How to Choose the Best Credit Card Processing for a Small Business in 2021

September 27, 2021/ Posted in Credit Card Processing

Put yourself in the shoes of your customers and imagine what they would feel when they realize there’s no possibility of credit and debit cards transactions. That’s why you need to accept various transaction methods and find the best credit card processing for a small business and give your customers the greatest service and embrace all the benefits of these kinds of payments.

No matter the size of your business, if you’re stuck with cash-only payment, you’ll be limited, and your customers will be, too. However, choosing the right credit cards processing company (CCPC) without proper guidelines can become a really hard task. You need to do many things to make your enterprise achieve satisfying results, from finding out what a merchant account is to learning how to set up one. That’s why we prepared an article that will help you pick the right processor with all the requested information understood.

What Is the Best Credit Card Processing for Small Business

Once you apply for a merchant account, the first thing you should do is to learn everything about average CCP expenses. But, before you get to this part, the most important thing you need to know is the perks for your enterprise to accept transactions in this way. So, when you decide that your company is ready for it, make sure you choose the processor that fits your needs.

There’s a lot at stake in this process, and when a smaller enterprise enters into any kind of transaction relationship, realizing how to pay taxes and how the merchant services rates work is only part of your journey. The first period can be really challenging, working on customer satisfaction and building a relationship with them. The other concern is about the credit card (CC) convenience fee. That’s why in the following text, we’ll talk about what merchants should consider when choosing the right CCPC.

Every serious enterprise, regardless of the volume of sale, should know what is CC processing

Learn Some Basics and Take Your Business to the Higher Level

CC processing is the factor that determines what types of plastic payments for goods and services businesses will be able to accept. Businesses have to be sure they are familiar with every little process and how everything works to satisfy all sides. So, when wanting to build a lasting and profitable relationship with a processor, it’s essential to understand the whole process:

  • The purchase – the process starts when a customer purchases online through an eCommerce site or in-store.
  • Transaction getaway – it securely connects and processes information from the customer’s bank to the merchant’s account through the transaction processor.
  • Transaction processor – checking the security of CC and facilitates the transfer of payments, moving money from the issuing bank to the merchant’s account.
  • Issuing bank – a financial institution that is linked with the customer’s CC.
  • Merchant account – to be able to accept CC, debit cards, and digital transactions, an enterprise must have a merchant’s account.

How Can Small Businesses Pick the Right Merchant Services and Credit Card Processing

There are many things merchants should consider and think about. And many just can’t get enough time for it. That’s when a mobile notary steps in with a helping hand. With professional help, you’ll be left with more free moments to explore all different pricing options for payment processing, depending on the type of your enterprise. Understandably, different types of businesses – low-volume and high-volume – will need different methods of transaction. Also, those merchants that want to start an eCommerce enterprise will have different priorities.

Here are some of the most important things to take into consideration when choosing the right CC processing for your company:

  • Fees – the essential thing is to check if the CCPC charges monthly fees; is there a minimum point a merchant has to hit so they’ll avoid extra charges, and how will it be billed?
  • Setting up the system – time is money, so knowing exactly what time it takes to integrate and install the system is very important.
  • Security – ensuring yourself and your customer’s private information is one of your top priorities. So, knowing which tools the company will use to keep transaction data safe is essential.
  • Payments – giving your customer a choice in paying will be one of the positive sides for your enterprise. That’s why merchants should ask about various payment methods.
  • Benefits – knowing what benefits the CCPC you’ll potentially choose can give you is crucial.
  • Support – last but not least, don’t forget to check the customer support CCPC provides.
Taking all aspects when deciding what's the perfect solution for your enterprise is essential

Ensure You Understand Costs and Fees

Finding the transaction processing solution that will fit your enterprise model is something you need to think about once you opt for accepting the plastic and eventually decide on the most suitable one. The reason is simple – if you can’t accept payments, you can’t make money.

