7 Things to Know Before Working with a Credit Card Processing Company
A business needs to accept credit and debit cards to thrive and a merchant processing company is needed to process the transactions. Picking the right credit card processing company is not a very easy task and it requires deep analyzing.
There are several parties that jump into action when a customer uses the card. This includes the merchant, the cardholder, card association, acquiring a bank, issuing bank and the payment processor. Here is a quick breakdown of the process where each party plays a role
The customer uses the credit card to buy something
When the customer swipes the credit card through the processing terminal, the card gets easily recognized and the credit card company gets contacted.
The credit card is authorized. Now, the credit card uses a certified merchant service provider to send the payment to the merchant bank.
The merchant’s bank account is paid with the deposits from the merchant’s bank. By the month’s end, the merchant gets a statement including the detailed interchange of transactions.
There are some fees pertaining to credit card processing fees.
Interchange fees: Fee charged for every transaction you process and is paid by the payment processor to the card-issuing bank
Monthly statement fees: Expense to cover the mailing of your statement.
Application and set up fees: Fee for applying for the processing service
Monthly minimum fee: minimum amount in fees the processing company must collect in any one month
Monthly gateway access fee: Fee for providing a payment gateway
Early termination fee: Some processors charge this fee for early cancellation of the contract.
A P2P or point-to-point encryption is a security necessity. Since there are multiple points you need to make sure that you are encrypting data transmissions at every stage of a transaction. It protects data preventing it from being compromised.
How Long Will It Take To Set It Up
Setting up the processing technology must be easy for you and your customers. You will have to find out how long the payment processor will take to set up your account and install the equipment. If it seems like a complicated task you will need to make sure the processor can provide some support
What Are The Accepted Payment Types?
While you are running a retail business you might want to make sure the new payment processor accepts all major credit and debit cards so that you don’t have to make any customers turn away. We hence accept VISA, MasterCard and also AMEX.
PCI stands for Payment card industry is a set of standards is put in place to protect sensitive information of consumers and ensure proper security measures be taken at establishments that accept credit cards. If in case you are not availing PCI compliance you would otherwise be charged a PCI non-compliance fee. It is imperative to gain the trust of customers who would want to stay loyal and so business with you.
How Helpful Is Customer Support?
If you run into a technical problem with your credit card machine or if you have questions about your monthly billing statement you would want somebody to turn to. By working with us you hire a payment processor that provides you 24/7 customer support 365 days a year and direct help which can assist you in solving issues.