Credit card processing services- a Dummy’s guide to choosing the right provider.

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Getting a good Credit Card Processing provider is essential for your business. But there are so many options available to choose from. It can get quite weary having to figure out what suits your needs the best.

Why A Good Credit Card Processing Service is Important?

A credit card processor is a link between your business and the banks. The issuers and credit card networks is built on the adequate payment processing. Irrespective of the business kind, there are few things that are needed to be kept in mind while inferring the best credit card service providers from many in the market.

Merchant services are essential because they stand as a guarantee of processing the card transactions at lowest possible rates. Credit companies make money themselves out of the service they provide you. The process happens through a payment gateway which is an application service provider for e-commerce transactions that permits a secure interaction between the merchant account provider and payment processor. Through the payment gateway, the merchant account provider can send the order payment information to the payment processor, and then allows the payment processor to send the information to the issuing bank for denial or approval.

Here are some factors essential to determining the best credit card service provider-

Chargeable fee– During any transaction initiated or made, there is a fee that is chargeable on the amount of the cost. Where for big business, such fees do not matter a lot but for small enterprises, the cost added up due to such credit card processing fee cannot be overlooked.

Different providers charge a different fee. Some charge monthly-fee and some of the providers charge a flat-per transaction fee. American express charges the excruciating fee more expensive than others, the transaction fee ranges from 2.5 percent to 3.5 percent. Followed by Mastercard’s fee that goes from 1.5 percent to 2.6 percent. Visa has the lowest of all which ranges from 1.43 to 2.4

Security tools
– Businesses need to be very aware of fraudulence and security loopholes. EMV chip card acceptance are based for fraud free processing. EMV chips are an embedded smart chip that makes forgery very difficult when compared with the cards with magnetic stripes. Besides this, you should also check if processor supports SSL certificates.

Even after fraudulence has occurred, the resolution services of every card provider must be scrutinized to ensure the best seller protection.

Payment methods– Contactless payments have replaced traditional cards like debit and credit cards in most of the US. The benefit with contactless payment is that it uses the same cryptographic functions as EMV chip card transactions along with the use of biometrics that authenticates cardholder’s identity. Contactless cards are Samsung pay and Apple pay. Although they are efficient are safer, they use the same fee as other physical cards. Using these digital cards can unload the burden and pressure of carrying the physical cards along every time.

A couple of add ons that every credit card service provider should have

Customer support– It is evident that no service is considered extraordinary unless it comes with good customer support system. It is advisable to choose a card processor that offers customer support 24 hours a day and 7 days a week. Many businesses are not fully aware of payments and their processing, so the customer support with account representative on the line solves the problem of deferring any processing.

Look out for red flags – there are hidden charges called the nonqualified rates. Nonqualified rates are fees charged for certain types of transactions, such as credit card payments a customer makes over the phone. These charges can range anywhere from 5% to 8% and can apply to a wide range of transactions. You can ask the credit card processor for a monthly statement to see what charge is applied against which item. By asking the right questions, you can get yourself fair idea of the clarity of their service.

Choosing the right credit card service provider can be very challenging thing to do. To make sure you have made the right decision, do the research as extensively as possible. Review every service provider and make the best choice. After all, with your business, your customers and merchants are also connected.

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