Every business can benefit from being able to accept credit cards as people these days use them to make many of their transactions. However, choosing the right credit card processor is not exactly as easy as it sounds, and many merchants end up making costly mistakes by going with the wrong company. The following are pitfalls that people should avoid when they are deciding on a merchant account for their business.
Choosing Based on Price
Business owners are constantly trying to reduce their costs as much as they can while still getting the same quality of service. Unfortunately, the lowest prices for processing credit card payments are generally offered by smaller, less established companies. While this may seem to be fine, it pays off in the end to go with a credit card processor that has an established reputation as newer or smaller companies may not have the capabilities to keep customer information safe. This can be a very serious issue, and it may even end up with merchants being held at fault if customer data is stolen.
In addition, less established companies are much more likely to charge hidden fees, and this can make a huge difference in the amount that merchants pay every month. Going with a company that has a good reputation and has been in the field for many years will also allow people to check reviews and see what others have to say about them before signing up for service.
Not Getting the Right Features
Many people make the mistake of assuming that certain features will be included in their credit card processing agreement by default. In reality, this is often not the case, and merchants may end up having to pay extra in order to get the type of functionality that they need. Business owners should think about whether they will need to process online or mobile payments or store customer data so that they can make recurring purchases without having to give the company their information multiple times. It is always best to ask a credit card processor about this before a person signs up for one of their merchant accounts.
Not Asking About Cancellation Policies
Many of the less scrupulous credit card processors will charge exorbitant fees to cancel an account. Business owners should always be sure to ask about a company’s cancellation policies to avoid being hit with a large bill when they decide that the service is not for them.