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40 August 2015 | beautystorebusiness.com fixed per-item fee) paid to the ISO that sold you the merchant account contract. If an ISO's billing is insufficiently detailed, you may not be able to determine if you are getting the great deal you were promised. Also ask current customers if they are ever charged surprise fees for PCI compliance, reporting, paper statements or any other reason. You might also research customer experience reports online. "I suggest doing Internet searches to see what custom- ers are saying about ISOs," says Adam Pflaumer, president of Electronic Payment Consulting (epconsulting.com), a Temecula, California-based expense management firm specializing in electronic payments. "In addition to a general search using Google, you might visit some sites that specialize in business experience reports." One such site, merchantmaverick.com, specializes in merchant account provid- ers. Another, ripoffreport.com, publishes reviews of many categories of businesses. Finally, the Better Business Bureau (bbb. org) might have reports on ISOs you are evaluating. "You might also try calling each ISO's customer service department to see how quickly someone picks up the phone," suggests Pflaumer. "Some processors have lousy hold times." One final point: You might get the best service from your local bank, the institution this article encouraged you to investigate early in your merchant account search. "A bank where you already do business has a vested interest in making sure your processing goes smoothly," notes Shatz. While many banks farm out their process- ing, they will make sure any third-party processor is reputable. That proces- sor, in turn, will want to make sure it keeps its client bank happy. It all comes together to encourage good service to you. While shopping for a better deal is a good idea if managed carefully, there is a point of diminishing returns. Unless they are saddled with an onerous merchant account, smaller retailers in particular run the risk of investing more time than results would justify, accord- ing to Shatz. "From a general business sense if I were a retailer with revenues under $2.5 million and if I had a cost-plus agreement with a processor so that my merchant fees were between 2.1% and 2.4% of sales, I would focus my energies on building up my company rather than waste time trying to find a less expensive processor." ■ Phillip M. Perry is a New York City- based freelance writer. What to Look For in Merchant Account Contracts Once you have received a merchant account quote from an ISO, you want to make sure it does not have terms that might come back to bite you. Here are some good questions to ask before you sign on the dotted line. 1. Does the ISO offer "cost-plus" pricing, also known as "pass-through pricing? " This pricing model is much more favorable to retailers than the "tiered-pricing" model that characterized the merchant account industry for many decades. 2. Does the contract call for a reasonable termination fee? The charge to cancel a contract should be no more than $300. Be aware that some processors are willing to do away with termination fees. 3. Does the contract have a "liquidated damages clause" which calls for the merchant to pay all of the estimated processing fees for the remainder of a canceled contract? This can be very expensive. You might want to look elsewhere for your merchant account. 4. Does the contract mandate "minimum monthly processing fees" ? This can be an unwelcome expense if you go some months without processing credit or debit card payments. 5. Does the contract include the leasing of a credit card processing machine? "Avoid equipment leases," says Adam Pflaumer, president of Electronic Payment Consulting (epconsulting.com), a Temecula, California-based expense management firm specializing in electronic payments. "These often call for you to pay a monthly fee of from $39 to $99. They are non-cancelable, sometimes for 48 months, so you end up paying thousands of dollars for equipment that costs about $300. It's better to buy your terminal." ProHairCare www.MitchStoneHair.com Stone brings his lengthy experience working with models and actors to his signature line of styling products, the first to be infused with a proprietary vitamin complex known as VcompS. To distribute Mitch Stone Essentials or locate a salon near you call us at 1-855-674-2472 At the heart of Mitch Stone Essentials is VcompS, a proprietary formula loaded with fruit enzymes for moisturizing and a plethora of vitamins like B, C and E for their energizing and antioxidant properties. The result is hair that is luminously healthy, from the inside out. Ever Heard of Vitamins in Hair Spray?