Free Merchant Accounts: What?
It’s easy for businesses to get high ranks for the term free merchant account on search engines. Many websites offer free merchant accounts to startups and established companies. We recommend that you look at the terms and conditions of a free merchant account if you need a payment solution. Some websites on the internet may offer you
- Free Setup,
- No Transaction Fee
- No Contract Termination Charges
- Free credit card terminal and so many other things for free.
We at QuadraPay urge you to think about the cost involved in merchant account processing. We want you to understand that free merchant accounts are not always the best option. Now we have discussed various offers available on the internet.
Let’s understand that setting up a small business requires capital. Think about a large Credit Card processing organization. These processing organizations have a huge workforce. Some of these companies have even more than 20000 employees spread across the world.
How would these companies make profits if they offer everything for free? They cannot provide everything for free. Even the government social security benefits are there because of taxpayers. No PSP can offer 100% free merchant account services. There must be a way through which these Card processing companies make money.
They may offer a free terminal fee, but they may charge a higher transaction fee on each transaction. They may be charging a monthly fee for your account. They may even be charging some extra hidden costs that only appear on the contract. You know that these contracts are extensive. Most of the time, many merchants miss reading the details in the contract.
Why Free Merchant Accounts May Not Work For You?
You understand that there is a definite cost involved in each transaction. Most of the time, the free merchant account offers will have a huge hidden cost involved. This hidden cost may not appear in the advertisement or on the website. It may appear on the merchant account agreement.
Apart from hidden fees, there may be monthly sales capping as well. Some processing solutions may come with a very low monthly sales capping. That means you will only be able to accept a very small number of transactions every month. It may not be suitable for your company’s cash flow.
Apart from low monthly sales volume, they may also limit your ticket size. If you run an eCommerce store, then some of your products may be expensive. You should work with a processor that approves high ticket sizes and high monthly volumes. You should also look at how credit card processing companies offer support.
Most of the time, these solution providers only offer an API. If you apply with the direct acquirer, then you may be paying a higher transaction fee. You may qualify for a virtual terminal or Moto. Offshore payment gateway companies may easily offer virtual terminals to high-volume merchants.
Small businesses should be aware that while choosing a merchant account, they should consider the free offer. Small businesses are always in need of faster cash flow. The free processor may freeze a fixed amount on each transaction for the next six months. It would not be better to sign up with a processor like that. It’s better to send your application to a direct acquirer or payment service provider.
Free Merchant Accounts Conclusion
You are a professional, and you are running a business. You know there is a cost involved in every aspect of the business. The same is the story with credit card processors. Be reasonable and take the right decision for more clarification about free merchant accounts-related questions. Send us an email at info@quadrapay.com.
We also recommend that you send us the details of your website. We will let you know about some good processing companies. Please also send us your website URL. It will help us to request the processor for pre-approval.
