Learn more about local credit card processing.

Business Owner Need to do their homework

Many businesses are searching daily for the right credit card processing company but most of them don’t really know the right questions to ask. One of the main questions businesses should be asking about credit card processing is not necessarily what rate the company is charging, but what method of processing they use.  The reason why this is important Is that most small businesses are not aware of the two types of credit card processing that are available to them.

All small businesses should consider doing their homework on the type of transactions they will be doing whether it be large or small. This is important because if they have very small transactions they will need a low transaction fee or swipe fee as it’s called. Before they sign any agreement they should understand the difference between tiered rates and interchange plus rates.

They should also understand that there are many other benefits besides just the price, what does the company provide as far as equipment,  do they have to pay for the equipment who sets up the equipment etc?

Credit card processing uses tiered rates as the starting point for credit card processing in tiered rates could be different depending on the types of business.  Many businesses can benefit from using interchange plus rates, we call it wholesale cost to the merchant. This in most cases can be the most cost-efficient beneficial method of credit card processing from most businesses today.

Credit card processing today can be more difficult to understand what’s the right way to go with the new PCI requirements EMV chip card terminal. it was business owners don’t really have the time to analyze discuss or figure out what is the right type of equipment end or the right company to use for credit card processing. MasterCard Visa American Express all different types of cards that are available with us different types of rates that are available.

Most companies today have a 24/7 customer support but not all of them so it’s very important to know what the hours of customer support are available especially if you are open later.

The other questions to ask is how quickly will you get your funds are you on next day funding or a two-day funding program? Most companies today should be on next day funding unless you have very high ticket amounts then it would be delayed one day so it’d be considered a 48-hour funding program.  Companies today like carpet stores order word auto repair shops Home Improvement more than likely with a very high ticket item would be on a 48-hour program but not always and the longer you are with that company they may offer you next day funding with a certain a limit amount or high ticket amount. Restaurants and coffee shops really any small business will get their money the next morning in most cases.

Most of the credit card companies today have a yearly sometimes monthly fee PCI Payment Card Industry standard fee. This is normal and should not be considered a deal-breaker, they have to hire a company to scan your internet and make sure you are compliant with all of the regulations required by MasterCard visa and American Express.  You as the merchant will have to fill out PCI  questionnaire yearly and have your IP scanned. Scanning of your IP address is very important to make sure that there aren’t  any surprises or someone tapped into your internet stealing your customer’s data.

In today’s world of card processing many companies are getting away from contracts but it’s very important to know whether you’re signing a month-to-month agreement with no cancellation fee or a 3-year agreement with a cancellation fee if you cancel before the end before the 3 years is over.

Another important question comes up for a restaurant or some small businesses is a POS point-of-sale system. There are many many POS systems on the market but you need to do your homework and decide on what you need versus what is available out in the marketplace.

Some of the systems that are available are old school and a little outdated. A new style of POS systems is available today using iPads or tablets or very small mini computers that run the POS they are also using web-based logins for the business owners who is not at the location. Another Great New POS – point of sales system is the RIO POS Great system at good price.

Some of the systems are proprietary software that requires you to do their credit card processing only with that POS. If you cancel your contract or agreement with the credit card processing and are using their POS system you will not be able to add another credit card processing to that POS.  That is not always the case some POS companies Hardware companies that just sell POS systems will allow you to use any credit card processing company so you can shop and get the best rate available for your business.

Gift Cards

Another topic comes up is gift cards, gift cards are a great promotional tool for any business today. But you do also again need to do your homework because many companies charge you a monthly fee and a swipe fee charge to use their gift cards.  We recommend using companies that have no monthly fee for their gift cards and no swipe or processing fees at all to use their program. The only cost would be for the actual physical card. Some will give you 25 cards for free and others will charge you 0.70 $0.80 a piece for each gift card. Problems that occur with gift cards is that if for whatever reason you want to leave your current credit card processing company and are using their gift cards it is difficult to know how many cars her out and what the balances are on each card it’s not.

Using a local credit card processing rep with give you the best service and provide you with competitive rates.

If you’d like to get more information about the type of credit card processing that is available for your business or the type of equipment or learn more about PCI then give Gary Cooper a call at 609-384-4881.