With so many credit card processors on the market, choosing one can seem like a daunting task. Here are some tips to help you find your best option.
Get to know the ins and outs of the industry.
As I pointed out in my article Fees Demystified, it will help you immensely to understand how credit card processing works, what kinds of fees to expect, and learn how to identify sneaky practices. Read the fine print before you sign a contract. Ask questions if you don’t fully understand their wording. If the rep refuses to take the time to explain these questions, there are many other fish in the sea. Go to someone who will.
Don’t keep your eggs in one basket.
Although there are some reputable, large processors out there affiliated with banks, such as Wells Fargo, it is not a great idea to use the same bank for your merchant account as your business checking account. In the case that you process a bundle of fraudulent transactions, the bank will have the power to freeze all of your accounts. Bummer.
Negotiate a nice price, but pick someone with great customer service.
Since there are hundreds of processors to choose from, your main goal may be to obtain the lowest discount rate possible, but in some cases, this will be negotiating in bps points. (a bps = 1/100th of a percent). Kudos to you if you shave of one or two cents off each transaction, but what if they leave your business stranded when your equipment fails and you get to intimately know the voice on their voicemail system? You want to know you have someone to work with when shit hits the fan.
How do you know if their customer service is good? If they’ve been in business for a while, ask for references. Sometimes credit card processing sites have testimonials or a list of major clients. Contact these too.