As a business owner, you will — at some point — start accepting credit and debit cards for the products sold and services provided. For this purpose, you must look for third-party transaction processing firms. Credit card processing services facilitate the credit transaction between a merchant/vendor and the customer to initiate the payment

These services also provide point of sale (POS) systems, mobile payment methods, and subscription services to simplify the process.

As a business owner, you should be aware of the hidden fees and limitations with these services and how they might affect your cash flow.

Transparent pricing, affordable rates, and reasonable processing fees are some of the pertinent factors that you must look for in a credit card processing service. Although the service itself is pretty straightforward, there are certain points to consider from a business owner’s point of view to get the most out of your credit processor.

Points to consider before hiring a credit card processing service

• Costs involved
  As an entrepreneur, you must assess how much this service will cost and whether it can be deemed a prudent investment to benefit your business in the long run. The application and setup fee may be levied after you hire and set up the service the first time. But this may vary depending on the type of transaction and mode of payment. Processing services primarily charge an interchange fee for every single transaction. The standard rate is between 2% and 3% per transaction. A monthly statement fee is also applicable for the summary of all the transactions done.
  Additionally, you will also pay a monthly minimum usage and gateway access fee to facilitate the transactions. Finally, credit card processing companies may charge a fee for early termination or cancellation of the contract. The penalty can range from a few hundred dollars to even a few thousand dollars, depending on the type of contract.
• Time taken to set up
  In business, time is money, and often taking time for something can cost you money. If the credit card processing service is complex, your employees may require additional training and technical knowledge on how to operate the point of sale modules. The technology should be easy to set up and use. The vendor must provide additional support and technical assistance to troubleshoot problems efficiently.
• Types of payments accepted
  Some retail businesses deal in multiple currencies and modes of payments to facilitate both local and global transactions. You must check with the processing services to ensure that the payments can be made for all major credit and debit cards. Additionally, the vendor must provide a system that automatically accepts and adjusts gift and prepaid cards along with electronic benefit transfers. The type of payments directly depend on your business model so check with the vendor to confirm the type of payment processing.
• Payment technologies
  As a business owner, you must stay up to date with any new technology in payments and processing services. Near-Field Communication (NFC), a communication technology, is the latest rage as it accepts digital wallets, like Apple Pay, Samsung Pay, etc. Customers are getting more tech-savvy by the day. As a result, they prefer NFC-enabled devices for payments. NFC payments can be facilitated through smartphone and tablets. It is estimated that the number of people using mobile payment systems is bound to increase drastically in the years to come.
• Customer support
  Credit card machines and processing services can often pose technical difficulties. The vendor must be able to provide timely customer support to troubleshoot problems. Many popular payment processing services provide 24/7 customer support to help facilitate the transaction and ensure that the customer enjoys uninterrupted credit services. One must confirm with the vendor if technical assistance and customer support will cost anything.

Best credit card processing services

PayPal
If you want a budget-friendly credit card processing service, PayPal offers merchant banking for small and large business owners. Additionally, when it comes to low volumes processing, PayPal is the preferred choice among competitors in the market. The service specifically offers pay-as-you-go terms with no monthly minimums. Small business owners benefit immensely from this service as some businesses might not have additional resources to continue paying for processing services, owing to a low volume of transactions. PayPal also doesn’t charge any application, initial setup, monthly, or PCI compliance fees, unlike most competitors in the market. It is, without a doubt, the most affordable option for small businesses as it has minimal upfront costs and servicing charges. It is also one of the most trusted brands when it comes to making online payments; as a result, customers have more faith in the store.

Helcim
One of the main highlights of Helcim is the Interchange Plus for pricing that makes it one of the most popular services for card processing. If you are looking for a full-service credit card processing company, Helcim offers some of the most attractive plans. Helcim helps you understand exactly how much you will be paying for their services before you even sign a contract. It also shows a comparison chart to help you. You will be able to see exactly how much base interchange fees has been set by popular credit card networks, like Visa and Mastercard, etc, to asses the cost of hiring the service. Additionally, most of Helcim’s rates are lower than the industry average, making it a great alternative to PayPal.

Square
Square, a credit card processing service, is best suited for mobile payment platforms. Millions of shoppers prefer making a purchase through their smartphones as it is extremely convenient. The increasing use of smartphones has led to a steep demand for mobile merchant banking services. Square is a great option for small businesses as it has a transparent flat-rate pricing model, making it easy for small and medium business owners to understand the costs associated. Square also offers flexibility in the terms and conditions of their contract to suit your business and credit processing requirements. In a nutshell, Square processing services are ideal for startups and sellers with low priced inventory.

Stripe
Stripe is one of the few credit card processing services that have a dominant online presence to provide business solutions. Stripe connects its services with multiple websites, online platforms, and third-party apps to facilitate transactions with ease. Small businesses can additionally benefit from the tools available with Stripe to immediately accept payments online. They have the option of using integrations and extensions to seamlessly connect the payments processor with e-commerce solutions like 3dcart, BigCommerce, Ecwid, Inc., PrestaShop, Shopify, Squarespace, Volusion, Weebly, Wix.com, WooCommerce, and even X-Cart.

As a business owner, you must understand that diversification is the key to success. It is even more important when you want to create your online presence and let customers know that your business is equipped to move inventory online. Most of the customers have credit cards and will want to use them to pay for the goods purchased and services rendered. It is one of the many reasons why you should consider hiring a good credit card processing service; it can help you manage the volume of transactions as you expand business operations.