Posted on: 9 June 2018
If you are starting up a new business, it can be incredibly useful to be able to accept credit and debit cards for payments. Many people rely solely or primarily on credit and debit cards for payment. If you want to be able to expand your business, you need to be able to accept all forms of payments, which means you need to find the right payment processing service for your start-up.
1. Find a Payment Process Service That Allows for Flexibility
First, you need to find a payment processing service that allows for flexibility. As a start-up, you don't want to get locked into a payment processing agreement that will require a long and lengthy contract. Do not accept any contract that has really long terms, as your business is new and you don't know how your business needs are going to evolve and change over time. Do not accept a contract that has really high cancellation fees as well. You want to be able to cancel or change your payment processing service as needed.
2. Set Up a Merchant Account
Once you have found a payment processor to work with, you need to set up a merchant account. Make sure to set up the merchant account correctly. You need to use your business name, your business tax identification number, and you need to link the payment processing service to your bank account.
Keep in mind that it takes time to set up a merchant account. Once all the information has been entered into the merchant account, the payment processor still has to take time to verify the merchant account. Do not expect to set-up your merchant account and be able to use it right away.
3. Follow the Rules
Once you set up a merchant account with a payment processor, make sure that you take the time to learn all the rules about using the payment processing service. It is important that you understand all the rules and that you follow them. If there is anything about the payment processing service that you don't understand, review all the information that you were provided with and then ask any questions that you still have.
4. Work to Avoid Chargebacks
Chargebacks can cost you money as well. Once you have a payment processor, you are going to want to work to reduce the number of chargebacks that your business generates. Work with customers to make sure that they are getting the right products and services the first time so that you can avoid having to run chargebacks. That said, as any good business, you should have a clearly defined and states refund policy, as chargebacks are sometimes just part of the system.
For more information, contact a company like Merchant Cooperative.Share