10 Things You Should Know About Credit Card Processing

Payments processing is an ever-changing world. Starting a business or switching merchant services? Here are 10 things to remember when choosing credit card processing services.

1. Merchant Accounts Aren’t Optional

This is important. If you want to accept money from consumers, says the U.S. Small Business Administration, you’ll pretty much have to get a merchant account.

2. Keep All Costs In Mind


When looking for a payment processing provider, remember that not all costs may be financial. As QuickBooks points out, if you pay a super-low price but don’t get reliable help and services, it isn’t worth it.

3. Look for Deals

Some providers charge extremely low rates for small businesses, between 0% to .36%, according to the U.S. Small Business Administration.

4. Swipe Fees Affect Bottom Lines

Often merchants must pass on expensive swipe fees to their customers in the form of prices. Research this before setting prices.

5. Don’t Forget About Chargebacks

According to the Wall Street Journal, chargebacks happen when consumers disputes charges, but also when the service provider fails to input proper authorization codes. Talk to merchant solutions providers about how they deal with chargebacks.

6. Not All Processing Rates Are Equal


Credit card rates range from lowest “qualified rates” through “mid-qualified” to “non-qualified rates.” Factors such as terminal used, address identification and more determine the rate you’re charged, says QuickBooks.

7. New Technology Is Coming

In 2015, credit cards will be replaced with new chip-and-PIN technology, which requires each customer to enter their PIN.

8. Remember to Batch

Merchants send requests for payment in batches. Do so every 24 hours, or risk higher fees.

9. Customer Service Should Be Free

Avoid providers that charge a fee to talk; this should be an included service, says QuickBooks. And as you know, Abtek’s team is filled with in-house credit card nerds who are passionate about what they do–and about getting you answers. This is critical because your payments processor is one of your business’ key lifelines.

10. Keep An Eye Out For Extras


Features like virtual terminals, for example, make payment easy and cut down equipment. Check out extras before you decide.

Remember to keep these facts in mind from the beginning and you’ll have an easier time in the long run.

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