Factors to Consider When Choosing a Credit Card Processor
Deciding to accept credit cards is only the first step in getting paid. Of course if you have an online store, then credit cards are practically the only way to receive payment from your customers. However, customers can’t swipe their cards on your website, so you’ll require a system to facilitate payment. This is usually done by opening a merchant account through a payment processing company.
There are many companies like these to choose from. Selecting the right one can be an important decision, but there are a few guiding factors. Check their online testimonials to get an idea of their reputation. A company that is trusted by communications firms, government agencies, or tech companies is a good bet. Here are a few more hints.
When a card takes too long to process, customers get nervous. They can even begin to think they’re being scammed, or they may be worried about double charges from a duplicated transaction. When a process goes through instantly, it boosts their confidence, so find a merchant processor that can offer you instant verification of your transactions.
Any transaction that involves money, banks, or credit cards requires superior levels of security. This prevents credit card fraud, reassures customers that their data is secure, and increases your volumes of sales. Find out the type of encryption that your prospective payment processor employs. Military-grade encryption is ideal. The company should also be compliant with PCI DSS and QIR regulations, to ensure high security standards.
Credit cards aren’t the only way you can receive payment. Although you may have an online store, you might also have a physical store. Even with strictly virtual business models, you may have an option for customers to pay on delivery. This means you require a portable credit card reader, as well as a system to accept cash or checks if needed. Find a merchant processor that consolidates all these services onto one portal.
Some businesses are considered high-risk, such as online casinos or some businesses that sell overseas clients. Such businesses can have a hard time finding a merchant account. If your credit score is low or if you’ve been bankrupt in the past, it can also be difficult to access financial services. If your business falls into any of these categories, look for a merchant processor that accepts high-risk clients.
Every cent you save in business expenses adds to your profit margin. Merchant processors extract their fees from your customers’ payments, so you want the charges to be as low as possible. Review the fee structure of your prospective payment processor. Some processors offer a multitude of services for free. They may provide free shopping carts for your website, free mobile apps, or free electronic card readers.
For more information on choosing an online credit card processor, or to sign up for a merchant account, please call (888) 924-2743 or go to Charge.com.