Credit Card Processing for Your Small Business-Some Insights

Credit cards are a universal form of payment, used by a majority of consumers globally. Businesses that don’t accept credit card payments can lose customers, appear less professional. In short, if one business doesn’t accept credit cards their competition will. In short, it is extremely beneficial for a business to accept and welcome credit card transactions. credit card processing for your small business

By facilitating a merchant’s acceptance of credit cards, a merchant account provider fills in this essential link in any business large or small. There are a multitude of processors in stiff competition vying to assist merchants with their payment processing. Due to this competition, the prices of credit card transactions should be driven downwards by the force of the open market. This is true, but in a somewhat limited way when it comes to credit card processing. Let us explain.

Many credit card processors have sales tactics which many would consider less than straightforward. Rates can sometimes be obscured or hard to understand, fees are added later on which were not initially presented, and still other fees are sometimes hidden altogether. Or, rates and fees are presented as being short-lived, after which an undisclosed “new” rate will apply which not surprisingly is higher than originally quoted. Always keep your eyes open on cancellation fees as they can reach well into the thousands of dollars.

It’s true that rates do vary depending on type of card, method of transaction, and other factors, but technically should vary only within the processor’s initial rates & fee which should not change from the initial quote. In actuality the rates & fees of some processors may exceed the quoted rates & fees by a significant margin. These rate changes can greatly impact your small business’s bottom line and affect your daily cash-flow.

Any business, company, or individual looking for a merchant services provider (credit card processor) therefore should be informed about different pricing structures and what charges may apply. Being informed about this beforehand can make the difference between getting a competitive rate and a vague or inflated rate. Look only for processors and merchant service providers whose sales reps are willing to explain their structure in full. All rates & fees ought to be disclosed and clear. Terms of the contract should be explained and understood. Avoid salesman who won’t explain their offer in detail and take the time to go through their pricing with you. Additionally, make sure you diligently research your merchant account provider and ensure they are reputable.

If a sales rep clearly defines all of his rates and fees, shows an emphasis on customer service. This is important because your business depends not on low rates & fees but also on effective and fast customer service in the event of any issues or questions. You never want to lose business due to a merchant services technical difficulty.