Red Flags For Merchant Account Contracts

Merchant credit card processing is a huge market, with many options for accounts that offer different rates to businesses. Some may offer mobile options, others emphasize the Web, but they all basically work the same. That’s good news, because it’s easier to spot a bad deal when you understand the basic charges you should pay each month to use the service.

Red Flag Number One: Revenue Requirements

If you’re offered a low rate to accept credit cards online, under the condition that you meet certain sales volumes, don’t take the deal if you’re not positive you can make those requirements. Do some careful sales forecasting just to double check your numbers. You’ll pay an inflated rate if you fail to meet the threshold, and be locked into a contract for terms that can last up to three years for a standard agreement.

To be clear, volume commitments aren’t always a negative. If your business is large enough to absorb those kinds of sales, you should consider the savings you could receive for meeting those goals. It might even help to encourage sales within your company, especially if you set reasonable goals for your sales team.

Red Flag Number Two: Fees

Junk fees are your biggest concern here, so scan the small business credit card processing contract carefully to make sure you’re not paying them. Junk fees include: statement fees, setup fees and application fees. Some of these fees are non-negotiable for high risk merchants, so shop around to see who offers decent service with the fewest fees.


Charge.com Payment Solutions Inc. offers low-cost solutions to merchants classified as either high or low risk. To learn more, and to begin accepting credit cards online, contact Charge.com.