Cash is King! But sometimes waiting for cash can put a dent in your bank account and accepting credit cards can provide a solution. Although credit card payments can help turn around your accounts receivable, those same credit card payments come with associated fees and a decrease in your profit. So how do you choose the best credit card company?
There are numerous companies that offer credit card processing services. Get quotes from more than one vendor and check customer and technical support at numerous times prior to signing an agreement. If the company lacks a strong customer support before you become a client, chances are that will not improve once they have your business signed up. Other things to consider are how long it takes for deposits, e-commerce capabilities and/or mobile features.
The amount of credit card transactions that are processed throughout the month can help to determine which credit card processor may be the best fit for your account. Some agreements limit transactions and frequency. Have a thorough understanding of your business transaction volume before beginning your search.
Leasing processing equipment versus an outright purchase can save a business owner thousands in monthly equipment fees. So do your research when it comes to equipment purchasing.
The average contract in the U.S. is 3 to 5 years, but that doesn’t mean some great providers don’t offer month-to-month contracts. Along with this contract term, most providers also have an early cancellation fee, which is usually based on your monthly fee. If you have the standard 3-year contract and cancel after 12 months, you have to pay the remaining 24 months on your agreement.
You can avoid cancellation fees by looking for a credit card processor with month-to-month contracts and absolutely no cancellation fees.
Check out the overall agreement. Sometimes credit card processors will display low rates up front but have high or hidden back end administration fees that can add up to higher overall rates. Be sure and mark your calendar when agreements are up because many agreements have an auto renew for another 3 years without a written 30-60 day notice.
When comparing credit card processing companies – shop around understand the terms of the agreement, compare apples to apples and negotiate.