When starting a business, any business owner will say that accepting credit cards is crucial because without them, growth and success will be limited. Since most major credit card companies don’t deal directly with businesses, they will outsource their credit card processing to processors, leaving a business owner no choice but to deal with them.
To prepare for this competitive marketplace, here are six questions to ask a credit card processing company before signing up with one —
1. Is there a cancellation fee?
Most processing companies will make a business sign a contract before doing business with them. If the business cancels the contract before it expires, a cancellation fee may apply. Business owners are advised to look for companies who either don’t charge a cancellation fee or limit their fees to less than $300.
2. Is it compatible?
Some process will have their own software that may not be compatible with certain online setups. Online business owners who are looking for a processor should always make sure that their software works with their online shopping cart.
3. What are the fees?
Aside from the fees charged with each transaction, it’s important to know what other fees may be involved. Some merchant accounts may charge monthly, annual, compliance, data security, chargeback or statement fees. Before signing any contract, it’s important to know all the fees associated with the account.
4. What kind of customer support?
If anything malfunctions, the business won’t be able to accept credit cards, leading to a loss in sales. If this were to happen, it’s important to know how they can be contacted. Are they opened 24/7? What kind of contact methods do they have? A processor that has 24/7 support with multiple contact options can usually resolve a problem pretty fast.
5. What kind of equipment is necessary?
In order to accept credit cards in person, a credit card machine will be necessary to process orders. Depending on the company, some may lease the machines, while others may require the business to buy it. If possible, try to buy the machine because this route is a lot cheaper than leasing.
6. What about processing?
Ask about how long it’s going to take the money to show up in a bank account. On average, merchant accounts should have the funds deposited within three days. If the company states that it’s going to take longer than that, then it may be ideal to seek another company.