Especially in a day and age when the economy is still struggling to get a firm grip, companies that are wavering on or turning their backs to small business credit card processing are missing the boat.
As a small business owner, you know myriad of challenges you must deal with when it comes to competing with large competitors. By having the right credit card processing system in place, your business can effectively compete and even win in some instances.
So, where do you start as a small business in securing the right credit card processing deal?
Options Abound for Merchant Services
The first step is locating a service that treats its merchants well, including providing stellar customer service and not tacking on a ton of fees.
Businesses would be advised to turn to sites like the Better Business Bureau and other such groups that have a handle on which businesses are best to deal with. Among the businesses you make look to for credit card processing include banks, independent sales organizations, third party processors and trade associations.
Once you have some companies with which to compare (consult as many financial institutions as possible, minimum three), be sure to sort out the different fees that they may possibly charge you. If you feel you may be hit with too many fees, do your best to negotiate them out of any contract. One reason for being charged high fees is if your history includes having credit issues, i.e. being in credit card debt.
After reviewing the companies and deciding on one, then comes the time to sign the contract.
Before signing a contract, make sure you read the fine print, including what happens if you decide to terminate the deal before it is up. In the event that should happen, will you be hit with any early termination fees?
The type of merchant account your small business will require depends on a number of factors, most importantly, how you conduct sales and process credit card payments.
A retail merchant account is slated for companies that physically swipe an individualâs card via a credit card terminal. In the event you need to process credit card payments electronically, you could find yourself facing additional fees, not to mention penalties and surcharges.
Meantime, both mail and telephone order merchant accounts are geared towards business without a physical card present. In this case, the credit card details are provided to a terminal with a keypad and then processed using software available on a personal computer.
In the event you travel at times with your business, making sales at your customerâs locale or other venues, you should look into a wireless merchant account. In this scenario, you will utilize a wireless credit card terminal that allows you to process the credit card transactions wherever you may be.
Lastly, you want to work with a vendor that deals with transactions from the major credit card providers, among which would be MasterCard, Visa, Discover and American Express to name a few.
Finding the right merchant credit card company doesnât have to be like pulling teeth. If you do your research and listen to and read carefully the terms of agreement, you need to give yourself a lot of credit.
Photo credit: blog.chargesmart.com
Dave Thomas, who writes on topics such as business equipment leasing, writes extensively for online resource destination Business.com.