A guide to choose the right credit card payment processing system

Choosing the right credit card payment processing system

Every business requires the right tools to function seamlessly. This includes a credit card payment processing system as well. Selecting the right payment processing services is crucial for the success of a small business. However, since there are so many options to choose from, it is easy to get confused.

Here are the different factors that you must consider when selecting a potential credit card payment processing system.

Cost

When selecting the right credit card reader, the first thing you must consider is the cost. After all, money matters, regardless of which business you are in. Let’s say you find a quality mobile credit card reader. It has all the features you like. However, its cost exceeds your budget. Would you still be willing to invest in it? The chances are that you won’t. This is because there are various other costs that you must bear. Spending too much in a credit card payment system would lead to cash flow problems.

The first thing that you should search for is the cost of the payment processing system. Make sure you understand its payment system. For instance, are they charging a monthly fee or a flat subscription fee? Which payment system is more aligned with your business?

Also, flat fees are much more transparent than monthly payments. You know exactly where your money is going. However, it is easier to hide charges in monthly subscriptions. Also, if the credit card processing system doesn’t feature a fixed rate, the processor might end up charging different prices for the various types of cards. A flat per-transaction fee may not be an ideal choice at all times. For instance, sometimes the type of product you sell and the way with which your customers pay you, a flat per-transaction fee might end up cutting your profits a lot.

Transaction and software fee is not the only cost you should be concerned about. There is much more to a payment processing system than the software. Instead, hardware and required equipment also play a role in increasing the overall expenses. Some processing systems require a specific type or brand of credit card readers and other material. These tend to be much pricier than systems that work with all traditional equipment.

So, make sure you understand the costs of the various processing systems available. Also, compare the fee model to make an informed decision.

Security and fraud prevention tools

Frauds are common in businesses. Similarly, a security breach is the worst nightmare of both customers and business owners. A credit card payment processing system has a lot of sensitive data from your clients. If they are not secured, you will be putting your customer data at risk.

This is why it is essential to look at the security and fraud prevention tools of the payment processing system you select. Now, most quality payment processors already have the required security tools embedded in the system. In premium options, advanced fraud solutions are also available.

In-store transaction fraud prevention is ensured by the acceptance of only EMV chip cards. A processing system which accepts EMV cards uses the embedded smart chip to avoid falling for identity theft. However, know that even this option is not full-proof. Fraud can still occur at the point of sale. This is why it is essential to add additional security options like tokenization and encryption to further protect you and your customers. Ensure that the processor you select is compatible with such security additions.

Apart from this, you must also check that the processors you are considering have the required SSL certifications as well as CVV2 verifications. Similarly, the processor should be compliant with PCI-DSS regulations. Check to see if the processor offers seller protection and support in case of fraud.

Types of payment method covered

Different customers pay using different ways. Gone are the days when accepting traditional credit cards meant that you satisfied the payment needs of all your customers. Now, you will come across customers that will be paying using Apple Pay, Samsung Pay, PayPal, debit cards, etc. You need to ensure that your payment processing system covers all such popular payment methods. The more, the better. It is better if the system can also accept payments made from mobile phones and wearables.

Customer support

Usually, credit card processing systems are a “set and forget” solution. The chances are you won’t be needing or interacting much with the customer support team. However, this doesn’t mean that you shouldn’t look at the quality of customer support offered.

Why?

Well, this is because regardless of how great and perfect a given processor is, errors are bound to arise. And when they do, you would want the customer support to be prompt with their action. Therefore, when looking for a payment processing system, search for the quality of customer support. A great way to gauge this aspect is through user reviews. No one can tell you better about customer service of a given business or tool than its customers.

Interoperability

To allow for swift reporting and ease of use, it is better than the payment processing network is directly integrated with the point of sale systems. There are some processors which deliver POS software that connects with the system as well as the hardware natively. However, there are others which build a network of partners for their merchants to select from. Both ways have their pros and cons. The need and requirement of your business play an integral role in deciding which processing system is the right one for you.

While you are at it, try to look for solutions that offer additional benefits. Rather than just processing payments, solutions that provide bookkeeping, invoicing, and reporting are much more beneficial for businesses.

Conclusion

Selecting the right credit card payment processing system can ensure the smooth operation of a business. Don’t take this lightly. Consider each of the factors mentioned above if you wish to realize profits while keeping your costs low and your customers happy.

 

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