10 Tips for Selecting a Credit Card Payment Processor

Accepting credit cards for your online business is a must for modern business survival. The competition is fierce, and many consumers prefer to pay for purchases with their credit or debit cards versus cash. As consumers migrate towards a cashless society, business owners must realize that credit cards can increase their sales revenue when compared to cash sales.

Choosing the right credit card payment processor does not have to be difficult. Here are a list of excellent tips to help save you time and money.

1. Compare Rates: It sounds simple, but many business owners are in such a hurry to expand their business into credit card processing they do not shop around for the best rate. The variety of credit card processing rates can be as low as 1% or as high as 5%. Third party payment processors offer the lowest rates due to shared access terminals.

2. Gateway Included: The terminal gateway accepts the credit card data and applies security encryption to protect the sensitive data. Many credit card processors include a payment gateway for processing. Processors that do not include a payment gateway use 3rd party providers. These fees are passed to the small business owner and can be as high as $100 per month.

3. Application Fees: To setup a credit card processing account, an application is always required. However, there are many credit card processing companies that require an application fee when considering your application. There are many companies that do not charge an application fee, but may include higher processing rates instead.

4. Monthly Statement Fees: A credit card processor will normally issue a monthly statement listing all transactions completed. This also includes additional fees charged to your account for a credit chargeback or applied discounts. Depending on the processor, a monthly statement fee of $10 to $50 could be charged to your account.

5. Fraud Protection: The majority of small businesses lose money annually from theft and credit card fraud. Sometimes, the best internal controls or safeguards still are not enough to protect a small business from losses. Many credit card processors offer fraud protection for their small business clients. This includes verifying the cardholder name, address, zip code, and card expiration dates with a national database of information.

6. Multiple Currencies: The ability to accept multiple currencies for credit card transactions are a growing trend. Online businesses are expanding the global reach into foreign countries and territories. This provides an alternate income stream. Choosing a credit card processor that offers support for accepting multiple currencies is a wise choice for a growing business.

7. Customer Service & Support: Problems can happen at any moment. A small business will lose potential income if they have problems accepting credit cards. The customer service & support options are an important choice when choosing a credit card processor. A friendly and helpful associate should be able to repair your problems fast and easy.

8. Cancellation Fees: Sometimes, a business owner decides to use a new credit card processor. Depending on the length of the contract, there may or may not be cancellation fees. It is best to choose a credit card processor that does not charge cancellation fees if you are unhappy with their services.

9. Shopping Cart Compatible: Many online credit card processors serve millions of small business customers. Their payment solutions are designed for small businesses and traditionally are compatible with many software packages. It is best to consider a payment processor that is compatible with your website shopping cart.

10. Acceptable Products or Services: Many credit card processors have started to restrict payment processing for certain types of products or services. Small businesses that offer gambling, debt collection, or adult related products or services would find it difficult to find a credit card processor.

A small business that accepts credit cards online will find it easy to increase their global sales. The management features can help to maintain a small business and reduce transaction errors that are normally associated with cash handling. Electronic data can be exported to help create financial reports and pinpoint the financial health of a business.

Mark Brown writes for an Australian credit card comparison website where you can find the best rewards credit card to earn points as you make purchases for your business.