Telemarketing Merchant Account
In the age of smartphones and e-commerce, small businesses are finding it tough to compete with giant corporations. Selling goods and services over the phone can bring in some of that competitive edge, but for businesses without a brick-and-mortar location or a physical mailing address, incorporating a merchant account for telemarketing purposes is often an expensive endeavor.
Luckily there are options out there for entrepreneurs who want to reach customers over the phone but don't have the appropriate account setup. Here's our list of top 5 merchant accounts for telemarketing:
1) Fee: $5.95/month
One of the downsides to a traditional merchant account is its high annual fee, which can make it difficult for newcomers to the business-to-business market. Payoneer Merchant Account is one of the few merchant account providers with no minimum or cancellation fee, even if you decide to close your account after a year.
The reason for this is that Payoneer does not set up new merchant accounts. Instead, it acts as an issuing bank, providing direct payment capabilities through an online banking platform that allows payment processing at no extra cost. Their processing limit is set at $5.95 per month for most telemarketing businesses. If you have a business that requires more transactions, you can choose to upgrade the account to include international credit card transactions at a cost of $3.49 per month.
2) Fee: None
Telemarketing is usually one of the first types of business for which an entrepreneur decides to open an account. Many banks and merchant accounts charge over $100 each year just for checking, which can be months away from covering all your expenses. Fortunately, there's no need to take that risk with Merchant Direct.
The company has no fees at all, even in the event that you decide to close your account. They do charge an annual fee of $49.95 for non-U.S.-based businesses and $99.95 for businesses based in the U.S., but these fees are waived the first year you open a merchant account.
3) Fee: $0/month
With a standard merchant account, it's often difficult for telemarketing merchants to get paid in full every month. Most of these companies deduct a small amount from each transaction, then pay them back as earned at some later date. With the Merchant Direct Merchant Account, you pay a flat fee each month for the privilege of accepting payments—no matter how many transactions you have.
The company does charge a $1.95 processing fee credit card transaction for its standard merchant account, but there's no monthly fee for telemarketing merchants at all. The company does charge an annual fee of $49.95 in the U.S., but that is waived the first year you open a merchant account.
4) Fee: None
This option is perfect if you're just starting out and want to test out your product or service before opening a traditional merchant account with a bank or credit union. At the end of each month, FreshBooks will send you a statement so you can request payment at any time.
If you signed up for an account to sell just one product at a time, for example, your statement could come via email and/or text message every month. The company does not charge any fees for this service and offers paid upgrades to include more advanced features like credit card processing with PAX Payroll.
5) Fee: $25/month (240-day commitment)
In the beginning of a startup's journey toward success, cash flow is often tight. It can be difficult to get enough money in the bank to fund expenses until profit starts rolling in. Merchant Solutions understands this and offers a service that can help you earn money by taking payments for your goods or services before you begin taking any of your own.
The company works with several different payment gateways, which can make it easy to integrate your payment system with the rest of your business' systems. The option is best for companies that are already doing well, since they charge a $25 monthly fee. (They also require a 120-day commitment.) But even if you plan on closing the Merchant Solutions account at any time, they will refund any part of your fee that is less than $25.
Founded in 2009, Merchant Solutions is one of the largest merchant account providers for telemarketing companies. The company is based in Irvine, California, and serves customers all over the world. They were ranked #2 on Inc.com's list of top 12 merchant account companies in 2014, and they manage over $10 billion in annual volume.
What's Next?
If you're ready to see who else has been selected as a Finalist or Winner, read the full list of finalists and winners here. And don't forget to take a look at our other Best Of lists: The Best Bookkeeping Companies for Small Businesses in the U.S. The Best Online Marketing Companies for Small Businesses The Best Web Design Firms for Small Businesses The Best Marketing Agencies for Small Businesses in the U.S. The Best Accounting Firms for Small Businesses in the U.S. The Best Graphic Design Firms for Small Business in the U.S.
Sources: Inc., Merchant Solutions, FreshBooks, Payoneer, Merchant Direct, Telemarketer Wiki, Payment Alliance International
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Conclusion
With thousands of options to choose from, telemarketers have a lot of different ways to accept payments for the service they provide. If you're looking for the best way to manage your cash flow, it's smart to do some research before choosing the payment system that's right for you.
If you're interested in opening a merchant account with Merchant Direct, check out their packages here. If you want some help making a decision about which payment gateway is right for your business, pay attention to what your potential customers are saying about your products or services—the data is real and accurate.