There’s a lot at stake when selecting which credit card processing company is right for your business. This means considering fees and costs, the setup involved, security features, accepted payment types, integration, their industry relationships and how much customer support they offer.
Businesses must be savvy when entering any payments relationship. At Payline, we’re here to make the process easier for businesses to understand so they can spend less time worrying about how to process payments and focus more time on developing customer relationships and growing their revenues. That’s why we’ve gathered a quick checklist of what merchants must consider when selecting a credit card processing company.
Fees and Costs
Pricing transparency is one of the most important elements of choosing a credit card processing company. In general, all credit card companies will charge an interchange fee for each transaction. This is generally between 0.5 – 3 percent per transaction, depending on the type of card, the size of the transaction and where the purchase is made (in-store vs. online).
What’s important to consider is if a credit card processing company charges monthly fees, how they bill, or if they have minimum processing figures a merchant must hit to avoid additional charges. Businesses must learn if there are additional charges, such as access to a payment gateway fee, monthly statement fees or fees for setup and support. Most importantly, you’ll want to learn if you’ll be charged for ending a contract early if you decide to switch to another credit card processing company.
When selecting a credit card processing company, businesses must ask questions about integration to determine how easy the setup process will be. This process should be a quick and painless, but it’s important to ask questions about how long installation takes, and how long it will be for your business to be up and running on their system. Every delay you faces costs your business money and the chance to secure another customer. Lengthy, complicated setup processes is a risk a business shouldn’t have to take.
Security concerns and credit cards go hand in hand. Selecting a credit card processing company must be done with security at top of mind. This means asking what fraud prevention tools the company has to keep your customer’s payment data safe. Credit card processors today must offer encryption and tokenization features for both offline and online purchases. For online payments, merchants should look for a processor that supports SSL certificates and CVV2 verification. The final security step to check on is ensuring the credit card processor is PCI-DSS compliant in order to fully protect the data shared across your systems.
Accepted Payment Types
Customers today expect choice, including in how they prefer to pay. When establishing a relationship with a credit card processing company, businesses must ask about the payment types they accept. It’s important to ensure all major debit and credit cards are part of that list. To that same extent, you’ll want to ask about the ability to accept prepaid and gift cards so you can fully cater your payments systems to your customers.
Asking what partnerships your potential credit card processing company has established is an important question to ask to determine what other benefits they could bring to your own relationship. This includes learning which sponsor banks they work with so you can leverage their industry connections to help grow your own business’ network. A credit card processing company with more relationships means there are more chances they’ll be able to help your company grow long term.
Speaking of experience and expertise, when choosing what credit card processing company is right for your business, don’t overlook the customer support aspect. Ask their team how often they’ll be available when problems or questions arise. Learn how their team communicates with you to ensure they’ll provide the level of support needed for your business. There is no one-size-fits-all approach to credit card processing, but every business owner can agree that solid customer experience can go a long way in a payments relationship.
Anna Kragie is a content contributor for Payline Data. She previously wrote for PYMNTS.com, as a Sr. Content Producer, where she focused on financial services and payments innovation, fraud and security, emerging payments, and FinTech news, research and thought-leadership content across the payments industry.