It is but natural for a small business owner to get cold feet when it comes to accepting credit card payment - the overhead cost of the payment processor is always a factor, and the fees are often quite daunting.
One element you need to consider would be the financial institution you will be transacting with. Different banks offer different kinds of services to their customers - many of them would allow you to accept credit card payments (and sometimes the credit card provider) and independent sales entities as well.
Dealing with the same bank you deal with for your other business accounts and concerns can be quite helpful because it would be easier to take care of payment concerns big and small alike.
On the other hand, independent sales organizations have more experience and are sometimes more flexible in the kinds of businesses they will work with.
During your research mission as you find out more details about the payment processing companies you may be working with, here are a few factors to keep in mind:
Reliability. Is their network notorious for its downtime? And in the event of downtime, what is the contingency plan, if any? What are their policies and procedures for customer support? Is there someone you can call 24/7?
What products do they offer? What different kinds of payment processing products are available? Can they help you choose what's right for you?
Add-on services, perhaps? Does this system also process electronic gift cards, electronic checks or other methods of payment?
The biggest factor that most people use to choose the merchant account company they want to go with, however, is the price. Indeed, there can be many fees incurred depending on the merchant account provider you choose - for example, there would be an introductory application fee, as well as other fees like transaction fees, sales fees (for Internet and phone sales) and the discount rate.
As they would say, "but wait, there's more" - more fees, that is, such as statement fees, penalty fees for not making enough sales and fees charged for processing a return or refund.
With all the fees we mentioned, you'll want to research each different kind of fee and the rate that goes with each. If your business will generally be dealing with smaller credit card purchases, then it would be a good idea to look for a provider that has the lowest possible transaction fee. If you are going to deal with big payments or purchases, then look for a payment processor that does not have an onerous discount rate. What are your business priorities?
A final thing you'll want to consider when choosing a payment processing system is what if any costs you will incur from renting or buying equipment. You can seriously minimize your overhead if you opt for a provider that offers credit card processing equipment free of charge.
One element you need to consider would be the financial institution you will be transacting with. Different banks offer different kinds of services to their customers - many of them would allow you to accept credit card payments (and sometimes the credit card provider) and independent sales entities as well.
Dealing with the same bank you deal with for your other business accounts and concerns can be quite helpful because it would be easier to take care of payment concerns big and small alike.
On the other hand, independent sales organizations have more experience and are sometimes more flexible in the kinds of businesses they will work with.
During your research mission as you find out more details about the payment processing companies you may be working with, here are a few factors to keep in mind:
Reliability. Is their network notorious for its downtime? And in the event of downtime, what is the contingency plan, if any? What are their policies and procedures for customer support? Is there someone you can call 24/7?
What products do they offer? What different kinds of payment processing products are available? Can they help you choose what's right for you?
Add-on services, perhaps? Does this system also process electronic gift cards, electronic checks or other methods of payment?
The biggest factor that most people use to choose the merchant account company they want to go with, however, is the price. Indeed, there can be many fees incurred depending on the merchant account provider you choose - for example, there would be an introductory application fee, as well as other fees like transaction fees, sales fees (for Internet and phone sales) and the discount rate.
As they would say, "but wait, there's more" - more fees, that is, such as statement fees, penalty fees for not making enough sales and fees charged for processing a return or refund.
With all the fees we mentioned, you'll want to research each different kind of fee and the rate that goes with each. If your business will generally be dealing with smaller credit card purchases, then it would be a good idea to look for a provider that has the lowest possible transaction fee. If you are going to deal with big payments or purchases, then look for a payment processor that does not have an onerous discount rate. What are your business priorities?
A final thing you'll want to consider when choosing a payment processing system is what if any costs you will incur from renting or buying equipment. You can seriously minimize your overhead if you opt for a provider that offers credit card processing equipment free of charge.
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