3 Important Questions to Ask Credit Card Processing Companies
If you decide to open your own business, there is a good chance that you will need to implement credit card processing services. Just as in any industry you will run across companies trying to make a quick buck off of you and not ever offer the true extent of the services they promised. Therefore, it is important to do your research and make sure that when you meet with the companies you are considering to provide you with that service, that you ask all the right questions. Here are three of the most important questions you should ask any credit card processing company before signing on for their services:
1) What kind of customer support do you offer, and what are the hours? – You want to stick with companies that offer 24-hour technical support and at least have hours conducive to your business hours when it comes to regular customer service. Also, look for a company that offers multiple options, such as forum help, live online support, phone, email and even social networking.
2) How long is your contract and what is the penalty if I cancel? – Many companies can waive penalties for canceling early. It’s really up to the discretion of the person helping you. Sometimes all you have to do is ask. Also, if you cannot find a company willing to not charge a fee, don’t accept any cancellation fee above $400. Typically the range is $200-$400 for early termination, if there is a fee at all. Also, be weary of getting into a contract that is too long. This is especially important for new businesses as there is always the risk that your business may hit a speed bump and you won’t be able to follow through with a lengthy credit card processing contract.
3) Do you offer interchange-plus pricing? – Interchange-plus pricing allows you to see the prices that Visa and MasterCard are charging you, also called the “interchange fee” and then the fees the credit card processing company is charging you. If you enter into a tier-pricing system, it become a lot more difficult to decipher how the processing fees are being calculated. It is a lot harder to estimate your monthly cost in this situation.