Finding the right credit card processor for your online business isn’t something you can take lightly. For most online businesses, having a strong relationship with your credit card processor is important to keeping your business well run, and your finances well managed. This is especially true when it comes to managing your e-commerce transactions, as they are harder to monitor in any sort of real-time method. Processing fees are usually calculated and charged on a monthly basis. This makes it important for the business owner to work with a merchant processor that they can rely on to be upfront about things like interchange rates and contract duration. If you’re in the process of selecting a credit card processor to help manage your e-commerce transactions, make sure you avoid making some of the following mistakes.
Hidden Fees and Misleading Sales Tactics
One of the major points of concern for any business owner is the actual cost of doing business. The key to running a successful business is making sure you are aware of what your expenses are and where that money is going. When it comes to working with a credit card processor, this means understanding how much they are charging for you for credit card interchange fees. While most merchant processing services out there are upfront about how much fees will cost you, and where you can expect to see fluctuations in exchange rates, there are some services that will try and take advantage of you by advertising a low rate and actually charging a higher rate. A good indication of whether or not a merchant processor is attempting to mislead you is if they avoid going into details about their advertised interchange rate. For example, if they claim to only charge 1.5% on all credit card transactions, and are unable (or unwilling) to provide details on different rates for different cards, you can assume this rate is too good to be true, and move on to another possible candidate.
Carefully Read Terms & Conditions
The contact you end up signing when you finally make your merchant processor selection will be binding, so be sure to examine it carefully before you make any agreement. This may seem like pretty standard advice, but it is vital when it comes to avoiding any unwelcome surprises in the future. These contracts are not designed to be misleading, but due to the large amount of legal terms an language, they may not always be as straightforward as you may think. Be sure to keep an eye out for any clauses or terms that give you concern as you examine the contract. Any credit card processor worth hiring will be willing to address any questions you may have before the agreement is finalized, so don’t hesitate to bring any concerns forward before you sign the contract.
Be Aware of Contract Commitments
Any contract you sign will contain all the information about what services and commitments you’ll receive from the credit card processor. In addition to this however, you should be aware of any commitments you will be making when you sign. In addition to standard monthly fees, you may be required to agree to things like volume commitments. This is not an uncommon agreement, but it varies depending on the size of a company and the amount of business they do. For example, a merchant processor may offer you a lower rate based on the high number of your average monthly transactions. You may not always qualify for that rate however if you are unable to commit to that volume of transactions each month, which means you fees may go up.
There are plenty of details to be aware of and mistakes to avoid when it comes to choosing a credit card processor to handle your e-commerce transactions. With a company like Millennium Bankcard, you can rest assured that our knowledgeable staff will be able to provide you with answers to any questions you may have. To find out more about our credit card processing services, or our other quality merchant processing services, be sure to contact us today!