{"id":2808,"date":"2022-03-02T16:24:50","date_gmt":"2022-03-02T16:24:50","guid":{"rendered":"https:\/\/friendsoftoms.org\/?p=2808"},"modified":"2022-03-03T15:39:02","modified_gmt":"2022-03-03T15:39:02","slug":"avoiding-problems-with-your-merchant-account-2","status":"publish","type":"post","link":"https:\/\/friendsoftoms.org\/avoiding-problems-with-your-merchant-account-2\/","title":{"rendered":"Avoiding Problems with Your Merchant Account"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">A <\/span><a href=\"https:\/\/balancedprocessing.com\/reliable-credit-card-processing-for-holiday-shoppers\/\" target=\"_blank\" rel=\"noopener\"><b>merchant account<\/b><\/a><span style=\"font-weight: 400;\"> is a great investment for small businesses.\u202fThere are many benefits to having a merchant account, such as accessing credit cards and lines of credit that your business can use to purchase inventory, supplies, or equipment.\u202fYou don&#8217;t want to compromise your merchant account&#8217;s ability to pay its bills on time or charge fees that are more expensive than it&#8217;s worth.\u202fThere are ways you can protect your business&#8217;s reputation with the institution that provides the service.\u00a0<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_64 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/friendsoftoms.org\/avoiding-problems-with-your-merchant-account-2\/#Do_not_delay_opening_your_merchant_account\" title=\"Do not delay opening your merchant account\u00a0\">Do not delay opening your merchant account\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/friendsoftoms.org\/avoiding-problems-with-your-merchant-account-2\/#Separate_your_business_and_personal_accounts\" title=\"Separate your business and personal accounts.\u00a0\">Separate your business and personal accounts.\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/friendsoftoms.org\/avoiding-problems-with-your-merchant-account-2\/#Do_not_ignore_the_rules_and_regulations_that_govern_your_merchant_account\" title=\"Do not ignore the rules and regulations that govern your merchant account.\u00a0\">Do not ignore the rules and regulations that govern your merchant account.\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/friendsoftoms.org\/avoiding-problems-with-your-merchant-account-2\/#Your_merchant_account_should_not_be_used_for_anything_other_than_the_processing_of_credit_and_debit_cards_transactions\" title=\"Your merchant account should not be used for anything other than the processing of credit and debit cards transactions.\u00a0\">Your merchant account should not be used for anything other than the processing of credit and debit cards transactions.\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/friendsoftoms.org\/avoiding-problems-with-your-merchant-account-2\/#Do_not_sign_up_for_every_deal_offered_by_any_company\" title=\"Do not sign up for every deal offered by any company.\u00a0\">Do not sign up for every deal offered by any company.\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/friendsoftoms.org\/avoiding-problems-with-your-merchant-account-2\/#You_cant_refuse_to_return_the_item_or_get_a_refund_without_providing_a_reason\" title=\"You can&#8217;t refuse to return the item or get a refund without providing a reason.\u00a0\">You can&#8217;t refuse to return the item or get a refund without providing a reason.\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/friendsoftoms.org\/avoiding-problems-with-your-merchant-account-2\/#Do_not_sign_up_for_anything_that_isnt_right_for_your_business\" title=\"Do not sign up for anything that isn&#8217;t right for your business.\u00a0\">Do not sign up for anything that isn&#8217;t right for your business.\u00a0<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Do_not_delay_opening_your_merchant_account\"><\/span><strong>Do not delay opening your merchant account\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Setting up merchant accounts early is better than waiting to establish your business.\u202fA merchant account approval is more likely if you are a veteran businessperson and have past success with other vendors.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These are guidelines, not mandates.\u202fIf you establish a relationship with your bank, you will be able to get better deals when it comes time for your merchant account.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Separate_your_business_and_personal_accounts\"><\/span><strong>Separate your business and personal accounts.\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Your merchant service\u202fwill try to determine whether you are using your business account for personal or business purposes.\u202fThis is not only illegal, but common. It can also put at risk both your business and merchant accounts if discovered by either lender.\u202fMost institutions will require that any money owed to them be paid before they release funds. This would mean that there wouldn&#8217;t be any money available for payroll or inventory expenses until all outstanding loans are settled.\u202fThis is a nightmare situation that can cost you far more than any amount owed.\u00a0<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-2698 aligncenter\" src=\"https:\/\/friendsoftoms.org\/wp-content\/uploads\/2022\/02\/images-9.jpg\" alt=\"\" width=\"914\" height=\"608\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Do_not_ignore_the_rules_and_regulations_that_govern_your_merchant_account\"><\/span><strong>Do not ignore the rules and regulations that govern your merchant account.