Are you just starting out? Are you an established business? Are you thinking about switching from Square or starting off with Square? Then you may be wondering: Why would I spend the time and money to get a merchant account when I can get set up with Square in minutes? If you are wondering what a merchant account is, check out my other article describing what goes into CC processing and the terminology. What is a Merchant Account and how do they work?
A Merchant Account and Square both have some advantages and some disadvantages. I will first look at Square.
The Pros:
Get set up in minutes with Square.
They send you a free card reader for a device
Easy to use system.
You know what you are going to be paying.
2.6% + 10¢ transaction fee for all swiped, dipped (chip cards), or tapped (NFC) in-person payments
3.5% + 15¢ transaction fee for in-person payments where the card number is entered manually
2.9% + 30¢ transaction fee for online payments with their e-commerce API
They have a free virtual terminal software via their dashboard.
The Cons:
The downfall of Square comes in the fact that you can’t scale your business with confidence.
Your business isn’t backed by a bank, so you won’t have any help if things go wrong. they can cancel your ability to accept payments without warning.
You have no connection with a bank, so it is very difficult to reason with them or explain your situation to get your account reopened. This can cost your business time, money, and customers.
1% fee of deposited funds if you want your money faster than a 1 to 2 day processing.
Their rates are standardized to fit every type of business so you aren’t getting the best deal specific to you.
Merchant Account Pros:
A merchant account is specific to your business so you only pay for your business needs.
This means your processing rate is going to be lower because they can properly access the risk of doing business with you.
There is more flexibility like the potential to remove all fees on your end – This is not always right for everyone.
You are established with a bank which means you don’t ever get shut down from accepting payments without notice or the opportunity to fix an issue.
It is easy to scale your business if your business is growing, expanding, or opening new locations.
You can use the right Terminal or POS that works best for your needs or that works with your existing technology
Merchant Account Cons:
Takes a longer time to get setup
Possibility of needing new equipment
Why should you choose Paymint Pro?
- On top of the benefits a merchant account gives your business. Paymint Pro offers the benefit of always being straightforward and honest throughout the process.
- Other companies add in hidden fees or raise your rates without notice.
They have years of business experience so they help you find the best solution tailored to your business’s needs
Great customer service who will help you every step of the way
Overview:
If you need to accept credit cards for an event quickly, Square can be a great option to get you up and running. It can help you focus on getting your business off the ground and accepting payments in a hurry.
Merchant Accounts are a great way to set your business up for success for the long haul. It allows you to scale your business as well as save your business money. If you are ready to talk about how a merchant account can help your business, please fill out the form below. Someone from Paymint Pro will be in contact shortly.
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