There are many things to consider as you operate your business. One very vital aspect of your company to consider is how your customers will pay you for your goods or services. While you would think this is a very simple decision, there are several factors you must determine to ensure that transactions in your company go smoothly. One form of payment that can be the most tricky is credit cards. Here is how a payment processor can help you get the largest returns on this form of payment while protecting both you and the consumer.
What Is a Payment Processor
When you accept credit card payments, a customer uses their card to make a will purchase. A payment processor company ensures that the money from that clients bank account reaches your own. They contact the originating financial institution with the details of the transaction, such as the card number, date and time of the purchase, and the amount that was charged. It then accepts the funds on your behalf and sends them to your bank to be processed. As it does this, it verifies if the account is valid and if there is enough in the account to cover the charge. If there are fewer dollars than can cover the purchase, the payment processor will alert you by declining it. This service makes accepting credit and debit cards simpler for you while giving you additional options to get your money.
Which Type Of Processor Should You Work With
As you debate about which processing company to go with, the first question you must consider is what type of business you will have. An internet company, such as a cosmetics company that offers thick and full brow enhancing serum ingredients, should think about using a payment processor that coordinates with the website you do business from. This company must provide a high level of security to prevent hackers from breaking into the system and stealing your customers credit card numbers and other vital information. Many of these have gone through certifications to ensure their clients that they are trustworthy. However, your store that is housed from a physical location, must have a countertop credit card machine. Since many of these also communicate with the processor over telephone lines or the WiFi connection, there is less need for internet security for each transaction. Your company’s antivirus and firewall will keep them safe.
Find a Processor In Your Budget Range
As you are reviewing payment companies that you want to work with, take extra care to analyze the fees required for them to process your payments. Some businesses charge their customers a percentage of every payment that is made that is made by debit or credit card to do the work for you. This can vary from 1% to 4%. Others will want a flat rate that averages between the different types of credit cards that there are on the market. There is also an additional fee if the banks are from different states or foreign countries. If you intend to rent the physical equipment from the company, there will be an equipment fee added to your bill. Question which method the processors you are considering use and what they require for recompense. Once you have those numbers, review your budget to see if you can afford to pay them for what they do. Knowing this information will help you prepare for the deposits that are made into your account and allow you to forecast what you will spend this revenue on to keep your business going.
Get Help When You Need It
There is very little that can frustrate you than when a customer is having issues with your website when they are attempting to purchase something from you or when your equipment locks up as they are standing at your counter buying your products. When you are reviewing payment processors, inquire about their customer service departments. Find out if they operate around the clock or if they have set hours. Before you consider signing a contract with them, compare your operating times with theirs to make sure they are open for you when you need them. This should apply to both equipment help and assistance with your account, deposits, and transactions that are happening in your store. Question what their procedure is if their systems go down and you are unable to ring through a payment. Having a broken credit card machine due to their error could lose you more than one sale and possibly a client’s future business. Ask the representative that you are collaborating with about the methods that you have to reach out for help, whether it would be by email, telephone, or by live chat online. You will want to partner with an organization that is willing to help you at your convenience instead of theirs.
Sign a Contract That You Are Comfortable With
To have a relationship with a payment processor, you will need to agree to their terms and conditions. While some internet based companies that you would apply to your website can be flexible with when you start and conclude your business with them, others have firm contracts they wish you to abide by. This goes especially with those that provide equipment to you in your brick and mortar store. Study the contract with the organization that you decide on before you sign it. Look for the duration of the agreement and think about if that span of time works for you. If you must end the commitment before it expires, you will have to pay a penalty as well as the price of the equipment that you used. It could also limit the transactions that you are allowed to make per month before a higher fee is added. In the event that you expand your company, this could mean more money out of your pocket at a time that you need it most. Keeping a constant money flow into your business is vital to stay in operation. Having a reliable payment processor to play intermediary between you, your bank and your customer’s bank will add more profit to your organization while giving your clients the option to choose this popular form of payment
