Whether you’re in a new business or have customers beating down the doors for a while now, you’ve probably realized that credit and debit card processing is or will be an essential part of your success. The majority of consumers no longer carry cash these days, so choosing the right payment processing partner – also known as merchant services – is all the more critical.
But not all merchant services providers are created equal. Here are some things to consider while searching for a merchant services provider:
• Do research the process. Gain at least a basic understanding of how merchant services work. There are numerous steps between opening a merchant account and receiving the funds in your bank account.
• Do shop around. Be wary of creative rates and different rate programs. Make sure you understand exactly what you will pay. Find a bank or a representative who’s willing to answer your questions and, perhaps more importantly, ask you questions. Every business is different, and you will not benefit from a one-size-fits-all approach.
• Don’t assume the lowest price you find is the best option. Choose a merchant processor and representative you trust and who fully explains the details of your agreement.
• Don’t sign an equipment lease unless you’re absolutely sure it’s right for your business. The majority of leases cannot be canceled, and you’ll likely pay far more than the equipment is worth had you simply purchased it outright. Also, be cautious of purchasing a proprietary terminal that only works with one provider.
• Do look into other services that will help your business grow. Think about gift and loyalty cards. Many merchant processors can help make it easy to add.
• Do accept all cards. Discover and American Express can settle with Visa and MasterCard now, so there’s no hassle of reconciling multiple accounts.
• Do become Payment Card Industry compliant. Businesses of all sizes should be aware of PCI requirements and update their card acceptance methods as needed. Also, make sure you partner with a merchant processor that will assist you in the PCI compliance process.
• Do notify your provider if you plan to process a larger than normal transaction. Processing a $10,000 transaction when your average ticket is $100 is a big red flag to processors and will likely result in your funds being delayed. If you notify them ahead of time and provide the requested documentation, the process will be much smoother.
• Do use your account the way it was intended. It may seem like common sense, but only charge for items that fit the industry in which you were originally set up. Charge for amounts that are consistent for your line of business. Also, if you’re set up as a “card present” account, you shouldn’t be keying in the majority of your sales.
• Do check your bank account often to make sure funds are being deposited. Check your statements as well and ask your representative to provide a review every so often to make sure everything is running smooth and as promised.
• Don’t wait to notify your processor if there is an issue with your account or if you are unhappy with the service. Most issues can be fixed easily or there may be a new or different processing solution better suited for your business type.
Ashlee Radford is corporate services director for Guaranty Bank. She can be reached at aradford@gbankmo.com.
