If you’re in business, offering goods, services or both, you may have decided how you want to accept payment. With cash and checks slowly fading into the sunset, card payments have emerged as the most preferred payment method among American consumers. According to a 2018 study conducted by TSYS, a card processing company, more than 50% of those surveyed chose to pay by debit card, 26% by credit card and only 14% preferred cash.
What are Card Processing Companies?
Whether you accept payments manually, in person, on-line, on-the-go, or over the phone, you need a card processing solutions provider. These companies are third parties that have been appointed by business-owners/merchants to liaise with merchant banks and handle credit/debit card transactions. They may be front end processors that connect with various card associations and provide authorization/validation services and settlement services to merchant banks. Alternatively, back end processors accept payments via front-end processors. It can move money via the Federal Reserve Bank from issuing bank to the merchant bank.
When cards are swiped, the payment solutions company immediately verifies the information provided by forwarding them to the card association/issuing bank. It also deploys anti-fraud measures and checks other factors like previous history, country of issue etc. When the information has been verified satisfactorily, the payment processing company passes this information back to the merchant who can complete the transaction or decline it. This entire process takes a few seconds.
Different processing companies charge different fees and provide different services.
Selecting the Right Payment Processing Solution
This involves a detailed analysis of your business model and the volume and nature of your transactions. Keep these features in mind:
- Convenient integration into your business model
- Convenient and easy for customers
- Support for all the currencies your customers may use
- Compatibility with your user interface
- Support for all the platforms you use
- Robust security features
- Quality tech support 365x24x7
- The latest and most efficient PCI compliance
- 100% data encryption
- Swift and efficient funds transfer into your account
Some of the possible hurdles you could face when you don’t partner with the right solutions provider:
- Hidden fees or charges: If you don’t read the terms and conditions on your contract carefully, you could wind up signing up with special fees, charges for cancellation or withdrawal.
- Delayed access to funds: Unless there are valid reasons, payment solutions providers should give you swift and easy access to your funds.
- Inadequate protection: With frauds and scams on the rise, you could find revenues dipping unless your processor has up-to-date security.
- Failure to be PCI compliant: This puts you at risk of revenue loss, and damage to your reputation.
Accepting credit card payments is great if you partner with the right payment processing company. It’s important to select the company based on your own unique needs, preferences and budget.
For more information on how to choose the right payment processing solution for your business, or to sign up for a merchant account, please call (888) 924-2743 or go to Charge.com.