Last Updated on Mar 11, 2020 by James W


How should a business go about with its approach to merchant processing?

The high level of competition in the industry will have merchant service providers fighting tooth and nail for your business.

Don’t let these service providers push you around just because your company doesn’t process a ton of payment (yet). Regardless of the size of your business, you can still benefit as there are many people waiting for you to negotiate lower fees.

Some new companies also use merchant account services to start businesses when they are denied a traditional bank loan. There is no fixed repayment schedule associated with merchant accounts; payments are deducted from sales as a percentage until the balance of the advance is repaid in full amount. Such companies can also push down fees by thinking big.

In perspective, you should strive to attain better terms. Here are three best practices to ensure you’re getting the best deal:

Consider the nature of your industry

The industry which your business operates in will determine the type of merchant account you are eligible for. For example, businesses in high-risk or high-volume industries typically require high risk merchant accounts to accept credit card and other similar payments. Likewise, low-risk merchant accounts will be suitable for businesses operating in niche industries.

According to High Risk Pay, it could be hard for high risk businesses to find credit card processing services. But the good news is there are firms specializing in assisting high risk merchants; these companies know how difficult it is to start a high risk business and build a strong, mutual relationship between the provider and the business High-risk businesses can accept all major credit cards regardless of their credit history upon completion and approval of application.

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Conduct an assessment of your needs

Make a list of services required by your company. While some services are considered as basic requirements, your company may need additional features, such as credit card storage and recurring bill processing. Get all of your services bundled, instead of relying on different providers to piecemeal things together.

Also, consider how urgent you need the money because the time frame of taking the merchant account service and the money deposited into your account varies depending on the service provider. Some merchant service providers may also offer exclusive POS (point-of-sale) software for convenient transitions, or you can choose your own POS system later on.

Negotiate processing fees

Merchant processing fee isn’t set in stone, so you must negotiate if you want the best deal. You have to sit down with the ideal service provider and work out a deal that makes the most financial sense. When it comes to negotiating, quotes from other providers might work well in your favor.

Moreover, make sure that all your fees are disclosed upfront and you understand everything you have to pay for. This is important because fees can be disguised under different names such as compliance fee, licensing fee, customer service fee, etc. Choose a service provider who provides cost transparency upfront to get the best possible offer.


Founder and chief editor of Blogger, Affiliate Marketer, Tech and SEO geek. Started this blog in 2011 to help others learn how to work from home, make money online or anything related to business and finances. You can contact me at