Credit Card Processing - How To Choose The Most Suitable Provider For Your Business

By Author: Daljeet Sidhu
Total Articles: 4762
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Picking out a credit card processing service brings up some essential questions such as Will the service improve my trade?, How much will it cost?, Can I depend on them?, Are they trustworthy?, etc. The internet is a first-class starting place for searching out credit card processors. But, what are the parameters involved in determining which processing service is the solution for your trade needs?

In this article, we discuss a few of the critical factors in your selection of a credit card processing service for your business:

Credit card processing fees
The fee charged for service is logically a critical factor. Apart from the cost, the service should add value to your business. The types of fees charged by processors vary but the most common are described below:

- Startup fee: Many card processing companies don't levy this charge. For those that do, the fee is around $250. This is a "one time" fee.
- Gateway fee: If you have an ecommerce website, you will need a payment gateway to process credit card payments. The gateway fee is charged monthly and ranges widely from $10-$50.
- Statement ...
... fee: Majority of service companies collect a statement fee that ranges from $9-$10 per month.
- Monthly minimum fee: Credit card processors charge a monthly minimum in the range of $20-$30 to ensure minimum earnings from each merchant.
- Transaction fee: This fee is common to all card processing companies. A fixed sum in the range of 24-35 cents is collected for each transaction processed. Apart from this fee, the processor also charges a percentage (discount rate) that averages to 2.14%-2.40% of the payment amount processed.
- Address verification fee: Address verification is an additional safety measure against credit card deceptions. Some providers charge a fee for each address verified. This can cost your business 5-10 cents per address.

Desirable features in a credit card processing service
The next step is to find out whether the service can serve all your business requirements. Match your needs with the solutions provided by the processor.

Kind of credit cards accepted
Record the most common cards used by your customers or the card types you would like to accept. Make sure the credit card processing service accepts them. Frequently used card types are Visa, MasterCard, Discover, and American Express.

Kind of services
Whether you operate a brick-and-mortar store or run an e-commerce website, your credit card processor should offer comprehensive services. Find out if the services include:
- merchant account
- virtual terminal
- e-check services
- point-of-sale (POS) terminals
- shopping cart
- recurring billing
- reasonable clear the account period

Credit card processing security features
Credit card transactions are susceptible to scams and thefts. It is critical that processors take adequate security measures such as:
- anti-fraud security
- CVV2 checking
- real time processing
- address verification
- SSL and encryption

Customer support services
What makes credit card processing services dependable? A very low error rate and easy to get to customer support service. Service providers should be able to assist you when you need it without losing time. Some features that should be part of the contract are:
- customer support numbers, email, fax, and work timings (24x7 is always preferable)
- fixed response times
- toll-free telephone number
- live online chat, if needed

Businesses should weigh expenses and services before selecting a service provider. The deal should not only be affordable but also fulfill all your expectations.
About Author:
Daljeet Sidhu is at TradeSeam B2B Marketplace. Credit Card Processing for Small Business advice. Compare credit card processing quotes.