We understand that starting a business can be a daunting and costly experience. To eliminate the anxieties and reduce costs it is always best to plan in advance and be prepared. Investing time to research the most suitable Merchant Account facilities for your business is one shrewd decision. Beepay has a huge wealth of knowledge and support staff ready to impart their know-how and assist you with getting setup costs effectively and as quickly as possible.
Startup Merchant Accounts can be tricky to establish, as some Merchant Acquirers may view them as higher risk accounts due to the lack of online trading history. Anything that you are able to produce in order to mitigate this higher risk standpoint would be highly beneficial. This includes demonstrating a solid brick and mortar business model, a healthy set of filed accounts, a strong set of terms and conditions and a sensible payment terms policy. If you can take payment and immediately dispatch or take payment after the service or event, then this is often seen as more favourable by he Merchant Acquirers. Processing payments well before the product is dispatched or even produced, or well in advance of the service or event taking place, will cause the Acquirer to have a prolonged amount of risk to ensure they are covered for. This could lead to higher fees, longer settlement times, a rolling reserve or sometimes refusal of the Merchant Account application.
Being a startup, we appreciate it's important to process payments. Our advice would be to build a good rapport with your chosen Merchant Acquirer. Even if the fees seem a little high in the first offering, if your business model can withstand it, they could be worth accepting. We would then suggest proving a strong business model, with no chargebacks, over the next 6 to 12 months before then requesting a review of your account. Beepay will be able to provide support and help you reapply for a more competitive merchant account.