If you want to have a thriving business, you should consider starting an eCommerce website. You can choose from a number of options to get your websites up and running quickly. However, there are some details that require some extra effort.
You may find it difficult to find the company to process credit cards for your site. There are many factors to take into consideration. Before you take action, you need to study the companies and make comparisons. Here are some tips to help you find the best credit card processor for your company.
Is Your Company Large Enough?
Some credit card processors only work with companies who have a specific monthly revenue. Many new businesses can find it difficult to reach these quotas. Unfortunately, many of the best credit card processor will not be eliminating this requirement, although you may find some that are willing to work with a new business.
You can apply to credit card processors who have high demands for monthly sales revenue. However, don’t be too optimistic. Even if you don’t meet the quota for some of these credit card processors, that are still many high-quality companies that are willing to work with a new small business.
What Products Are You Selling?
Each credit card processor has a different rule about what types of products they will process payments for. The processor may view certain products as risky, and do not want to take the chance that there will be chargebacks and other negative outcomes from your sales.
Before you apply to a credit card processor look to see which products can be sold. Make sure your site only sells products that the credit card processor will handle. You should check this information regularly to ensure you remain compliant.
Are There Monthly or Annual Fees?
Credit card processors have different ways to make money. Some rely on fees to drive their revenue. For a small business, these fees can quickly become unaffordable and may be unnecessarily high.
When you have to choose between multiple credit card processors, determine the cost of using their service. If all other factors are equal, you should choose the credit card company that has the lowest cost.
The Percentage of Each Sale?
Credit card companies can charge you a percentage of each sale as a fee. If you have slow periods of sales, this fee schedule may be preferable to the annual or monthly fee. However, in some cases, these fees can be unnecessarily high.
If you are charged more to process a transaction, you may need to raise your prices. Customer will want to avoid paying more than they need to. You need to crunch the numbers to determine if the percentage charge is better than the monthly or yearly fee option.
As your business grown, you may need to change your credit card processor. For example, if one of the credit card processors had a high monthly fee, you may have believed it was unaffordable. However, if your sales number have increased significantly, you might have little trouble paying them.
If a company offered a percentage based fee, then it may have benefited you to use this service when you first started, but after the sales numbers increase, you may find that you are paying a tremendous amount of money in fees in order to sell your products.
In general, if you have few sales, percentage based fees will work best. If you have many sales, then you should look for a monthly or annual fee credit card processor. This may mean having to switch the type of fee you’re paying as your business grows, or you may need to find a new credit card processor in the future.
Credit card processing can be a hassle. However, if you start the process of selecting the processor early in your business planning stage, you’ll find that the research will assist you in choosing the best credit card processor for your business and your eCommerce site.