As a business man you have finally decided to take the plunge into the credit card payment acceptance. You must now be aware and prudent in choosing the right merchant credit card processors. This involves a little bit of research and understanding of the technical jargons.
Look for trusted representative
Before you pick the merchant services, it is important to browse through several of them. You will be visited by a representative from the merchant service company. The rep is going to play a vital role. Choose someone who can be trusted and do not hype up the actual picture. You may ask your friend for their feedback and referrals. But just don’t go by their opinions alone. Make your own calculation before taking the final leap.
Know the pricing models
There are basically three types of pricing models provided by merchant credit card processors which you must know:
Flat rate: It is more popular. Suitable for small business units with small volume of transaction. May cost more for per transaction.
Tiered: They have qualified, non-qualified and mid qualified levels. Based on the processing of the transaction, fees are charged on tiers.
Interchange: it’s a kind of wholesale cost wherein there is also a negotiated cost that is added up to it. This can be a very confusing model but is beneficial for middle to large scale business units.
Understand the fees involves
Getting to know in detail about the fees involved is the next major step. You must ask about all the vital parameters like
- Annual fees
- Monthly penalty if any, then negotiate on this
- Termination fees rate
- Service fees charged n monthly basis
- Application fee, set up fee, statement fee, batch fee, online reporting fee and so on
Customer service level
You may need their assistance at any time. Ensure that they have a dedicated system for attending to customer queries 24/7.
Update on software and equipment
You must be ready with the equipment and terminals for taking on credit card payment. It is also essential to keep your staff trained for the same. Enquire if the merchant services company offer any free training for the same. This will help in hassle free set up.
Compare and change
Once installed you must keep track of your charges and fees. If you feel that the current provider is charging you high then never hesitate to switch to another provider.
