If you are accepting payments from customers using credit cards, then you will need a credit card processing service. There are numerous reasons for going with an expert credit card processing service. These here are some of the basic pointers about a credit card processing service: –
- A credit card processor will enable even a small business to accept credit card payments, but that being said it is all about selecting the correct processor.
- Before signing up, you need to read the offer document carefully to ensure of all the details and stipulation of the contract.
- The fee should ideally be a month-to-month basis along with interchange-plus pricing.
There are several key factors to consider about credit card processing services. Our experts have listed all that you need to know before investing in the following section of the article.
Deciding on the type of credit card processor
If in case the monthly revenue generation through credit card payments is going to be lesser than $3,000 then you can ideally go for a mobile credit card processing firm. These payment facilitators charge flat rates when it comes to processing fees. There are no monthly or annual fees associated and are the perfect hassle-free solution for the small to medium-sized business ventures where the turnover is on the lower side. If the earning is more than the $3,000 mark, then you need a full service credit card processor but keep in mind the charges will be quite high. You can search online before making your investment for the best bet.
The planning to accept card payments
You need to plan how to accept credit card payments. This is true if you have a proper location and a store where you need to have check-out station installed so that payments through credit cards or the mobile card reader can be performed. When you are looking for payment options online, then you need to go for a firm that offers their services online as well. So, you need to consider your options and plans before making an investment carefully. Keep in mind that due to contractual obligations you cannot work with more than two processing services at once.
Shop around for the best deal
This one is strictly common sense. The more you shop around and collect quotes, the better aware you are about the clauses as well as the payment protocols various firms have in place. This will ensure that you get the best bang for your buck all the while making sure that the firm suits your needs perfectly. You can call companies and ask to speak with an official or a representative to get the full disclosure on the pricing, discounts on offer if any and the credentials of the firm. There will always be offers that sound like a great deal but the more you are aware of all the facts, the better you will be able to make a decision.
Always request interchange-plus rates
When you call up the company official to ask for quotes, the first thing you need to do is request the interchange-plus rates. There is a very specific reason for this question, and in the following section we will break it down for you. According to the industry experts, the most cost-effective model, in this case, is a markup that is a combination of the percentage fees and the transaction fee. This sum is added to the interchange-plus rates. The interchange rate stays the same for everyone, and the markup is the only negotiable part. So, the earlier you know about the fixed and non-negotiable interchange plus rates, the better you will negotiate on the percentage and transaction fees. Compare the prices as you shop around for the best deal.
Get a detailed idea about fees
If you go over the online complaints about the credit card processors, you will find that most of them are due to the undisclosed fees. You can avoid this by reading your offer document carefully before investing. The more you are aware of all the contract stipulations, the better you can make a judgment call. If there are fees that the rep did not disclose then chances are you are working with a shoddy practice. There are specific standard fees that you need to pay which include the PCI compliance fees, monthly fee, batch fee, gateway fee, chargeback fee, and Merchant Location Fee. However, there are specific additional fees that you do not need to pay, and you can ask your company rep to waive them off. These commonly include the additional services fee, online reporting fees, postage and handling fees.
Always set up a monthly contract
A month to month contract is ideal while working with a credit card processing service. The standard processing contracts are pretty challenging to exit as they are expensive. There are three-year terms and a 30 to 60-day cancellation window. Now add to them the fact that you need to pay for cancellation with a termination fee as well as for liquidating the damages. This means ideally you should look for a monthly contract which means you can move away from easy if you think the service does not suit you right.
Buying the right equipment
Lastly, it is all about the equipment that will offer the ease of access while making the payments with respect to the customers and the safety of the card and personal information. You need EMV compliant mobile card readers, and NFC enabled terminals to make the work go smoothly. You can buy your equipment or lease them. The choice is yours.
That concludes all that you need to know about a credit card processing service. We sincerely hope that this article helps you out while selecting a service. Keep in id to stay away from services that offer you “great savings” and always check the credentials of the firm and your offer document carefully before investing.