Cash inflow is the priority of all businesses, either small or big. Small businesses tend to have a lower influx of funds when compared to big ventures. The use of credit cards is on the rise: they are convenient for customers, but can be expensive for merchants. Moreover, getting a credit card processor often proves to be quite a challenge for small businesses. But it is very important to find a provider of such services that is beneficial to your business.
This article aims to explore useful steps in getting the best credit card processor for your small business. We shall examine the following questions to shed more light on the issue.
Some merchants may want to stick to only popular card brands for safety purposes. That is good, but on the downside, there is a high chance that the majority of customers have neither card, and you lose customers. There will be a fee for any merchant using cards as payment methods, but this fee does not depend on the number of cards you accept. As a small business, it is best to get a merchant account that accepts all types of cards to increase revenue and profit.
Another fundamental question that you need to answer before opting for a credit card processor is how much you are making on credit card transactions. You don’t want to pick a payment processing company whose fee is higher than your credit transactions combined. Take a careful look to find what exactly the fees charged by the credit card processor are. The main complaint is usually undisclosed fees. To combat this problem, review the contract before putting your signature. The fees may include a monthly fee, batch fee, PCI compliance fee, and other fees charged by the service provider. Generally, the fees vary for the different payment service providers.
Another important factor to consider is whether to opt for a short or long contract. Try to avoid being held down by long contacts of, say, three years when you could make monthly contracts. Flexibility comes with monthly contracts as moving on is easy, if unsatisfied. There is healthy competition among the processors, so try to ask them for what you want exactly.
As a small business merchant embracing e-commerce you have an option of buying a credit card terminal or leasing it. Most times the leasing contract can’t be canceled till the agreed date. Hence you are stuck paying for the terminal whether you are earning with it or not. Also, find out if you have to pay other fees such as maintenance fees.
Small businesses especially need to adapt to rising technology in accepting payments. Consumers expect that your enterprise will accept a wide variety of payment options. Failure to do this will cost you clients and funds. When choosing a credit card processor, pick a company that is up to date with current technological solutions. That way, you can ensure the satisfaction of your clients. What is more, it will cover your business’s current and future needs and protect you from unnecessary financial loss.