credit card

Every business owner must pay a cost for accepting credit card payments which in common parlance is the credit card processing fee.  The processing fee has several components like transaction fees, flat fees, and incidental fees and the fees can be as little as 1.7% and can go up to 3.5% depending on many factors. How much fees businesses have to pay depends on the choice of credit card processors and the kind of business whether it is a brick and mortar store or e-commerce business.

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The transaction fee is the fee you pay for processing every transaction done by using credit cards and consists of interchange rate, assessment fee and the markup for a payment processor. If you are working with a merchant service provider or payment gateway, you must pay flat fees which are the cost of using their services like what you pay to PayPal or World Pay.  The payment processor or merchant account provider may also charge another kind of fee known as Incidental fees which are the cost you pay for specific occurrences like insufficient funds or chargeback.

No matter which credit card payment processing company you work with, you must pay fees, but it can differ in its structure and rate. This gives business owners the option for choosing a credit card payment processing company that offers the best terms and rates, and they can even think about ways of free credit card processing. When you are looking for some credit card processing company, you must compare companies so that you work with a company that helps to improve your business bottom line.

Payment processors are the most important cog in the payment system, and no credit or debit card payment can happen without them. If you have heard about merchant service providers, then you must know that it is the same credit card processors that people are talking about. Credit card processors are your partner in your business journey, and you must be careful to choose one with whom you have smooth working chemistry and who looks after your interests by providing quality service and customer support. All payment processors are not equal, and you must know how to compare merchant services to pick the right one.

Which payment processor is right for your business?

Regardless of the size of the business, you can always look for the best credit card processor because numerous options are available. It all depends on the business type and how and where you want to carry out the business. Whether it is a brick and mortar store or an online store, there is always a credit card payment processor available for you who can become your partner in your journey.  Accepting credit card payments adds versatility to your business as you can conduct business even from your home. Moreover, since the majority of customers are keen to use credit cards or debit cards for making a payment, you must choose a payment processor that helps to receive payments on time.

Evaluate the security systems of payment processors

Credit card frauds are the biggest threat for merchants, and you must depend on the credit card processor to ensure that they use a secure payment system that can provide safe transactions. The payment processor must have proper fraud protection services in place, and this can make a lot of difference between a good and an ordinary payment processor. The payment processor should assist you in complying with the credit card acceptance regulations and must use the latest payment technology like tokenization that offers better financial security.  When all things are equal when comparing credit card payment processing companies, how efficiently they can help you to fight fraud and keep your business risk free is what sets apart the best from the rest.

Look at the fee structure

The fees charged by payment processors depend on a variety of factors about the business as well as the owner. From the age of your business to the amount of percentage of sales achieved online or on mobile devices and from your personal credit rating to the type of business, monthly sales volume and the dollar value of average sales transactions are all essential for them too. Safety of transactions is an important consideration as is evident from lower fees for transactions conducted through a point of sale. Similarly, for online payments done by using secured payment gateways the fees are less. Look at the fee structure and compare how it impacts the methods of payment you use to decide which processing company seems suitable for you.

Customer service

It is true that the payment systems are automated and reliable enough, but still, the human touch is required especially the attention of payment processors that assures you of dependable service. When you face any problem with payment, the support of the payment processor becomes very important as you might need assistance at any time of the day or night and the company must be by your side always.  When you are comparing payment processing companies the aspect of customer service should be on the top of your mind. Whether it is phone or chat support, your payment processor must be readily available whenever you need their services.

Read the fine print

After comparing the parameters of service and fees, it might appear that you have found the payment processing company that you are looking for, but there is something still left to conclude the exercise. Read the terms of the contract carefully with special attention to the termination clause and fees that come with it. Some companies might impose some termination fees in case you choose to stop processing payments through them before a stipulated time like 2 or 3 years. The fees are extra and above the penalty that you have to pay for canceling the lease of a terminal.

Selecting a payment processor can be a complex exercise, but now that you know the points to check, you should be able to navigate through the process more confidently.


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