Any small business that plans to accept debit and credit cards needs to choose a credit card processing provider that will be able to accept them. Although there are some upfront costs and ongoing fees associated with this process, going from a business that accepts only cash to one that accepts credit and debit cards can increase sales and, consequently, profits.
Selecting the right credit card processing provider can be a difficult task. As with any major financial decision, there are several factors to consider before signing a contract.
Fees and Other Costs
There are several credit processing fees to checkout when looking into a credit card processing provider, as they vary from one provider to another.
One is the interchange fee, which is charged for every transaction processed. The rate can depend on the type of transaction and card accepted and the size of the transaction. There can also be a monthly statement fee to cover the expense of mailing a statement. Providers typically charge a fee for applying for the processing service and then charge an additional fee for setting up the equipment needed for accepting credit cards.
Payment Types
Most providers will accept all major debit and credit cards but retail businesses will want to make sure that this is the case with their provider. Other types of transactions that are essential for a retail business are prepaid cards and gift cards.
Payment Methods
There are three basic methods of payment for accepting credit cards and understanding how each works will determine which is the best method for any business.
Point-of-sale systems are a complete checkout terminal with swiper, cash register, printer and other equipment. These are best for brick and mortar businesses. A mobile credit card processor is a dongle and app that enables smartphones to accept credit cards anywhere. This is best for a business that sells in a variety of places, such as trade shows and farmers markets.
An e-commerce solution, shopping cart software or third-party marketplace, that enables businesses based on the web to accept payments at their online store is the best for businesses that conduct a variety of transactions online.
Many credit card processing companies offer a range of services to small businesses. So, it is important for a business to due diligence with regard to research so that they can select an accredited provider that also excels in customer service and support.