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    5 Replies Latest reply on Jan 19, 2009 10:28 AM by amspcs

    Best Business Checking and Merchant Account from BOA

    pumpkinspice Newbie
      I am starting a business and was wondering which business checking and merchant account costs the cheapest and with the lowest minimum?
        • Re: Best Business Checking and Merchant Account from BOA
          LUCKIEST Guide
          Best Business Checking, Welcome

          In Business as you know, you have to spend money to make money.

          You want the BEST merchant account, NOT the cheapest.

          Talk to your banker. Good luck, LUCKIEST
          • Re: Best Business Checking and Merchant Account from BOA
            amspcs Ranger
            For business banking account, try to find one with little or no monthly fees. Our B of A biz checking account costs nothing as long as we use our debit card attached to it at least once per month. Otherwise it costs something like $16 per month. Why flush $200 of your profit down the tubes annually?

            As far as merchant account goes, you need to avoid falling into the 'rate game' trap. 'Lowest rate' does NOT mean cheapest--in fact, the lowest rate quotes usually turn out to be the most expensive processing plans.
            And to take that a step further, the 'cheapest' plan is seldom the best plan. Consider that when you open a merchant account, you are giving that processor the keys to your bank account for both deposit and debit purposes. Are you SURE you want to give that to the dirt-cheapest boiler room operation you can find based solely on cheap price?

            With all due respect to Luckiet, your local bank is the last place to look for a merchant account. That's because most (very few in fact) of them are not processors themselves, only referrers to sales offices contracted by the processors to sell their services. So when you go to your local bank, all you are usually accomplishing is adding another middle-man to the pricing mix, which increases your cost unnecessarily.

            If low monthly minimum is important to you, I assume you mean you will do very little credit card volume, which means it doesn't matter what the 'rate' is--what you're concerned about are the fixed fees, including
            monthly minimum. In that case, there is a program out there for you with only $10 mo min. On the other
            hand, if you're doing more than say $2000 in V/MC volume monthly, then forget about the monthly min., go for the best rates. There are also reasonable month-to-month plans with no contractual obligation you should also consider. In short, there are several variables you should consider beyond those few you mentioned in your post.

            Give me a call or email anytime and we'll talk about it. I can refer you to some free resources that will answer a lot of your questions and help you make a better decision.

            AMSPCS
            amspcs@juno.com
            1-877-689-1691
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            • Re: Best Business Checking and Merchant Account from BOA
              Mamie2010 Wayfarer
              I don't know if this is the best merchant account, but I think it has some features that you might consider with whomever you choose. Sam's Club offers rates as low as 1.64% and $0.19 per transaction and service fee of $4.95 but the thing I want to compare the gift card program
              1 of 1 people found this helpful
              • Re: Best Business Checking and Merchant Account from BOA
                bmt2008 Adventurer
                As Mamie stated, Sam Club accounts, from what I have heard, offer great service. However, the best I have found is Merchant Services Group, Inc. (gomsg.com) very good company used by a lot on my clients. I don't use merchant services, but I hear a lot of good stuff about this company.

                Regarding a bank account. Don't really worry about fees so much when you are in the discovery phase - you want a bank that will provide all the services you need to run your business as well as will have the products for you business as you grow. Also look for a bank that has easy access to their service reps. When you do have an issue, you want to be able to talk to someone right away - not the next day or later in the week. What you should look for is a bank that you can grow with and build a relationship with. Relationshp really help when you need something right away.

                Once you have identified several banks that meet your needs, then compare fees and service charges.

                If you are a local business, you might want a local bank - if you are a regional business or national business you might look at regional or national banks. Think will help with cash flow as clearing payments will be speaded up.
                • Re: Best Business Checking and Merchant Account from BOA
                  amspcs Ranger
                  A couple of people have mentioned Sam's Club processing in responding to this post. While I have no problem with Wal-Mart or Sam's Club (in fact I shop there frequently myself), there are some misconceptions still abounding regarding thie credit card processing services which should be clarified.

                  First and foremost, despite their use of the term "Sam's Club MCCP" (Merchant Credit Card Processing),
                  Sams/Walmart is in no way shape or form in the credit card processing business. Much like most local banks, their sole function is as a referrer to someone else, for which obviously they receive a 'piece of the action. In the case of Sam's, they are referring processing business to FDMS, a division of First Data Merchant Services. The same is true of Costco, BJ's, Office Depot, your local bank, and anyplace else you can think of offering their own 'brand' of credit card processing.

                  So my point is: Why contract through FDMS (or any other major credit card processor for that matter)
                  through another source when you can easily contact with that major processor directly? Obviously, adding an additional unnecessary mouth to feed into the pricing structure (in this case Sam's Club) only serves
                  to increase your cost for these services since, also obviously, whatever piece of the action Sam's gets is passed onto you, the end consumer. Again, the same is true of Costco, BJ.s etc. etc.

                  Incidentally, I realize many of you are under the impression that you truly are able to get better processing prices from Sam's because you think THEY get better costs which they are able to pass onto you. In most cases, this is correct, Sam's does command better wholesale pricing which is how they sell for less. But this not the case in credit card processing services. Visa USA and MasterCard World only have one wholesale pricing structure (we call it 'Interhange" in the industry), and that Interchange is exactly the same for all processors big or small, including Sam's.

                  So shop around, investigate all the major processors directly, avoid unnecessry middlemen in order to reduce your costs of accepting credit cards.

                  AMSPCS