Consideration # 1: Know that it will cost you money
So sad you will have to read the bad news, but you cannot avoid credit card processing fees altogether. You will probably have to pay transaction fees, exchange fees, incidentals and possibly monthly or annual fees. You can negotiate some of these fees with the credit card processor others are firm. In particular, if you make many transactions with your payment processing partner, it is helpful to ask if it offers a break in some of the rates.
Consideration # 2: Meet the best players in electronic payment processing
It is crème the key players in a credit card transaction are well understood. They are:
- Customer: The person presenting a card for the payment of goods or services in a commercial place or online.
- Merchant: The retailer, the owner of a restaurant or other company that accepts card payments for their goods or services.
- The bank that issues the credit or debit card that the customer is using is known as the Issuing Bank.
- The network of cards (card brand) that creates the cards (Visa, MasterCard, American Express and Discover are the most important) and defined rules of processing is the Credit card association.
- The Acquirer which is also called the acquiring bank is a bank or credit union that help merchant process credit card. Some card associations, such as Discover and American Express, act as their own acquiring bank.
Consideration # 3: Find out how a credit card processor can help you grow your business
Your credit card acceptance plan must include more than just acceptance and treatment. The best processors will help you grow your business beyond making your credit card payments. Here are some ways that merchant processing can help you grow your business:
- Accept a wider range of payment types to attract new customers.
- Expand your business to an online store or anywhere with point-of-sale systems that you and your staff can use to accept credit cards in remote locations, such as festivals or pop-up shops.
- Improve your marketing efforts by using data and customer analytics captured when sales are made with credit cards.
- Offer a gift card program to increase brand loyalty and create another source of revenue for your business.
Consideration 4: find out what payment types you need to accept
Today’s smart consumers expect a wide variety of payment options when they buy anywhere in the neighborhood cafe or at a department store. When you plan to accept credit card payments, consider purchasing hardware and services that allow your organization to accept the following payment processing formats:
- EMV smart cards
- Mobile payments
- Other NFC / contactless payments
Consideration # 5: Know the software and hardware you need
When choosing the most appropriate types of payment processes for your business and customers, you should also consider the hardware and software investments you will need to make to support these technologies. Today, a point-of-sale solution that accepts both traditional magnetic stripe cards and EMV smart cards is essential. However, if you think your business would also benefit from accepting mobile and NFC payments, you will need a built-in player or reader for these types of payments.
If you want to print paper receipts, in addition to receiving receipts by email or SMS, you will need a receipt printer. There are many options to consider and they do not always make sense or represent a good financial investment for your business. Contact MerchantScout to better understand the software and equipment your business needs to get the most out of payment processing.