Are Free Merchant Accounts Really Free?


Free Merchant Account
For many small businesses that need to accept credit card payments from their customers, a free merchant account may be very beneficial. Merchant accounts can allow a business and service provider with a way for their customers to pay by either credit card or by debit card. There are many merchant account providers out there, but most of them charge high fees for application and set up. In addition, most merchant account providers charge high monthly fees and a percentage of all transactions. It is possible, though, to find dependable and safe service from a free merchant account.
A free merchant account is also considered a third party credit card processor. This means that another company processes a businesses credit card transactions rather than a business having their own system. Large businesses may benefit from having their own merchant account. Smaller businesses may face much higher fees than needed when opening a merchant account. A free merchant account can provide a business with no up front fees and no time is needed setting up software and other merchant account equipment.
The biggest benefit of opening a free merchant account is that another company will take the time to process all credit card payments. This third party company checks the cards, processes the payments and will send their clients a payment set up on schedule, usually monthly. The only fee a business pays is a percentage of each transaction that is made. Unlike larger merchant accounts, with a free merchant account, if a business does not make a sale, they do not owe the merchant account provider anything. Other benefits of opening a free merchant account are that no credit check is required for opening the account. Also, international sales are included with these types of accounts. There is no time commitment or waiting after starting the account. A business is able to process credit card payments within a few minutes.
When looking at the many companies that offer the free merchant account, there are a few things to consider. Most of the time, these accounts should be looked at as an account for a very small business or for a business that has just opened. Usually, as a business grows, a larger, more customized merchant account will be necessary. This is because at first, with a free merchant account, a business will pay no set up fee, but will be required to pay more per transaction. Also, when looking to open a free merchant account, consider whether or not the account allows a business other payment alternatives such as collecting payments from debit cards or online checks, telephone orders and my mail or by fax. Check to see if there will be certain restrictions on the accounts, as well. With some of these accounts there is a minimum or maximum amount of transactions that can be made within a certain time frame. Because free merchant accounts are not really free, it is important to understand how and when fees are charged to the business account. Be aware of any hidden fees, as well.

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