In today’s marketplace, consumers expect to pay with their credit cards in most instances. Even small businesses and fast food restaurants are increasingly accepting credit card payments. Over the Internet, it is essential to allow customers to pay with their cards online.
Many providers offer small business credit card processing, but the quality of service that you will get can differ widely depending on the company selected. There are some basic factors to consider when choosing a provider that can help you get the best value for your money.
How to Choose a Small Business Credit Card Processing Provider
Small business credit card processing companies generally offer their services by charging fees for each transaction. The basic fees are:
- Interchange Fee – This fee goes to the bank that issues the card and usually is not negotiable. The bank charges a flat rate for each transaction in addition to a transaction amount percentage .
- Assessment Fee – An assessment is a non-negotiable fee charged by Visa and MasterCard.
- Processor Markup – You pay this fee for your small business merchant account. In most cases, this fee is negotiable and the amount will depend on factors like the transaction amount, transaction type and your company’s risk profile.
The collective name for all these fees is the credit card processing discount rate. You can negotiate discount rates for your small business merchant account by understanding the factors that providers consider when calculating the processor markup. For example, you could take measures to reduce your risk assessment in order to negotiate a lower rate.
While price is certainly an important consideration, it is not the only thing to look for when shopping for small business merchant services. Some other items to consider include:
- Reputation of Merchant Services Provider – Make sure that the company has a proven track record and a reputation for providing high quality merchant services to their clients.
- Merchant Services Agreement – Read all the fine print in your small business merchant services agreement to ensure that you know exactly what you are getting for your money. Check to see on they handle card processing disputes and what types of promises they make in terms of the speed and reliability of their service.
- Processing System – How is easy is the small business merchant account to implement? Is the technology relatively easy to learn and use? What type of support does the provider provide in terms of training and maintenance? Also, check to see whether the system provides alerts and reports.
- Security – What types of security protocols does the merchant account provide to ensure that your customers’ credit information is safe? For example, the customer receipt should only print the last four digits of the credit card number.
- Customer Support – Check to see what type of customer service is available. For example, does the provider offer 24/7 support throughout the year? This can be very important especially if you operate an around-the-clock business.
- Added Services – Some credit card processing providers will also offer debit card processing and mobile credit card processing.
Switching to Credit Card Processing
Once you have selected a credit card processing service, you will need to provider your team with adequate training in effectively using the new system. The merchant account provider should offer assistance during this important transition period.
For example, your staff should know to look out for important details like card expiry dates and they should make sure they obtain signatures with each transaction. The same number on the credit card should appear on the printed receipt. Proper training will help prevent losses due to credit card fraud. Each type of credit card has its own unique security features, so you should provide specific training for all the cards that you accept.
Here are some other tips that can help you in running a smooth credit card processing operation:
- Audit Transactions – By auditing your transactions using your Point-of-Sale (POS) system, you can detect errors before settling your daily account. Compare the POS report with your credit card processing system total in order to verify that everything matches. This practice can also help in deterring employee credit card fraud.
- Close Transactions Daily – By settling your transactions at the end of each business day, you reduce risk and maximize your return on investment on the discount rate.
- Let Customers Know Credit Card Policy – Publicly post and publish your refund policies so that your customers know exactly what to expect.
- Have Alternate Payment System Ready – Power outages and other technical problems can shut down your credit card processing system. Have alternate payment options ready just in case
- Inform Your Provider of Special Events – If you have special events coming up or anything else that can result in sudden fluctuations in your credit card sales, let your provider know so that they do not flag your account. The provider’s security team will normally look at a sudden spike in sales as a possible signal of attempted fraud.
- Use Merchant Account Only For Your Business – Do not use your merchant services account for personal or family transactions, and do not process other merchant’s accounts. If you process other accounts, your provider may drop you or you may be liable for the other merchant’s transactions.
A Highly Recommended Provider
Switch Commerce is an established provider of credit card and debit card processing services for small businesses. The company offers fast, reliable and affordable merchant accounts that allow businesses to accept payments from a broader range of customers.
The fee structure is highly competitive allowing you get the most value for your money. A merchant account comes with 24/7 high quality customer support so that you can get expert assistance at any time and on any day of the year. Please contact us for more information and to get your company on the path to accepting credit and debit card payments.
