Credit Card Services

Understanding Your Contract to Get Favorable Credit Card Services

Credit card services have become incredibly vital to all types of businesses due to the increased use of online payments. Both large corporations and SMEs have a host of services providers they can utilize for their online payment processing solutions. Remember that the system you get for your company will influence customer experiences. Besides that, you must consider how much profit the merchant services will bring the company, hence the need to take caution when negotiating the contract. With all the varying rates in the market and seemingly endless fees, working out favorable terms for your credit card services can be challenging, to say the least.

Examine All Fees

The biggest hurdle that businesses have to deal with when it comes to finding an appropriate online payment processing solution is the overall cost. When working out the details of the agreement, ask about all the scheduled fees that the provider is charging. Get the getaway cost, equipment warranty fees, and PCI compliance charges to calculate the markup costs. Find out about the monthly minimum surcharges and annual fees. Of course, each provider has one-time fees as well such as the set-up charge, so include those also.

Termination Details

You should be aware of the termination terms of your credit card services. Ask about the specific date when the agreement with your service provider ends. In the case of cancellation, find out how much notice is necessary and how to notify the provider–will an email suffice or does it have to be a paper document? Merchant service providers have penalties for businesses that terminate their contracts before the expiry date, so ask about that as well.


When negotiating the contract, learn about the online payment processing equipment and what it costs. Is the provider offering refurbished or brand new credit card processing units? Your contract should also state if you are buying or leasing the machines and for how much. Business owners should ensure that they receive the latest devices, which are compatible with the different software used in payment processing.

Assess Value

Most entrepreneurs, especially first-timers, end up looking for the cheapest providers and end up with a lower value than expected. When working out the contract, use the numbers to calculate the real value of the merchant services. It may make sense to pay more for a service provider that offers every feature you need like a shopping cart and virtual gateway than pay less and then struggle to integrate these tools later on.

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