5 Things to Consider When Choosing a Credit Card Processor
Last Updated on August 24, 2022 by Andrew
A credit card processor is the communication infrastructure linking almost all the moving parts of payment processing, including banks, merchants, card networks, and the cardholder. At the core of credit card processing, the processor relays the transaction information between these parties for the successful settlement of funds to the merchant’s accounts. This explains how crucial credit processors are to all businesses accepting card payments. However, the payment market floods with a myriad of card processing services, and choosing the best processor is never that easy.
This article explores 5 things a merchant should consider when choosing a credit card processor.
Look for a Provider with Price Transparency
The basic provision to accept payments is that merchants must pay up a cost in the form of credit card processing fees. However, every credit card processor bills merchant services around typical fees, such as interchange, flat, and assessment rates. Therefore, the concern really is whether a credit card processing company can save you some money and whether there is transparency in its pricing structures.
It is possible to incur hidden costs without your knowledge. So, what presents itself as a free or low-rate service should be subjected to scrutiny before signing up with the provider. For instance, some companies will eliminate monthly fees but cover that cost in their rate per transaction. In this case, if your business transacts in larger volumes, the accumulated cost for all transactions can be overly burdening. Therefore, you want to review the provider’s pricing model carefully before deciding to outsource their merchant services.
Choose a Provider with Good Security and Fraud Protection
Security and fraud protection must remain a top priority for merchant account owners. Regardless of business size, keeping your customers fully protected against fraud should always be an active commitment for every enterprise. For this reason, you might want to consider a credit card processor with the best and most advanced security tools and technologies.
One such technology is the EMV chip technology. Europay, Mastercard, and Visa (EMV) is a payment system that enables the storage of user information on a metallic chip. Technically, the EMV technology has been tested and proven to control and prevent in-store counterfeit fraud. As a result, risks related to card-present fraud are significantly minimized, creating a safer payment processing ecosystem.
Additionally, evaluate whether your preferred credit card processing provider features other security mechanisms, including tokenization and encryption.
Your Provider Should Be PCI Compliant
The intricacies that accompany the standards and requirements of PCI compliance can be quite overwhelming. However, the Payment Card Industry Data Security Standard (PCI DSS) compliance is designed to ensure that all parties involved in credit card processing maintain a secure ecosystem.
PCI DSS Compliance guarantees security measures, such as password protection, data protection, encryption, software updates, and vulnerability scanning. This means that a credit card processor that is PCI compliant is one that can be trusted with financial and business data.
Again, a credit card processing provider is better if they have an in-house PCI DSS Compliance team. Such teams are established to review compliance requirements proactively to address security concerns as they arise.
Consider a Provider that Accepts a Variety of Payment Methods
Payment methods are expanding sporadically, and there is no limit as to what the payment industry will accommodate in the future. However, businesses can prepare for the future by readying mechanisms and technologies that accept payments as users demand.
In addition to credit card payments, go for processors with growing alternatives, such as contactless payment methods and digital wallets. The good thing with having these payment alternatives is that businesses can incorporate any near-field communication (NFC) payments at any time and by default. Examples of contactless payments and e-wallets include Samsung Pay, Apple Pay, and Google Wallet.
The future retail landscape is for businesses that will allow customers to choose their preferred payment gateway. In that case, your enterprise will really use a processor integrated with varying payment methods.
Find a Provider that Offers Reliable Customer Service
Every payment gateway is subject to technical flaws and failure. Therefore, at some point, in the course of business, you will need help to sort out various technical hitches. In such circumstances, you will need a credit card processor that is reachable faster and conveniently.
Be keen with card processing companies with quality, 24/7 customer support. This will come in handy, especially when your enterprise runs a 24/7 service. Are their agents qualified and readily available? Do they provide helpful solutions to your problems? What is the company’s customer service policy like? Where are their offices, and do they have a functional website? These queries will help you settle on a processor that is customer-focused, which is what you need.
Conclusion
Most businesses are unaware of how credit card processors work, and all enterprise owners want are cutting payment solutions. Essentially, choosing card processing companies should narrow down to your business needs. However, understanding how they work and what they offer is key to identifying a cost-effective service. Consider a provider that is reliable, PCI compliant, price transparent, and accepts varying payment methods.
