If you accept credit cards, you are likely reaping huge benefits from your business. Credit cards have gained universal presence. Whether for paying online bills, eating out at a restaurant or shopping at a grocery store, credit card transactions are preferred by shoppers everywhere. Even charitable institutions accept donations in the form of credit card payments. It is obvious that if your business does not accept plastic, you could be closing the door on hundreds of potential customers.

Assume a situation where you cannot accept credit cards in your business. Sounds scary, doesn’t it? That’s because you understand how much loss you could incur–even in a single an hour. This could happen if your merchant account is revoked. This can happen for a number of reasons, however the result is the same. You lose the ability to accept credit cards and lose potential buyers.

A merchant account needs to be managed properly to avoid revocation. Most of the time, it is helpful to employ some electronic merchant card services to handle all tasks related to the account. Let’s discuss a few of the reasons that can lead to your merchant account revocation.

Violating Merchant Agreement

When you wish to accept a credit card brand at your place of business, you need to agree to the rules and restrictions laid down by the corresponding brand. You enter an agreement with the brand and you must ensure that you follow the regulations during all your transactions. Failure to do so can revoke your merchant account.

The Minimum Purchases Policy

Some businesses enforce a minimum payment amount for credit card transactions. However, the merchant account agreement states that you must honor all cards, irrespective of the payment amount. A minimum transaction amount policy is clearly against the agreement and can annul your merchant account. Therefore, when you look out for electronic merchant services, make sure that the policies they enforce do not conflict with those of your business.

Excessive Charge-backs

In the case of a customer being charged for a false or inferior product that is returned by a customer, the merchant will be asked to refute the charge. Failing to do so will charge the merchant and automatically credit the amount in the customer’s account. This process is known as a charge-back. If you face more than a pre-defined number of charge-backs, your merchant account will be revoked. Electronic merchant services monitor each and every transaction and avoid charge-backs in the first place. In case a charge-back is filed, they take measures to disprove it.

 Exceeding Limits

When you sign a merchant agreement, you define the upper limit of volume and tickets that you anticipate. You must make transactions within this limit at all costs; or else your account will be frozen. An electronic merchant service will alert you if you approach the promised limit.

Insufficient Funds for Fees

As a merchant, you will need to pay monthly fees for credit card processing services. If at the scheduled instance your account has insufficient funds, your merchant account can be revoked. Electronic merchant services make sure that the expected amount is always present in the account to avoid any inconvenience.

Finding the right merchant account provider for your business can be a challenging task, but it is important to find a credit card processing company you can rely on. There are several things to consider when looking at different providers:

Is there a set-up or application fee? If so, is it refundable if your application is not approved? These fees can be up to $500, so this is something you should find out before you apply.

What does the merchant account provider charge for credit card processing equipment or an electronic gateway? You can either purchase or lease your equipment. If you have an online business and simply need an electronic gateway to process payments, you will still be charged either a one-time fee, or a monthly payment.

What is the monthly service charge? This will typically be between $15 and $25 per month, in addition to your monthly equipment or gateway fee.

How much are their per-transaction fees and transaction percentage fees? Most providers will charge a few cents (usually about .25 to .35) per transaction, and a percentage of every transaction. The credit card companies set this amount, but some merchant account providers will tack on extra percentage points.

Are there any hidden fees to be aware of? Read the agreement carefully and look for any details that could affect your business, such as the company’s chargeback policies and fees.

How long does the company hold payments? This can be anywhere from two days to two weeks, depending on the provider’s policy.

Will you be provided with a transaction record? Some providers charge extra for this service, but it can be an invaluable aid to your record keeping.

Do they require a long-term contract? Many providers require only a short-term contract or no contract at all. This would be a good choice when starting out, so you have some flexibility if you find that your provider is not a good match for your business.

How is their reputation? It will take some research to find out how each company handles disputes, for example, and whether they provide good customer service and support. If you utilize the free services of a company that matches businesses with vendors, this will save you time and simplify your decision-making process.