Guidelines for Retail Credit Card Processing

If you are expecting your business to be successful in the future, it’s very important to accept all major (and perhaps even some minor) credit cards. This is the best way to tap into a vast, international customer base. Merchants who run retail or storefront businesses need to have the capability to process electronic payments of all kinds, in fact. This is imperative for the current and future health of a business’s revenues and profitability.

However, it’s not enough for a merchant to just accept credit cards and electronic payments and be done with it. They need to have the assurance that the merchant account structure implemented for their company is suitable for the type of business that they are running, taking into consideration everything from sales volume and average order size to geographical location and different points of sale (store, phone, mail, Internet). Everything needs to work together to work best.

A Custom Fit
Merchants should also be aware that their processing company offers an almost limitless combination of rates, fees and pricing programs that can be tailored to their business type. Making the right choice of a merchant provider will allow you to use their customized products along with your own marketing efforts to grow your business and operate it with greater efficiency and cost control.

Businesses that want to see increased profits will also take the time to search for a provider that offers lower rates along with top-notch customer service. Beware of some providers that advertise “low, low” rates as a way to lure you into signing up with them. Choosing the wrong merchant account provider can cost you thousands of dollars in wasted man-hours, frustration and lost opportunities. After all, time is money.

Here are a few pointers for narrowing down the list of potential account providers:
(1) Is the company a Registered ISO of Visa and MasterCard? This means you are getting service from a vendor directly licensed by Visa and MasterCard to process credit cards. Don’t be afraid to ask!
(2) Does the business name on the contract you are signing (if you decide to sign one) match the business card of the representative that is signing you? (They should match, absolutely!)
(3) What does the merchant processing company stand for? Does it have a particular focus? If the processor focuses on big corporate accounts, and you are a small ecommerce business, it may not be the best company to handle your account.
(4) What are the merchant processor’s customer service hours?
(5) Does the company charge for customer service?
(6) What level of service are you going to get, really? It may not seem that important in the beginning when you are signing up, but later on when you need assistance you do not want to be frustrated, put on hold for 20 minutes, hung up on or have to repeat your story to four different people just to get assistance.

Choose the Right Company
The most important guidelines for credit card processing are simple to state, but not so simple to accomplish. Perhaps the most important guideline of all is, “Choose the right company,” after doing enough research to understand what it is you are looking for in a merchant account provider. The second most important thing, after making that decision, is to be (and stay) fully informed about rates, fees, chargebacks, penalties, legal requirements, security and every other aspect of your credit card processing. There’s a lot to it.

One of the key things to establish, when selecting the right merchant account provider, is exactly what you’re getting into with them. After all, having good information is half the battle. Having your wits about you is very important as well, so do not sign anything you don’t understand. In fact, when presented with a contract to sign, remember that it is not always necessary to have a long-term deal, and some people may even advise you against having a contract of any length. On the other hand, having your deal written down and signed by both parties can prevent a lot of trouble down the road. This is a decision you will have to make yourself, based on the results of your research.

Although merchant account providers are necessary, they can also be tricky when it comes to soliciting your business. Merchant providers are individual companies with different ways of doing business, and some are more established than others. There is always a chance that you may find yourself in the midst of a scandalous situation with a company. In order to prevent this from happening, get all the facts before proceeding into any contract of any kind. Read the fine print no matter how long it takes. It’s as important a decision as you can make for your business.