Steps
- Figure out what type of solution your business requires. There are really only five basic types of solutions:
- The Phone Solution - most small to medium sized merchants use a dedicated phone line just for their terminal. Occasionally, with a preferred processor like Encore Payment Systems, you can find the latest terminals capable of dual processing either on broadband, or via telephone, without ever blocking the line, saving you money on multiple lines.
- The PC Desktop Solution is a software program that can be installed on most PC computers and will connect behind a credit card processors firewall to so you can type in a sale to processed. This solution is also commonly used for call centers. It is also a solution that is used for businesses that require recurring billing.
- The E-commerce solution is for online payments through a business's website and also involves having certified gateways and shopping carts. There are also two types of E-commerce credit card processors. Third-party processors like PayPal, Google Checkout, 2CheckOut, etc., and then 'true' merchant account processors like NOVA, First Data, Moneris, etc. Both have their 'pros' and 'cons'.
- The Retail Point of Sale Terminal solution is one of the most common solutions that most people are familiar with, just by being a consumer. They are terminals that can have debit and/or credit cards swiped across them for instantaneous approval. These terminals can connect via phone lines, DSL internet, and on the the cellular networks - making some terminals completely mobile.
- Custom Built Point of Sale Terminals or Kiosks solution is one of the most expensive options available to businesses. If you have a enough money to invest you can have a specialize POS or Kiosk designed for your business to accept credit card payments.
- Contact a payment processing company accredited by the BBB. A Preferred Processor such as Encore Payment Systems can get 98% of merchant applications approved for lower rates. Some businesses usually get their credit card processing services through a Bank, who then outsources the processing and adds their own fees.
Tips
- When shopping for credit card processing you quickly realize that rates and fees can vary greatly from company to company and it is always a good idea to get a half a dozen quotes before choosing a provider.
- Remember even though you are looking for competitive rates it is always best to make sure the credit card processor you intend to choose can support your business needs. It is wise to test out their customer and technical support lines. Call them several times at various times of the day through the week. See how long you wait on hold before someone answers your call, see if you are forwarded to an answering machine. It doesn't matter if your services are the least expensive around if your solution goes down and you have a line-up of customers wanting to pay and you cannot get ahold of technical support to assist you.
- You can never be too careful before committing to an agreement with a credit card processor, particularly as most agreements are for at least 3 years and come with some heavy early termination fees, so don't forget to ask for references and to see testimonials.
Warnings
- Do not just look at the discount rates and transaction fees, look at the overall agreement. Some credit card processors like to have low rates and pad the back end administration with tons of hidden fees that usually more than make up for lower then normal discount rates. If it seems too good to be true then it is probably too good to be true.
- Be sure to know when your agreement is up and mark it in your calendar, because most agreements auto renew for another 3 years if you do not write your credit card processor with 30-60 days notice that you will be canceling.
Sources and Citations
- http://www.Canadian-Merchant-Account-Services.com - Source of some initial information in article.
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