Finding the right payment processing options for your Point of Sale or POS can be a difficult decision with all the options out there. However, knowing you’ve chosen the right service for your business needs can take a lot of stress out of your business transactions. Here are a few thing to keep in mind when choosing your payment processing service that may help reduce the stress of your choice.
Know What to Look For
Different businesses have different needs, and in some case an option for payment services is designed to work better with one particular business model over another. Knowing which service you’re looking for can help you narrow your options. Focusing on only a few you may be interested in can help reduce the stress of the choice.
Merchant services is a term used to cover any service that allows a business to accept credit card payment, while a card association is the governing body of the credit card type. Card associations are not a issuing bank but rather set the terms of the card and help regulate its use.
An independent sales organization is any company assigned by a bank to handle a merchant account. They may offer lower rates and personalized customer service. Banks may also offer merchant services of their own so you may want to see if your business account in eligible.
Another important point of your POS payment processing system is the pricing model for that system. A subscription may be the most obvious option when thinking about a pricing model. Subscriptions allow you to accesses set services for a monthly fee. This allows you to budget for a set rate and may make your accounting easier than other options. Markups are a set percentage on top of the interchange fee which is the lowest possible cost. This means your costs are directly linked to the number of payments processed. A tiered rate is a method by which the processing company categorizes each card type and charges based on which category the card falls under.
Knowing what you’re looking for when choosing your POS payment processing service is a great place to start. It allows you to focus on only what you need rather than being overwhelmed by all the options. You can narrow your options by service options or pricing model at the start to avoid looking at plans you don’t need. Remember, a professional can help answer any questions you may have.