How to Save on Payment Processing
Every time you charge the credit card of a customer, you have to pay to process that payment. Your payment processor (also known as a merchant services provider) is the company that facilitates getting the funds from the customer and depositing them into your account. When choosing a payment processor, there are three main factors to keep in mind: cost, technology, and features.
Read on to find out how to choose the best merchant services provider for your business.
Know the Cost of Taking Payments
With each credit card charge, there are a few fees you’ll pay. There are the credit card fees & assessments, charged by the card brands like Visa and MasterCard. Then, there are the processing fees. This is charged by the payment processor you have chosen to process payments. Many businesses choose to just process through their bank or whichever brand they know by name. However, this is not always the smartest business decision.
You vet every other vendor you choose, so why not the processor? When searching for payment processors, you want to know:
- How much is charged per transaction?
- What additional fees are charged (some examples include statement fees, PCI compliance fees, and batch fees)
- Is there a contract and how much does it cost to cancel it?
- Who can I talk to when I need help?
By not asking these vital questions, companies get trapped in expensive contracts with processors that offer subpar service. Many processors charge a percent markup for taking credit cards; you’ll pay anywhere from 2.6% to 4% per transactionto take a credit card. That means that on a $1000 sale, you’re paying $26-40. Those costs can really add up.
Find a processor where you can pay a low monthly subscriptionand get access to the lowest processing rates. Card processing fees vary from card to card; instead of just rounding up and charging a high percentage per transaction, consider a processor that charges the flat fee from the card provider.
Don’t Skimp on Technology
Payment processing has historically been an industry that’s behind on the times. While consumers have more options than ever when it comes to credit cards, businesses can feel like they’re stuck in the dark ages. You should be able to use the data from payments you take to extrapolate vital business information.
That’s why our partner processor Fattmerchantdeveloped Omni, the all-in-one integrated payments platform. Every time you take a payment, the details are automatically syncs directly into the Omni dashboard. Track inventory, payments, unpaid inventory, customers and more in one place. It’s easy to set up and simply integrates with hundreds of business technology providers.
Find a Processor that Fits Your Needs
Each company has different needs when it comes to a merchant services provider. Some just want to be able to swipe cards in-person; others need extensive invoicing capabilities. You need a processor that offers:
- In-person EMV terminals
- One-time and recurring online billing
- Online shopping cart and eCommerce payments
- Advanced business data and analytics
- Two-way sync with QuickBooks Online
- Next-day and same-day deposits
- ACH processing
- Text2Pay SMS payments
- & more!
Choosing a Credit Card Processor
Just like any other business tool, it’s important to do your research before investing in your merchant services provider. Contact Fattmerchant to get your free statement analysis to see how much you could save with their services while also getting access to industry-leading technology.
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