Merchant Card Processing - Top Tips For Picking The Perfect Service For Your Small Business
Picking out a credit card processing service brings up some essential questions such as Will the service improve my business
?, What will the rates be like?, Can I rely on them?, Are they responsible?, and more. The internet is a first-class source for searching out credit card processors. But, what are the parameters involved in determining which processing service will best fit your business requirements?In this article, we talk about a few of the decisive factors in selecting a credit card processing service for your business:
Credit card processing fees
The fee charged for service is undoubtedly an important factor. Apart from the price the service should add value to your business. The types of fees charged by processors vary but the most common are described below:
- Startup cost: Many card processing companies do away with this charge. For those that do, the fee is around $250. This is a "one time" fee.
- Gateway fee: If you have an e-commerce website, you will need a payment gateway to accept credit card payments. The gateway fee is charged monthly and ranges widely from $10-$50.
- Statement fee: Most service companies charge a statement fee that averages around $10 per month.
- Monthly minimum fee: Credit card processors levy a monthly minimum in the range of $20-$30 to guarantee at least some income from each customer.
- Transaction fee: This fee is common to all card processing services. A fixed amount in the range of 24-35 cents is charged per transaction. In addition, the processor also collects a cut (discount rate) that amounts to 2.14%-2.40% per transaction.
- Address verification fee: Address verification is an additional security measure against credit card scams. Many agencies charge a fee for this service. This can cost your business 5-10 cents per address.
Expectations from a credit card processing service
Once you know the costs, you need to verify if the service can serve all your business requirements. List your requirements against the offerings of the processor.
Kind of credit cards accepted
Record the most common cards used by your clients or the card types you want to accept. Make sure the credit card processing service accepts them. The most widespread card types are Visa, MasterCard, Discover, and American Express.
Category of services
A credit or debit card processing service should offer all the services required to manage payments in physical stores or e-commerce outlets.
Some services that should be part of the deal are:
- merchant account
- virtual terminal
- electronic check clearing services
- point-of-sale (POS) terminals
- shopping cart
- recurring billing
- short payment clearing period
Credit card processing security measures
Credit card transactions are vulnerable to fraud and thefts. It is critical that processors take adequate security measures such as:
- anti-fraud security
- CVV2 checking
- real time processing
- address verification
- SSL and encryption
Customer support services
What makes credit card processing services trustworthy? An almost zero error rate and easily accessible customer support service. Customers should be able to reach customer support immediately in case of emergencies or critical situations. Basic customer support includes:
- customer support numbers, email, fax, and work timings (around-the-clock works best)
- guaranteed response times
- toll-free telephone number
- live online chat, if needed
Businesses should weigh expenses and services before finalizing a service provider. The deal should not only fit your business budget but also meet all your expectations.
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