Holly moseys over to the truck and disposes of her latex gloves. Floating a horse’s teeth is a messy job, but Holly has everything in her truck a vet could possibly need. After cleaning her hands with an antiseptic solution it only takes her a minute to run her client’s credit card through the mobile point-of-sale (mPOS) device attached to her dashboard, then she’s off to see her next equine patient.
Just a few years ago a vet like Holly would have needed an office, but today Holly can work completely out of her truck. mPOS devices have revolutionized small business financials, making it possible for businesses to be far more flexible while saving money.
If you’re making decisions about how to take credit card payments for your new business, congratulations! Few things are as exciting as watching a new business take its first baby steps, and an mPOS card reader makes those first steps easy. The only problem is that you’ll need to make decisions. Lots of decisions.
One critical decision is whether to choose a merchant account or an aggregator for your credit card processing. There are many factors to think about when deciding between the two, but you’ll probably lean towards a merchant account if you process a fairly large amount of money every month and need your money to be credited to your account promptly.
Holly may work out of a truck, but an equine vet’s services can be expensive, so it makes sense for her to use a merchant account for her mPOS processing.
If you’ve decided on a merchant account, how do you choose a good one? These are the things you should look at.
Approval ratings
How high are the approval ratings? The approval rating is the percentage of applicants the merchant approves. Obviously, a higher approval rating is better. The top ones typically boast a 98-99% approval rating.
Startup costs
What are the startup costs? Some merchants set up new accounts for free. Some charge as much as $300 to set up a new account. Enough said.
Monthly fees
What are the monthly fees? Merchants usually charge both monthly fees and fees per transaction. Look for low fees for both.
Minimum contract length
Is there a minimum contract length? Some merchant accounts are offered on a month-by-month basis, while others charge a termination fee if the account is terminated before a specified number of months.
Processing limits
What are the processing limits? Processing limits can take two forms: high-ticket limits and monthly processing limits. It’s important that the merchant sets limits you can live with. If you occasionally perform expensive equine surgery, you don’t want your payments delayed.
Approval time 
How long does it take to set up a new account? This can vary from a day or two to weeks. The trend is towards a fairly quick online application and account set-up within two days.
Customer service
How good is customer service? This is the company that’s going to be handling a lot of your money. Most of the bigger merchant account providers have 24/7 customer support. You probably do not want to settle for less. If you are a person who like to get a response in writing rather than over the phone, check that the provider has online chat and a support ticket system. If they don’t strike you as being competent and trustworthy, avoid them.
Payment options
Are the payment options offered going to work for your business? Do you need to take payments over the phone, over the Internet, or in a bricks-and-mortar location? Make sure that the merchant you’re considering is going to be able to supply you with everything you need.
Payment gateways
Which payment gateways can be paired with the merchant account? To accept card payments, you need both a merchant account and a gateway account. The payment gateway service verifies the customers credit card data, and either declines or processes the payment. Some merchant accounts use one payment gateway exclusively, while others let you choose between several. If you already have a gateway account you are happy with, check that it can be used with the merchant account you are considering.
BBB rating
It’s definitely a good idea to do some general snooping into the reputation of the merchant you’re considering. Many merchants have online feedback, and Better Business Bureau ratings can round out the picture.
A good merchant account can get your new business started on the right track, and in no time at all your new business’s baby steps can become huge strides!