not always going to be the least expensive option for your business. In other words, what many merchants discover when they don’t do their research is that free merchant accounts are rarely - if ever - actually free.