There are many merchant account providers (commonly known as “credit card processors” or just “processors”) so it’s important to understand what a merchant account entails and what to keep in mind when you apply and while processing. While merchant accounts aren’t free, we’re not going to tackle rates and fees extensively in this article. Instead,…
If you run a business and want to accept credit cards, you’ll need to open a merchant account.
Information provided in this article is for educational purposes only and does not constitute tax advice. For tax advice for your business, consult a tax professional. Paying Fees on Sales Tax What type of businesses does this affect? Can I change how I process transactions to avoid paying fees on sales tax? Passing Fees to…
For every transaction you process that is subject to sales tax, you pay processing fees on the total amount, including the sales tax. Processing fees paid on sales tax can add up quickly, so improperly deducting credit card processing fees paid on sales tax can be a costly mistake, a fact that many businesses that do their own taxes fail to consider.
An ACH delay is not the most restrictive condition a processor can impose, but it’s still important to consider how it will affect your merchant account. Find out what this means for your business. What is an ACH delay? Effects of an ACH Delay on Your Business Fast Facts About ACH Delays Other Types of…
When signing up for a new merchant account in order to begin accepting credit cards, some businesses may be asked to agree to an ACH delay.
If this happens, you won’t be able to access the account and your funds from open authorizations will be held without deposit for an undisclosed period of time. This means that you can’t accept new credit card transactions and the income from recently processed transactions will not be deposited for days, weeks, or longer. What…
An extremely important but seldom talked about topic in credit card processing is merchant account holds. One of the most financially devastating things that can happen to a business is for a processing bank to freeze your merchant account.
Let’s take a look at what matters – and doesn’t – when it comes to applying for a merchant account. Why does my personal credit matter? During the Application How good does my credit have to be? Does my personal credit affect my rates and fees? Can my existing merchant account be revoked if I…
A merchant services account is essentially a line of credit that enables you to accept credit cards. As the applicant for a merchant account, your personal credit is an important consideration during the application process, but it doesn’t have the same effect as it would on a conventional line of credit or a loan application.
For example: If your merchant account has a 5% rolling reserve for 18 months, the processor will withhold 5% of your gross sales. The 5% of sales that are withheld will not be accessible to you for a year and a half. Why are rolling reserves imposed? Transactions Affected by Rolling Reserves Effects of a…
A rolling reserve allows a credit card processor to withhold a pre-specified percentage of your gross sales. The processor deposits the held funds into a non-interest bearing account for a pre-determined period of time that is specified in your merchant processing agreement.
Charts are easily manipulated, leaving you to try comparing apples and oranges. Even if the creator of the chart doesn’t intend to mislead, a lack of complete information can be just as detrimental to finding the right solution. When you’re looking for the best credit card processor, the key is to find the right one…
I’m often asked why this site doesn’t have a lengthy merchant account comparison chart. The answer is simple – these intricate comparison charts are useless.
What is Samsung Pay? How does it work? Samsung Rewards What cards work with Samsung Pay? Security How much does it cost? How can I accept Samsung Pay at my store? What is Samsung Pay? Samsung Pay is a digital wallet that can be used with Samsung Galaxy phones in models S6 and later. Users…
Samsung Pay is a digital wallet available from major electronics manufacturer Samsung.
Use the secrets that credit card processors don't want you to know to drastically lower your credit card processing fees.
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