Everyone goes into business to make money, so why spend more
of your profits on expensive transaction fees, Website maintenance,
service agreements and high credit card processing rates?
When you take time to shop for the best deals, you can save
quite a bit of money that can be used to good purpose in other
parts of your business. Start shopping for the best credit
card processing rates and open a merchant account.
You will first need to find a reputable bank or credit union
that will agree to extend a merchant account to you for this
purpose. To get approved, you will need a solid credit history,
a reasonable business plan, and documentation to show that
you are able to manage the costs associated with credit card
processing rates. Typically, these include an installation
fee for credit card processing equipment, a monthly gateway
fee for your financial host, a transaction fee of a few cents
per each or an overall percentage total each month. You also
may be offered Website service that will entail a hosting
fee, a service contract cost, and a designer’s or updating
service fee. Be sure to carefully read the terms of any contract
that you receive. Never sign something that you don’t understand
or with which you cannot completely agree. Your company may
have to pay for a monthly minimum up to a certain number of
transactions, after which the balance for that month do not
require additional fees.
Credit card processing rates can vary by company or by processor
program. Some companies charge no installation fee, while
others require a one-time cost of a few hundred dollars, depending
on the program’s complexity. You may have to pay between
15 and 25 cents per transaction, or you could opt to pay a
monthly percentage for the entire amount of business generated
by your credit card processing unit; this amount often falls
below 2%.
It is always a good idea to compare rates among competing
financial institutions. If you really like the services offered
by one merchant account company but prefer the lower rates
of a second company, tell the first one about the competitor’s
lower rates, and perhaps the first company will meet or beat
the lower cost in order to get your business. At first, you
may want to keep the customer’s interests in mind when
shopping for credit card processing rates. In other words,
passing on the savings of a particular program to your customers
will keep them coming back to do business with you. If your
rates are too high or not competitive enough, they may decide
to take their business elsewhere.
As you plan to set up your new credit card processing service
rates, it may help to let them know in advance that this program
is coming so they can prepare and perhaps even help to get
the word out to other potential customers. Then, after installing your new credit card processor, you should not
hear complaints that anyone was blindsided or treated unfairly.
If someone does complain, politely remind them of the earlier
notices.
When you are ready to start processing credit card payments,
don’t be tempted to go for the option with the most features
or the most sophisticated set-up. Opt for a system that will
best suit your company needs and your customers’ interests,
as well as offering the best credit card processing rates.
