Paying with a credit card is an everyday thing all around the world. However, a recent study has shown that small businesses that don’t include this particular payment method lose more than $7000 per year. Needless to say, not having a credit card terminal or not accepting various payment processes can and will affect the growth of your company.
On the other hand, many people aren’t familiar with the concept of payment processors. A lot of entrepreneurs pay for different fees without realizing the seriousness of it all. If you’re among those individuals, take a moment and check this article out. It is designed to help you comprehend the basic principles of payment processors, credit card payments, and more.

What Can One Expect From a Payment Processor?

Safety

First of all, a processor allows you to accept payments from your clients safely. As we all know, fraudulent activities are quite frequent when it comes to credit cards. However, thanks to the built-in safety system, you will be protected from theft, breaches, identity frauds, and so on.

Therefore, a processor is a security wall between the company and clients.

Payment Versatility

Millions of people use different types of payments. If you want to implement a great deal of payment versatility into your business, this is the best way to do it. Start from accepting payments online, via phone, and you’ll end up offering a variety of choices to your clients.

Processor Fees 101

There are several types of fees, and one could end up paying for all of them, or just some. It all depends on the contract you sign and conditions found in it. These are some of the potential fees you could stumble upon:

Interchange

The interchange fee is the cost of processing the sale. It may vary depending on the situation or type of credit card. Also, it’s lower if you’re paying for the goods in person due to lower risks for fraudulent activities. Therefore, paying for something online may end up being a bit more expensive than doing it in person.

Gateway fee (Monthly)

This particular fee is charged by the processor to access the payment system. It usually ranges from ten to thirty dollars per month.

Statement Fee (Monthly)

Some companies charge a fee in order to generate a monthly statement. Even though it’s a mandatory step, it can be easily avoided if one switches to e-statements instead.

Setup and Equipment

The cost of these services varies depending on the processor. However, it’s impossible to avoid paying for setup and equipment because otherwise you can’t get started. One has two main choices in this situation – buy all the equipment upfront or pay monthly rent. Neither way is “the right one”; it all depends on one’s budget.

Minimal Fees

There is a concept of minimal fees required by almost all processors. It works on a very simple principle – if you don’t meet the necessary monthly charges, there might be an additional fee charged to you. In other words, if a processor requires $30 per month and your charges add up to only $20, you’ll pay an additional $10.

Things to Have in Mind

Before you sign a contract and start collaborating with a particular processor company, make sure that you read all the conditions and especially the fine print on the contract. Many people skip this step, and most of them consequently end up in an unfavorable situation. Therefore – read the contract before you sign it.

On top of that, make sure you’re getting a set of favorable conditions. The best way to figure out whether a contract is good for your business is to conduct financial analysis and review money-related data.

Advantages and Benefits

A lot of companies offer the latest technology when it comes to equipment and software. The biggest benefit of having a variety of payment methods implemented into your business is – accessibility.

In other words, even people who aren’t buying services or products in person can contribute to one’s success. The modern technology is advancing on a daily basis, and it’s of utmost importance that you stay in the loop.

Accepting credit cards can expand your business, boost your presence on the market, and most importantly – increase your income.

The Conclusion

As you can tell, there is no reason not to hire a payment processor. If you’re ready to bring your business to another level and start accepting credit cards, take a moment and check our services. We will be more than happy to help you with the matter.

The first rule of every successful business is to keep growing. One must never stop evolving their business or else they will end up failing frequently.