\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Each bank has their own guidelines about what they will or won&#8217;t approve.\u202fThey may close your account if you break these guidelines.\u202fWorse, they might not allow you to return to their system.\u202fLenders approve you because they believe you are less likely to default on your payments or become late than applicants who do not meet their expectations.\u202fAny indication that you are not meeting their standards or expectations could result in higher fees and rates, as well as losing credit lines for up to six months.\u202fThe institution is in business to make as much money as you are.\u202fThey will charge you more if they are able to charge you for your past or present mistakes.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Your_merchant_account_should_not_be_used_for_anything_other_than_the_processing_of_credit_and_debit_cards_transactions\"><\/span><strong>Your merchant account should not be used for anything other than the processing of credit and debit cards transactions.\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It is against the regulations that govern many merchant accounts to use a credit card for shopping, utility payments, or purchases from other businesses.\u202fCustomers who get receipts for purchases they don&#8217;t make will be annoyed. This could lead to your merchant account being closed again (see item #3). It can also result in lost sales and future earnings potential.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Do_not_sign_up_for_every_deal_offered_by_any_company\"><\/span><strong>Do not sign up for every deal offered by any company.\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It doesn&#8217;t matter if they claim you will save money by opening merchant accounts with them.\u202fYou can shop around to find the best rates and fees. The fees are not necessarily more than the annual profit your business makes.\u202fDo not be pressured into signing anything unless you are certain the information they provide is correct and complete, particularly statements regarding credit lines that may be available for future use.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"You_cant_refuse_to_return_the_item_or_get_a_refund_without_providing_a_reason\"><\/span><strong>You can&#8217;t refuse to return the item or get a refund without providing a reason.\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Customers have the right to expect services and products they pay for to be satisfactory, particularly if they use credit cards that are hard (but not impossible) to reverse.\u202fEven though mistakes can happen with good intentions, you should never say no to someone simply because they aren&#8217;t who they claim to be online. This is especially true when dealing with international companies, whose leaders might only know the buyer via their e-mail address.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Do_not_sign_up_for_anything_that_isnt_right_for_your_business\"><\/span><strong>Do not sign up for anything that isn&#8217;t right for your business.\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Complex back-office processing and more complex merchant account applications can slow down sales and profits if you are a clothing retailer that specializes in vintage apparel.\u202fPeople who work with large-scale companies that offer complex credit card processing services for professionals and other large-scale operations are also likely to become overwhelmed by the amount of time it takes to manage it all. They will lose money, not make any, and it won&#8217;t be long before they start losing their income.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A <\/span><a href=\"https:\/\/balancedprocessing.com\/reliable-credit-card-processing-for-holiday-shoppers\/\" target=\"_blank\" rel=\"noopener\"><b>small business owner<\/b><\/a> <span style=\"font-weight: 400;\">must understand not just the do&#8217;s and don&#8217;ts of a <strong><a href=\"https:\/\/friendsoftoms.org\/avoiding-problems-with-your-merchant-account\/\">merchant bank account<\/a><\/strong>, but also the\u202fshould\u2019 s and shouldn\u2019t.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A merchant account is a great investment for small businesses.\u202fThere are many benefits to having a merchant account, such as accessing credit cards and lines of credit that your business can use to purchase inventory, supplies, or equipment.\u202fYou don&#8217;t want to compromise your merchant account&#8217;s ability to pay its bills on time or charge fees&#8230;<\/p>\n","protected":false},"author":2,"featured_media":2811,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[118],"tags":[],"_links":{"self":[{"href":"https:\/\/friendsoftoms.org\/wp-json\/wp\/v2\/posts\/2808"}],"collection":[{"href":"https:\/\/friendsoftoms.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/friendsoftoms.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/friendsoftoms.org\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/friendsoftoms.org\/wp-json\/wp\/v2\/comments?post=2808"}],"version-history":[{"count":0,"href":"https:\/\/friendsoftoms.org\/wp-json\/wp\/v2\/posts\/2808\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/friendsoftoms.org\/wp-json\/wp\/v2\/media\/2811"}],"wp:attachment":[{"href":"https:\/\/friendsoftoms.org\/wp-json\/wp\/v2\/media?parent=2808"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/friendsoftoms.org\/wp-json\/wp\/v2\/categories?post=2808"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/friendsoftoms.org\/wp-json\/wp\/v2\/tags?post=2808"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}