Choosing a credit card payment processing partner for daily transactions can be a little risky for many small business owners. All businessmen are experts in the business they do, not in the financial field of accepting credit card payments.
This article is a complete guide to the mistakes to be avoided.
1. Failing to Read the Contract Accurately:
It always becomes quite challenging to understand the financial credit card jargon and “legalese” used in business contracts. However, it is very important that you read through the agreement correctly and make sure you understand what you agree to right before you sign any contract be it for business or personal purpose.
2. Not Understanding the Cost & Fee Structure.
Few processors are quite secretive about their hidden cost and fees that they add to your contract in hankering that you won’t fully understand what you’ve read or either you won’t read what you’ve signed.
It is advisable to seek clarification for anything and everything that seem murky to you and later find a new processor with transparent pricing or for any fees you don’t fully understand or doubt it.
3. Agreeing to the Volume Requirements
A few payment processors would instruct you to make a minimum number of transactions in dollar amount for each month to avoid penalties or would impose maximum dollar transactions and amounts volume limits to prevent the same.
If you know your business quite well, you would be familiar with that dollar amounts and sales volumes and would see that they can vary significantly from month to month and year to year.
4. Neglecting the Research
A payment processing partner that wants to your business success could cost your business big in various forms such as:
However, it is very necessary that they avoid a few critical mistakes that would cost their business more than they to consider. Some are the different banks like ICICI , Hdfc & Axis Bank Credit Card Etc.
- Inadequate security
- Lengthy contractual obligations
- Costly equipment requirements
5. Paying Monthly Fees & Leasing Equipment
What will set you apart from your competition is the access to the latest payment processing equipment with current functionality & security features and also paying for the material, even though, you can drive your fees through the roof.
Look for processors that do not charge you for the equipment and also make sure that they don’t charge you for it at the end of the services either.
6. Failing to Use the Account Updater Service provided.
Work only with the processors that use account updater services which let you be instrumental that is helping you to avoid declined transactions.
The Updater services will help you to reduce the risks of losing out on revenue since customers usually forget to update their card information to their respective merchants.
Not only this, it will even help you to reduce the above problem for merchants of all shapes and sizes.
Take your time and explore the options given to you by the processor and also see what’s available with the different processors and then decide which service is the most beneficial & most appealing to you.