How to Choose the Right Online Credit Card Processor
To be successful in business, you should make it easy for customers to pay for your goods and services. Accepting online payments is one of the ways you can improve your business. On the minimum, your website will need a shopping cart for you to accept credit card payments.
You will come across different merchant payment gateways on the internet. To find the right company that will allow you to accept credit card payments, it is crucial to do your research well. When you have the right online payment gateway, you will improve productivity in your business and collect more revenue.
You do not want a company that will lock you into a contract that will require you to pay a lot of fees. In case of downtimes, you do not a company that will take hours to rectify the situation. The last thing you want is to leave your customers wondering what is wrong with your website because they are unable to complete transactions and the payment gateway company is taking ages to make the necessary rectifications.
Small businesses usually find it difficult to decide which credit card processing companies to work with. Searching on the internet is an easy way of finding a good payment gateway provider. You will get dozens of recommendations of online merchant account companies when you search online. If you do not know what to look for, how can you determine whether a company will be right for you?
Below are three tips you should keep in mind before choosing an online payment gateway service provider.
i) How much fees are charged?
When evaluating different online payment gateways, consider the fees you will pay per transaction. You want a company that charges affordable transaction fees. However, do not simply choose a company because it has low rates. Apart from transactional fees, find out which additional fees it charges.
For example, find out whether there are processing minimums. Also, are there penalties you will incur for months when your transaction volumes are low? To get an accurate picture of all the fees you will be liable for, ask for a breakdown of both transactional and incidental fees.
ii) The provider’s approval rating
A company’s approval rating is mainly determined by how much credit card applications it approves. If a company has a higher approval rating, it means your merchant account application is likely to be approved. Companies that have a higher approval rating also process applications fast and do not have many high charges. Stay away from a merchant account provider with a low rating.
iii) Features offered by the provider
Finally, find out about the features that the payment provider offers. Check whether the company you want to hire offers the features you may want such as recurring billing, cash flow reporting, and others.