If you’re a business owner, you know that accepting credit cards is essential. It’s the best way to ensure you’re getting paid for your products or services. But did you know you can have more than one credit card processor? It’s a great way to get the best rates and save money on payment processing fees.
If you choose the right credit card processor, multiple processors might be an excellent option for your business.
Who’s Involved in Processing Card Payments?
Any credit or debit card transaction involves many parties working together to make payment possible.
First, there’s the cardholder, the individual who obtains the credit or debit card from an issuing bank and uses it to pay for goods or services.
Issuing banks are the banks, credit unions, and other financial institutions that issue debit and credit cards to cardholders through networks such as Visa, Mastercard, Discover, and American Express.
Next up is the merchant. That’s the business that accepts credit card payments in exchange for goods or services.
The merchant has an account with a merchant bank, which is the financial institution that establishes and maintains merchant accounts. These banks allow merchants to accept deposits from credit and debit card payments.
Finally, payment processors are companies that handle the actual processing of credit and debit card transactions. They connect merchants, merchant banks, card networks, and others to make card payments possible.
How Does the Authorization Process Work?
When a customer uses their credit or debit card to make a purchase, a lot is happening behind the scenes to ensure the transaction goes smoothly. Here’s a look at the credit and debit card authorization process:
First, the cardholder presents their card to the merchant at the point of sale (POS). Cardholders can do this by swiping, tapping, inserting, or another secure method, such as contactless, or entering their number for an online credit card payment.
Next, the merchant sends a request for payment authorization to their payment processor. This request includes parameters like CVV, AVS validation, and expiration date.
Then, the payment processor submits transactions to the appropriate card association, eventually reaching the issuing bank.
At this point, the issuing bank approves or declines the authorization request. If approved, the funds are transferred from the cardholder’s account to the merchant’s account, and the purchase is complete. If declined, the transaction is canceled, and no funds are exchanged.
What Exactly Does a Credit Card Processor Do?
A credit card processor is a type of financial institution that processes credit card payments on behalf of merchants. Credit card processors typically charge a merchant account fee and a per-transaction fee and may also charge additional fees for services such as chargebacks and fraud protection.
To process credit card payments, processors must obtain a merchant account from a bank or other financial institution. Once they have obtained a merchant account, they can begin processing payments for merchants.
In most cases, processors will work with an acquirer, a financial institution that helps facilitate credit card transactions. Acquirers typically charge a higher fee than processors but also provide essential services such as fraud protection and chargeback processing.
In addition to working with an acquirer, processors may also partner with a payment gateway. A payment gateway is a type of software that helps to facilitate the credit card transaction process by providing an interface between the merchant and the processor. Payment gateways typically charge a monthly fee and a per-transaction fee.
Can You Have More Than One Payment Processor?
Having more than one payment processor can be beneficial for businesses, especially those growing or expanding globally.
Using multiple payment gateways allows businesses to offer support for a variety of payment methods while also enabling customers to pay in their preferred currency. This makes businesses more flexible and scalable, two critical factors for success in today’s competitive marketplace.
In addition, using multiple payment processors can also help businesses save money on transaction fees and exchange rates.
However, there’s no one-size-fits-all answer to whether you can or should have more than one credit card processor for your business.
The key is finding the right provider that can best meet your needs — which might mean having more than one.
For example, if you’re a small business that primarily operates online, you’ll likely need a different type of processor than a large brick-and-mortar store. Or, if you process many high-value transactions, you’ll want a processor that can offer fraud protection and chargeback insurance.
Of course, there are also some drawbacks to having more than one credit card processor. It can be expensive to set up and maintain multiple accounts. It can also be challenging to keep track of all the different rates and fees. If you’re not careful, you could end up paying more in fees than you would with just one processor.
Ultimately, the best way to determine whether you need more than one credit card processor is to assess your business’s needs and compare them with what each processor can offer. This way, you can be confident you’re getting the best possible service for your business.
Can You Have Two Merchant Accounts?
The simple answer is yes — you can have two merchant accounts for good reasons.
For example, if you run a business that sells physical goods and digital products, you might want to have two separate merchant accounts for each type of product. This would allow you to process payments more efficiently and easily track your sales.
Another reason to have two merchant accounts is if you run a business in multiple countries. In this case, you would need a separate merchant account for each country to process credit card payments in different currencies.
How Can You Tell if Your Business Needs a New Credit Card Processor?
