Our dry cleaning software customers ask about merchant account rates all the time.
What is a good rate?
Do you know how much I should be paying?
Unfortunately, it isn’t as easy as just posting rates for merchant accounts on a website. The answer is a bit more complex than you may expect.
In this article, we will prepare you to get the best merchant account rates for your dry cleaning business.
Shopping only by rate can be a mistake
For many merchants, the merchant account rates can amount to only a small portion of their overall cost.
If you only consider merchant account rates, you are excluding a long list of potentially costly factors such as:
- credit card equipment
- start‐up or termination fees
- annual fees
- monthly minimums
- statement fees
- and many other expensive pitfalls.
Contrary to what some companies would like you to think when they boldly advertise seemingly low rates, there is no “standard” rate for merchant accounts for pricing comparison.
Visa® and MasterCard® each have hundreds of different merchant account rate categories based on the type of card, the environment in which the card is accepted, and whether all the cardholder information collected properly and accurately.
These categories are then consolidated by each processor into groupings with averaged rates called:
The less “qualified” the transaction, the more you are charged.
Be prepared to ask the right questions
So, when you are evaluating processors remember to avoid them, “What are your rates?” question.
Instead, try to focus on the overall expected cost of processing and factor in all potential fees.
If a company guarantees the lowest rates, ask to see it in writing.
If they have the guarantee in writing, you will quickly realize that these low merchant account rates only apply to a very small fraction of your credit card transactions.
What will the process be when you are ready to start accepting payments?
The first step is to set up a merchant account.
A merchant account is a special bank account that enables you to accept credit cards.
As a Dark POS customer, you can set up a merchant account with TSYS and link it directly to your existing POS software solution.
Once you have decided to set up a merchant account, you will need to reach out to whatever processor you chose.
They will likely ask you for some information that will help move your business through the underwriting process. The time and complexity will vary depending on your business and your processor.
In general, though, you may be asked for things like:
- Social Security number
- Employer Identification Number
- Business license
- Other things that will help the payment processor learn more about your business.
If you have additional questions about merchant processing, please reach out to our payment partner TSYS.