How to Find a Credit Card Processing Service

If you’re starting a business or expanding your business to accept credit cards, there are many providers of merchant services. However, you need to pay close attention to the fees involved and the fine print. The items below will give you a general idea of how to compare the various providers and their fees.

Instructions

Difficulty: Moderately Challenging

1. Consider the monthly fees. A gateway fee is the monthly fee to use the service. This may range from $0 to $40 dollars per month. A statement fee is the cost per month to send you a statement of your account. This may range from $0 to $10. Some providers require a minimum monthly charge of $25 or more.
2. Transaction fees are fees the provider will charge you per transaction. The discount rate is usually a percentage of the dollar amount for each credit card transaction. For instance, if a sale is $25, the provider may take 2.25 percent of this transaction. In addition to the discount rate, most providers charge a transaction fee for each swipe or key of the card. Also, depending on the type of card (credit, debit, qualified, unqualified), the provider will assess a verification fee (of holder address). Typically “swiped” credit and debit cards are qualified; meaning no verification of address is needed whereas key-entered cards, signature cards, foreign credit cards, and travel cards are non-qualified. PIN-based debit cards may be assessed at a different fee.
3. Know what fraud protection features the provider utilizes and what cards are accepted. What type of help and support is provided (online, phone, fax, 24/7)?
4. Ask the provider about additional charges such as application fee, installation fee, programming fee, online reporting and supplies. Ask about how rate changes are handled and when deposits are made (clear the account).
5. The type of electronic terminal you have is important. It must be compatible with the provider. Most terminals must meet certification and standards and an annual security scan is necessary.

Tips & Warnings

• Get as many quotes as you can and compare them. Ask your local bank if they provide merchant services.