Selecting a credit card processing service brings up some essential questions such as Will the service add to the revenue from my trade?, What will the rates be like?, Will they be dependable?, Are they responsible?, and more. The internet is a good starting place for searching out credit card processors. On what scores do you decide which processing service will best fit your trade requirements?
In this article, we talk about some of the critical factors in selecting a small business credit card processing service:
The fee charged to accept credit cards is logically an important consideration. You want a service that is within your means and well worth its price. The types of fees charged by processors vary but the most common are explained below:
- Startup cost: Many card processing firms 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 ecommerce 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 from $20-$30 to guarantee at least some revenue from each customer.
- Transaction fee: This fee is charged by all card processing services. A fixed sum in the range of 24-35 cents is charged per transaction. In addition, the service also collects a cut (discount rate) that averages to 2.14%-2.40% of the payment amount processed.
- Address verification fee: Address verification is an additional safety measure against credit card deceptions. Some 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 requirements against the features of the service.
Category of credit cards accepted
Verify the typical types of cards used by your clients 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.
Kind of services
A credit or debit card processing service should include all the services required to manage 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) credit card machines
- shopping cart
- recurring billing
- short payment clearing period
Credit card processing security measures
Credit card transactions are susceptible to scams and thefts. It is critical that processors take adequate security measures such as:
- fraud protection
- CVV2 checking
- real time processing
- address verification
- SSL and encryption
Customer support services
What makes credit card processing services reliable? A very low error rate and easy to get to 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)
- specified response times
- toll-free telephone number
- live online chat, if required
Businesses should weigh costs and services before selecting a service provider. The contract should not only fit your business budget but also meet all your requirements. Daljeet Sidhu is the author of this article.