• 1164 Vickery Lane, Suite 200, Cordova, TN-38016
Credit Card Processing for Small Business

PAYMENT PROCESSOR RED FLAGS

November 24, 2016

When you run a business, there’s lots of things to keep track of. Payments are close to the top of the list! It’s important to have a payment ally you can trust. Your payment processor is an important member of your team, and you can’t have success without it. The issue is, there are so many companies to choose from. Finding a company that will give you what you need, allow you to grow, and put your interests first can be a formidable challenge. The good news is, there are distinct signs of processing companies that are only looking out for themselves.

In our last blog, we pointed out a few red flags, including short service agreements, low volume penalties, cancellation fees, and flat transactions. In today’s blog, we want to point out a few more signs of processors that may not be the best choice for your operation.

YOU HAVE TO PAY RENTAL FEES FOR EQUIPMENT

If you rent equipment, you’ll likely end up paying more for it in the long run than you would just purchasing it yourself. When you buy your own equipment, you won’t be limited by your processor’s choice of equipment. You will be free to find the exact equipment that will work best for your company and your budget.

THE COMPANY WON’T DISCLOSE THEIR INTERCHANGE MANAGEMENT PROGRAM

If they won’t share this information with you or try to get by without offering to share, pick a different company. If they do share their program, it’s generally fair for you to be paying a firm interchange fee plus a service charge that consists of a constant market up. If you have questions about interchange management, we will write about it in future blogs!

THEY CHARGE “BUSINESS POINTS”

Processors that charge “business points” for interchange or transactions that have been downgrade are stealing from their clients. Don’t bother using a processor like this.

THE COMPANY WON’T SHARE THEIR DISCOUNT RATE IN DETAIL WITH YOU

Good processors will be happy to share their discount rates. Generally, it should be around 0.02 to 0,07 percent. If your business processes less than 100k a year, the discount rate can be as high as 0.1 percent.

Make sure that your business has an ally that will cover its six. When you have merchant payment services you can trust, it’s much easier to take your business to the next level. Let Impact Payment Systems bring you the comprehensive support you need!