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A Guide to Payment Processing

Best Practices with Payment Processing

A business should shop for Payment Processing Providers every 2 to 3 years to ensure you are receiving the best deal. Businesses should also look into the fees the providers are charging.


What is Payment Processing?
  • Behind-the-scenes processes that take place after a customer provides their card information for a transaction
  • Routing customer information to their bank and then back to your business’s bank
Why Credit Card Processing Costs Money:
  • Rate is 3 separate charges
    • Interchange
      • Goes to the card processing network
    • Assessments
      • Goes to card brands
    • Value-added fees
      • Goes to payment processor
    • Charges are usually lumped together for simplicity
Types of Payment Platforms for Payment Processing:
  • Direct: Owned and operated by provider on the front side (where customers swipe card) and on the back side (where the payment gets authorized and settled)
  • Gateway: Provider borrows another third-party platform to handle the back end of the transaction
  • eCommerce
    • Needed to facilitate when the card isn’t present (Necessary to operate an online business)
    • Small businesses can use a shopping card add-on service
Factors to choosing Payment Platforms:
  • The way businesses accept payments
  • Volume of transactions a business runs’
  • Add-on features a business wants
  • Level of service a business needs’
Fees that most Payment Process Companies Charge:
  • Statement fees
  • Setup fees
  • Programming fees
  • Equipment fees
  • Charge-back fees
  • Monthly maintenance fees
Factors that Change Fee Amounts Processors Charge:
  • The type of business
    • Restaurants pay more than retail stores.
  • The amount of your average ticket
    • The larger your average ticket, the lower the charge
What to look for in a Payment Processing Provider:
  • When does the payment hit your bank account?
  • Are they compatible with your business needs?
  • Are there other fees?
  • Does the provider offer customer support?
  • Is there protection against fraud?
  • Are there other security measures?
Where to look for a Payment Processing Provider:
  • Your Bank
  • Quicken
  • Costco
  • Sam’s Club
  • PayPal
  • Square
  • Local Chamber of Commerce for Referral
  • Ask other business owners
How to Compare Pricing between Providers:
  • Go to each provider’s website to compare all the fees
  • The only fair comparison of charges is a line-by-line review of every potential fee.
  • Find comparisons online from reliable sources
  • Determine if the provider is reliable and trustworthy
Benefits of Businesses Processing Credit Cards:
  • Increased sales volume and higher tickets
  • Streamlined back office operations
  • Increased customer loyalty
  • Strong payments security
The 5 Best Small Business Credit Card Processing Companies:

According to Merchant Maverick, the top 5 small business credit card processing companies are

  1. Payment Depot
  2. Fatt Merchant
  3. National Processing
  4. Dharma merchant services
  5. Square

For more information visit MerchantMaverick.com