Managing Your Credit Card Processing As a Small Business
The average small business owner has little experience with credit card processing but managing these costs is essential.
These costs are even more critical when you have a small business because your budget is limited.
Here are a few suggestions: • Talk to your merchant account provider.
They should be willing to help you come up with an arrangement that is affordable and functional.
• Train your employees properly so they know how to enter tax amounts and customer codes when prompted.
This is especially important if you are entering corporate, purchasing, or business cards.
This prevents additional fees.
• Keep all software current in all terminals.
• Batch out every single night.
The best rates are provided for companies that batch each day; rates rise significantly if you wait 48 hours and even more if you wait longer.
Consider setting up an auto-batch function if you are worried that people will forget.
• Make sure your account is set up under the right type of business.
Some businesses are considered higher risks and therefore are charged higher prices.
If the time comes and you find that you must change to a new merchant account firm for your credit card processing, take the following into consideration: • Check to see if they are accredited with the BBB or other agencies.
• Use your first contact call to assess their customer skills.
If they aren't extremely helpful and courteous when they are trying to get your business, how are they going to behave when they already have you locked in with a contract? • Evaluate how long your contract will hold, how fraud and charge backs are handled and how long it will be before funds are deposited in your bank account.
• Figure out your fees; set up, monthly minimum, discount rate, transaction fee, cancellation, and any others that come up or are mentioned in the contract.
This will allow you to estimate what you will be paying each month.
• Read the whole contract and make sure you understand everything you see.
If you don't, ask for an explanation or hire a lawyer to take a good look.
If the company is reluctant to explain anything or you feel pressured to sign immediately, look elsewhere.
Trusting your instincts now may save you a lot of heartache later.
Credit card processing doesn't have to be difficult or overly expensive, and it is an essential service to offer your customers.
It does take a bit of research and effort on your part, but the result is a company you enjoy doing business with for years to come.
These costs are even more critical when you have a small business because your budget is limited.
Here are a few suggestions: • Talk to your merchant account provider.
They should be willing to help you come up with an arrangement that is affordable and functional.
• Train your employees properly so they know how to enter tax amounts and customer codes when prompted.
This is especially important if you are entering corporate, purchasing, or business cards.
This prevents additional fees.
• Keep all software current in all terminals.
• Batch out every single night.
The best rates are provided for companies that batch each day; rates rise significantly if you wait 48 hours and even more if you wait longer.
Consider setting up an auto-batch function if you are worried that people will forget.
• Make sure your account is set up under the right type of business.
Some businesses are considered higher risks and therefore are charged higher prices.
If the time comes and you find that you must change to a new merchant account firm for your credit card processing, take the following into consideration: • Check to see if they are accredited with the BBB or other agencies.
• Use your first contact call to assess their customer skills.
If they aren't extremely helpful and courteous when they are trying to get your business, how are they going to behave when they already have you locked in with a contract? • Evaluate how long your contract will hold, how fraud and charge backs are handled and how long it will be before funds are deposited in your bank account.
• Figure out your fees; set up, monthly minimum, discount rate, transaction fee, cancellation, and any others that come up or are mentioned in the contract.
This will allow you to estimate what you will be paying each month.
• Read the whole contract and make sure you understand everything you see.
If you don't, ask for an explanation or hire a lawyer to take a good look.
If the company is reluctant to explain anything or you feel pressured to sign immediately, look elsewhere.
Trusting your instincts now may save you a lot of heartache later.
Credit card processing doesn't have to be difficult or overly expensive, and it is an essential service to offer your customers.
It does take a bit of research and effort on your part, but the result is a company you enjoy doing business with for years to come.
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