10 things to consider when choosing a Credit Card Processor:
Here is Part 3 of our series, 10 things to consider when choosing a Credit Card Processor. In case you missed it, you can here Part 1 here and Part 2 here.
7. Fixed Pricing Doesn’t Mean Lowest Price – There are a many merchant service providers that have now jumped on the Fixed Rate, No Fee bandwagon. While this fee structure may be beneficial for some businesses, it is not for all. Companies offering this type of deal bank on the fact that the ease of set-up and simplistic pricing will attract all business types. For some merchants this pricing will translate to a fair deal, but to many others it is excessive and well above the market rate allowing the provider to generate substantial profit. Just because there are no monthly fees and flat fee pricing doesn’t mean it costs less overall. Making an quick decision for Fixed Pricing without considering other options could cost merchants a fortune in the long run.
“Just because there are no monthly fees and flat fee pricing doesn’t mean it costs less overall.”
8. Equipment Leasing – Equipment leasing is a convenient way to help merchants fund a large purchase for their organization. This may be necessary for large expenditures and upgrades like moving away from a standard Credit Card Machine to a Multi Station Fully Integrated POS System set up. It is not, however, a smart decision for the set-up of a simple Merchant Account / Credit Card Machine combo. Even the most advanced units carry a cost of less than $750, with the average being a few hundred. The problem is all too many merchant service providers will not even offer the purchase option. The cost of the machine will simply be added to the rate quote within the merchant agreement as a recurring monthly fee, but most of the time this is a long term, automatically renewable, non-cancelable, non-transferable lease agreement binding the merchant to pay an amount for the machine which is exponentially higher than the actual cost. Credit Card Processing companies want your business. Merchants need to ask about Free Terminal Placement and Discounted Terminal Pricing offers before committing to any deal. Unfortunately, merchants must use caution when considering free equipment as many providers merchant give the appearance of free, while the terms and conditions which are binding claim otherwise. As we mentioned above, read the entire merchant agreement and the terms and conditions.
“Merchants must use caution when considering free equipment agreements ”
9. Ask Questions – Merchants should ensure they are truly informed and not be afraid to ask questions. Go over the entire merchant agreement and the terms. It the terms and conditions were conveniently not included with the merchant agreement, then find another provider. If the provider seems to be frustrated or unwilling to address questions, it is time for the merchant to move on. Furthermore, if certain undisclosed fees suddenly appear during the questioning process which the provider neglected to mention, sound the alarm. Its time to move on. Asking for clarity on terms that don’t make sense and understanding every single rate and fee that applies to a Merchant Account will not only help the merchant feel better about the decision, but will ensure costly mistakes are avoided.
10. Not All Processors Are The Same – Choosing the right Credit Card Processing Company can be a complicated decision. Merchants should take heed to all of the advice above to ensure a solid choice. Merchants should also find a company that has longevity in the industry and has certifications on multiple processing networks. This provider should offer a full range of in house Merchant Services and Value Added Services, combined with a variety of secure online tools for accessing and monitoring merchant account activity. Choose a Processor that has the best interest of the merchant in mind, strives to provide Superior Service and Support, before during and after the sale, seeks long term business relationships, and values the referrals and accolades that come with that. There are some great companies out there.
At 1st National Payment Solutions, we pride ourselves on helping our customers navigate the complicated world of processing and doing so with honesty, integrity, and character. If you would like to see why thousands of businesses have chosen 1NPS for their processing, please reach out to us at sales@1nps.com or call us at 1-866-964-1622 for a no cost, no obligation statement review!