How to find the Best Credit Card Processor for your Bar
Considering that customers are increasingly deciding to pay by credit card, selecting the best credit card processor is a critical task for any business owner. Yet finding the best processor is not straightforward, particularly as many processing services are not transparent with their prices.
As a bar, you are most likely going to need a processor that can deal with a high volume of transactions of relatively low value, so the key factor is to ensure that the processing service that you select is optimal in this regard. On top of this important factor however, there are many other features that you should keep in mind when choosing the best processor, including:
There are several things to look for in an interview:
- Look out for hidden fees: As already stated, one of main problems with how many processing services advertise their prices is that they often do not clearly divulge the hidden fees of their service. When you are considering purchasing a processor, ensure that you read the full details of their service, as 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, 3-year contracts, which can include relatively costly and long cancellation policies. It is often a good idea to avoid such contracts, and opt for a service that offers shorter contracts, or negotiate a shorter deal, as this will give you more flexibility to change service if it turns out to be the wrong fit for your business.
- Shop around: Get quotes from a few different processing services, so you can compare and contrast their features. As well as looking out for hidden fees, pay close attention to the interchange-plus rate of each service, although you may need to contact them to get this. The interchange-plus rate is the rate the processor adds to the standard interchange rate established by the credit card networks, and 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, so look for a service that processes quickly. Additionally, ensure that your processing service adheres to the Payment Card Industry Data Security Standard (PCI DSS), and find out whether this is included in the price of the service, or whether this is later added as a compliance fee.