5 Factors To Consider When Setting Up A Card Payment Option
- 10 May 2021
Many businesses are said to be making the move to go cashless. It’s also believed that the rate of the adaption of cashless payment options such as card payments amongst companies will grow steadily in the coming years.
Trying to figure out which card payment option is best for your business can be an overwhelming task. This is because your chosen card payment option is at the centre of your business’ success and ease in doing financial transactions. If you can’t receive payments effectively, your business may take a hit as a result. The right card payment option will broaden your ability to take in payments leading to an enhanced ability to increase revenue.
If you choose and set up the wrong card payment option, you might end up incurring high fees, experiencing delays, and confusing your customers. With so many options available, making the right choice is very important. Look at these five factors that can help you consider what are the things you should check before setting up a card payment option.
1. Know Who You Are Dealing With
You’ll need to understand the process. Know that each financial transaction you take involves third-party players and they’re all a part of that process.
The card issuer is a financial institution that provides card services to the customer. There’s also the acquirer, which is the organisation that that settles the transaction process through authorisation and processing. Finally, there’s the card scheme which is the card’s brand you might know stamped on debit and credit cards all over the country.
Card processing suppliers are many in the market, but they all essentially offer the same services.
2. Understand The Fees
The transaction costs are a vital factor to consider in any payment option you choose. However, don’t take low rates at face value. Always confirm if there are additional or hidden charges that may haven’t been included in the initial quote. Ask for the full breakdown of all fees you may incur every month for you to get a clear picture of the total costs. You may visit this website for great advice on card fees.
In the meantime, here are some of the charges associated with card payments options:
• Setup fees
Some card processing companies will charge you a fee for setting up the payment system.
• Interchange fees
These are the fees associated with each transaction, and the charges may vary from one card payment option to another.
• Monthly statement fees
This is a fee you’ll be charged to take care of the mailing expenses.
• Monthly minimum fees
This is more of a penalty you’ll be charged if you don’t meet a specific minimum volume of transactions each month.
• Early termination fees
You might be required to pay a fee for cancelling your contract early.
Most providers will only give you a basic quote of the card payment processing fee based on a chip and pin transaction. Also, the quote assumes that the card is being used in the same country it’s being processed. It means that your customers will be using cards with electronic chips that validate them as the legitimate owners of the card authorising payment through a Personal Identification Number or PIN.
The aforementioned rigorous steps are in place to help reduce the chances of card fraud. The transactions are mostly considered secure. It’s attractive for most starting business owners for providers usually include lower fees in their price quotes. The fees you’ll be charged are mostly a percentage of a transaction. It can depend on other factors such as your turnover or risk. If your business has a high turnover, the fees charged should be relatively lower.
3. Get Your Payment Terminal
You’ll need to figure out how you intend to go about getting a payment terminal. This consideration will depend on the size of your business. Suppose yours is an SME or Small and Medium-Sized Enterprise. In that case, it might be easier to go through ‘introducers.’ These introducer companies work with many businesses, and they get lower rates than when you attempt to do it alone.
Again, most small businesses use a pin pad and regular bank terminal payment applications. Also, ensure that the terminal is compatible with your existing equipment, such as receiving online payment through your website orders.
4. Know Application Processing Takes Time
It may take a few days for your card payment to be set up. This may be due to evaluating your business, whether the payments will be face to face or online, and other essential things about your business. By the time of signing the agreement and set a few days will have gone by. But when all is done, you should be able to take card payments from your customers.
Have a plan on how you intend to receive payments during this period.
5. Good Customer Support
After you selected and set up your card payment option of choice, you may experience technical difficulties from time to time. For this, you need to choose a processing company that’s available any time you need them.
Be keen when dealing with the sales representatives to know how well they respond and attend to your concerns. Good customer service is essential as you don’t want to remain unable to receive payments without help from the processing company. Hiccups like this may hurt your business’ financial capabilities in the long run.
Takeaway Card Payments Tips For Business Owners
Here’s about everything you need to know in setting up your card payment option of choice for your business’ big move to go cashless.
• Don’t let the customers walk away; allow them to pay any way they want.
• When looking for a card paying option, ensure you get all possible charges from the service provider.
• Ensure to shop around and compare several service providers to get the best offer in terms of fees and other services they can offer.