Any recommendations for a credit card processing providers for a small retail business?
Question:
and let say about $400 maximum daily.
Please help.
Answer:
I am assuming you are in a retail environment.
I would recommend you look at service as well as price. When you are talking about market rates that are 2 or 3 basis points different (100 basis points = 1%), the difference in costs are minimal. Watch out for low rates that you can't qualify for. Acquiring banks take the 200 or so Visa/MasterCard Interchange rates and put them in the categories of Qualified, Mid-Qualified and Non-Qualified. How they dump them into those categories is entirely up to them. You could have only a few Qualified conditions and many more that don't qualify. So, don't let the basic discount rate fool you. Read the fine print.
Look for a company that can evaluate not only today but every six months how your processing needs maybe changing. There are also special plans like small ticket merchants (under $25) that have different rate structures, which are actually better than standard retail rates. Remember the accounting mantra, "Never measured, never managed." If the company you choose can't defend through empirical evidence why a particular service or hardware is required, don't use them.
The hardware you purchase today should support your business for at least five years. I often describe the credit card processing hardware like a good refrigerator or mattress. You are going to use them for years, so get something robust, scalable and reliable.
Lastly, read CAREFULLY the contract terms. It can cost you a bundle to terminate your contract. And the term may be 3 or 4 years. Don't let them skim over those terms and conditions. Read and understand before you sign.
Jon
i have been researching merchant systems, and Costco seems to provide very competitive rates
http://www.novainfo.com/costco/index.asp...
even more affordable if you are an executive member (all set up / monthly fees waived ... all you pay is 1.64% and 20cents / transaction).
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