If you are a new start-up business, you will quickly discover that a majority of your transactions that take place will involve a credit or debit card. In the past cash accounted for nearly 80 percent of all transactions. Now, over 90 percent involve using a credit card of some type. For new businesses this can be very difficult, especially if you are having trouble getting a processing service.
You Are Considered a High Risk
Many bans and larger credit processing companies view you as a high risk when a business is in its initial opening stages. Many will not approve a credit card processing account, and those that do will attach very high rates for the service. Since it is nearly impossible or a business to operate without accepting credit or debit cards, they are forced into accepting these significantly higher rates until such a time that they can renegotiate for lower terms. Thankfully, there are credit processing services that cater to these high risk businesses and allow them to set up a processing account with reasonable fees.
Search For A Company Offering The Right Service For Your New Business
You are not obligated to use your bank for a credit processing account. New businesses can conduct research and find different companies offering high risk merchant accounts. HighRiskPay.com, for example handles new business merchant accounts and other businesses that have difficulty establishing merchant accounts because their industry is deemed risky.
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Merchant Fees Add Up Quickly
One of the most important reasons that business owners should shop around for a high risk processing account is because merchant fees can add up quickly which cuts into profits. If your bank is charging you large fees for each swipe and additional fees for maintenance and other services, it could quickly become too expensive for you to accept credit cards. When you consider that over 90 percent of your business transactions will involve these cards, you must act quickly to reduce the costs.
Business owners must take the time to examine the costs of accepting credit cards and switch to a service that specializes in high risk accounts. This switch will reduce operating expenses and help keep profit margins high.