How to Choose the Best Merchant Processing Company in 2021

September 27, 2021/ Posted in Credit Card Processing

Cash-free payments nowadays are essential for running a productive business. Around 73% of American consumers prefer cash-free purchases. If you are running biz or thinking about opening one, the first step will be to choose the best merchant processing company. We will help you narrow down your choices and pick the most suitable provider for your business.

Fewer and fewer people carry cash with them, as some statistics show. And according to some studies, merchants without a cash-free paying option will lose a majority of customers. For these reasons, merchant services and credit card processing will have to be on your list when opening a business. But you can not go with the first choice you run into. There are a lot of credit card processing companies, and some are more expensive than others. For this reason, you should make your choice based on detailed research. And if you wonder how to find the greatest merchant credit card processing company in 2021, stay with us and find out.

What Is a Merchant Processing Company – All You Need to Know

If you need cashless ways of paying for things in your store, you will have to learn all about merchant services providers because you will not be able to get credit card processing services without one of them. And choosing the right one for your firm among the thousands of companies will not be an easy task. Still, like with any service, there are pros and cons for you to weigh and pick the one that suits your needs the best possible way. For instance, pick a provider that can offer you more than cash-free paying – maybe some who can give you free financial advice and other services for the same price. But in essence, when choosing a provider, you can influence the price by picking the services with lower fees, but we will get to that later on. Here are some of the things your contract must have so it is cost-effective:

  • Credit card transaction service – It means that the provider will charge your customers who pay by credit and debit cards. Ensure to pick one that processes all types of cards (Visa, Master, and others.)
  • Mobile notary serviceMobile notary service is convenient for a firm that needs notary services often.
  • Products – From terminals to POS systems, find a provider that can give you all the products to choose from so you don’t have to search by yourself.

What Is a  Merchant Account

A merchant account is a bank account designed specifically for business purposes, enabling them to accept purchases via cards or online. Bear in mind that this is not a typical bank account. This account allows businesses to accept transactions with the aid of a payment gateway. To be more specific, when you set up a merchant account, you are signing an agreement between merchants, a bank, and a payment processor to allow transactions. In most cases, the retailer is the one who is paying to all entities involved in the process. And even if some companies offer lower fees, you should check them with the most care because many scammers out there can clear your account in no time. So, when applying for a merchant account, it is always better to go with excellent reviews and the best security procedures than with the lowest costs on the market.

And How to Open One

So, basically, this is an account where all the funds from customers will end up and later on be transferred to the firm’s account. But opening one is not an easy task. If you are starting a business, many companies will rate you as a high-risk firm and probably give you an account with a higher cost. So when looking for a provider, find those favorable towards small businesses and supportive of new enterprises, which is usually shown by a fair price. Go online, search for companies, and ask for quotes. This way, you can pick a reliable provider for an affordable price.

All About Merchants Fees and How to Choose Best One for You

As we mentioned above, there are different fees you as a business owner will have to pay. And the trick to finding the provider is to pick the one that offers the service you need at this point and the price you can pay without struggle. Here are some of the average credit card processing fees you will encounter:

  • Interchange or wholesale fees – These are usually the standard costs for everyone, and the bank charges them. They mostly depend on the type of the transaction, brand or type of the cards, and whether you have a high-risk account.
  • Assessment costs – Also called association costs, they cover the expenses by your plastic brands (Visa, MasterCard, and others.)
  • The payment processor markup – Here is where you can influence the price. You can choose between three types of packages that processors can sell you: tiered plans, interchange-plus, and flat-rate.
  • Merchant fee – The provider accepts payments on your behalf and stores them on your account. They usually charge a small markup fee.

But if you are looking to find the best provider for the most affordable price, the best solution is to find a transparent provider. Your company of choice should send you a monthly report on what they charged you and how much.


Read the small print when signing a contract

How to Find the Best Small Business Credit Card Processor

So you just opened biz and are trying to figure out small business tax deductions, what kind of credit card processor provider you will choose, and how to pay taxes. A lot of things will be on your mind. But when it comes to choosing the right provider, we got you covered. As we mentioned above, some costs you can not control or change, but some you can. That is why it is essential to choose a proper provider and sign a contract that will be most affordable – when starting out as an entrepreneur, every dollar matters.

For small businesses, the best account is the one that offers affordable monthly costs and flexibility in changing contracts. And with the right credit card processing services, your markup costs should be modest. Another important factor you should consider is when you will be able to use your funds. Some companies can hold your money for up to one week, which can be a long time if you don’t have anything on your account. Choose a provider that will transfer your funds the next day.

How to Avoid High Fees With Credit Card Processing

One of the ways to avoid high costs is to use credit card convenience fees. With this option, you are transferring the responsibility of paying the fees to your customers. You will have to notify customers that this fee will be added to their bill at the purchase end. Still, you will have to find a reliable credit card processing provider to give you the right guidance on how high these costs are supposed to be. They are usually from 2-3% of the total bill. Even if this can be tempting, you should only consider it if you are struggling with your profits because it can turn away many of your customers, and they would never come again. Check this video for more information.

Payment Process Explained

So we covered that the only costs you can influence or control at your account are payment or markup costs. Now we have to find out what the paying process is and why it is so important. Every time you swipe your visa or make an online purchase, some providers are actually doing this for you. In fact, this is technical support in the whole paying process. And what is good about this is that your provider can offer you different types of plans. One of the most common and easiest to understand is flat-rate pricing, where you will pay a fixed amount per transaction.

What About Online Payment?

If you expand your work online, one thing is for sure – you will be more profitable. If we learned anything from 2020, it is that online shopping and delivery service are necessities that will keep you in the game. So when looking for a provider, find the one that can provide you with the online payments options as well. Bear in mind that costs for online payments are higher because of security issues. But in the end, this will pay off. When thinking about starting an eCommerce business, having an online selling option is the logical first step.

Online selling is more and more popular

Pick a Company With Best Merchant Services Products Options

One of the things you will have to look at when searching for companies is their products. And you can start with some basic products, like terminals, and later on buy some other more complex products. Not all companies sell every product there is, but it would be advisable to go with one that has multiple choices. Here are some of the options you should look for:

  • Contactless paying,
  • Mobile payments,
  • Terminals,
  • eCommerce,
  • POS (Point of Sale) systems,
  • Gateways.
One of the factors to consider is multiple choices of equipment and ways to conduct a transaction

What to Pay Attention to When Talking to Your Credit Card Processing Company

Aside from the costs we talked about above, some companies may charge you additionally. Don’t be surprised if some of the following charges end up on your bill:

  • Setup fee,
  • Equipment fee,
  • Monthly fee,
  • Transaction fee,
  • Cards processor fee,
  • POS fee.
Pay attention to POS fee and other charges

Last but Not Least – Pick a Company With High-Security System

Having a secure transaction for you and your customers is crucial for all merchants, from data protection to avoiding online thefts. Having a high-security system when a person is swiping their Visa or MasterCard in your store is something that will keep you out of trouble. If your provider of choice doesn’t provide this kind of service, you should skip them and find the one that does. Your provider should be PCI compliant and should demand compliance from you and offer help in the process. Also, you can protect all the data by using a strong password and updating your system with antivirus.

As you can see, there are many things to consider when choosing the right provider, but if you go through all the information listed above thoroughly, you will end up with the greatest solution for you. Like there are different businesses, there are different companies that provide different services. Depending on your biz, you should choose the one with the best service and most affordable price for it.