How many merchants reading this currently use Square or PayPal to process cards? Probably more than a few. While Square and PayPal can work for a while, there are major issues that can occur with each, and the merchant does not know some of these issues until they occur. The answer is simple: You need a terminal. While simple, money issues can affect a small merchant’s ability to afford the equipment needed to obtain a merchant account. For this issue, you need to look to that merchant account for financial help.
Terminals cost funds, and this is the reason why many go with PayPal (free app) or Squared (free or low cost usage for most). However, a terminal and the merchant account that goes along with it can save you from major trouble in the future. For example, high risk accounts typically have a high rate of chargebacks. When too many chargebacks occur with PayPal or Squared, your account is put on hold. This means that you cannot refund you customers, and you cannot get your funds. Instead of risking your business and funds with these options, you should look to a merchant account processor for your credit card processing options.
It is possible to get credit card processing loans from a merchant account provider. While they are not exactly a “loan”, they can provide you the needed funds for a terminal – without the hassle of a traditional loan. There are no outrageous interest rates, no lump sum payments, and no collateral. This method is called a merchant cash advance, and it can be the best opportunity for you to obtain a credit card terminal. For those who are not willing to get a merchant account, you can obtain an ACH business loan, which operates like a merchant cash advance, except that your payments come from your business checking account. With this option, you must bring in at least $10,000 USD per month and keep your chargebacks at three or less.
Affording a credit card terminal can be tough for struggling and new merchants, but it is imperative that all businesses accept plastic card payments. For more information about obtaining a merchant cash advance or an ACH business loan, contact FAM or your existing merchant account processor today.