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How to Choose a Credit Card Processor
Choosing any new vendor for your business is a big decision – after all, this is your livelihood we’re talking about here. Selecting a credit card processor somehow seems like an even bigger choice – you’re trusting them to handle the money that keeps your business running every single day. You of course want to make a smart decision, but you can’t do that if you don’t know what to look for. Here are five simple ways to make sure you choose a credit card processor that’s right for you.
First things first – don’t be afraid to compare several processors. You’ll run across some salespeople who will want to pressure you into signing the deal of the century before you’ve even had a chance to think about it properly. The world is not going to run out of credit card processing power while you do your research. That same pushy salesperson will still be there in a month with their deal of the century if you decide that’s really the best option for your business. Don’t sign any paperwork unless you feel totally confident that you’re making an informed decision.
Remember That Service Matters
Of course you want to save as much money as possible for your business, but that shouldn’t be your only motivating factor when choosing a credit card processor. You never know how much good service matters until your credit card terminal goes on the fritz on a busy afternoon or you need help responding to a chargeback. A credit card processor who is offers rock bottom pricing but disappears as soon as the deal is inked isn’t going to be the best in the long run for your business. Before you choose credit card processor, make sure you do some research on customer service.
Read the Fine Print
Credit card processors love complicated contracts that make your eyes water just from looking at them. As dry and boring as they are, read every sentence of those terms and conditions before you sign on the dotted line. Along with hidden junk fees (read more about those here), you might find some truly scary clauses relating to things like minimum volume requirements (have a bad month? Add insult to injury with an additional processing fee) or systematic rate increases. Feel free to ask questions about anything you don’t fully understand. A processor who isn’t willing to walk you through the contract or who tries to rush you into signing something you haven’t read isn’t one you want to do business with.
Skip the Contract Altogether
While you’re reading those terms and conditions, check to see how long you’re signing up for. Multi-year contracts are common in the credit card processing industry, but they don’t have to be the norm. Once you sign a contract, the credit card processor has you locked in – and you shouldn’t be surprised if it suddenly becomes very difficult to get ahold of anyone when you need help. Instead, choose a credit card processor that operates on a month-to-month basis, like 360 Payments. They’ll work ten times harder for you because they know that if they make a mistake you’ll very easily be able to take your business elsewhere.
Don’t Lease Your Terminal!
If you don’t heed any of the other advice in this article, please heed this – don’t ever, ever lease a credit card terminal. This is a predatory business practice that will have you paying thousands of dollars for a terminal that costs a few hundred at most – and you will still have to give the terminal back to your processor if you ever switch! Although it’s a bigger financial outlay at the beginning, we recommend purchasing your terminal outright. You’ll save plenty of money in the long run.
Finding the Perfect Processor
If having to choose a credit card processor who meets all of these criteria seems overwhelming, we understand! There’s a lot to consider when choosing a payments partner. We can help you with your decision-making process. 360 Payments meets all of these criteria and more, and we’d love to prove it to you. Give us a call at 1-855-360-0360 or drop us a line on our website. We’re ready to show you that choosing a credit card processor can be a painless and rewarding process.
PS – Don’t make these mistakes when you choose a credit card processor.
PPS – Before you sign up, ask your new credit card processor these questions.