subject: How to Select Credit Card Processing [print this page] How to Select Credit Card Processing How to Select Credit Card Processing
What to Look for When Selecting Credit Card Processing
When you make the decision to start accepting credit cards at your place of business or via the Internet, it is wise to do as much research as you can concerning finding the best internet credit card processing service that you can.
Doing careful research is important because there are a lot of variables that come into play. In terms of credit card processing services, there are mainly two types of services you need to contract with: a merchant account servicer and a payment gateway. The merchant account servicer is the one who becomes responsible for the charges you process, while the gateway is simply a service that enables the actual processing of transactions and the exchange of money.
If you are looking for the best small business credit card processing service, here are 5 factors to consider:
1. Check the discount rate:
The internet merchant account servicer will charge you a discount rate for every transaction. This is calculated as a percentage of each sale. The normal range is 2% to 3.5%. The amount you are charged will be based upon a number of factors, including: your choice of account servicer company, the type of business you run, and even your own credit score (if you are a small, owner-operated business).
2. Make sure they offer your desired terminal type:
There are three main classes of terminals: traditional, wireless and virtual. Traditional terminals are the ones you typically see at brick-and-mortar stores. Meanwhile, wireless terminals have built-in printers and communicate with the processing company via wireless communications - meaning they can be used in a mobile environment. Finally, virtual terminals are just that: there is no physical equipment to rent or buy, since everything is taken care of via the Internet.
3. Check for any favorable or unfavorable reviews on online discussion boards:
Besides each company's website, be sure to scan online small business-oriented discussion boards to find out what small business owners are saying about each one. You may be surprised about what you find. Look, in particular, for information on their customer service quality.
4. Understand all other fees due:
In addition to the discount rate (see above), another major factor to consider is the various miscellaneous fees that can be charged. Fees can potentially include: an application fee, an early termination fee, service fees, and others.
5. Determine whether there is a contract term:
When you sign up, find out if you are committing to a certain term of service, such as one year.
Be sure to review at least 3-5 merchant account servicers. And, make sure to find out about how each one handles these 5 factors as you select the best small business credit card processing service.
