3 Things to Consider When Choosing a Credit Card Processing Firm
In our primitive stage, the barter system was used to fulfill all our needs. Eventually money came into existence, further simplifying the trade of goods and services. Currently, a majority of the transactions are completed virtually via credit or debit cards.
This modern technology is a fast, reliable, and secure way of making a transaction, and it has eliminated the need of carrying a lot of hard cash. Needless to say, credit and debit cards have been largely adopted by the masses, which means every business needs to be card compatible to keep their customers happy.
A company offering Credit Card Processing can help you with that. As with any other company, their services will set you back by a few bucks. By upgrading from a cash-only business to the one that is card-friendly, it will lead to a significant boost in sales volume, and thus, expand your client base.
A recent study conducted by Intuit revealed that 83% of small businesses that started accepting cards witnessed an increase in sales. You too can be on the receiving end of these benefits with the help of a good card processing company.
How do you know what company will be a good choice? How can you be sure you are getting a good deal? Fear not, for we have compiled a list which will help guide you through your search.
- Fees and Costs
The main reason behind accepting cards is to increase and facilitate sales, which then can lead to an increase in your revenue. However, you may be concerned that the processing cost of card transactions may eat into your profits. To ensure you are not overpaying for fees, it is important to understand more about the various costs and fees involved in card processing. Here are some of them:
- Interchange Fee: This fee is charged for every transaction you make, and is paid by the payment processor to the card-issuing bank. Generally, it is around 2-3% of every transaction.
- Monthly Statement Fee: Credit Card Processing Companies can also charge you a small fee of roughly $10 to cover the expense of mailing your monthly statement.
- Application and Setup Fee: You might have to pay some fee as you apply for their services. Additionally, setting up the necessary equipment may cost you extra as well. This fee varies largely and often depends on the company.
- Monthly Minimum Fee: The card processing firms usually set a minimum amount which has to be collected in a given month. If you do not surpass this limit, then the company charges you the difference.
For instance, if the minimum fee is $100 and your transactions amount to $95, then you will be charged the remaining $5 to make up the difference.
- Monthly Gateway Access Fee: A number of firms also charge you some fees for providing a gateway to complete the transaction. It could be anywhere between $10 and $30.
- Early Termination Fee: This is a penalty which a company levies in case you cancel your contract early. This, again, largely depends on the processing company itself.
- Payment Types
It is recommended you ensure that the potential payment processor deals with ALL major cards so that you can accept payment from each and every customer. In the event that not all cards are supported, you will have to turn away some customers, leading to fewer sales.
If you have some tech-savvy customers, then you should consider a payment processor with Near-field Communication (NFC). This allows you to accept payments via digital wallets such as Apple Pay, Samsung Pay, Android Pay, etc. These technologies are quickly gaining a lot of momentum due to their easy-going nature and multifarious uses.
- Customer Support
What if something goes wrong with your machine or you face issues while using a particular function? What if you have some doubts regarding the charged fees? At times like these, you will need to talk to a representative of the company.
You’ll be better off hiring a company that provides round-the-clock support so that issues like the ones mentioned above can be solved promptly. The firm’s representative will also be able to explain any charges which you do not understand.
Selecting a payment processor might seem like a simple task, but actually it isn’t. Making a cost benefit analysis of all the available options will help you to zero-in on the best one. If you are looking for a Credit Card Processing Company in Carlsbad, CA, then contact us! Call us @ (877) 720-0022 or send an e-mail: [email protected]. We have all the solutions you need, including e-commerce. Wherever you are, AppTech can make it happen!