If your small business wants to start accepting debit and credit cards, you need to have a good credit card processing company to accept them. Although you will have to pay some recurring credit card processing fees and upfront costs, this can lead to a big boost in sales. Choosing a company to handle this for you is not an easy job.
Just as with other major financial decisions, it is wise to compare the benefits and drawbacks of all options before you make up your mind. Here are some factors that you need to consider:
How much are the fees?
Credit card processing fees can be up to 5 percent of what a company gets from all debit and credit card sales. However, some credit card companies usually charge much less. The main processing card fees that you should look out for include:
- Interchange fees – this fee is charged for each transaction that you process and is paid to the card-issuing bank by the payment processor. The rate for each transaction depends on a few factors, including the type of transaction, type of card accepted, and the size of the transaction. However, in-store purchases have lower interchange fees than online purchases because there is less risk of fraud.
- Setup and application fees – you might have to pay when you apply for the processing service. Setting up the equipment for accepting debit and credit cards might also incur additional costs.
- Monthly statement fees – credit card processing companies might charge a statement fee each month to cover the amount they spend while mailing the statement to you. This cost is about ten dollars per month.
- Monthly minimum fee – this is the minimum processing fee that the company needs to collect per month. If you do not meet this amount, you will be charged by the credit card processing company to ensure that you meet the minimum. You might not have a problem meeting the minimum if you sell a high ticket items such as a guided boring system, but if you sell low-priced items mostly for cash, you could face a minimum fee.
- Early termination fee – you might be charged this fee if your contract is terminated early. The fee could be anywhere between a few hundred to several thousand dollars.
How long will the setup take?
Setting up the processing technology should be easy enough for you and your employees to do. However, you should find out how long the processing company will take to create your account and install the right equipment. If it appears to be a complicated task, you should make sure that the processing company provides you with support.
What are the accepted types of payment?
Do you own a retail business? You might want to choose a company that accepts all major debit and credit cards to avoid turning away your customers. You can choose a system that accepts gift cards, EBT, and prepaid cards, depending on the kind of business that you operate.
Does the company accept new payment technology?
If your business has many tech-savvy customers, you need a payment processor with near-field communication technology so that you can accept payment from digital wallets such as Google wallet and Apple. These gadgets allow consumers to buy with a simple touch of the Smartphone.
How helpful is customer support?
What will happen when you run into technical problems with your machine? You need to hire a company that provides 24/7 support and offers live help from representatives who can solve your problems.
Do you own a veterinary clinic? If you are looking for a credit card processing company, you should consider companies like Dharma veterinary credit card processing. Doing so will allow you to accept payments from clients who have no cash.
