Accepting credit cards can be a major boost for your small business. It gives your customers an additional, convenient way to pay. When it is easier for your customers to pay you, the more money they’ll be willing to spend. However, many merchant accounts come with a substantial monthly fee. So, you may want to look for a no monthly fee credit card processing service.
With a traditional merchant account, it doesn’t take long for the monthly fees to add up. Regardless of how many credit card transactions you are making, you have to keep paying that monthly cost. Add to that the transaction fees and any other fees you may incur, and your credit card processing capabilities can become very expensive.
The information below on ways to accept credit card no monthly fee needed should help you to better understand your options. There are advantages and disadvantages to cutting out that subscription cost. However, armed with the information below, you should be able to determine whether no monthly fee credit card processing is right for your business and customers or now.
Why Do I Not Want Monthly Fees?
The case against monthly fees is pretty simple: it is an expense you don’t need to incur. When you can have a merchant account no monthly feeand convenient credit card billing, it is just a more budget-friendly option.
Even if you pay a monthly fee, running your credit card processor will involve extra costs. All credit card processing services charge a price per transaction. This is typically a set cost per sale plus a percentage of the sale. Furthermore, some merchant services companies will charge various hidden fees.
All of this can add up, especially if you are continuing to shell out money each month even before you make a sale. It is in your best interest to manage your expenses as a small business. One effective way to do this is to choose a provider for credit card processing for small business no monthly feeincluded. That way you are only paying to use your merchant account when you make a sale.
This is especially important for businesses with low transaction volumes. If you make most of your monthly revenue from a relatively small number of sales, you’ll be paying that monthly fee for very little reason. The same holds true for new businesses that are just starting to attract their first customers.
Are There Any Drawbacks to Accepting Credit Cards With No Monthly Fee?
Of course, there are some drawbacks to selecting a merchant services account that doesn’t include a monthly fee. The price per transaction is typically higher than if you were paying a monthly fee. This can add up to more than the monthly fee would have been if your transaction volume is high enough.
Before you sign up for a no monthly fee credit card processingaccount, budget out how the monthly fee compares to the increased transaction fees. If you are consistently making enough transactions each month that a monthly fee with lower transaction fees would cost less than the increase in fees, that option probably makes the most sense for your business.
How Do I Get Started Finding the Right Credit Card Process for my Business?
Once you’ve determined what type of account you want, it is time to find the right credit card processor provider for you. They key is to know what your needs are. Perhaps you want to find easy-to-setup online merchant services no monthly feeand mobile credit card processor. Alternatively, you may need a point-of-sale terminal with low transaction fees.
If you are just starting to accept credit card no monthly feeis probably the way to go. You may need to plan a slightly larger gross margin for your products or services to make up for the fees, but you won’t be bogged down paying monthly fees just to keep your account open.
There are so many options in merchant services. If you find yourself at a loss for which to choose, you aren’t the first. Try making a clear list of the features you need as well as what your budget is. This will help you to make an informed decision. Some of the considerations you may want to take into account include the following:
- Setup Fees: Monthly fees are the only costs you need to contend with. Some merchant services providers will charge you just to get set up. This means you are starting out in the red from the beginning.
- Equipment Fees: If you are using equipment provided by your credit card processor, you may need to pay subscription fees to use it. This is may be in addition to the monthly subscription on some account types.
- Contracts: Long-term contracts may leave you stuck with a merchant services provider you don’t like. If you are just getting your feet wet with credit card processing, it may be best to avoid contracts.
- Deposit Turnaround: Different providers will deposit the payments at different times. This may be within a day of the sale or it could be longer. Make sure you know when you expect your money before signing up for an account.
- Customer Service: Sometimes you need help with your credit card processing. Make sure you’ll have access to knowledgeable experts to help you.
Get a full picture of what you are signing up for before you make your decision. The good news is that innovative providers are offering great packages that remove a lot of the hidden, unnecessary fees that merchant services companies have historically charged. With a list of what you want and a little research, you’ll be able to find the right fit for you.
Hopefully, you have learned a little about the benefits and drawbacks of using amerchant account no monthly feecharged. It can be a valuable option for many businesses. However, whether or not it is right for your business and customers is a decision only you can make. With the above information, you are well-equipped to make that choice.