How to Evaluate Credit Card Processing Companies
Every day, millions of people across the United States swipe their credit card at a grocery store, coffee shop terminal, or other local business. Since credit cards and debit cards provide a higher level of fraud protection than cash or checks, many consumers prefer to use plastic when paying for a purchase. While this process is seamless for consumers, businesses must pay careful attention when choosing a credit card processing company.
Since credit and debit card companies are exposed to some liability when transactions are processed, there is usually a fee of one to five percent when processing credit card transactions. This fee helps cover regulatory compliance, financial management and fraud prevention. However, there are a number of different caveats that one must watch for when choosing a payment processor to ensure that they’re receiving the best deal possible.
It’s important to choose a credit card processing company that matches the individual needs of a company. For example, some payment processing companies have monthly minimums, which can be bad news for low-volume businesses. Other credit card processing companies charge other hidden fees, or even “statement fees” simply for mailing their monthly statement! There are plenty of business owners who’ve been bamboozled by their processors’ hidden fees and high percentage-based markups, so always stick to processing companies that offer clear, flat-rate fees.
In-person card transactions usually require the use of a credit card terminal. While purchasing a credit card terminal has been very expensive in the past, new technologies have brought down the cost of credit card and debit card processing terminals significantly. For example, some companies provide a small device that can be plugged into an Android or Apple smartphone, allowing payments to be accepted anywhere. These devices can also accept manually-entered credit card numbers; however, fees are usually notably higher for manually-entered numbers.
Most important of all, it’s a good idea to make sure that your credit and debit card processing company has good customer support. Before choosing a company, try calling their phone support line to make sure you can reach a real person in the event of an emergency. If a company does not provide 24/7 support services, it may be a good idea to look for a different company.
Payment Depot is a great choice for many companies because it has no hidden fees, no contracts, and no cancellation fees. In addition, Payment Depot offers some of the lowest fees in the industry.