Customers have come to expect the ease and flexibility of paying with a credit card, and accepting them can help increase sales. But when it comes to credit card processing, if you don’t look for the best fit (and the best deal) for your business, you could be losing money on fees.
If you’re shopping around for a merchant processor, it’s important to ask the right questions. Ellen Cunningham, Marketing Manager at CardFellow, shared the following list to help you evaluate merchant processors:
- Do you use tiered pricing/what are your qualified rates? Tiered pricing models are often expensive and nontransparent, while interchange plus pricing and flat rate pricing can potentially offer lower costs. References to “qualified” and “non-qualified” rates indicate tiered pricing.
- What are your fees beyond the rates? You want to find out up-front if there’s a monthly fee, annual fee, PCI compliance fee, statement fee, set-up fee, maintenance fee, etc.
- Is there a cancelation fee? If so, see if you can get it waived. There’s no reason to agree to a cancelation fee.
- Do you refund interchange to me if I give a customer a refund? One smaller way businesses lose money is when they give a customer a refund, and don’t get a portion of their processing fee back from the original transaction.
Article by Ivy Lamb, Manta Webinar Editor
Comment below what merchant processor selection tips do you know or maybe you have a preferred merchant processor that you have been working and would like to recommend.