If you are one of those that are planning to enter the business, there are some things that you need to know to avoid committing mistakes that would cost your business investment. Let this considerations serve as your guide to merchant accounts and choosing a merchant account provider.
1. To lease, to rent or to purchase. This is one of the factors that greatly affect merchant account providers. Experts say that one of the least options in this case is to lease because you will be forced to pay more than what you should have. Unlike if you purchase it, you will be paying just enough for the processing solution and all other stuff that needs to be dealt with. Renting can also be an option usually on a month-to-month basis.
This can be a good option because when you find that the terms are no longer working for you and you have found another set of terms that will suit your needs better, you can always cancel it any time you like. This is also ideal for those that don’t have enough money to purchase a merchant account because it can offer you initial solution options right away.
When placed in this situation, always consider your needs, the time element to answer to these needs, how will the terms work for you and weigh the advantages and disadvantages before you finally decide.
2. To use another person's merchant account in doing any transaction. This is definitely "no-no" when it comes to merchant account providers because doing this is considered as an illegal practice called "factoring" or "credit card laundering". Merchant account providers that allow somebody to use another person's merchant account in dealing with any transaction should be reported to authorities immediately so they won't to lead people to commit mistakes that can lead to more complicated financial troubles.