Avoid These Six Common Credit Card Processing Mistakes Made By Many Small Business Owners
With the Internet playing such a major part of our personal and business worlds, credit cards are used more than ever. Small business owners realize that credit card processing services are a necessity if they’re to remain competitive, which is necessary to be successful both nationally and globally. Success can be hampered if they don’t avoid making some common mistakes. Here are the six most common mistakes small business owners make.
Not Understanding the Terms and Conditions of the Contract
You may understand the terms and conditions of your business, but that doesn’t mean you understand the terms and conditions set by the credit card processing service. Read the fine print carefully so that you know what you’re signing. Otherwise, you may end up paying out more than you anticipated.
Not Noticing Rate Fluctuations
The net profit you make can be drastically decreased if you have a rate increase that you’re not aware of. Read your monthly statements, and be aware of what you’re paying and for what.
Being Unaware of What’s Covered Under Additional Fees
Don’t ever make the mistake of thinking additional fees don’t matter because they’re minimal. If there are tons of “additional” fees that you didn’t expect, you can easily find that credit card processing is not as lucrative as you hoped. Using a credit card processor is necessary in today’s ecommerce business but paying a ton of fees is not.
Not Knowing What Volume is Required
Many credit card processing services will offer you great rates and discounts but ONLY if you meet a certain number of sales each month. Pay attention to what that number may be or look for a company that doesn’t require a certain volume commitment.
Failure to Shop Around For the Best Deal
You may be eager to get your credit card processing up and running so you don’t miss any potential sales. That doesn’t mean, however, that you should jump on the first processing service you find. Shop around, ask questions and don’t be afraid to negotiate for the best deal.
Not Being Aware of Special Rules for the Military
There are certain laws that mandate what type and amount of fees and interest can be charged to military personnel who are deployed. Be aware of these laws to avoid embarrassment and loss of customers. In addition, if they’re laws, there may also be penalties for not following them.