Your business is unique. You have a special vision for your business, individual needs, and a unique brand. Unfortunately, a lot of payment processors are just one-size-fits-all. That might not be a bad thing when you’re starting out, but as you grow your electronic payment processor needs to grow with you. The more complex your business becomes, the more locations that you add, the more items you carry in stock or on your menu mean that a one-size-fits-all electronic payment solution will not fit as well as you need it to.
Cost Factors to Consider
For any business owner, picking the right payment solution is critical. The wrong one can drain away dollars very quickly, and even present security risks to your customers. You’ll need to consider the following cost factors before setting up an account.
1. Interchange fees. These fees are charged for every transaction, and the processor pays the fee to the bank that issued the card – and it comes out of your pocket. The fee is usually a small percentage of each transaction, depending on the type of card, the method of transaction (in-store, online, etc.), and the dollar amount charged.
2. Costs and fees. Aside from interchange fees, NerdWallet points out that processors can also charge fees for your application, fees for issuing a monthly statement, a monthly Gateway access fee, and – one to look out for – the early termination fee. The early termination fee can run into the thousands of dollars, and less than aboveboard players will use it to keep you in an expensive or unsatisfactory processing agreement.
It pays to do your research before signing any agreement. Look for a company that has high professional standards, good reviews, and a roster of in-demand services above and beyond electronic payment processing.
