Find the Best Credit Card Processor for your Business
Selecting the best credit card processor is a critical task for any business owner. However finding the best processor is not as straightforward as it seems. Many credit card processors are not transparent with their prices. Most businesses need a processor that can deal with a high volume of transactions of relatively low value. Therefore the merchant services company that you select is optimal in this regard. There are many other features that you should keep in mind when choosing the best processor.
Look Out For Hidden Fees
One of main problems with how credit card processors advertise their prices is that they often do not clearly divulge the hidden fees of their service. Before you decide to hire a merchant service company, ensure that you read the full details of their service. Hidden fees can compound quickly and start to shrink your profit margin.
Try to avoid Long Contracts
It is relatively common for credit card processors to offer long three year contracts, which can include relatively costly and long cancellation policies. That is to say it is a good idea to avoid such contracts. I would recommend searching for a credit card processor that offers shorter contracts. As a result, you will have more flexibility to change service if it turns out to be the wrong fit for your business.
Check the reviews of merchant service companies online. Get quotes from a few different processing services. You should compare the cost and features of each processor. Look out for hidden fees and pay close attention to the interchange-plus rate of each service. The interchange-plus rate is the rate the processor adds to the standard interchange rate established by the credit card networks. This will allow you to compare what percentage each company is adding onto the standard rate.
Focus on Speed and Security
A processor with a slow transaction speed is a headache for everyone. Therefore look for a service that processes transactions quickly. Additionally ensure that your processing service adheres to the Payment Card Industry Data Security Standard (PCI and DSS). Finally make sure PCI or DSS compliance fees are included in the price of the service.