The following is by staff writer, Peter.
If you accept credit cards in your business or you are planning to do that in the future, one of the things that you will need to do is to choose a credit card processing company. There are many different companies that you can choose from, so how do you choose the right one? Before you can pick one, you need to know what to look out for.
Not Reading the Fine Print
According to Skybank Financial, a huge mistake that a lot of business owners make when it comes to credit card processors is that they don’t read the fine print in the contract. This can be quite costly. You want to do more than just glance at the contract. Check for the fees that they are charging up front, along with the hidden fees, penalties, and other things. Even though credit cards are made to make life easier, the industry is also huge and they’re out to make money. They want to make as much money as possible from everyone. If you’re not careful, you can be facing a lot more fees than you expect.
Bad Selection of Plans
Most of the companies that offer credit card processing via a POS system like Shopify also offer a lot of different plans that vary by services provided and price. A huge difficulty for many business owners is deciding which of the plans is going to be best for their business. For example, one business might choose a certain plan that assumes there will be a lot of transactions every month. But this is going to likely be better for a larger chain that is able to meet those obligations. Another example would be a business that is rapidly growing conservative in their estimates regarding the type of service they’ll need. Maybe they underestimate how many transactions they’re going to have. This can result in a plan that’s insufficient or the business having a lot of fees.
Ignoring the Termination Fees
According to Singular Payments, this is one of the most common mistakes people make. When you are looking for a card processing company for your business, it’s essential to look at all of the information before you choose one. One of the most common types of fees that businesses often will ignore is the termination fee. This is what a company will use to lock their clients into contracts. These fees are really high and many of the processors ask that their clients sign an agreement for more than one year. Even though these seem innocent, this kind of contract often will lead to the provider charging you a fee for early termination. They also often may charge a penalty for liquidated damages due to lost profits.
Falling for the Bait & Switch
If you are looking for something and you think that it seems almost too good, you may want to look elsewhere. A lot of merchant services will lure businesses into something with a great rate or some other delectable item and then change it after you’re hooked. When you’re considering a company to process your credit cards, you want to ask them if they’re offering guarantees about what you’re being sold. Look for guarantees that offer protection against baiting and switching so that you know what you are getting into and you don’t have to worry about unpleasant surprises.
Not Reading Reviews
One of the best ways that you can find out about a credit card processing company is to read the reviews online. Look at the things that other people have said about the company and what they say about their fees, services, customer service, and anything else you want to know about the company. This is going to help you make the right decision.
Not Comparing Companies
In order to find the right processing company, one of the best things that you can do is to look at the different companies that are available. You may find one that you really like, but if you stop looking, you may miss out on one that you would have liked better. So compare the different companies and see what they have to offer, and then choose the one that is going to be best for you.
A gentlemen wrote about his own search for a credit card processing company and the problems that he had dealing with all the fees, manipulations, and other less-than-stellar tactics used by card processing companies for the New York Times. If you are concerned about finding the right payment processor, then follow in the NYT writer’s footsteps and tread warily, pay attention, and take your time to think.
When you take the time to learn what you shouldn’t do and what you should do, you will have a better chance of finding the right company for processing your credit card transactions. Take time and look for the one that suits you best and you will be less likely to make mistakes. If you want a good POS system, go visit Shopify and see what sort of services they can provide.