Your worst enemies are the hidden costs and fees that some companies could charge you. That’s why you should ensure you make a professional relationship with a company that won’t make money at your expense while you’re losing it. Once you get to know all the pros and cons of this kind of transaction, it will be much easier to pick the company that will do it for your benefit and not vice versa.

Best Credit Card Processing Rates for Small Business and Pricing Transparency

Choosing the most affordable, reliable, and transparent CCPC that has the most convenient rates might sound like an impossible mission to accomplish. However, if you arm yourself with patience and time, not only will you find the company that suits your needs, but you’ll manage to bring your enterprise to a high professional level. So, if you decide on time what tools and capabilities you’re looking for in a CC processor, the whole process will be far less complicated.

So, as the owner of an enterprise, the main things you should consider are the rates and pricing transparency. It is essential because, according to the American Consumer Credit Counseling (ACCC) Inc., only around 14% of customers use cash to make purchases. And this is another reason why picking that one company that will offer you each service transparently and without any unexpected fee is essential. Even if you’re a startup enterprise, you’ll need a possibility for a CC transaction.

All Credit Card Processing Companies Have Interchange Fees

Every company, in general, has an interchange fee, which is between 0.5 and 3 percent per transaction. Surely, many factors will affect this percentage – the type of card, the volume of the transaction, and where the purchase was made (in-store or online.)

And, once you realize how CCP works, there are other factors and fees you should consider and make your enterprise have a maximum from this kind of transaction. The businesses should learn if there are additional charges, such as access to a transaction gateway fee. And, the most important thing is to check if there will be an extra charge if you decide to terminate the contract and pass it to another CCPC.

Interchange fees are something you can't avoid, but make sure you understand all other terms and conditions

Get to Know the Setup Process

No one wants to spend more time than needed on integrating and setting the system up. The whole process shouldn’t cause more problems than the research part. So, the preferred way would be to explore all little details and be sure everything will go smoothly by asking questions.

If you notice that companies are talking about long installation and a longer period until your company will be able to run on their system, you might want to reconsider hiring them. We don’t have to mention that every delay your enterprise faces won’t do any good for the work. That’s why it’s crucial to ensure the installation process goes smoothly and don’t lose money.

Security Concerns Every Merchant Should Heed

One of the essential things to think about when choosing the CCPC is security. Nowadays, when everything is online, everyone expects that their information remains confidential. You as a company should provide top service to your customers because once you build a trustworthy relationship with them, you’ll know exactly how good the feeling will be. So, getting and using all the tools to protect yourself and your customers from fraud is also the top priority.

The in-store and online transactions should have features of tokenization and encryption as a method of security. All merchants that want to give an outstanding service must be aware of processors that support SSL certificates and CVV2 verification for online paying. The final step in this whole process is to check if the processor is PCI compliant and be 100% sure that all information that goes through your system is secure, and you’ll avoid one of the mistakes enterprise owners make.

Avoiding mistakes will get your company the most significant results

How Will the Payment Work?

When owning a company, there are many things to consider – finding out what a POS fee is and what is the flat rate CCP. However, CCPC you hire should let you know about the transaction options for the customers. Are the CCs and also debit ones included? In addition, ensure the gift cards and prepaid will be available as transaction methods so that you can give your customers all kinds of choices when it comes to transactions.

Learn how will transaction work so that you can ensure the most outstanding service for your customers

Explore Other Benefits This Type of Payment Can Bring You

Knowing all the benefits you can have once you choose the CCPC is an essential thing you should do. If that your potential CCPC has partnerships with sponsor banks, it can bring you many opportunities and benefits that will help you grow your network. Every chance you can get to build your company on every level is something you shouldn’t miss.

The relationship that will do your company good is something you should take advantage of

When It Comes to Merchant Services, Be Sure That CCPC Has Reliable Customer Support

We already talked about how customer satisfaction is important, be it your clients or you as a merchant – a CCPC’s client. When it comes to choosing the right processor, ensure you check its customer’s support and are all terms clear. The more information you know, the better you’ll understand which possibilities you can offer to your customers and how much it will cost you.