From the moment you open the doors of your business, it quickly becomes clear how integral a credit card processing company is to the mix. Just think about it for a moment. Every swipe, every tap, every online checkout – behind the scenes, there’s a credit card processor working diligently to ensure these transactions are smooth and secure. It’s like the unsung hero of modern commerce.
Yet, how to choose a credit card processing company that aligns perfectly with your business needs isn’t a straightforward task. With a myriad of options available, businesses often find themselves navigating through technical jargons, trying to understand varying fees, and meticulously examining contracts. Feeling a bit overwhelmed? We’ve been there.
But here’s the good news: making this pivotal choice doesn’t have to be a daunting endeavor. We’ve distilled the process into an 8-step guide, tailored to navigate you through the complexities of selecting the right credit card processor. By its conclusion, you’ll be poised to make an informed, strategic decision that syncs seamlessly with your business dynamics. Ready to embark on this enlightening voyage?
Understanding the Basics of Credit Card Processing
What is Credit Card Processing?
In its simplest form, credit card processing is the series of actions that take place to complete a transaction using a credit or debit card. Picture it as a relay race. When a customer decides to make a purchase, their credit card information is sent on a journey involving several stops – from the merchant’s point of sale system, through various secure channels, to the card’s issuing bank, and then back again, all within a matter of seconds. This intricate dance is all about validating the card, ensuring there are enough funds, and finally, transferring those funds to the merchant’s account. It’s the heartbeat of today’s commerce, enabling businesses to operate in our fast-paced digital age. For more in-depth on what is credit card processing our friends at Nerd Wallet have a great article about this.
1. Pricing Structure and Fees
How does this help me when choosing a credit card processor?
When pondering the question of how to choose a credit card processing company, one of the first considerations that often comes to mind is cost. And for good reason – the pricing structure can significantly impact your bottom line. But here’s a nugget of wisdom: don’t be swayed solely by the advertised rate. Dive deeper.
There are several types of fees involved in credit card processing. The most common ones you’ll encounter include transaction fees, which are charged every time a card is swiped or entered, and monthly fees, which cover the cost of account maintenance. Sounds straightforward, right? Well, there’s a twist.
Some credit card processors may dangle tantalizingly low transaction fees to catch your attention, only to offset this with a myriad of hidden charges. Think setup fees, early termination fees, PCI compliance fees, and more. The list can, unfortunately, go on.
That’s why it’s crucial to understand the total cost of processing – not just the headline rate. Ask for a detailed breakdown of all fees, both one-off and recurring. Save this breakdown and don’t be afraid to hold your processor to these amounts. Remember, knowledge is power. By understanding the complete pricing landscape, you’ll be in a better position to choose a credit card processing company that offers genuine value and aligns with your business’s financial goals.
TIP OF THE DAY – FOR EXISTING BUSINESSES Don’t be afraid to shop your existing fees with your new processor. Do you want to know how much you’re paying and behind the scenes? Sharing your credit card processing statement with a reputable payment solution specialist is not a bad thing. Especially if you have been with the same processor for over 5 years. We analyze fees every day. If you need help seeing what you are paying or understanding your statement tap the “Request Call” Button at the top of the website and upload your processing statement any time and we will have an answer back to you in minutes.
2. Security and Compliance
Security isn’t just a nice-to-have; it’s an absolute necessity. When considering how to choose a credit card processing company, the safety of your customers’ sensitive data should be at the forefront of your deliberations.
Imagine for a moment, swiping your card at your favorite café, only to find out later that your card details have been compromised. The trust breach is not just between you and your bank but also between you and that café. As a business owner, it’s paramount to ensure that your customer never has to go through such an ordeal.
Enter PCI DSS compliance. This set of security standards is designed to ensure that all companies that accept, process, store, or transmit credit card information maintain a secure environment. Any company, no matter its size or transaction volume, must adhere to this. Understanding the implications of a data breach – from hefty fines to reputational damage – underscores the importance of choosing a processing company that takes security and compliance seriously.
