Mistakes to avoid when choosing the right credit card processor for your business

Choosing a trustworthy credit card processor can be a complicated process for most merchants. The mystery concerning what and how the processor offers its services prevents you from making an informed decision. Confused with the options, merchants often make mistakes and end up with providers who are either unaware of their industry or cannot cater to their specific requirements. If you’re seeking a reliable credit card processor, make sure you avoid the mistakes, save yourself from any hassles, and instead do the following.

1.    DETERMINE YOUR RISK LEVEL

When choosing a credit card processor, merchants must determine the level of risk of their business. Most retailers fall under the low-risk business category. However, those who own casinos or operate financial or legal services are high-risk businesses. If you fall under the latter category, you’d require custom, high-risk credit card processing solutions to manage your business payments. Retailers such as new businesses, pharmacies, vitamin shops, pawnshops, etc., may also be categorized as high-risk.

Once you identify the risk level, you can funnel different providers to suit your specific needs. High-risk merchant accounts incur high fees due to the uncertainties involved. That’s something a low-risk business owner wouldn’t accept. So choose the processor wisely and partner with the one who understands your business well and can offer all-round support.

2.    UNDERSTAND YOUR PAYMENT NEEDS

If you plan to accept 100% of the transactions in person, practically any processor may address your business needs. However, if your business would benefit from something like high-risk e-check processing, your choices may be limited and unlike the former. Besides, you’d require payment solutions that satisfy your distinctive needs.

3.    UNDERSTAND PROCESSING FEE

Make sure you are well versed with the processor’s pricing models, and there are no hidden charges or raised prices reported at the end. Fees are those payments that may not be negotiable but go to the processor directly. Costs, however, are those incurred by the card processor. So, you must always request transparent pricing. Usually, there is flat-rate, tiered, interchange-plus, and subscription pricing model. Besides, account fees, chargeback fees, refund fees, PCI compliance fees, and termination fees also make the final billing. If you do not understand a particular charge, ask questions and clear the confusion.

4.    GET A BACKUP MERCHANT ACCOUNT

If your business entirely runs on credit card payments, it’s essential to have a backup account that keeps your business running smoothly in case of emergencies. It is even more beneficial for high-risk companies to protect their business operations. Another best thing you can do is have different merchant IDs not when you run into troubles but from day one. It scatters your chargeback risks which are particularly hefty with high-risk industries.

5.    BE CAREFUL OF DECEPTIVE MARKETING TACTICS

The payment processing industry is littered with deceptive and distracting marketing messages. So, you must be able to spot fake ads or companies offering services that seem too good to be true. Exercise due diligence and form informed judgments.

IN CONCLUSION

High-risk merchants are often able to make an impressive income. Therefore, in all probability, a usual service provider may not be able to address your complex business needs. Choose the one who is well-versed with the industry rules. Make no mistake of settling for less. Once you partner with a reputable credit card processor, you’ll observe how much the payment solution seamlessly and painlessly streamlines and safeguards your business operations.

Sponsor Ads

• Ad Space Available - Rent it Now!

Report this Page

Created on Apr 26th 2021 08:14. Viewed 350 times.

Share on APSense

Comments