Before you switch or hire your first credit card processing company, be sure to ask these 3 important questions before making your final decision.
- Who is my representative or point of contact? You want a independent contractor representative that depends on you just as much as you depend on them. So, you need to find out how do they get paid? It should be residual commission from a percentage of the processing fees not salary or upfront sales bonuses. How long have they been in the business servicing merchants? Get 3-5 references of who they work with near you. Get them to show you actual statements of other businesses in your industry and area proving that they can achieve the rate they are promising. Of Course, they would block out the business name and address for confidentiality. If they are unwilling to show you this evidence, I promise you, you’re not going to save money.
- Which processor will be handling the complex process of authorizing your credit card payments and funding your bank account? It should be a well known, most likely publicly traded corporation like FD or Global payments. A lot of merchants automatically choose their bank for their merchant services thinking that they are the processor which would be going more direct and keeping their money under one roof. However, this is not the case. Banks are only the service provider who also rely on a Processor like FD.
- What pricing structure will my business be setup on? You only want to consider 3 options. Interchange Plus, Subscription base, or Flat rate. When we say flat rate we mean that the rate includes all fees. This is very rare so be careful. The other 2 pricing models, Interchange Plus and Subscription Base are a better fit for most merchants. Most importantly, have them put in writing what your current effective rate is now, and what your new rate will be. Although your volume may change each month, your effective rate should not.