Starting a business can be an overwhelming task. With everything on your list, you need to also choose a payment processor to end up accepting credit cards or debit cards from your customers. Every third party processing firm has a unique set of fees and contacts and it is very essential to understand those nuances to find a processor that is a good match for your business.
It is a wise decision to take time to compare different processor and ask five important questions to end up with one solution. After all, the right processor can make a significant difference to your overall revenue.
Question 1: How much freedom do you have to end the contract?
Most of the credit card processors require you to sign a multiyear contract. If everything works fine, you do not face any trouble, however, in case the situation is just the opposite and if you are unhappy about something then you do not have the freedom to move. Before you move, you need to pay an early termination fee or cancellation fee. The cancellation fees are burdensome and painful. So, be sure you ask about the cancellation fees before signing on the contract.
Question 2: Is the payment processor compatible with your online shopping cart?
Some of the processors have software that is not compatible with the online shopping cart your business is using. In such cases, the business faces a great loss. Before signing any agreement, ensure the payment gateway works well with the online shopping cart and you can easily accept payment from the customer.
Question 3: how do you keep credit card data safe and secure?
Every day, hackers are becoming more sophisticated, putting customer’s private information at risk. The credit card processing companies should maintain security according to the payment card industry standards to ensure that the customer’s information are safe and company’s reputation is not at risk.
Question 4: Other from cost of each transaction, what fees will I be charged?
Each processor asks for different fees such as annual or monthly fees, regulatory fees, compliance fees and much more. The fees vary from processor to processor and hence one should be clear about the different charges. Generally, the fees generally should be more than $200 per year for brick and mortar merchants and $ 300 for e-commerce merchants.
Question 5: Is there any customer support available?
You might face challenges while operating the payment gateway or the terminals. If they malfunction or do not work properly, you will require 24 x 7 support. Choose a company, which is available with 24 x 7 support for any malfunction.