Merchant Services for Contractors

Accepting credit cards as a contractor can make or break your estimate for work to be done. Sure many people still pay cash, but for larger projects, many individuals do not have access to larger lump sums of cash to pay for a job. As a carpenter, builder, plumber, landscaper, etc., You can offer credit card acceptance to overcome the " I don't have the money right now" answer when you ask for the job.

By accepting cards, you receive your funds immediately but the individual that you did the work for can pay over time. Even in these more difficult economic times, many people still have credit cards that have unspent values. As a contractor, you may be able to close more jobs just by being able to offer an alternative form of payment.

Also, you can actually process your transactions by using your cellular phone without a need for any other equipment. You dial an 800# and just follow the prompts. The funds are deposited 2nd business day right into your business checking account. Accounts only take a few days to setup so you can start offering credit cards as a from of payment almost instantly.

Many people even look for ads where contractors accept credit cards and call them first. Even if it allows you close only one job a month, the service will more than pay for itself.

Saving money on merchant services

It is important to review your credit card processing statements on a yearly basis for any cost increases. Many processors raise rates and add fees with very little notice. It might just be a small line item at the bottom of your statement that tells of a raise in fees. Many times these fees can be removed by switching to a new processing company that is upfront about any changes.

Companies like Eagle Merchant Services only pass on direct increases from Visa and Mastercard. Many companies add extra profit on top of the price increases from Visa and Mastercard and blame it on them. By reviewing your statements yearly, you can end up saving hundreds, even thousands of dollars a year.

Look for excessive annual fees, compliance fees, supply fees, merchant club fees. These all add up to dollars you can be saving.

Saving money on credit card terminals

Never lease a credit card terminal. Not only can you buy one yourself for less money than you would spend over the life of a lease but owning your own terminal makes it easier for you to switch processors at any point.

You can purchase a terminal from Eagle Merchant Services for about $100 to $400. Make sure that you are getting a well-known, non-proprietary brand which fulfills your business needs. Ultimately you want to pick the credit card processor which will give you the best overall rates not just a free terminal. A good deal on processing could save you thousands in fees over the long run compared to just a few hundred in savings for a terminal.

Merchant Account Hidden Fees

Many payment processing companies make themselves look extremely large on the Internet, yet are really just big advertisers and high pressure sales people who are not really a payment processing company at all. They sell processing for whoever pays them the most commission and it is always the merchant who ends up paying for it, usually in the first few months and in start up costs.

Since most sales people in the merchant account business are never going to tell you that there are better deals for you out there, we have compiled a list of things to watch out for.

Merchant Account Hidden Fees

• Chargeback fees
  
• Retrieval fees
  
• Gateway fee
  
• Termination fee
  
• Hidden setup charges
  
• Non-refundable setup charges
  
• Cancellation fee
  
• Minimum fees
  
• Annual fee
  
• AMEX or Discover setup fees
  
• Statement fees (more for more services)

© Eagle Merchant Services is a merchant accounts provider based in the Chicago area offering the lowest cost merchant services as well as credit card machines.

Terminal Responses At the End Of A Transaction

Here are some common responses the merchant will see at the end of a transaction

APPROVAL CODE
This is the response that the card used has enough credit, the sale will complete and the card is not stolen or lost. The merchant records the message on the sales draft. THE APPROVAL CODE DOES NOT GUARANTEE PAYMENT.

DECLINED
This is the response when the card issuing bank will not approve the charge. This can happen for many reasons, one being there is not enough credit line on the card to approve the sale. The merchant needs to ask the customer for another form of payment when the DECLINED response comes up. If the customer wants to know why the transaction is declined they need to contact their card issuing bank.

DECLINED PICK UP
This response is given when the card issuing bank wants the card returned for some reason. The merchant is not required to keep the card and it should only be kept if it can be done safely. The merchant should refer the cardholder to the card issuing bank.



© Eagle Merchant Services is a Chicago merchant account area provider offering the lowest cost merchant services as well as credit card machines.

The Authorization

There are two ways an Authorization can happen.

ELECTRONIC
This is when the merchant swipes the credit card through a terminal or point of sale device and the POS device sends the transaction data electronically for the authorization.

VOICE AUTHORIZATION
This is when the merchant calls the voice authorization center; the voice authorization center has a computer system that communicates with the Issuing Banks to relay transaction data. An operator gives the merchant the Authorization response that is received from the card issuing bank.

Most authorizations are done electronically but the VOICE AUTHORIZATION is a great back up if the merchants credit card machine or POS System is down.




© Eagle Merchant Services - a merchant account provider located in the Chicago area providing the lowest cost merchant services and credit card machines.

What goes on in the life of a transaction?

A credit card transaction consists of two parts: the authorization and the settlement.

The AUTHORIZATION is the permission of the card issuing bank to accept a credit card for a payment.

The SETTLEMENT is the clearance through the Visa and MasterCard settlement system of the credit card transactions accumulated by the merchant in the terminal or Host so that the merchant can be paid for them. Both Authorization and Settlement must happen before a merchant can be paid for a credit card transaction.



© Eagle Merchant Services is a Chicago merchant account provider located in the Chicago area offering the absolute lowest cost merchant services credit card machines.