If your business is small to mid-sized, accepting credit cards is vital to your success. Credit card services serve as intermediaries between a business and a customer’s credit card company. Besides accepting the cards and keeping a good record of your inventory, there are a many ways to run your business effectively and one of them involves selecting the processing solution of the credit card you should use.
Do not assume that all service providers are the same and that their fee structure is similar. While they will all process your card and deposit your money, you must be aware of key details that could save you large amounts of money every year.
Be sure your Merchant Statement is clear
Different payment processing services will vary in terms of charges, so ensure you completely understand how you will be charged. It is important to know both the fees of the bank and that of the service provider to know if the charge to be applied will be based on a flat rate or on the interchange rates of the bank plus an additional fee. Getting yourself in the right plan can eventually save you money, so ensure no hidden fees are existing in the statement.
How fast will you Access your Funds?
Be sure you link up with a merchant services provider that will allow you to access your funds within 24 hours, depending on your storefront location. Credible credit card services should not hold your funds beyond 24 hours, especially when you need your money quickly.
Understand Available types of Fees
Fees are different and are organized in groups, meaning you should first understand them before getting your account. Your discount rate could be different from every transaction made, which is based on the type of the transaction. You agree to such rates when signing up with your merchant services as the rates can be seen in the legend area of the statement, and if you don’t understand the rates clearly, contact your processor.
Leverage Programs that save more
Discuss with your service provider about the level 2 and 3 processing programs that are designed by the issuers to help businesses process their credit cards at lower rates. It is vital to be sure your processor is willing to offer these beneficial programs if you qualify.
Credit Card Processing: What Very Small Business Need to Know. Business News Daily.
The Importance of Credit Card Processing for Small Businesses. National Funding.