A credit card processor is a third party that connects the consumer and the bank, merchant, and credit card network. This organisation is vital in completing payments made using credit or debit cards.
This industry is evolving and becoming more extensive than ever, making companies confused about whom they will entrust this aspect of their businesses. If you are still on the hunt for the best credit card processor, here are the things that you should consider before deciding which one to pick.
How Much Does The Service Cost?
The first thing you should take into account is the cost of the card processor. It would be best if you considered that you are running a business and need to choose services that cost the lowest. Below are the standard fees that card processing companies will charge you.
The first thing you will have to pay when acquiring a card processor is the application fee. You will need to settle this fee to process your application and schedule your business for the setup.
Once you have paid the application fee, the next step for your application is to set up the card processing equipment, which will require you to pay another fee. It will cover the installation cost, like the labour and equipment of the technician.
Monthly Statement Charges
When you start using the credit card processor to accept payments from your customers, you will need to pay the service provider a monthly statement fee. You pay a fee for the processor to mail you the statement every month.
Gateway Access Fee
Another monthly fee charged to you is the gateway access fee. This payment is for the data transaction between the payment processor and the bank.
Your business performance will be charged every transaction, which they call the interchange fee.
Monthly Minimum Fee
The credit card processor will collect a minimum fee from you even if your sales are low.
After figuring out which processor works best based on your budget, the best thing you must consider is the software compatibility. Although most payment processors work well with any software, it is still best to investigate further and ensure that it is indeed compatible. Additionally, you might also want to consider other features of the card processor, like an option to accept digital wallets as payments, as it is becoming a popular payment option nowadays.
Security Of The Process
Security is a significant concern, especially for this kind of financial transaction. No matter how small or big your business is, security should be your top priority. You must already be aware of fraud and security breaches in this kind of transaction. It is why you should be vigilant and ensure that the processor you choose can provide you with the best security and fraud prevention system. Regarding this concern, opting to acquire a card processing service from the best in class card processor can be viable. Therefore, choose the best and trustworthy names when choosing the credit card processor you will use.
Although a pre-termination fee is still a fee, it is not considered part of the card processor cost. A pre-termination fee will only come into account when you decide to stop the service before your contract matures. The fee for the early termination of your contract may vary from one service provider to the other. It is why you must figure out how much is at stake just in case.
Early termination of the contract is inevitable, especially if you are not happy and satisfied with the service provided by the card processor. Commonly, credit card processing companies charge a pre-termination fee from a couple of hundreds to thousands of dollars.
When choosing a credit card processing company, you should consider those that only charge $400 or lower. It will help you avoid paying a considerable amount of money whatever happens.
The Ease Of Use
The ease of use should be your next concern when choosing a credit card processor. It would be best if you went for a processor that is easy to understand and use. This way, you will never have to encounter any problems related to its operation along the way. Additionally, an easy-to-understand system is also easy to troubleshoot when issues arise. Plus, if your card processor is easy to use, you will never have difficulty teaching your employees how to use it.
Taking Everything Into Account
You might find it complicated to choose which credit card processor is best for you. However, considering all the factors mentioned above, you are now well aware of what to look for in one. Use this information to help you pick the suitable processor that will help you run your business’ payment system.