LINKS

"
THE LOWEST RATES...
MOST BUSINESS TYPES...
WE SAY YES WHEN
OTHERS SAY NO...
7 DAY APPROVAL...
NO HIDDEN FEES...

"

 
 
1.800.393.3230
 
 


   

THE REAL COST OF OBTAINING A HIGH RISK MERCHANT ACCOUNT

Small or start up business entrepreneurs constantly watch out for innovative ways to save their precious capital. However, if you want to save money by not investing in the smart tools and technology of today which appeal to the customers, then you will mostly probably loose out a lot of money in the long run than you are saving in the short term.

Let’s take an example to make you understand better. Consider two companies Company A and the Company B. Both of the companies have excellent expertise related to the plumbing. Now “A” has a CEO who is dynamic and intelligent and is willing to spend money in the short term to get long term benefits. However, “B” has a CEO who is very conservative and does not want to invest in anything as he wants to save money, even if the investment will be very fruitful in the long run of the company.

Both the companies have equal expertise and both their initial schedules get filled up with the same speed, after the campaigns. But, after their first quarters, “A” will be way ahead of “B” when it comes to sales and jobs done. Therefore, when “B” brought in a business consultant to remedy the problem he found out that:

The only difference between Company A and B is that, “A” accepts credit cards while “B” does not. “A” went another step ahead by paying twenty dollars per month for the wireless processing of credit card service. This service’s discount rate is 4% for every transaction. “A” company’s CEO was well experienced and therefore knew that accepting credit card payments was a key factor to increase revenue and stay afloat in the competition. He also knew that by accepting credit cards they get their payments immediately unlike with checks. This cuts down the paperwork and also the accounting problems.

“B” company’s CEO realised his mistake and opened a merchant account. He saw that his company was losing about 5 transactions per month, with each transaction costing him $500. Therefore, his company was losing about $2500 in revenue each month.

Sadly, the CEO of company B lost out $2500*3=$7500 just because he did not want to pay $20+$120+4% per transaction per month, which is the cost of accepting credit card payments.

Also, the lost customers of “B” come to “A” because both companies have the same quality of service. Happy customers of any company freely advertise for the company by telling their friends and relatives to use the services of the company.

Several of A’s customers would have gone to “B” if they had only had a merchant account to accept credit cards. Therefore, “B” not only lost out on the revenue it also lost numerous customers. Also, the lost customers would have publicised negatively against “B” thereby bringing down the reputation of the company by a huge margin. Now “B” will have to pay lot more to make up for the damage.

This is the True Cost of Not Having a Merchant Account. Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.