What happens when your current credit card processor is no longer meeting your needs? How can you tell if it’s time to switch to a new provider or add another option?
Here are a few signs that it might be time for a change:
You’re paying high fees.
Pricing is an important consideration. If you’re paying more than you should in processing fees, it’s time to shop around for a better deal.
You’re not getting good customer service.
When you have questions or problems, you should get prompt, professional help from your credit card processor. If you’re not, it’s time to look for a new provider.
You’re not getting the features you need.
As your business grows, your credit card processing needs will change. If your current processor can’t keep up with your evolving needs, it’s time to switch to one that can.
If you’re experiencing any of these problems with your current credit card processor, it might be time to look elsewhere. By switching to a new provider, you can save money, improve customer service, and get the features you need to grow your business.
What Are the Benefits of Using Multiple Credit Card Processors for Your Business?
Using multiple credit card processors can offer many advantages. Here are just a few benefits of using multiple credit card processors for your business:
You’ll have more options to choose from.
When you use multiple credit card processors, you’ll have a wider range of options. This means you can find the right processor for your specific business needs.
You can get better rates.
Using multiple credit card processors can also help you get better rates. By shopping around and comparing rates, you can ensure you get the best deal possible.
You can reduce your risk of fraud.
If you only use one credit card processor, you’re putting all your eggs in one basket. But if you use multiple processors, you can spread your risk and reduce the chances of fraud.
You can improve your customer service.
When you use multiple credit card processors, you can offer your customers more options. This flexibility can lead to improved customer satisfaction and repeat business.
You can save time and money.
Using multiple credit card processors can save you both time and money in the long run. With just one processor, you might have to deal with downtime or customer service issues. But with multiple processors, you can avoid these problems and keep your business running smoothly.
How Can You Find the Best Credit Card Processor for Your Business Needs?
If you own a business, one of your most important tasks is to find a good credit card processor. There are a lot of different processors out there, each with its advantages and disadvantages. So how can you figure out which one is the best for your business needs?
One way to narrow down your choices is to consider your business type. If you have a brick-and-mortar store, you’ll need a processor that can handle in-person transactions. On the other hand, if you have an online business, you’ll need a processor compatible with your eCommerce platform. Once you’ve identified some processors that might work for your business, it’s time to compare them.
Here are some things to consider when comparing processors:
- customer service
Evaluating fees is essential — you don’t want to pay more than you have to. But it’s also important to ensure the processor offers the features you need. Equally vital is customer service, not just to answer questions but also in the event of problems with your account. And finally, read reviews for companies you’re interested in.
By considering all these factors, you can find the best credit card processor or processor for your business needs.
How Can You Make Sure Your Business is Getting the Best Rates From Its Credit Card Processors?
When running a business, it’s essential to keep an eye on your bottom line.
Credit card processors typically charge a percentage of each sale, plus a flat fee per transaction. The percentages can range from 1.5% to 3%, and the flat fees are usually around 20 or 30 cents per transaction. In addition, there may be extra fees for chargebacks, monthly statements, and other services. When shopping for a processor, it’s crucial to get a breakdown of all fees, so you can compare apples to apples.
First, shop around and compare rates from different processors. This will help you get an idea of the going rate and how much you can expect to pay. Second, ask for discounts. Many processors offer discounts for businesses with a high sales volume. Finally, negotiate. Don’t be afraid to haggle with your processor to get the best rate possible.
By following these tips, you can be sure your business gets the best possible deal on credit card processing.
Are There Other Things to Consider When Choosing a Credit Card Processor for Your Business?
In addition to the factors mentioned above, there are a few other things you should keep in mind when choosing a credit card processor for your business.
First, make sure the processor you choose is PCI compliant. This means they meet the security standards the major credit card companies set. Second, consider whether you need a mobile processing solution. If you do a lot of business on the go, you’ll need a processor to accommodate that. Finally, consider whether you need advanced features like recurring billing or invoicing.
By taking all these things into consideration, you can choose the best credit card processor for your business needs.
How Zenti Helps High-Risk Businesses
Finding a credit card processor that works with high-risk businesses is hard.
Most processors won’t work with high-risk businesses because the risk is too high. They don’t want to deal with the hassle of chargebacks and fraud.
Zenti is different. We specialize in providing high-risk merchant accounts for businesses in various high-risk industries. We understand your challenges and are here to help you overcome them. We’ll help you get approved and then work with you to keep your account open and reduce your chargeback ratio.
Contact us today to learn more about how Zenti can help your high-risk business.