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Cash is fast becoming old news. More and more, customers are choosing to pay with credit cards or contactless technology such as smartphones and smartwatches. And businesses need to take note.
No matter how big or small your business, not offering credit card payments can dampen your sales. But unfortunately, even though card payments are more convenient for customers, they’re more expensive for you. Each credit card processor has its own price structure with some taking a bigger percentage of your sales than others, so you need to shop around.
Keep reading to find out how to choose a reliable and affordable credit card processor for your business.
Why Do I Need a Credit Card Processor?
Credit card providers don’t interact with businesses. Instead, they partner with third parties known as a merchant account provider. Merchant account providers then work with payment processors to manage your transactions- in short, the process is more complicated than you think!
Credit Card processors are the link between your merchant account provider and the banks/card providers. Without one, your payments won’t be sent for authorization and you’ll struggle to settle your transactions.
What Should I Consider When Comparing Providers?
Unlike other products and services you shop for online, there’s no easy way to compare credit card processors. There’s lots of red tape, sneaky hidden fees, and varying levels of service. Here are the main things you should consider when comparing providers:
Fees & Pricing
Not all credit card processors are created equal. Expect each provider to have a completely different set of fees, making it all the more difficult to compare.
Whilst some providers will take a chunk of your sales each month, others will charge multiple fees for administration, setup, and providing monthly statements. They may even charge a set fee every month.
Make sure you add up ALL charges when comparing, to get a true understanding of who is most affordable.
Most processors are designed to work with universal eCommerce solutions, but it’s still not worth leaving it to chance.
Make sure that your in-house tools will work with your chosen credit card processor to avoid payment issues down the line. You’ll also want to check that your processor supports digital payments given the increasing popularity of smartphone and smartwatch transactions.
Credit card data is a high-value asset for cybercriminals and small to medium-sized businesses are the most likely to be targeted. In fact, the majority of attacks are on companies with less than 100 employees.
This is exactly why security concerns should be at the front of your mind when choosing any new software for your business, including your credit card processor.
Some processors, like Wind River Financial, offer additional security protection with their payment processing packages. Make sure you choose a provider that does the same.
Choose a Credit Card Processor You Can Trust
When it comes to choosing a new credit card processor, take your time. Compare the varying price models, software packages, and security protection offered to make the best decision for your business.
If this post has answered your questions about credit card processors for business, check out the rest of our blog for more tips and advice.