Merchant accounts are part of what is needed to process online credit card transactions with ecommerce software. Commonly known as "credit card companies or processors", the merchant account industry is highly competitive. Not all merchant providers are reputable, however. In fact, there are more problems working with un-qualified merchant providers than one can imagine.
We had a client once upon a time...this person was a do-it-yourself type who preferred to do their own research. Despite our attempt to refer this client to other known and reputable merchant providers, it was chosen to go with a no name company with no established track record. Even though the client went against our advice, our team integrated the chosen merchant account with the website we developed.
The first month went by and the client had positive sales of several thousand dollars via their new website. These were all Visa or Mastercard transactions with a payout to the client's bank turnaround of 24-48 hours. From the first transaction to the last within the first 30 days, 100% of the money was withheld by the merchant company without reason. This simply meant that the client's money was tied up by the merchant company and they fought to keep it.
What happened next shocked us all. Our client asked for assistance in researching the merchant company and calling them to resolve the matter. Upon researching this company, Small Planet Marketing staff discovered this merchant company has been operating under 10 different businesses names across the United States. Further research revealed that the same withholding of funds was occurring with hundreds, if not thousands of other unsuspecting companies.
Upon receiving this information, Small Planet Marketing staff contacted the proper authorities on behalf of the client and was able to negotiate with the unethical merchant company to get 100% of the client's money released to the company bank account. Although it took 90 days to get the money released, many others never bothered to invest the time to fight the dishonest business practices of this merchant provider.
It still happens today, so don't be fooled by the fast talking of merchant provider sales agents. They get paid to sell merchant services in most cases on commission. That's not always how it works. Ethical merchant providers don't put clients in a position to be compromised by greed. There are rules and guidelines that ethical merchant providers do follow, which is why it's always better to deal with a reputable merchant company.
When choosing a merchant provider, always ask for clarity on every detail that's not crystal clear. If the sales agent seems rushed or doesn't answer your questions directly - move on! Customer service is present in the sales process with ethical merchant companies, so never settle for less.
Need A Merchant Account or Have Questions?
CALL US FOR ANSWERS 1.866.343.2590
