Tips On Getting A Good Merchant Processing Company
There are a lot of options in the market for selecting a credit card processor and while having options is good for comparison purposes it can also be quite daunting and selecting a card processing company the person may want to focus on the factors that are vital to the company. A known fact is that the fees that processing companies charge can add up over time and if maybe a company processes a million dollars per year and the business gets a card processing company that charges them a base processing fee of 1.75% or less they will save the company $2,500 or much compared to working with a processor that charges 2%. It is good to note that the person also has to ensure that they comprehend the pricing variations for each of the three variables that are volume, credit card type and dollar values and other factors such as the monthly fees and the setup fees that vary depending on such variables.
Indipendent card processing companies often lower rates than other merchant services such as those offered by huge banks and even though it might seem like the bank is more convenient compared to payment processing companies but the bank fees are on average more than 100 basis points higher than merchant payment companies. The processing fees that processing companies offer normally depend on the size of the transactions and the amount of money that has been generated thus the business owner needs to select a merchant service provider based on the size of the business and the projected growth in the future. The business owner has to select a different payment processor if the business the business generates $50,000 annually with about five thousand transactions unlike a business that grosses about two million in annual sales with about a hundred thousand orders. The person needs to ask himself or herself if they intend on offering payment processing via online shopping cart, via phone, at the store or a combination of all the methods the rates can vary depending on the payment processing method used.
The other issue to consider is cash flow because credit card processing companies may hold the money for a certain duration of time from the time it is processed to when it arrives in the bank account and each processing company follows a certain system. It is good to note that there are some payment processing companies even manage the time so that they can gain interest income on the float unlike some online wallets that can provide immediate access to the funds because their process integrates the processor, gateway and merchant account into one step but the downside is that the rates charged by such companies are not as competitive as independent providers.