Okay, it’s no secret that merchant processing doesn’t exactly rank high among the most exciting conversations a business owner can have. However, merchant processing is a critical component of running your business effectively and successfully.
Without bogging down your brain, here are five fast facts about merchant processing you should know to ensure you’re using the right provider. Check these out!
Parsing the Difference Between Processing Fees
To put it bluntly, not all processing fees are created equal. That’s why it’s imperative you do your homework and unlock the secrets of markup. Ask your provider about the fee structure they use and how they go about qualifying your interchange rates for maximum benefit.
Know Your Limits
No, literally. Define the limits of your contract to avoid any issues down the road. Lease agreements can extend beyond the lifetime of your processing contract terms, which could trap you in a toxic relationship with your provider. Avoid this by asking for clarification on your lease terms. (Pro tip: You create the terms of your lease agreement; you’re in the driver’s seat).
Evaluate the Equipment
Do your research and be a savvy shopper! Some companies will sell equipment already designated as “end of life” in order to get rid of bad inventory. Ask whether there is a warranty, proper encryption, and whether the equipment is current or compliant.
Prioritize PCI Compliance
Again, you’re called upon here to do your due diligence. Ask the right questions like:
- Is your salesperson knowledgeable about PCI and if so, do they make themselves available to work with you on the complexities of being compliant?
- Is there a fee or is this part of the value they bring to the table for the partnership?
These are important questions that must be asked in order to establish an optimal working relationship.
Since your business pays for the service of taking payments day in and day out, shouldn’t this also mean your provider and salesperson continues to work with you day in and day out?
The merchant services industry is notorious for sign and drive transactions. Insist on a relationship you can rely on. If your salesperson doesn’t offer a cell number, be wary about their availability.
There is plenty more to learn about merchant processing and how to secure the solution your business needs. Contact me for a free consultation and put my expertise to work for you.