In the world of business, like any other, mistakes are bound to happen, as you walk on the path of success. This is truer than ever for an ecommerce business. Instead of pointing fingers at who’s to blame, it’s advisable to concentrate on avoiding a few mistakes typical of merchants who accept credit cards for their goods or services.

“Free Merchant Accounts”, more often than not are a glitch! The word “Free” is often enough to make merchants forget about studying the agreements & contracts, which are always present. On the contrary, the fine print on the contract must always be read thoroughly and understood properly. Else, this can be one of the factors bringing about the downfall of a merchant. Other than falling prey to the lure of a free merchant account, following are some common mistakes that merchants make. After reading the following points you should be able to easily avoid these pitfalls:

Merchants tend to forget about hidden charges/fees
Just as there is no such thing as free lunch, similarly, no merchant account is “free” in the true sense! Merchants can evade the mistake of believing that their merchant account will not cost a dime by asking for all charges and fees they might incur when they start processing. This includes but isn’t limited to the discount rate, transaction fees, and monthly processing fees.

Merchants fail to read the fine print
It is a fact that the world will scurry to get without giving, hence the attraction of the word “Free”. But that is not how business works. Merchant account services are in this line of work to make money too, so why would they agree to serve you for free? The point is that after reading that services are free, merchants discontinue reading the agreement, while it is the fine print that may talk of certain conditions under which payments are to be made.

In all the excitement of acquiring a merchant account, merchants fail to ask when they can access funds. Make sure that your merchant account provider frees you of restrictions when it comes to having access to your funds/revenue.

Merchants consider background checks unnecessary
Background checks are a necessary precaution! Whether it’s a credit card processing provider, a payment gateway, or a shopping cart, always make background checks. Get reviews of merchant accounts, payment gateways, and more to make sure you are associating your business with trustworthy professionals.

Merchants don’t negotiate for freebies
Consider the freebies offered by a free merchant account, which may include a free setup, application fees, monthly fees, etc, depending on your provider. A merchant should always be on the look out for providers who offer freebies from time to time.

Lastly, do not innocently believe every word the service provider tells you. Instead, gain knowledge which will empower you to ask the right questions. Continue your search for the right merchant account service until you find one that can answer all your queries. After all, you want the best for your business!