How to Choose a Credit Card Processing System for your Business?

Written by Pradeep Kumar

Today almost all business needs to accept debit and credit card for payment. It has become a part of the business as it is mostly seen as the most convenient way to carry on with the payments. Even the smallest firms are part of the card system as, without this method, one sure sees a loss in his business.

Using a credit card is the easiest option for the customers but what they fail to see is the expense incurred to the merchants. The credit card processing companies usually charge a percentage for each of the transactions. Apart from that, the companies are also known to charge for a monthly or annual fee depending on their plans and policies.

When you have finally decided to select the card system for your business, you will be faced with a big hurdle ahead. The biggest hurdle would be to select the processing companies, and not just any other companies but the top credit card processing companies. How will you select the best company when the market is flooded with many numbers of processing companies? It sure can be very difficult to decide in terms of plans and fee structure, and the most important part, financial safety.

To make your decision difficult, there is a number of companies that offer free plans and other attractive schemes. But are they really free? Think of the other way, do they include the charge in any other plans or schemes? How flexible are they in their plans? To ease you in your planning process, take a look at the following prime points in selecting the best credit card processing companies for your business.

Key to Select the Credit Card Processing Companies

Decide the type of card processor you prefer to work with

If your business accepts as little as $3000 each month in terms of credit card payments, then the best solution is to opt for the Payment Facilitator or also called as the Mobile Credit Card Processing Company, e.g., PayPal or Square. They are known to charge a flat rate with no additional fee of monthly or annual fees. Your payment for each sale’s percentage rate may be higher, but your cost would stay low. But when your company works for more than $3000 in every month’s sale, then the credit card processing company is the best for it will have lower rates and will save money too while charging you the regular fee.

Consider the ways to accept Card Payments

If you have a location of brick and mortar, you may prefer a stopping place for a checkout station or a reader for the mobile card so that it helps the customers to checkout anywhere. This would require you to accept payments in multiple ways such as online payments and many more. For this method, you will have to look out for those payments that support both the methods. Hence, when you are working with the processing companies, ensure you look at the processors and their capabilities and also the options they provide with.

Check out for at least three processor companies for the pricing quotes

Never hurry your decision in finalizing the company. Ensure you check with a minimum of three companies and look out for their charges, fee structures, plans, flexibility, and many other related options. Choose the companies that suit you and your company the best. This has been made easy by the online search. Today most of the companies put on their charges on their website online making it easy for the merchants to select accordingly. But do not just depend on the information they provide on their website. Make sure you call up the companies or visit and ask for their information in detail. Check out their contracts and also the charges. You sure may be tempted for the free schemes and plans, but it would be advisable if you consult professionals and also call few other companies for their plans and schemes.

Request rates for interchange-plus

When you are calling the processor companies for quotes, make sure you ask for the rates for interchange-plus too. This is one of the most cost-effective models for pricing and is also recommended by professionals in the industry. The processor’s markup is the rate you quote, which is a percentage and a fee per transaction. This fee is added to the interchange rates that are set by the networks of a credit card. In other models for pricing, the interchange rate is combined with the markup which is cannot be seen as how much you are paying for the processor. The markup only plays the rate part, you must see the numbers and compare when you are deciding for the processing companies.

Find out about fee structure

You must have come in terms of undisclosed fees about the card processing companies. This can be avoided by taking a clear look at the contract and you are also aware of the company’s terms and policies. If you find you are missing on some of the undisclosed fees, ensure to call the rep immediately and find out more related information and also for the charges. The common fees would include the batch fee, monthly fee, chargeback fee, PCI compliance fee, gateway fee and other related network fees like the FANF – Fixed Acquirer Network Fee and the fee for the MasterCard’s Merchants. The non-standard fee would include the setup fee or the application fee, membership fee or club related fee, quarterly fees for technology, fees for online reporting, handling and postage fees, access fees and audit fees.

Get a contract for each month

A contract for standard processing may be difficult and also it will become expensive to handle. They may charge you for early cancellation and the process would usually take 30-90 days. This can be avoided with monthly plans. If you find any issues or problems, you can easily move on without any charges or liquidated damages. Ensure your rep has these monthly plans and is also signed in the contract as well to secure it for the future.

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Pradeep Kumar

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