When it comes to selecting a credit card processor or High risk merchant account providers, there are many things that you need to keep in mind. It is important that you take the time to look at all of your options and make sure that you have considered everything before settling on one. This article discusses some mistakes that people often make when choosing a credit card processor and how you can avoid them.
1. Not Checking Hidden Fees
Some processors charge a monthly fee or other hidden costs. Don't assume that free sign-up is the best option, as you may be hit with fees at a later date if your business doesn't meet their minimums requirements.Check to see what charges are included in their pricing structure before signing on for an account, and then get quotes from several processors. That way, you'll know what to expect.An example of a lower rate than you should watch out for is the acceptance rate. Many credit card processors will advertise a lower rate for Visa, MasterCard, etc. but not include all the rates. That means you'll pay more per transaction than advertised on their website. Always read the fine print and ask questions before signing up with any business to avoid these mistakes and be sure that they are actually giving you the best deal possible.
2. Selecting A Processor That Gives You Slow Access To Your Funds
What is the point of using a credit card processor if you can't access your funds quickly? While most processors claim they release funds within 24 hours, this can be inaccurate especially if you have Merchant accounts for bad credit.The key for any business is cash flow, and being unable to get money when needed will cripple growth. If you want quick access to cash then choose one with an ACH deposit option which usually takes just two days or less depending on your bank's processing times.Also, you need a processor who won't be freezing your money anytime because of investigations. Before they do that, they need to offer you a good explanation that you can dispute.
3. Getting Less Fraud Protection
The processor that you select should offer you full protection against fraudulent activities and Credit card processing high risk. Some merchants opt to use cheap processors without knowing that they could be putting themselves and their customers at risk.Fraud protection is an essential component of any credit card processing agreement, so make sure you check things out before agreeing to anything. Also, be sure to check out how much the processor charges for transactions made without physical cards. The cost associated with transactions vary by location and type of business. Consider such factors also when deciding on your best option. You should always do your research and ask around about what other people use in order not only find the best deals, but also avoid scams or low-quality service providers that will take advantage of your business.
4. Taking PCI Compliance Responsibility
This is a situation that many merchants are not even aware of. You would be surprised to know how few merchant account providers take this responsibility on themselves and it’s worth checking before you sign up with them. A PCI compliance breach can cause hefty fines, which means tens or hundreds of thousands might have to come out your owner’s pocket. In addition, your credit card processing rates may go up considerably. To avoid this mistake from happening, it would be best to partner with a processor who's in compliance. That way, you'll minimize your compliance workload.
The Bottom Line
Your processor is a very important piece of the puzzle. Without it, you can't process credit cards and your business may fall flat on its face. So, when selecting a credit card processor you'd better avoid these mistakes.