​What Business Owners Need to Know When Selecting a Credit Card Processor

Credit card processing can be complicated as it puts a lot at stake. That is why business owners have to look for a reliable credit card processing company to do the work as they maintain their business’s livelihood. 

A credit card processor is typically the link between businesses, issuers, banks, and credit card networks. It is necessary for in-person and online payments.

It becomes challenging for a business owner to figure out which service makes more sense for their business with many available options. Choosing the best company requires research and analysis of various factors.

For business owners who do not know where to start, below are some features to ascertain.

Costs and Fees

The upfront costs of credit card processors vary, and the additional fees that come with the service can also be substantially intricate. The company pays for a business’s costs before billing it and then determines markup.

Generally, interchange fees depend on card type, transaction size, and the point of purchase, i.e., online or in-store.

Business owners must know beforehand whether the credit card processing company charges fixed monthly fees or if they charge flat fees per every transaction. Some companies take a percentage transaction fee, while others have bundled pricing.

Others have support fees, set up fees, cancellation fees, and payment gateway fees. Card-not-present (CNP) fees are also standard fees for most processors as a measure against fraudulent activity.

The most crucial thing is for business owners to settle on a credit card processing company that is transparent about their fees after determining what costs are applicable. Business owners should also keep in mind the equipment costs they may incur.

Covered Payment Methods

The best online credit card processing for small businesses should allow for the acceptance of various payment methods. Credit and debit cards must be compatible. Depending on the kind of business someone is running, they might need the credit card processor to allow for the acceptance of prepaid cards, gift cards, digital wallets, and mobile payments.

As a business owner, find out the acceptable payments the processor offers and if they work with new technologies too for customer satisfaction. Generally, paying customers expect to have payment choices that must satisfy their preferences.

The Setup Process

The setup process may seem straightforward, but business owners must not overlook it. It can be very upsetting to find that a credit card processor requires a complicated and time-consuming setup process. 

Therefore, business owners must ask the right questions from the word go. They should determine how long equipment installation and account activation may take. The idea should be for a business to start using the technology without delay and sacrificing sales.

Businesses must be PCI (payment card industry) compliant. The best processor is one that assists with this annual certification intricacies, whether it is for disputed transactions or chargebacks.

In addition, business owners should find out if the company will assist them with setting up the credit card technology and what further support they provide.

Integration and Customer Support

Integration plays a vital role in managing successful business operations. Therefore, business owners must find processing companies that streamline transactions and finances with their technology.

An exemplary processing company also allows for excellent customer support. Even though interruptions may sometimes happen, a business owner must establish how the company will be reliable. For example, how do they offer readily available, accessible, and helpful customer support, and what communication channels can be used to reach them.

Security

No credit card processor should compromise business and customer security and protection from fraud. Business owners must therefore find companies that support these matters. Standard features to look out for are tokenization and encryption and PCI-DSS compliance for valuable data.

A business owner should check that the processing company uses EMV chip card technology to cater to in-store payments. The company should also have CVV2 verification and SSL certification for payments done online.

It is also essential for business owners to know how the processing company will help in case of a security breach.

Final Thoughts

For most businesses to keep up with today’s opportunities, they need to have credit card payment systems. After all, that is how most customers are now paying at checkout. Credit card processing companies are essential to ensure that these operations are seamless and efficient. Therefore, business owners must determine the different factors analyzed above to settle on a reliable provider.