Credit Card Processing Services: Learn From Mistakes Of Others
Majority of merchants fail to get bank’s approval for their merchant account application. Due to bad credit history or excessive chargeback rates banks look at them as high risk businesses. Ultimately the businesses head to the third party payment processing services. A reputed merchant service provider is all what is needed to avail fast and secure payment processing system in place.
Ask merchants and most of them will complain about the cost and complexity of the card processing services. In this post, some mistakes related to payment processing services have been listed. It is important to read them thoroughly for every business owner who accepts card payments. For these mistakes are too expensive and important to avoid. It is smart to learn from others’ mistakes.
Expensive Mistakes Every Merchant Seeking Payment Processing Services Should Avoid
Accepting Fees And Rates Without Thorough Understanding
It is completely agreeable that the fee structures and slabs are difficult to comprehend by an outsider. What merchants need to understand is they have complete rights to raise questions until they don’t understand how the pricing will work. Also, merchants should try their best to negotiate the initial quotations.
Talk with merchants about the benefits of third party payment processing and they share their views about not being charged for software, gateway, or monthly fees. But the truth of the matter is entirely different. These are only assumptions of merchants. The reality is poles apart from the assumption as third party credit card processing companies are known to charge higher rates per transaction in lieu of the risk they take by allowing you to use their merchant account.
Hence, you need to be very careful while reading the agreement. Or else you can hire someone who is competent and unbiased on your behalf to analyze and assess various card processing options available.
Undermining The Business Volumes
Third party processing is preferred by small businesses as these services are devoid of big expenses like payment for set up, monthly fee and more. A business can easily get started with accepting card payments. It is true that most of the small businesses do not expect large volumes but neither it is impossible nor it is an unwanted result. Therefore, one should always be discussing the minimum or maximum limits for volumes. It is important to ascertain the terms and rates will remain the same with fluctuations in volume. Don’t agree to any commitments before getting a clear idea of its impact on rates and fees. Ignoring the point can bring lengthy and heavy statements at the end of month.
Signing Contract Terms
Typically third party card processing does not come with cancellation penalties. But not all payment processors follow the same thing. Learn from the representative what penalty policies they follow. Signing an agreement for a length of time does not allow merchants to seek better merchant account services. Always remember, businesses need to revise the processing services as their business grows. It sometimes, demands changing the processing services. Stuck in a contract, businesses find it extremely challenging to switch the payment processing services.