3 Important Considerations When Selecting a Credit Card Processing Service

Selecting a credit carding processing service can be a complicated task since many processors tout themselves as being the best in the market. Here are 3 important things to consider when shopping for a credit card service provider.

Cost

Cost is probably the most important factor when selecting a processing company. There are 2 main types of fees, Transactional Fees and Monthly Fees. In terms of monthly fees, pay attention to the monthly statement fee (around $10), monthly minimum fee(between $15-30), and if you are doing credit card processing over the internet the monthly payment gateway fee (between $10-$20).

Transactional fees include items such as the discount rate which is in the 2% range (the lower the better), the merchant account provider transaction fee (20 – 30 cents), and the address verification fee (5 cents).

Account Setup

Quality and speed of account setup is another important criterion to consider when picking a merchant account provider.  Average Approval Rating is an industry term that shows the approval percentage of merchants that apply for an account. It is prudent to looking for a credit card service provider with an approval rating greater than 95%.

Another important service related item is how long it takes for the service provider to setup your account. The better ones can do this in 2 days. Also, pay attention to how long it takes for the money to settle into your account. A good provider can do this in about 2 days, obviously the quicker you get your money the better.

Customer Service and Features

Having access to good customer support for your merchant account can save you a lot of hassle. Find out if customer service is available 24/7, whether they have phone, instant message and email based support.

If you are physically swiping credit cards you will want to make sure that the merchant account provider has access to a good selection of Point of Service (POS) machines.

Some due diligence in the areas of cost, setting up the account and customer service can result in finding the best credit card provider for your business.