5 ways to know you've outgrown your merchant account

By Pam Gaulin

When you current merchant account has become as ill-fitting as a pair of worn sneakers, it may be time to modify your existing account. Just as you wouldn't wear a jacket that's three sizes too big with pants that are too short, you don't want to stick with a merchant account that does not suit your current and future business needs.

Your business may have shrunk or expanded, and it's likely certain types of transactions have increased while others have decreased. How do you know when you've outgrown your current merchant account?

1. Most of your business is now online
It's possible your brick-and-mortar retail store has become nothing more than a warehouse for your Internet sales. When most or all of your sales have shifted to the Internet due to your expanded web presence and less foot traffic, price out fees for an Internet merchant account.

2. Your merchant account equipment is outdated
If you still have your first-ever credit card terminal where customers swipe their Visa or MasterCard, it may be time for an upgrade. Newer equipment translates to quicker transactions, which keeps the line of customers moving.

3. Sales are down
With a slowed economy, you may be feeling the effects. If your fees outweigh the benefits of your current merchant account, consider switching to a merchant account with a fee structure more in line with your sales volume. Compare transaction fees, equipment fees and monthly service fees.

4. Your business has gone mobile
Some retailers and merchants cash in at events, from conventions to fairs and conferences. When the bulk of your sales are being done on the road and not at a retail location or on the phone, consider switching to a wireless merchant account.

5. Your business is seasonal
Your business may have shifted into a seasonal one, and you may notice extreme ups and downs in your sales. It may be time to switch to a merchant account with no monthly minimum. An account without a long-term contract will give you the freedom of movement you need when your sales fluctuate as much as your waistline around the holidays.

Tailor your merchant account to fit your business. Shop around for more competitive rates, lower fees and programs that enable multiple types of transactions and your retail merchant account will fit to a tee.

Article by Pam Gaulin 

Published: October 15, 2010