Q+A: Choosing a Payment Processing Processor (Part 2)
Choosing that right payment processor can take a little time, but it will be worth it in the end. Previously in our other blog we mentioned five question and answers that we believe can help you make the right purchase, but we just thought we would provide you with 5 more to really help narrow down your choices. Everyone wants customer service, no extra fees, online capabilities and much more, but many people forget to check out specific features, which is why we want to help you remember to ask those important questions.
What are the fees correlated when someone swipes a credit card as oppose to it being done manually or online? There is usually a smaller rate associated with a card that you swipe or physically hold in your hard due to lower fraud that occurs with this type of processing. Since, fraud causes the rate to fluctuate, make sure you are aware of these variations when choosing the processor.
What happens when refunding a transaction? It is important to know the refunding process with your provider. Some packages include a customer returning an item and you losing money each time they return a purchase. Many companies do appoint store credit instead of a refund. Make sure to check out these matters, so your business doesn’t fall short.
How long is the contract term? Many credit card processors establish a contract, usually for one or two years. Cancellation and early termination fees are included in this contract, so that it is difficult to switch payment processors if you choose. With this in mind, just make sure you are careful when accepting, making sure your business will not want to switch in the future..
Is there a minimum fee for each month? This is significant to know, especially for small businesses because you will be charged a certain amount each month if your business activity is below a specific amount. If you are just kickstarting your business, this could be a hassle for your company.
Is there a limiting process? Processors usually put a restriction on the amount you can process. This can be of dissatisfaction for many companies, due to the fact that if your business is thriving and growing fast, it will slow everything down.