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How do I Choose the Best Credit Card Processing Service?

Article Details
  • Written By: N. Madison
  • Edited By: Jenn Walker
  • Last Modified Date: 11 August 2019
  • Copyright Protected:
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    Conjecture Corporation
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To process credit cards, you will usually need a merchant account or an account with a third-party payment processor. To choose the best provider, you will likely have to compare companies based on their fees, setup procedures, and application requirements. You may also do well to choose a provider based on the number of transactions you will need to make each month and your estimated monthly sales totals.

Rates are among the most important things to consider when you are trying to choose the best credit card processing. Each merchant account provider or third-party payment processing company will usually charge a different fee to process your payments. Some may charge a monthly fee in addition to per-transaction charges. Higher fees may represent a significant reduction in your profits. As such, it is typically important to choose a merchant account provider or payment processor that offers competitive rates.

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The steps you’ll have to take to set up credit card processing may also influence your decision making. In most cases, the best credit card processing solutions have straightforward application procedures that require you to provide personal and business information. Typically, you have to provide information about the account into which you want your payments deposited as well. Some companies charge application and setup fees to get started with credit card processing. If you can find a company that does not charge such fees or will waive them as part of a promotion, you may save money before you even start processing credit cards.

When you are trying to choose the best credit card processing provider, you may also compare company requirements. Some may be less willing to work with high-risk businesses than others. If your company is in the high-risk category, you may do well to choose a provider that specializes in your type of business. Likewise, if you have poor credit or do not have an extensive credit history, you may have the best chance of being approved by a merchant account provider that specializes in helping business owners with bad credit. Often, third-party payment processors are a good choice for those with bad credit.

The frequency with which you will have credit card payments to process may also make a difference when you are trying to choose the best credit card processing solution. If you expect to have numerous payments to process each month, you will most likely benefit from securing a merchant account through which you can process the payments. If, on the other hand, you need credit card processing to handle only a few payments each month or to process credit card payments on an occasional basis, a third-party payment processor may be a better, more cost-effective option.

It is also important to consider any limits a credit card processing provider will place on your account. For example, some providers may put a cap on the amount of funds they will process on your behalf each month. If you exceed this limit, this type of company may put a hold on the funds. To prevent this, you may do well to calculate a reasonable estimate of your processing needs and look for a provider who can meet your current needs as well as extra processing if you have a surge in sales.

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