Things to Consider When Choosing a Credit Card Processor

Wednesday, December 19th, 2018

Nearly every business today needs to be able to accept credit and debit card payments. For most customers, it is the most convenient payment method. Without this payment option, you could lose business or have to wait longer to be paid by check.

However, finding a credit card processor is often easier said than done. If you’re not sure how to get started, consider the following list of things to look for or consider when choosing a credit card processor. There is a much longer list of things to consider than just quotes, especially since you may only be quoted a teaser rate that applies to one type of payment method.

Determine how you plan to accept card payments

The first place to start is to ask yourself how you plan to accept card payments. If your business is a brick-and-mortar location, you will probably need either a terminal or a countertop checkout station. Or you can use a mobile card reader that allows you to check out customers anywhere in the store (e.g. restaurant). On the other hand, if you plan to accept payments multiple ways – online and on the go – you will have to find a processor that supports and services both.

Call and ask for pricing quotes

You can easily find rates and fees for most processors online, including some of the best full-service providers. In other cases, you will have to grab the phone and call to ask a sales rep for pricing quotes. Don’t forget to also ask to see and review their contracts. Even if you like the first processor you speak with, make sure you call around and speak with a few more.

Find out and compare fees

If you’ve spent anytime online reading about credit card processors, you know that there are undisclosed fees. To avoid running into issues down the road, you will want to read all parts of the contract to make sure you are aware of all possible fees. Common fees include: a monthly fee, batch fee, PCI compliance fee, chargeback fee, gateway fee, and various network fees.

Be sure to purchase processing equipment

Buying basic processing equipment is more affordable than a leasing contract – and less of a headache. For a few hundred dollars, you can purchase an EMV-compliant, NFC-enabled terminal that allows you to accept chip cards and contactless payments. Most EMV-compliant mobile card readers actually cost less than $100.

Ask for more details on any “free” offers

Yes, many companies offer free equipment or free replacement programs. However, they often involve signing a lengthy processing contract to qualify, if the rates are different under the free program. This is also true if there are any monthly insurance, maintenance or service fees. Be sure to ask if you are required to return the equipment if you choose to close your account.

Above all, make sure you take the time to compare credit card processing. You will thank yourself later when your business is thriving, customers’ information is secure, and you have all the customer service support you need for your questions.