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ECHO
Merchant Services
A Consumer Guide on
Merchant Services: Beware of Marketing Ploys
Like any other business
field, merchant service providers have their own jargon,
inside information, hero's and villains. There are
honest companies and those willing to say just about anything
to close a sale. We have assembled this Consumer Guide on
Merchant Services to help you choose your merchant service
provider wisely.
Don't Be Fooled By
Marketing Tricks.
In the field of merchant
services, there are many price variables that can be
manipulated to fool a customer into believing they are paying
the lowest price, but in fact they are not.
Bait and Switch
One marketing is the old
"bait and switch" routine. Many of us have
pursued the purchase of a car or other advertised product, and
been disappointed to find that the "sale item" was
already sold out. Quickly we are re-directed to other
"great deals" on the lot, or in the store.
One kind of
"bait" in the merchant services industry is
advertising a low discount rate. The discount
rate can be temporarily manipulated through
"introductory" offers which quickly expire.
This is the rate that a merchant pays for a swiped card
transaction, usually between 1.79% and 2.69% depending on
credit, volume, product type and risk factors.
Below are some marketing
techniques and issues to be educated on.
1) "Merchant
Accounts 1.09%!" When you see such an ad, click
through and try to find the rate guaranteed anywhere on the
merchant services website. See if you can even find it
ever mentioned again! Some advertising might grand-stand
lower rates that are only given to extremely high volume
customers. Once you have invested time into the application
process, a savvy high pressure closer will explain with great
charm and detail why your final rate wasn't as good as the one
given to say, "a world wide fast food chain" but was
still a great deal considering your risk factors.
2) "Free
Merchant Account?" What does this mean!?
The merchant account provider must charge a discount
rate and per item transaction fee. Does that sound free?
A free set-up fee can easily be exchanged with an "annual
fee" or some other kind of hidden charge.
3) Hidden
Charges: Another "switch" is simply substituting
hidden
charges that you won't
discover until after you get your first bill.
4) Third Party Sales:
Did you know that an independent sales rep can create a
merchant services website in his garage that masquerades as a
large company? They simply forward your application to a
provider who may not even be aware of the alluring promises
that got you to sign up. Commissions are added into the
contract.
Read the terms of
service carefully, and you will find out who is actually
writing your merchant services account, and the true costs and
restrictions. Don't just click "I accept". Ask
questions.
5) Merchant Service
Provider or Sales Website?
Examine merchant
service websites carefully. Do you find a complete corporate
website? Does it
include full
contact information, business address, phone,
corporate
information, products,
support,
investor
reports, and detailed press
releases about the company
and its services? Or is it a couple pages of catchy
graphics and teasers rates driving you to call? If it's
the later, you're not dealing with a true merchant services
provider.
There's an old saying,
"Dance with the date you came with." When you
sign up with one company, who transfers your account to
another, and yet a third company actually does the processing,
who do you turn to with questions or problems?
ECHO:
A True Tier 1 Merchant Services Provider
Electronic Clearing
House, Inc has been a true Tier 1 merchant account
provider since 1981, processing billions of transactions
nationwide securely through our own proprietary data centers.
We do not sub-contract our processing, or sell someone else's
processing. This means that you not only save money, but
your financial and banking information is SECURE! We are not
relying on third party hosting companies.
 We
at ECHO are dedicated to the highest ethical standards,
transparent corporate structure and straightforward
advertising of our products and services. Our prices are
extremely attractive by industry standards. We hope that
you'll conclude with us, that in addition to great prices, ECHO
offers the best products, customer service, and transaction
security of your financial data in the business.
Contact one of our
'no pressure' salaried payment processing specialists for your
new merchant account and for complete information @
800-262-3246, Ext. 5.
ECHO:
Integrity Is Essential!
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