Free merchant account: Can they really be true?
If a merchant is just starting their business, they cannot be blamed for wanting to keep the costs down to a minimum. Some are even tempted to sign up for so-called free merchant account services. These providers are quick to attract the hapless merchants with promises of full featured merchant accounts without having to pay a single cent, just because it’s “free”. They are also smart enough to further convince the merchant that they need a merchant account to boost their sales volume without coughing up hundreds of dollars to pay other providers what they can get for “free” from these unscrupulous providers.

Naturally, no one can resist the temptation of getting something for nothing! Merchants are attracted by these third parties’ sales talk, thinking that they can quickly apply for a free merchant account, save the time and hassle that one normally spends with a reputable provider, and see the profits come rolling in.

What free merchant account providers promise you
1. Free merchant account providers will convince you that you don’t need to pay through your nose for processing softwares.
The truth is, if you talk to a trustworthy merchant account provider, you will quickly see that it isn’t so expensive to get your hands on good processing software. The benefits you will enjoy far outweigh the cost.

2. You will be able to obtain a secure server
Can you really get a fully secure server to ensure peace of mind for you and your customers… for free? Think about this before you agree to a third party merchant account service provider offering you a free account.

3. Free merchant account services take no customer service fees, monthly gateway fees or minimum transaction fees.
They may promise you this but did you know that they will start charging you exorbitant processing and chargeback rates? This will help you decide if you want to sign up with a third party company that hides these facts from you.

4. With free merchant account services there are no setup or monthly fees
This may be true, but you will be in for a nasty shock when you realize that little or no support is given after you have signed up for a free account! Good support is invaluable, something that you can only find as a reputable merchant account provider’s customer.

5. No credit check
Honest merchant account providers truly care about your business, and that’s why they want to know all they can about you, including asking for credit checks just so that they know how to best cater to your needs and wants. Those who want to “reward” you with “free” merchant accounts are only interested in obtaining your cash and not a bit concerned about growing your business.

Free merchant accounts – Always a catch around the corner
1. These companies make a profit by taking a percentage of your transactions. And what a huge percentage it would be! Because you paid no setup fees (or any other fees for that matter), you will usually pay these companies a huge chunk of your profits.

2. You may find that credit card processors are likely to charge you slightly higher percentage points on free merchant account transactions. This won’t happen if you signed up for your own online merchant account.

3. It is also common for a lot of credit card processors to temporarily withhold approximately 10% of your profits for future returns.

4. If and when your business takes off and you begin to enjoy high volume sales, you will discover that free merchant accounts may not be able to support you. This means that you have to start shopping for your own merchant account, something that you should have done long ago.

In conclusion, you should really think if it is worth signing up for a “free” merchant account. Underpaying for something, like the initial $0 setup fee, may mean that you will be forced to overpay for other fees like chargeback fees.

After all, when it comes to your business, don’t you want the best for the company that you built from scratch? Just like a child you raised on your own, surely you would want to see your business flourish – and that can only happen when you enlist the services from a reputable merchant account provider.

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