Introduction
Choosing the right payment processor can be a huge help to your business. It not only gives you the ability to accept new forms of payment, but it also makes it easier for clients to pay for products and services. However, there’s no one-size-fits-all approach when it comes to choosing a payment processor. Factors like business model, transaction volume and even whether or not you’re accepting international payments can affect which provider is best suited for your needs. With so many options out there, it’s hard to know which one is right for you. There are a lot of things to consider when choosing a credit card processor: your business type, industry type, volume of transactions, types of cards accepted etc. The good news is that these days most processors offer competitive rates and services for all kinds of small businesses. So don’t stress—we at PayAgency are here to help!
Here are a few things to consider when choosing your credit card processor:
Understand your business model
Before you choose a payment processor, you should understand your business model. Your business model is how you make money and the way that you expect to grow over time. Understanding your business model will help inform how and when payments should be made, as well as other aspects of your organization’s operations.
Here are some questions to ask yourself when considering which type of payment processor is right for your company:
*How will my company change over time?
*Will there be more than one person handling payments at any given time?
*What kind of experience do I want my customers to have with our service/product or brand?
There are a lot of things to consider when choosing a credit card processor.
● Review and shop around before finalising on a payment partner
● You need to make sure you get the right one for your business.
● Some things to consider are security, monthly fees, transaction fees, interchange-plus pricing, setup and support fees, processing volume discounts, and monthly minimums.
Keep your options open
Once you’ve decided that a payment processor is right for your business, don’t be afraid to keep your options open. If a new processor offers a better deal or more features, it may be worth switching over. You could also ask for those same features from your current processor and see if they can match their competitor—it never hurts to ask!
The Application Process
The application process is the first step in choosing a credit card processor. It can be a lengthy one, and it will involve a thorough vetting of your business and your financial history. This process may require you to provide your business banking information as well as other personal information.
You should be prepared to answer questions about how you plan on using the credit card processor’s services, how much money your company makes per month, what kind of technology support you currently have in place, whether or not anyone in the company has had any past issues with fraud or chargeback rates (more on these later), and more.
This part of the process might seem uncomfortable at first—but don’t worry! The more honest you are about everything from day one, the smoother things will go later down the road when dealing with customer service issues or disputes over charges that were not authorised by customers using their cards for purchases made by businesses like yours.”
Transaction Fees and try to avoid fixed fees
Transaction fees are one of the first things to look at when comparing credit card processors. You’ll likely see a flat fee or tiered rate associated with each transaction, but there are other ways that costs can be assessed. For example, you may be charged a per-transaction basis or on a monthly basis. It’s also possible that there will be no transaction-specific costs and only monthly fees based on the number of transactions processed in the previous month.
Transaction fees are usually calculated as a percentage of the total transaction amount—so if your processor charges 2%, then $1 is taken out for each $100 worth of sales made through your business’s website (and so on). This means it’s often best to choose a processing company that offers lower rates than average; otherwise, even small businesses could find themselves losing significant amounts every year due to high fees alone! In addition to transaction fees, some processors also have setup or monthly processing fees that you may need to take into account when choosing a credit card processor.
Fixed fees are a one-time fee that is charged when you sign up for the service. Fixed fees can be good because they’re not an ongoing cost, but they’re also not optimal if your business has high volume transactions. If your business processes less than $10,000 in monthly transactions, it may be best to look into signing up with a credit card processor with fixed costs rather than one with tiered or monthly fees.
Processing Volume Discounts
The amount of transactions you process in a given month can affect the rate you pay. If you process a large volume, you’ll be eligible for a discount on processing fees. If not, or if your volume fluctuates wildly from month to month, it may be best to look elsewhere.
If this is important to you (and it should be), talk with your processor about how they determine their rates and what options are available for businesses like yours that have more complicated needs than simply swiping plastic and handing back cash each time.
Know what a rate increase means for you
A rate increase is a change in the amount you pay for processing a credit card transaction. The most common reason for a rate increase is when your processor raises its rates to keep up with the growing popularity of mobile payments, which are typically more expensive to process than traditional card transactions.
If you’re new to accepting credit cards as part of your business, you should be aware that processing rates can change over time. As the market evolves and competition increases, it’s not uncommon for processors’ pricing models—and therefore their rates—to adjust accordingly.
It’s important that you understand how rate increases affect your business and customers before signing on with any processor.
Payment Security
The last thing you want to do is endanger your business or customer’s credit card information.
Security is the most important factor when choosing a credit card processor, and it’s a combination of hardware, software and people.
Hardware consists of firewalls and encryption; software includes anti-virus software and firewalls; people include security professionals and IT staff.It is important to have a constant check on the processing by the use of above mentioned resources.
Don’t be afraid to negotiate with payment processors and it’s important to work with a reputable processor.
If a processor isn’t willing to work with you, then it’s time to move on. There are plenty of options out there and you should never feel like you’re stuck with one company if they aren’t offering you a good deal.
Be prepared to negotiate! Don’t be afraid to ask for a better deal, contract or rate.
It’s important to work with a reputable processor. A reputable processor is one that has a good reputation, and you can trust them to provide excellent customer service. This means that they have a track record of providing good service, and are more likely to be around in the future.
Check customer service ratings before signing up
Customer service ratings can be found on the various review sites. These sites are filled with both positive and negative reviews, so you’ll have to do some digging to find the most helpful information. In addition, you should look for a company that has a good reputation for customer service. If you’re dealing with a small-time business or startup, it’s not likely that they have much of a track record yet—so look for larger companies instead (but again, don’t forget about smaller local businesses).
For example:
*Picking the right payment processor could help make all the difference in your business.
Choosing the right payment processor can help in a variety of ways. In addition to making your business more efficient, it can also help you save money, avoid problems and fraud, and avoid costly chargebacks. If you’re looking for a way to cut costs or increase profits, this is one place where you can make all the difference without investing too much time or money.
● It will save you time:
● It will save on fees:
● It will reduce fraud:
Conclusion
Choosing a credit card processor can seem daunting, but it’s worth the effort to find the right one. The better your service provider is, the easier it will be for you to run your business. You want to work with a company that is responsive and available when issues arise. We’ve covered a lot of ground here, from how to pick the right processor for your business, to the factors that make one processor better than another. We’ve talked about why you should avoid “fixed fees” and why it’s important to keep your options open. We’ve also touched on what customer service ratings mean when choosing a payment processor, as well as negotiating with them if there are problems down the line.PayAgency can help you find the right Credit card Processor and this will definitely put down the pressure on how to choose a credit card processor.
