Do You Really Need Credit Card Processing?

Among small business owners, there is often a bit of a debate about whether or not having a merchant account and accepting credit card payments is really necessary.

On one side of the argument, there are the merchants who say that accepting credit cards with a merchant account is simply too expensive. They point to the costs of credit card terminals and other credit card processing equipment; they point out that for every credit card purchase that a customer makes, there are charges - in other words, they come down on the “con” side of things and argue that having a merchant account simply means paying money in order to make money and that, ultimately, they are just fine the way that they are.

On the other side, those who are pro merchant account (and not just those who offer merchant account and credit card processing services) say that the benefits far outweigh the risks. They point to the increase in sales, and the way in which customers who are strapped for cash are more likely to cut back when they see how much they are actually spending.

The reality of this merchant account debate is somewhere in the middle. Yes, there are charges associated with credit card processing, however often the increased sales make up for them (especially when business owners factor credit card processing costs into the price of their items). More important though is the recognition that it is possible to reap the benefits of having a merchant account and to lower costs in the process.

In order to safely toe the line in the merchant account debate and to benefit as much as possible, focus on finding a merchant account that:

• Offers to provide the terminal that you need at no cost while you have the service (if you cannot access a terminal for free, opt to purchase a credit card processing terminal rather than paying a monthly leasing fee as you will save in the long term).
• Does not charge for monthly or annual statements and who does not charge an application fee.
• Does not charge an early termination fee so that if you find a better deal you will be able to take advantage of it.

In other words, no matter which side you’ve come down on in the merchant account debate, you are going to find that there are options that will put you squarely in the middle ground. Look for a great deal, consider your alternatives and, as much as possible, negotiate to get the right terms for your merchant account.