There more many expenses associated with owning and operating a small business. Paying too much money on a merchant account/credit card processing should not be one of them. There are nine things many companies do wrong when it comes to credit card processing that are wasting that hard earned income.
The first mistake many companies make is leasing the credit processing equipment. Leasing equipment often cost around 25 dollars per month. That is money that is being thrown away. Buying a terminal cost only $350 to $550 depending on your needs. That means after only 14 months of 25 dollar lease payments your company could have owned the terminal it is leasing, think of this purchase is an investment that is sure to pay off.
The second mistake many make is using a local bank is their merchant service provider. Banks often act is middle men in this business and is such charge high rates. By searching around, many processors can be found that will offer better deals.
The third mistake many people make is going with the first company they find that offers them a good rate on credit processing. Shop around and ask for a several quotes. Make sure to read the fine print of the contracts for hidden fees.
The fourth mistake most make is not asking the credit processing company they are interested in for references. Most companies ask their employees for references; the same should be true of their credit processors. Ask the references how long they have been with the company, if the rates stay the consistent, and if they would recommend them. Make sure to pick a company with great customer service is this is a must should problems arise.
The fifth mistake businesses make is not considering the knowledge level of the salesperson who tries to sell them the service. A knowledge salesperson might be able to get businesses special rates or know other tricks that can help reduce the overall cost.
The sixth mistake many make comes after they have the credit processing machine and a contract. It happens when they ring every transaction up is credit. This one can really cost a company a lot of money. Credit transactions have a much higher fee than debit transactions.
The seventh mistake many companies make is not excepting checks electronically. Doing this will not only increase sales, but also avoid costly bounced checks.
The eight mistake made by many companies make is not having a policy against keying in the credit numbers. Companies should tell employees to try to swipe a card several times before keying in the number and if a number must be keyed in to do it very carefully. Incorrectly keyed numbers can result in large fees.
The last mistake many make is not being careful to prevent credit fraud. This responsibility rests on the shoulders of your company not the credit companies. Have employees always check the signature and fallow proper procedure. If not and an unauthorized charge takes place, your company will be responsible.
Credit processing is one of those expenses that every business has to pay. However, with a little knowledge and effort it can become much more affordable.
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