Many factors come into play when choosing whether to accept credit cards at your organization. In a recent study, more than 80 percent of consumers list debit or credit cards as their preferred payment method of payment. In order to get new customers interested as well as keep existing customers, it is essential your organization accept card payments.
There are many different factors when selecting a credit card processor. There are so many providers out there that it’s sometimes hard to know exactly where to start.
At first glance, it is easy to only focus on fees. But, processing fees vary widely across providers and can vary depending on the size of your organization. For example, a larger organization can often qualify for lower fees due to higher processing volume. Additional, e-commerce or online processing rates are often different than what you would pay if you operate a physical retail store.
While monthly and per transaction fees are usually clearly stated, don’t forget to consider any hidden fees that come with processing credit cards. Questions to consider include:
- What is the cost difference in leasing vs. buying equipment such as point-of-sale terminals?
- Are there any fees for early contract terminations, chargebacks or refunds?
While it may be easy to get hung up on monthly or per transaction fees, cost should not be the only factor in your merchant processor choice. It is critical you find a merchant processor who can work with your business needs.
Here are a few additional factors for consideration:
- What is the processors track record?
- What is contract length, and are there early termination fees?
- Is there flexibility in how you process payments (mobile, chip-card enabled, virtual terminal, etc.)
- What is their customer service support practices? Are they readily-available via telephone, live chat, or email?
It’s a buyer’s market, and there is no shortage of merchant account options out there. Let each candidate work hard to win your business. If you don’t feel that it’s a right fit, move on down the list.