Selecting a credit card processing service brings up some vital questions such as Will the service improve my trade?, How much will it cost?, Will they be reliable?, Are they responsible?, etc. The internet is a good starting place to survey the market for credit card processors. But how do you decide which processing service is the solution for your trade requirements?
Here is a breakdown of a few of the decisive factors in picking out a small business credit card processing service:
Credit card processing fees
The fee charged for service is undoubtedly an important consideration. You want a service that is reasonably priced and well worth its price. The types of fees charged by processors vary but the most common are explained below:
- Startup cost: Lots of card processing companies don’t levy this charge. Others collect this fee as a “one time” charge. It ranges around $250.
- Gateway fee: If you have an e-commerce website, you will need a payment gateway to accept credit card payments. The gateway fee is charged monthly and can be any amount from $10 to $50.
- Statement fee: Most service companies levy a statement fee that ranges from $9-$10 per month.
- Monthly minimum fee: Credit card processors levy a monthly minimum from $20-$30 to ensure minimum earnings from each customer.
- Transaction fee: This fee is common to all card processing companies. A set sum in the range of 24-35 cents is collected for each transaction processed. Apart from this fee, the processor also charges a percentage (discount rate) that averages to 2.14%-2.40% per transaction.
- Address verification fee: Address verification is an extra safety measure against credit card fraud. Some providers charge a fee for each address confirmed. This can cost your business 5-10 cents per address.
Expectations from a credit card processing service
Once you know the costs, you need to verify if the service can meet all your expectations. Match your needs
with the solutions provided by the processor.
Kind of credit cards accepted
Record the most common cards used by your customers or the card types you want to accept. Make sure the credit card processing service accepts them. The most common card types are Visa, MasterCard, Discover, and American Express.
Type 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
- e-check services
- point-of-sale (POS) credit card machines
- shopping cart
- recurring billing
- short payment clearing period
Credit card processing security features
Credit card transactions are prone to fraud and thefts. It is critical that processors take adequate security measures such as:
- anti-fraud security
- CVV2 verification
- real time processing
- address verification
- SSL and encryption
Customer support services
What makes credit card processing services trustworthy? A very low error rate and always available customer support service. Customers should be able to contact customer support personnel 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)
- guaranteed response times
- toll-free telephone number
- live online chat, if needed
Businesses should compare costs and services across the market before selecting credit card processing for small business. The deal should not only fit your business budget but also satisfy all your requirements.
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