Avoiding Merchant Account Scams
Learn How to Protect Your Business
When launching an e-commerce business, you’ll need a merchant account in order to process credit card transactions through your website.
Like many things in business, however, some merchant account options are too good to be true. Merchant account scams are designed to fool merchants into spending money on a faulty or nonexistent product.
If you’re looking for an honest, affordable merchant account provider, make sure you avoid the types of services below.
1. Free Merchant Accounts: Proceed With Caution
While a free merchant account looks tempting, it is likely a ploy to get you to list your financial information quickly. It is one of the most common merchant account scams on the internet. Through clever verbiage and other scam tactics, they lure business owners to register for their services (usually through a startup fee that they claim is refundable), and they’ll simply take the money and run.
2. Watch out for identity theft
A merchant’s identity can be stolen through a merchant account scam. As opposed to the free merchant account scams, these websites might offer a product that seems legitimate with industry industry jargon and seemingly factual statistics to encourage you to apply. They won’t ask for money upfront, because money isn’t what they’re after—they want your personal information.
- Never share your personal information with persons you don’t know or trust.
- Make certain merchant account providers are properly accredited and recommended by past users.
3. General things to watch our for
Characteristics unique to merchant account scams include:
- Minimum prices
- Hidden fees
- Cash rewards
- 24 hour support
- No setup fees
- Immediate approvals
- Free services
More on merchant accounts with Instabill
As the saying goes, if it seems too good to be true, it probably is. Merchant account scams are designed to be appealing to new merchants, especially high risk merchants.
If you’re in need of an affordable credit card processing solution for your business, Instabill has specialized in providing high risk merchant accounts to e-commerce businesses since 2001, and can help you find a solution that’s perfect for you. Contact us today to learn more.