Credit card (CC) transactions have become a common means of payment for business transactions. Earlier, banks were the primary credit card processing agencies. Improved technology and the internet have allowed third party agencies to enter this domain, and they are offering faster and cheaper services to merchants.
Credit card processing (CCP) rates vary across the market. They can depend on sale amount, sale volume, credit ratings of the business owner, and purchase or lease of point-of-sale (POS) machines by the merchant. CCP companies can charge a percentage of the sales amount per swipe, a flat fee, a stepped fee or both a fixed fee and a percentage of the sales amount.
Businesses should verify their financial statements periodically, or at least once a year, to make sure they are not paying more than required as CCP fees. This review can often result in the business changing its credit card processing agency to improve its bottom line.
Though a good processing rate is agreeable, other factors also need to be looked into incase you plan to change your card processing agency:
Compatibility with existing hardware and software
Credit and debit card processors should have a system that works well with the existing hardware setup at the merchant’s business. Credit card slots are available on phones, computers, wired and wireless machines. Similarly, the software for sales entry may allow return charge, subscriptions, and recurring charges. The credit card processor should be equipped to process these instructions accurately.
Support for online shopping cart applications ACH processing
Many businesses have web sites that allow online shopping through a shopping cart application. The CCP system should be able to support the application. Downtime of applications is not just a coding nightmare, but also an inconvenience to the customer and a sale killer.
Availability of funds
Credit and debit card processing firms usually process a batch of credit transactions once every 24 hours. The funds are not available immediately after processing. If immediate availability of funds is a major issue for your business, this is an important consideration.
Credit card processor is hardware specific