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4.Insufficient processing limit on merchant account The majority of banks that accept Internet merchants only allow a certain volume to be processed on a monthly basis. The limit for newer businesses typically ranges from $5,000 to $17,000 per month. Furthermore, as part of fine print in their merchant service agreement, some banks prohibit you from obtaining a second merchant account. Businesses that breach their merchant service agreement are subject to immediate termination of their merchant privileges. As your business grows, you can find yourself in quite a bind. To avoid this type of trouble, be sure that merchant service provider you choose to work with can help you establish a relationship with a bank that can offer you higher processing limits and is flexible enough to grow with you.
5.Higher processing and transaction fees due to credit history Some merchant service providers will penalize you with higher processing and transaction fees if you have less than perfect credit. They may want you to believe that bank passes on these fees. The reality is that processing fees have nothing to do with your credit. It's simply a way for them to make more money from your account. Your discount rate should be no higher than 2.5% (unless you have a high-risk product such as an adult site) and transaction fee should be no higher than $0.50 per transaction. The only area where your personal credit plays a factor is in rate you receive when you are leasing processing equipment.
Don't get taken for a ride! Be sure that you work with a merchant service provider that's honest with you and will take time to answer all of your questions. The rates you receive today will have a long-term affect on profitability of your business.
6.Up front cash reserves required Often, a new or home-based business is required to pay thousands of dollars up front to get their merchant account approved. Banks require reserves from "high-risk" merchants to protect themselves against potential losses that they may incur. For example, if a merchant processes $20,000 in one month and then disappears, bank would incur all losses due to chargebacks.
If you plan on processing a high volume, have high priced items, or high-risk products, be sure to select a merchant service provider that has enough experience to negotiate reasonable terms with bank for you. It's to your advantage if bank will agree to take just a small percentage from each sale to build up reserve as opposed to asking for cash up front.
AIS Media was founded in 1997 with goal to be a one-source solutions provider for companies wanting to do business on Internet. Today, AIS Media offers:
·Lightning-fast and reliable web hosting services ·Complete credit card and online check processing solutions ·Integrated shopping carts and easy Internet storefront builders
Contact one of AIS Media's knowledgeable and friendly e-commerce Account Executives today for a FREE, no-obligation consultation at (800) 784-0919 or (678) 382-2247 in Atlanta.
Or visit us on web to get fast answers to most frequently asked questions and COMPLETE A FREE ONLINE NO-OBLIGATION APPLICATION TODAY AT http://www.aismedia.com/home/merchant_services/index.htm?co1866xsmartbiz.
Thomas Harpointner, CEO of AIS Media 3541 Habersham at Northlake, Building E Tucker, GA 30084 800-784-0919 www.aismedia.com