5 Credit Card Processing Pitfalls Merchants Should Look For
For a merchant, Internet credit card processing is a viable way to grow your business. However, there are certain areas where you can run into trouble, causing a loss of money or business down the road. Here are five key ways a merchant can avoid these pitfalls:
- Look out for quoted low rates from companies offering to process credit card transactions. Always scrutinize each quote received to view all of the cost factors involved in signing up; this will ensure the best deal is acquired for the business.
- Do a comprehensive search to ensure the cheapest processing equipment is used for the business. Avoid leasing equipment, as it can drain financial resources quickly while hooking the business in for a long-term contract you may not want.
- Negotiate your contract term, many business fail to ask if the contract term can be shortened. In many cases it can so be sure to ask.
- Watch out for termination fees; they can be a sign that a company is not invested in helping the business grow, and would rather see a customer terminate his/her agreement early so that it can collect the pricey termination cost.. Also keep an eye out for reprogramming fees, as although a company may try to convince your business that it must lease or buy equipment in order to avoid having to re-configure the devices, this typically is not the case; in generally the virtual terminal used for Internet credit card processing is easy to set up or re-configure.
- Pick out the proper merchant account for the business. Ensure the strengths and weaknesses of each account are known before entering into any agreements with companies to use their equipment. By choosing the account that best suits the business' cost and service needs, the business ensures it will remain profitable once the equipment is deployed.
Internet credit card processing can be a straightforward and profitable way to get a business going online, and by exercising caution before entering into any agreements, a business has the best chance to grow in a market beyond a retail store or warehouse.
For more information on Internet credit card processing please give us a call at (800)917-8026.