There are several companies out there that provide credit card processing services, but, how can you define a company that provides credit card processing services. Credit card processing services are companies that provide other organizations such as retailers, small businesses or large businesses everything they need to accept and process credit cards for their business. They will provide you tools that will enable you process payments when your customers pay by credit card.
The services they provide you should include accepting the major credit cards such as MasterCard, Visa, American Express and Discover, and other credit cards that are major players in the locality you do business at.
For a business to accept credit cards, the business will be required to open a merchant account with a credit card processing firm. Finding the right credit card processing service to open your merchant account with would also require some due diligence on your part to find a company that meets your needs.
Make sure you read the fine prints so that you know before hand what to expect in terms of fees and quality of service the company provides. Some companies have setup while others do not, some have a poor customer service desk while it’s different with the next firm. Find out as much as possible about a company before you buy.
Credit card processing companies provide different types of terminals, modules or payment gateway to their merchant depending on the type of business they operate.
Examples of the different types of businesses that would determine the type of terminal or payment gateway they would get include:-
A retail store in most cases will require a credit card machine placed at the cashier’s desk so that credit card payments are processed through this terminal. If your store requires a more complicated point of sale module, your credit card processing company should be more than happy to provide it.
This will involve selling products on the internet through a website. The terminal here will include a shopping cart or a virtual terminal. In internet stores, the transaction is processed through a payment gateway that is provided by a third party. Examples of third parties that handle virtual payment on behalf of credit card processing companies include Eprocessing and Authorize. net.
Some credit card processing companies have a guideline on which products that could be sold by a website through their virtual terminal or shopping cart. Such products include things like live animals, corrosive material, any type of drugs, gambling and even airfare. So always check with the credit card provider to make sure that your services or products are eligible for their terminal.
This type of terminal is ideal for businesses on the go. For example a brick and mortar business doing a promotion could have a wireless hand held terminal to process payments for example in a rally. A food delivery service like a pizza service could also arm their delivery people with a wireless terminal to process payments whenever and wherever.
Some tips on what to look out for when searching for a credit card processing service for your business.
Good Customer Service
Nobody wants to wait for very long periods to have a question answered. The way to get an idea of the customer service response of the companies you are thinking of using is to call the customer service number with some questions.
Make a note of how long it took them to get your call, how knowledgeable the person on the phone was and most importantly if they answered your questions satisfactorily or referred you to somebody that did. This will give you an idea of what to expect when you have to call them when a problem arises if you decide to go with their service.
Pay close attention to what their fee structure is and how it fits into your budget. The major fees that apply in credit card processing include setup fees and processing fees. Some credit card processing services do not charge for setup while some do. Also find out how much they take to process each transaction.
Some companies will serve a small setup fee and then have a huge processing fee, so that on each transaction you process they get a large percentage of your profit. Other costs that you would want to keep an eye on include statement fees, voice authorization fee, address verification fee, surcharge fee, ACH reject fee and payment industry compliance fee (PCI).
Check out the features they offer
The features the credit card processing company offers should be another thing to consider. Make sure they offer services that are beneficial to your business. Different card accepting terminals or modules include point of sale terminal models, the internet based or virtual model, and also the mobile or wireless model.
The virtual model will involve setting up a shopping cart on you website so that you can process payment from individuals that purchase from your website. The P.O.S model or point of sale model is the payment gateway in which case the actual credit card is swiped through a machine when you present your products at the register for payment. The third type of payment terminal is the wireless hand held credit card machine for businesses on the go.