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Red Flags to Avoid in an eCommerce Credit Card Processor

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    With almost 40% of the total POS transaction volume in 2020 consisting of credit cards, it's clear that payment processing has become a must for business owners.

    Unfortunately, credit card processors can be strict with who they work with. As a result, desperate companies end up missing the red flags. eCommerce credit card processor acquisition becomes the goal, no matter how shady the options are.

    Working with disreputable merchant account providers is just as bad, if not worse, as not processing payments via credit and debit cards.

    Do not compromise customer information during eCommerce transactions. Research indicates that you could lose up to $5.7 million for the leak of 50,000 records. With such huge losses at stake, you only trust a legitimate payment processor to handle your credit card processing needs.

    What to Avoid Before Signing Up For An eCommerce Credit Card Processor

    1. Early Termination Fees and Service Contracts

    Shady payment processors trick unsuspecting merchants into terrible terms and conditions through long-term service contracts. Most contracts would span upward of two to three years. Then, they'll prevent the client from prematurely canceling the deal by dropping insanely high early termination fees. Stay away from these types of brands.

    Although, this isn't to say all processors that have long-term contracts are disreputable. For example, Easy Pay Direct has a three-year lock-in contract. However, there's no need to worry since they don't charge early termination fees, so merchants are free to exit whenever they want.

    2. Insufficient Technical and Account Support

    Payment processors provide varying levels of support. Some options go above and beyond by assigning each merchant with a respective account manager, while other brands take weeks to reply. Of course, you'd want to go with a brand you can easily reach out to.

    Generally, entrepreneurs should look for processors that provide 24/7 support. Remember: POS systems, virtual terminals, and payment gateways can malfunction at any time, and when that happens, it'd be best to have someone to depend on.

    3. Negative Reviews

    If you constantly hear negative reviews and testaments about your prospective payment processors, reconsider your options. Always do your research. Go on threads and forums where real-life entrepreneurs share their objective, unfiltered opinions about popular payment processors.

    Now, studying a processing services provider can be overwhelming since there are multiple options on the market. After all, where do you even begin?

    The best approach is to get recommendations online. See which provider most entrepreneurs from your industry prefer, check their fees, then reach out for a consultation. You'd often find the processor's phone number and address on their site.

    4. Delayed Transfer of Funds

    Stay away from payment processors that take too long to transfer funds. Ideally, your processor should offer next-day funding. That way, you'll have the option of having money credited to your bank in case of emergencies.

    Note: Next-day transfers may have extra fees, so don't forget to review the rates on their standard batch transfers as well.

    5. Hidden Fees

    One of the biggest, most common mistakes newbie merchants commit is neglecting their monthly statements. We understand that reviewing a long sheet of numbers isn't the most exciting part of business, but it's crucial to uncovering hidden fees. Only work with transparent payment processors that are upfront about their rates.

    Having trouble qualifying for merchant services? Processing Card explains how to find a payment processor that accommodates high-risk businesses and small startups. Visit the Processing Card website now!

    Frequently Asked Questions

    Which credit card processing is cheapest for small businesses?

    Square is the best merchant service provider for startups and SMBs. They are a globally renowned merchant account provider that offers competitive transaction rates, minimal interchange fees, zero monthly charges, affordable POS equipment. Plus, Square works with a wide range of merchants from varying industries.

    What is Level 3 processing for credit cards?

    Level 3 processing is when large business-to-business (B2B) and business-to-government (B2G) corporations provide credit card companies with more in-depth statistics and details on daily transactions. In exchange for the extra data, you can drop your processing fees by around 1%.

    Level 3 processing is only available to substantially large B2B and B2G companies that regularly process a large amount of B2B and government credit card payments. You won't qualify for level 3 processing if you primarily service regular customers and consumers.

    What is the best online credit card processing company?

    There's no one-size-fits-all solution when processing credit or debit cards. Narrow down your options to the top payment processors that would be willing to provide you a merchant account, accommodate the order amount you receive from customers daily, offer reasonable fees, and provide a reliable payment gateway.

    Overall, the key to finding the ideal credit card processing service provider is to go through all your options carefully. Don't rush the process.

    Don't panic if you're having a hard time even qualifying for a merchant account. Commercial and third-party processing service providers offer varying features targeted at different types of merchants. As a business owner, you have to assess where you'd benefit from the most.

    Struggling to find the right merchant account provider? Processing Card has multiple downloadable resources that explain everything merchants need to know about card transactions. Reach out to the Processing Card team today!

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