When you apply for a merchant account, it is important to pay special attention to the fine print. While companies may be quick to highlight the benefits and advantages on their websites and brochures, you can be equally sure fine print exists with the things that may impact you the most. Remember to read the entire contract and ask your merchant account representative any questions before you sign on the dotted line.
One piece of information you may find hidden in the small print of your merchant account contract is the actual settlement time. Settlement time refers to the amount of time it takes for payment to reach your account after a customer makes a credit card payment. Some people automatically assume that would all occur within 2-3 days, but that is not always the case. You should read the fine print to be sure of the actual settlement time associated with your account. Some companies have a settlement time of 2-3 weeks.
Or what about the discount rate offered? The discount rate is the percentage charged on each transaction. The discount rate will usually make up the majority of your costs, so its important to understand how it is calculated. It is usually lower if you have the physical card to swipe; higher if you accept payments online or over the phone. To get the best discount rate from a merchant account provider, be sure you read the fine print and are completely informed. Ask about the fees you will be assessed in every situation utilized within your business model. 
Finally, you should always read the small print to educate yourself on how the reserve funds work. Some banks require a merchant account to have a reserve account set up to limit themselves from the risk of chargebacks and potential fraud. The amount of the reserve can vary from a small fixed amount to an entire month’s worth of credit card processing. Therefore its important to read the fine print completely to understand how much your merchant account will ultimately cost you each month. If not, you could end up putting money into your reserve via a method that you do not prefer, nor did you expect.
Merchant accounts are necessary for many people trying to run a business. In order to be sure you are signing up for a merchant account that will work best for you and your company, it is vital that you first read the fine print. Or talk with a representative. The more you know; the more efficient your business can be.