The Beginner’s Guide to Credit Card Processing Companies

Credit card processing companies are essential in modern businesses. These companies help you process your payments easily and also enhance how you deal with your clients. It matters less whether you accept payments online or in cash, an efficient card processing company will help lower your rates of payments and consequently lower your expenses.

There are so many credit card processing companies from whom you can get services. Each of these companies claims to be the best, but not all are as reliable or efficient.

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Getting to know which company is best suited for your business is not difficult. Simple online research will help you separate serious companies from jokers. You can take your time and read reviews from independent sources to determine which companies to work with. Keep in mind that there are unscrupulous companies whose aim is to fleece unsuspecting business owners. Here are a few pointers that you should be looking for when searching for a credit card processing company.

Start-up Costs and Processing Fees

Establishing a relationship with a card processing company will require you to pay an upfront fee. The fee you pay depends on the company you select. Take your time to find out how much you are supposed to pay and the package they will offer you. As for the fees, you also need to be careful when selecting a processing company. There are a lot of hidden fees that could hurt your cash flow if you fail to identify them.

In most cases, small businesses with numerous small transactions get affected by such hidden fees. Ensure that you understand what exactly you are required to pay to avoid unnecessary inconveniences and expenses. Check fees such as chargebacks, interchange fees, and other processing fees among others. These fees can eat into your profits especially if you are a start-up.

Compliance and Support

Payment processors must adhere to Payment Card Industry Data Security Standard (PCI DSS) compliance. This compliance should be a basic feature before you even get to negotiate with the company you choose. Avoid any company that does not have this certification to prevent yourself from being scammed. Keep in mind though that this compliance is not a government requirement. Independent or private organizations are responsible for this compliance.

When looking for an agency to get you certified, ensure that it is reputable and also ask for a dedicated account manager. It should be a company where your clients can get reliable customer service any time of the day any day of the week.

Check for Discounts

Different processing companies have varying rates. In a bid to beat the competition and win more clients, these companies give different packages suited for varying business needs. Credit card processing companies charge in terms of percentages.

You can get lower charges if you process very large sums of money, but there are also attractive packages for those that are just starting their businesses. Ensure that you check these discounts to help you save and grow your business especially if yours is a start-up.  Even then, make sure they offer the services you will need for your business.

Set-up and Flexibility

When selecting a credit card processing company, consider the company’s setting up process and its flexibility. Ask about their integration process and how long installations take place. A good company should have an easy and seamless process.

This also includes its ability to accept new technologies. With such flexibility, you can make unlimited improvements to your system to suit your business needs. The easier it is for you to make improvements, the better it will be for your business.


Security is a serious concern when dealing with credit card payments. When finding a processing company, security should be your number one concern considering the numerous numbers of online fraudsters. The company has to make it clear to you the tools they use to prevent fraud and to keep your data safe.

Look out for security features such as two-factor verification and secure log in among others. The more advanced the security features the better, so make sure you get the best.

Accepted Payment Types

The more options for making payments the better it is for your business. Customers like having options when it comes to making payments. Make sure to ask the payment processing company which types of payments that they will accept on your behalf and what the charge to do so will be.

While it may sound costly up front for their services, it will be worthwhile in the end to go with a payment processing company that will accept many payment options on your behalf.

Interesting related article: “What is Compliance?