Credit Card Processing: The More You Know,the More You Grow
Submitted by admin on Thu, 2010-04-08 18:25
I speak with business owners everyday who spend 1,000's of dollars monthly on different marketing campaigns. Whether it's the yellow pages online advertising, magazine advertising, or any other advertising medium merchants display diligence attempting to reach out to there potential customer.
Many merchants expend large amounts of capital beautifying there business location, creating comfortable or specific environments for there customers and creating a positive, professional, and valuable image for there business. Merchants are meticulous with most every aspect of there business, except for when it comes to there merchant account and what they are paying for credit card processing.
I ask some of these business owners, who there processor is and approximately 59% do not know. I ask what they are paying to accept credit cards, and they do not know.
In many instances, when obtaining a merchant statement from a prospective merchant during the analysis process the first step is to open the envelope containing the merchant's statement. Honestly, most merchants have not even looked at there bill in months. This is not the standard process businesses use to evaluate invoices but credit card processing for some reason, is the exception.
It is unacceptable to not know what you are paying to accept credit cards. Often times merchants don't know and don't want to know.
It is important! It is very important. If you are in business today and want to be successful it is imperative that you offer credit and debit card acceptance to your customer base. Whether you are a retail/storefront merchant restaurant, online/internet merchant, business-to-business merchant or even a home based business, electronic payment capability is imperative.
However, it is not enough to just accept credit cards. Merchants must be sure the company they choose and the merchant account structure implemented for there business is suitable for there business type and transaction volume. Merchants must also be aware that there electronic processing vendor offers operational, and pricing programs specific to there business type.
If you choose the right merchant account provider, you will be able to utilize there products, resulting in business growth, greater efficiency, increased operational and back office coordination and increased profitability.
Choosing the wrong merchant account provider will cost you 1,000's of dollars, wasted man-hours, frustration and waste your time. After all, time is money.
How to Choose a Credit Card Processor
The most important factor when selecting a credit card processor is the company you choose. In appearance 2 companies may seem similar. However credit card processing companies, and contracts, can be as diverse as any industry operating today.
Here are a few pointers:
1)Is the company a Registered ISO of Visa and MasterCard? This means you are getting service from a vendor directly licensed by Visa and MasterCard to process credit cards.
2)Does the business name on the contract you are signing, match the business card of the representative that is signing you? (They should match)
3)What does the merchant processing company stand for?
What is the credit card processor's focus? If the processor focuses on corporate accounts, and you are a small business, it may not be the number one company to handle your merchant account.
4)What is the merchant processor's customer service hours?
5)Do they charge for customer service?
6)What level of service are you going to experience? It may not seem that important in the beginning when you are signing up, but later on when you need assistance you do not want to be frustrated, put on hold for Twenty minutes, hung up on, or have to repeat your story to 4 different people just to get assistance.
I don't pay anything to accept credit cards
To my astonishment I have come across many merchants who tell me they are not paying anything to accept credit cards. That's like saying they are not paying for phone service, or electricity at there business. Credit card processing is a service for your business. Visa, MasterCard, American Express and Discover charge every business that accepts there card a percentage of the transaction.
Merchant account providers who are registered by Visa and MasterCard are authorized to open merchant accounts for businesses to facilitate credit card processing.
What should I be paying?
Credit card processing rates commonly referred to as the discount rate depends on your business type and the method in which you run your transactions. Visa and MasterCard maintain the base rate. This rate depends on business type, and type of credit card you are processing. (I.e. debit card, rewards credit card, corporate credit card).
When it comes to electronic payment processing, the main objective should be to get the number one available rate and fees for your business type, while balancing that with service, the product line and processing options offered by the company you choose.
It cost too much for a merchant account.
A merchant account does not have to cost a lot of money. If you feel it is costing you too much, it's time for a merchant account review.
The best way to maintain and control merchant account costs is to sign up with a company that does not have Contract Length Terms, Annual Fees, Membership Fees or Monthly Minimums. You also need to make sure your transactions are qualifying at the lowest possible cost for your business type. This may mean swiping all the transactions you can and settling your terminal nightly.
Merchant accounts are supposed to bring money into your business. It should not cost you more money to have electronic processing capability, than the income the service provides.
Pay attention
Credit card processing is 1 of the most important aspects of your business. Credit card processing accounts for approximately 58% or more of all revenue that the average business brings in. Make sure your business is processing with the right company and has the right merchant account parameters set up for your business type! Electronic processing can either help to grow your business or contribute to excessive overhead, often without your knowledge.
