Why an easy merchant account may not be the best for your business
The following is a guest post by John Rampton, founder and CEO, Due.
The word easy, means effortless. Current language being what it is, easy, really has become the connotation of convenience, which is always a good thing. Commercials for office supply stores have even promoted what they called “the easy button.”
We all like easy, because life and work are hard enough. Complications of life, have to contended with on a daily basis. Having something that is easy can result in the feeling of a better experience. Easy can save money and time, both of which are so valuable not only in life, but in business, as well.
However, there is one caveat here with the idea of easy – sometimes, easy could be akin to the idea of cheap, and that means it may not always be the ideal way to make a selection about a product or service.
While something doesn't have to necessarily be hard to avoid certain issues, there should be more consideration about what easy actually means. We must be more secure that easy doesn't lead to other things that actually create further complication.
An easy merchant account is a prime example of something that may not be the best choice to make when it comes to your business. While it sounds good, may lead to more trouble than it’s worth due to a number of factors.
Easy can mean figuring out how to create and use the merchant account in a few minutes. It might also involve the ease of completing a transaction that both the merchant and customer experience.
The problem is that easy may also mean that the merchant account is so basic that it does not help you with some critical areas of your business.
Easy to Hack
For example, if your merchant account is too easy, then it won’t have the security layers you need to ensure that your customers’ data and the overall transaction process remains safe from hackers.
You don’t want easy to mean “easy to break into,” you need to look for a merchant account company that emphasizes security and delivers numerous types of tools, including PCI compliance and SSL certification.
Easy to Cheat
You also don’t want easy to mean “easy to cheat” where you attract fraudsters who realize you don’t have the sophisticated technology to sense when there is suspicious activity. You also don’t want easy to translate as “easy chargeback target.”
This will just end up costing you money and possibly your retention as a reputable merchant. Look for a merchant account partner who can work with you on a chargeback management program.
Easy to Buy But Just One Payment Type
It could mean that easy is that your merchant account only accepts one type of payment when, in reality, you need to have numerous payment acceptance options to attract the widest audience possible.
For example, maybe you’d like to accept global payments to serve customers in other countries. You want a merchant account that has the ability to work in different currencies and handle those types of international transactions.
Easy if You’re a Generic Business
Easy can mean that the merchant account provider works with one type of business. Typically, they have built a platform that works for the most common businesses, but it may not be able to assist with areas that require a more specialized merchant account.
For example, their merchant account may not be able to handle it if you are both offline and online or if you are a high-risk business in a unique niche that now all processing companies understand or want to touch.
Looking Beyond Easy
Although you don’t want to spend resources on training yourself or staff on how to use the merchant account, there are other things to consider beyond ease of use, including the amount of fees and transparency about these costs, reliability, access to technical support, and the type of relationship the merchant account provider is looking to build with you.
It's also good to look for a merchant account provider that can continue adding payment processing features for your business that can address new issues or provide a greater experience for your customers.
When you find a combination of these elements along with relative ease of use, then you know you’ve found the right merchant account provider.
This recipe for a merchant account has the right ingredients to save money and time while addressing all the issues you have to think about when operating a business today.
About the Author
John is best-known as an entrepreneur and connector. He was recently named #2 on Top 50 Online Influencers in the World by Entrepreneur Magazine and a Blogging Expert by Time. He currently advises several companies in the San Francisco Bay area.