How to Choose a Card Payment Processing Partner
Credit card processing fees are going to eat into your margins. It’s almost unavoidable without legislative changes. Understand that the best you’re going to be able to do is to minimize those losses, which can be as much as two percent of your transactions.
You need to know the contract term for a payment processor, and the minimum number of transactions per month the processor requires to avoid a fee. Also, some processing companies charge different fees for debit cards than for credit cards. Perhaps most important for managing your finances – you need to know how quickly the processor can settle fees for you. Longer periods have a meaningful financial cost to your business.
Some payment processors will offer to lease you equipment, but that’s usually a bad move financially.
The lease is usually expensive relative to the cost of buying used gear. To get the best deal on rates, we think you should get quotes from different credit card processing firms, compare the deal and find the best deal for your business. Competition is stiff enough to find a bargain.
Consider the penalties a credit card processor assesses for dropping below minimum numbers of transactions or for small transactions. Some payment processors can handle small point of sales purchases better than others. In this regard, you need to know your business well. If your sales are predictable, it makes finding a card processor easier than a business with wide variation in sales prices and volume.