With years of experience behind you your business should be running like a well-oiled machine, right? Actually, that's not always the case.
I speak with business owners everyday who spend 1,000's of dollars monthly on different marketing campaigns. Whether it's the yellow pages online advertising, magazine advertising, or any other advertising medium merchants display diligence attempting to reach out to there potential customer.
Many merchants expend large amounts of capital beautifying there business location, creating comfortable or specific environments for there customers and creating a positive, professional, and valuable image for there business. Merchants are meticulous with most every aspect of there business, except for when it comes to there merchant account and what they are paying for credit card processing.
I ask some of these business owners, who there processor is and approximately 59% do not know. I ask what they are paying to accept credit cards, and they do not know.
In many instances, when obtaining a merchant statement from a prospective merchant during the analysis process the first step is to open the envelope containing the merchant's statement. Honestly, most merchants have not even looked at there bill in months. This is not the standard process businesses use to evaluate invoices but credit card processing for some reason, is the exception.
It is unacceptable to not know what you are paying to accept credit cards. Often times merchants don't know and don't want to know.
It is important! It is very important. If you are in business today and want to be successful it is imperative that you offer credit and debit card acceptance to your customer base. Whether you are a retail/storefront merchant restaurant, online/internet merchant, business-to-business merchant or even a home based business, electronic payment capability is imperative.
However, it is not enough to just accept credit cards. Merchants must be sure the company they choose and the merchant account structure implemented for there business is suitable for there business type and transaction volume. Merchants must also be aware that there electronic processing vendor offers operational, and pricing programs specific to there business type.
If you choose the right merchant account provider, you will be able to utilize there products, resulting in business growth, greater efficiency, increased operational and back office coordination and increased profitability.
Choosing the wrong merchant account provider will cost you 1,000's of dollars, wasted man-hours, frustration and waste your time. After all, time is money.
How to Choose a Credit Card Processor
The most important factor when selecting a credit card processor is the company you choose. In appearance 2 companies may seem similar. However credit card processing companies, and contracts, can be as diverse as any industry operating today.
Here are a few pointers:
1)Is the company a Registered ISO of Visa and MasterCard? This means you are getting service from a vendor directly licensed by Visa and MasterCard to process credit cards.
2)Does the business name on the contract you are signing, match the business card of the representative that is signing you? (They should match)
3)What does the merchant processing company stand for?
What is the credit card processor's focus? If the processor focuses on corporate accounts, and you are a small business, it may not be the number one company to handle your merchant account.
4)What is the merchant processor's customer service hours?
5)Do they charge for customer service?
6)What level of service are you going to experience? It may not seem that important in the beginning when you are signing up, but later on when you need assistance you do not want to be frustrated, put on hold for Twenty minutes, hung up on, or have to repeat your story to 4 different people just to get assistance.
I don't pay anything to accept credit cards
To my astonishment I have come across many merchants who tell me they are not paying anything to accept credit cards. That's like saying they are not paying for phone service, or electricity at there business. Credit card processing is a service for your business. Visa, MasterCard, American Express and Discover charge every business that accepts there card a percentage of the transaction.
Merchant account providers who are registered by Visa and MasterCard are authorized to open merchant accounts for businesses to facilitate credit card processing.
What should I be paying?
Credit card processing rates commonly referred to as the discount rate depends on your business type and the method in which you run your transactions. Visa and MasterCard maintain the base rate. This rate depends on business type, and type of credit card you are processing. (I.e. debit card, rewards credit card, corporate credit card).
When it comes to electronic payment processing, the main objective should be to get the number one available rate and fees for your business type, while balancing that with service, the product line and processing options offered by the company you choose.
It cost too much for a merchant account.
A merchant account does not have to cost a lot of money. If you feel it is costing you too much, it's time for a merchant account review.
The best way to maintain and control merchant account costs is to sign up with a company that does not have Contract Length Terms, Annual Fees, Membership Fees or Monthly Minimums. You also need to make sure your transactions are qualifying at the lowest possible cost for your business type. This may mean swiping all the transactions you can and settling your terminal nightly.
Merchant accounts are supposed to bring money into your business. It should not cost you more money to have electronic processing capability, than the income the service provides.
Pay attention
Credit card processing is 1 of the most important aspects of your business. Credit card processing accounts for approximately 58% or more of all revenue that the average business brings in. Make sure your business is processing with the right company and has the right merchant account parameters set up for your business type! Electronic processing can either help to grow your business or contribute to excessive overhead, often without your knowledge.