Choosing a credit card payment processing partner may feel a little bit like taking a shot in the dark for many small business owners. After all, you’re an expert in the business you do, not in the financial aspects of accepting credit card payments. However, it is important that you avoid a few critical mistakes that could cost your business more than you care to consider, like those listed below.
1. Failing to Read the Contract
It isn’t always easy to understand the financial jargon and “legalese” used in standard business contracts. However, it is critical that you read through the contract and make sure you understand what it is you’re agreeing to before you sign any contract with a payment processor.
2. Not Understanding ALL the Fees and Costs
Some processors are quite sneaky about hidden fees and costs they add to the contract in hopes that you either won’t read it until after the fact or won’t fully understand until you’ve signed. Either way, it is in your best interest to seek clarification for any fees you don’t fully understand or that seem murky to you and find a processor with transparent pricing.
Many credit card payment processors use pricing tables that are deliberately confusing. Don’t let this intimidate you or prevent you from asking the questions you need answered to make a sound decision about whether this credit card processor is one you can trust and afford to partner with.
3. Agreeing to Volume Requirements
Some payment processors require you to make a minimum number or dollar amount of transactions each month to avoid penalties or impose maximum dollar amounts and transaction volume limits to avoid the same. If your business is like most, you know that sales volumes and dollar amounts can vary greatly from month to month.
Agreeing to minimums or caps can cut into your profits on months when it may hurt the most. Instead, look for payment processors that do not penalize your business for natural ebbs and flows.
4. Neglecting the Research Process
Failing to do your due diligence in seeking out a payment processing partner that wants to help your business succeed could cost your business big in the forms of:
- Fees
- Penalties
- Lengthy contractual obligations
- Costly equipment requirements
- Inadequate security
Take your time and explore your options. Also make a few apples to apples comparisons to see what’s available and to determine which services offer features and benefits you find most appealing.
5. Leasing Equipment and Paying Monthly Fees
Access to the latest payment processing equipment with up-to-date security features and functionality is what will set you apart from your competition. Paying for equipment, though, can really drive your fees through the roof. Look for processors that provide the equipment free of charge (and do not charge on the back end for the service either).
6. Failing to Use an Account Updater Service
Only work with payment processors that use account updater services that can be instrumental in helping you avoid declined transactions. Credit card companies reissue credit and debit cards for a variety of reasons. Updater services help to reduce the risks of you losing out on revenue because customers forget to update their card information to merchants. Updater services help to reduce this problem for merchants of all shapes and sizes.
There are plenty of mistakes you can make while choosing a payment processing partner for your business. Avoiding the six mistakes listed above can help your organization avoid some of the costlier mistakes that cut into your profitability.
Contact BankCard Services today to learn about the many benefits of working with an organization that prizes security, transparency, and clarity in the process of facilitating credit card transactions for your business. Learn more about our free equipment and month-to-month services without any long-term commitments.
