Selecting a Credit Card Processor
When searching for a new credit card processing company for your business, you will notice that there are a large variety of companies to choose from. Nearly all of them have a different set of promises, different numbers on their website, and different ways of determining the costs for your payment processing. If you’re looking for a reliable and secure payment processing company, here are some tips to help you select your best fit credit card processor.
Plan Enough Time
It is important for you to set aside enough time to connect with multiple payment processors in order to communicate your concerns and get quotes based on your expected sales. Waiting until the last minute to start accepting credit cards can be a costly mistake as it may require you to select a credit card processor with less than competitive rates associated with them.
In this day and age nearly every company owns or uses a credit card machine for their payment processing. If you’re starting up a new business, make sure you’re planning in your budget the costs associated with obtaining a credit card processing machine or finding a processor which will provide one to you. The more time you have set aside for searching around the better of a deal you can come up with for a credit card machine.
It is important to compare numerous factors which could influence how much you’re paying for your merchant account and payment processing. It is important to remember the factors that will most commonly affect your payment processing fees.
1) How long your company has been in business.
2) Your average sales across each of your sales channels.
3) Your type of business.
4) Your personal and business credit score.
5) Average dollar amount of each transaction.
6) Average number of sales each month.
Discount Rates and Additional Fees
Many credit card processors offer discount rates for their merchants which reduce the costs incurred by the credit card processor. In addition, processors also have a number of additional fees which may be incurred based on how you use your payment processing. Both of these factors can positively and negatively affect how much you are paying to accept credit card payments. Here are a few tips to take into consideration when selecting a credit card processing service:
1) There may be discount rates for small business, accepting payments over the phone, or in the mail.
2) There may be fees for transactions made with a physical credit card.
3) There may be application and per-transaction fees.
4) There may be charges for voice and address verification.
5) There may also be fees for monthly statements.
Equipment and Software
It is also possible for credit card processing companies to charge for the use of equipment and software solutions. When choosing a payment processor, it is important to take into consideration how you’re going to be accepting credit cards and payments and whether or not your method of accepting them are going to incur additional fees. For instance, one credit card processing company may charge you $1000 for your credit card terminal while another competing processor will provide it to you for $500. There are some that will give you a payment plan for the equipment and others which may offer you a free terminal for a set duration contract.
In many cases, you will have the option to purchase the terminal out right or rent the equipment from the processor. Software solutions may also incur payments in order to download and install the software on your machines or to use the software in your web browser. It is important to take into consideration both the short-term and long-term costs associated with your decision in buying or leasing a credit card terminal.
Read the Fine Print
Whenever you sign a contract with another company, it is vitally important to read the details of the contract and any applications which you send in. Some applications may incur a cost or create a legally binding agreement. In addition, some application processes may take more time than others in order to determine whether your business meets their requirements for accepting payments.
In some cases it may be difficult for the sales person to understand your particular use of their payment processing as they may not take into consideration your long-term goals and uses of their services. It is important to understand any and all fees which may be in the terms of your agreement and to get clarification on any questions you may have in regards to what you are signing.