3. Customer Support and Service
Ah, customer support. We’ve all had our fair share of being put on hold endlessly, listening to monotonous hold music, waiting for someone—anyone—to address our concerns. Remember that time you had a pressing issue, only to be met with unresponsive or unhelpful customer service? It’s frustrating, right? Now, transfer that sentiment to a transaction-related issue, where time literally equates to money.
When things go awry—and in the world of technology, occasionally they will—a responsive customer support team can be the difference between a minor hiccup and a full-blown business disaster. Seamless integrations, quick resolutions during system downtimes, and proactive assistance can be lifesavers.
At Fusion, we’ve learned the importance of stellar customer support firsthand. We’ve heard the grievances, faced the challenges, and have chiseled our services to ensure that our partners never have to relive those all-too-familiar horror stories. Our dedication is to provide a support system that feels less like a helpline and more like a partnership.
Choosing a credit card processing company means choosing a partner that’s got your back, no matter the hour or the issue. And believe us when we say, in the tumultuous world of transactions, you’ll want that steadfast support by your side.
Assessing Your Business Needs vs. Their Offer
When diving into the nuances of how to choose a credit card processing company, it’s akin to piecing together a puzzle. The perfect fit isn’t just about low fees or advanced tech offerings; it’s about how those pieces integrate seamlessly into your business model.
Consider this: If your business experiences high-volume, low-value transactions, a processor offering low per-transaction fees would be beneficial. Conversely, if your operations revolve around high-value, low-frequency transactions, a competitive monthly rate might be more pertinent. Add to that the layer of future goals, perhaps expanding into e-commerce or tapping into overseas markets, and the matrix of considerations gets even more intricate.
At the end of the day, it’s about synergy. Your chosen credit card processing company should not only cater to your present needs but also be a scalable partner for future endeavors.
Finalizing the Contract
The Fine Print – The bane of many business owners who have felt the sting of hidden clauses and unanticipated fees. When determining how to choose a credit card processing company, this final step holds profound significance.
Contracts, especially in the realm of credit card processing, can be dense, laden with industry jargon and intricate clauses. It’s imperative to not only read but truly understand each provision. Are there termination fees that could blindside you if you decide to switch processors? Are there auto-renewal clauses that could lock you in for longer than anticipated?
Negotiating the terms is not just about haggling for better rates. It’s about ensuring clarity, foreseeing potential pitfalls, and crafting an agreement that’s mutually beneficial. It might seem tedious, but a few hours spent dissecting the contract can save countless headaches and unforeseen expenses down the road.
Remember, the goal is to find a credit card processing partner that aligns with your business’s ethos and trajectory, not just for the here and now but for the vibrant future ahead.
Conclusion: Finer Points to Ponder
Choosing the right credit card processing company isn’t just a behind-the-scenes administrative task; it’s a decision that reverberates through every customer transaction and the overall health of your business. As you stand at this crossroad, here are a few distilled wisdom nuggets to keep top-of-mind:
Seamless Checkout Equals Happy Customers:
Ever abandoned an online cart because the payment process was cumbersome or seemingly untrustworthy? Your customers think the same way. A fluid, intuitive payment process not only reduces cart abandonment but also enhances overall customer satisfaction.
Freedom Over Lengthy Commitments:
Some of the best partnerships in life don’t require lengthy commitments. If a credit card processing company insists on locking you into a multi-year contract, it might be worth considering why. Flexibility often signals confidence in one’s service quality, so opt for a provider that doesn’t feel the need to chain you down.
Hidden Fees Are Red Flags:
In the realm of credit card processing, transparency is golden. A company that’s upfront about its pricing structures, even the potential additional fees, is one that values an honest partnership.
Support Isn't Just About Issue Resolution:
It’s about preempting potential challenges, continuous learning, and growth. A processor with proactive customer support not only troubleshoots but also guides you through industry best practices.
Cash flow is the lifeblood of your business. Choosing the right credit card processing partner can create a healthy environment for that influx of cash. Ensuring a smooth and transparent processing system means nurturing that vital flow, setting your business up for sustained success.
