It goes without saying that when you hire a credit card payment processor for your business you must look beyond the initial price that you have to pay.

Credit Card

It goes without saying that when you hire a credit card payment processor for your business you must look beyond the initial price that you have to pay. Especially if you are a small business owner and your business volume is low, you must you must look at the services provided apart from the payment structures so that you are sure that it matches with your specific business needs.
  • Ideally, all credit card processors who are also referred to as merchant account providers will help you to facilitate such credit card transactions and in turn will charge a fee from you for their services.
  • You must also remember that, every time a consumer pays you for a purchase using either a credit or debit card, you being the seller will have to pay this specific fee to the credit card processing company.
There are different types of fees that the credit card processing companies may charge you and all these fees will take a lot out of your bottom line. According to The Nilson Report, a payment industry newsletter, it is pointed out thatsuch credit card processing fees can range anywhere from 2.09 to 2.33 percent. This is actually the weighted average processing fee charged by all card issuing companies including:
  • Visa
  • Mastercard
  • Discover and
  • American Express.
Therefore, when you hire such a company you must consider all these costs carefully so that you do not end up paying more than what you gain from making a sale. This is all the more essential for you to consider if you know that you have a customer base in which most of them use their credit and debit cards to make the payments. Why? This is because all these costs may seem very little initially when considering an individual purchase but when taken together, it can really add up to a huge amount and very quickly.

Choosing the right rate

Fortunately, you have specific and useful ways in which you can save a lot on credit card processing fee costs. Consider the pricing model of the company as different payment processing companies will charge you differently.

Therefore, there is no reason to believe that the convenient and flexible pricing model followed by Nadapayments will be followed by all such companies.
  • Some payment processing companies may charge you at a flat rate as well as a percentage of the sale made
  • While a few others may only charge you as a percentage of the sale.
Typically, it is best to choose a credit card payment processing company that charges at a flatrate fee plus a percentage of the sale. This pricing model is extremely beneficial for a small business that sells bigticket items as compared to those that sell lowerpriced items. This is because splitting over a percentage of your sale with the payment processor may prove better for your business in the long run.

Consider a few things

It goes without saying that you will need to do extensive research on the credit card processing companies when you choose one for your small business.
  • While doing so, you must also keep in mind to ask for a sample bill. This will give you a clear idea about how much you will be spending each month in paying fees to them for their services.
  • In addition to the fees for their services, you must also consider whether or not hiring their services will be cost effective for your business. Mind you, you will also have to purchase or rent a few gadgets that are essential for credit card and debit card processing.
However, not all credit card processing companies will charge you for these. There are a few that will offer such equipment for free. Looking for such companies will save you from such upfront fee or monthly rental fee for using their equipment.

Difference in processing

The processing process can be different for different types of purchases which will vary the price for such services. For example, the credit card processing process for in-person purchase of an item may be different and cheaper from a purchase that involves mobile credit card transactions.

Therefore, you must first decide what type of credit card transaction you will follow for your business in order to keep your fees under control.Typically, the type of payments you process will depend on a few factors but the most important factor is the type of business you run, whether it is e-commerce or a brick and mortar type of sale.

Ideally, you should opt for a credit card processor that will accept payments made through:
  • All major credit cards
  • Debit cards
  • Prepaid cards and
  • Gift cards.
In addition to that the credit card processor must also accept payments through different digital wallet payment methods such as:
  • Apple Pay
  • Samsung Payand
  • Google Pay.
Your processing system must allow your customers in your physical store to insert and swipe cards or tap on their smartphones to make a payment.

On the other hand, if you run any ecommerce business the payment processing solution must work on desktop as well as mobile devices both.

As for the B2B companies the most popular form of payment accepted is ACH electronic bank transfers, according to the Federal Reserve Payment Study.

The cheapest car processor

If you are looking for a cheapest credit card processor for your business, you will have to compare different such companies. However, you must remember that cheapest credit card processors may not always be the most costeffective option for your small business.

If you earn less than $2,500 per month it is best to work through credit payment facilitators or any mobile credit card processor. If it is more than $3,000 per month, you can work with Independent Sales Organizations, ISO or Merchant Service Providers, MSP.

If you work through these payment facilitators they will surely charge a higher percentage as compared to the other rates but you will save on the long run as there are no other fees such as setup fees, annual PCI compliance fees and others.

Comfortskillz

Safe Milli

Safe Milli is a graduate of FPI, he studied office technology and management. He is a young enterpreur who loves to share his thoughts on latest technology trends, new business ideas and opportunities, how-tos related topics. You can chat with him on Facebook for enquiry.

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