Printable View
I need some input.
I have a project i'm on that requires credit card payments. My client has a merchant account but his bank does not process online transactions. I know that if i google it i'll find several companies that will provide services, but i would like to know if anyone can recommend a good company that will process credit card transactions for the site.
I recently started my own business and I've been flooded (literally) with offers for credit card processing.
It took me a while to figure it all out :D
Here are a couple of points you should consider:
- A merchant account is linked to your credit card processing. You can't use Bank A's merchant account and use company B's credit card processing software. If your client signs up with some credit card processor, he'll have to use their merchant account.
- The merchant account is what determines your rates. Online rates are always higher than rates where you use an actual terminal. Terminal rates I've seen anywhere from 1.39% to 1.75%, and online rates are usually around .50% higher.
- Once you sign up, you're usually stuck for at least a year.
- Don't concentrate on the lowest rates. If there's one business where small letters on contracts are important, it must be credit card processing...
- Keep in mind that most credit card processors have a minimum (usually around $30/month), meaning that if you don't make sales for at least $30/month (or whatever their minimum is) you'll have to pay the difference. Also, you'll probably have to pay monthly "statement costs"...
Once you start looking around, you'll notice that credit card processing is very competitive. They juggle with 1/100s of percents, they throw free stuff at you (I've had offers for a brand new Dell laptop, a cruise, and lots of other things for opening a merchant account).
I still haven't figured out who to go with myself, btw...
Hope this helps a little.
Let the signer beware. Credit card processing is as Negative says a very competitive buisness, and one in which you almost need a good contract lawyer to go over the agreement before you even think of signing something.
They have large print, small print, and excedingly fine print that can and will trap you into a potentually extreamly binding and potentually very expensive agreement.
It is also important to remember TINSTAAFL (There Is No Such Thing As A Free Lunch).
And I never have found one yet that I would recommend.