When it comes to finding the right company it is very important you make the right choice. There are literally thousands of companies that offer credit card processing but which one is right for you and how do you know?
When you are considering a company make sure you do your research. Google is your best friend! Make sure you look at as many sources as you can. If you have the name of the sales rep then Google their name. A lot of times you can find out what to expect from just reading up on them.
Beware of false truths!
So many times people get caught up in deals that seem too good to be true and find out later that they are not. Have you ever seen the ads or gotten the calls saying that a company only charges 1% or .25%? What does that mean? How can they be so cheap?! Well, they can’t be.
The fact of the matter is every processing company no matter how big or small pays the exact same rates to Visa, MasterCard and Discover. If they are telling you they only charge 1% then what they are really saying is that they are only going to charge you 1% above Interchange. For nearly every business out there this will raise your current bill substantially. Let alone they will have other fees that will furthermore raise it, and a contract to lock you in. DO NOT fall for this. It cannot be done!
What to ask?When you are looking into a new company, don’t let them tell you what you want to hear. You need to interview a company like you would a new employee. You wouldn’t just hire someone to handle a large portion of your funds without at least asking a few questions, right? So what should you know?
What are my rates?A company should be able to answer this definitively. If they start bobbling around saying, “It depends on what cards you take,” then they are not being up front with you. You should get an answer like, “You will pay the Interchange rate and .25%.”
Is there a contract?This is easy enough. Yes or no and how long is it? Another important addition to this is you should know just because you are in a contract with a company does not mean that your rates and fees are locked in for that time. The only thing that’s locked in is you.
Can I get all the rates and fees before I sign?You should be able to inspect a full application before you sign anything. That will tell you all of the rates and fees. Look for things like: PCI Compliance Fee, Regulatory Fee, Customer Service Fee, Statement Fee, Batch Fee. Much of the time people do not ask about those fees and they add up quickly. You can generally find all of the fees a processor has in one section or page of their application. If you ever have questions about anything we are here to help. If you just need an honest answer or if you need an explanation Contact Us.
Do your researchGoogle it! There is a ton to know about the industry and how you can manipulate it to benefit your business or cost you less. If you take the time to learn just a few things then you will have the upper hand in negotiating versus the salesperson you are talking to. I will outline a few here.
Interchange RatesYou probably have heard of this term and may even be familiar with it. Simply put, Interchange is the actual cost of the given card you are taking. There are three levels of interchange in a retail business. Swiped, the cheapest. Keyed with AVS (address verification service), second highest. Standard or EIRF, the highest rate you can pay. Interchange is also becoming a very popular way to set up an account. It is by far the cheapest way too. You should have a basic understanding of Interchange.
I like the explanation here
You can always learn the whole thing since Visa and MasterCard are public companies by visiting,