Merchant Account Credit Card Processing – Top Tips For Finding The Perfect Provider For Small Business
Selecting a credit card processing service brings up some decisive questions such as Will the service really help my trade?, How much will it cost?, Can I depend on them?, Are they trustworthy?, and more. The internet is a first-class starting place to survey the market for credit card processors. On what scores do you decide which processing service will best fit your business needs?
Here is an analysis of some of the decisive factors in selecting a small business credit card processing service:
The fee charged to accept credit cards is undoubtedly a critical consideration. 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 fee: A lot of card processing firms don’t levy this charge. Others collect this fee as a “one time” charge. It ranges around $250.
- Gateway fee: If you have an ecommerce store, you will need a payment gateway to accept credit card payments. Payment gateway providers charge a monthly fee that ranges widely from $10-$50.
- Statement fee: Most service firms levy a statement fee that ranges from $9-$10 per month.
- Monthly minimum fee: Credit card processors charge a monthly minimum in the range of $20-$30 to guarantee at least some revenue from each client.
- Transaction fee: This fee is common to all card processing companies. A fixed sum in the range of 24-35 cents is collected for each transaction processed. In addition, the processor also charges a cut (discount rate) that averages to 2.14%-2.40% of the payment amount processed.
- Address verification fee: Address verification is an extra safety measure against credit card deceptions. Many agencies charge a fee for each address verified. This can cost your business 5-10 cents per address.
Expectations from a credit card processing service
The next step is to find out whether the service can meet all your expectations. List your needs against the features of the service.
Kind of credit cards accepted
Verify the most common cards used by your customers or the card types you would like to accept. Make sure the credit card processing service accepts them. The most common card types are Visa, MasterCard, Discover, and American Express.
Type of services
A credit or debit card processing service should include all the services required to process transactions in physical stores or e-commerce outlets.
Find out if the services include:
- merchant account
- virtual terminal
- electronic check clearing services
- point-of-sale (POS) terminals
- shopping cart
- recurring billing
- reasonable payment clearing period
Credit card processing security measures
Credit card transactions are vulnerable to fraud and thefts. Credit card processing services should provide necessary security features such as:
- anti-fraud security
- CVV2 verification
- real time processing
- address verification
- SSL and encryption
Customer support quality
What makes credit card processing services dependable? An almost zero error rate and always available customer support service. Service providers should be able to assist you as and when required. Some features that should be part of the contract are:
- customer support numbers, email, fax, and work timings (24×7 is always preferable)
- specified response times
- toll-free telephone number
- live online chat, if needed
Businesses should weigh expenses and services before selecting a service provider. The contract should not only fit your business financially but also satisfy all your requirements. Daljeet Sidhu is the author of this article.
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