Comparison of Rates & Providers
When it comes to comparing different types of banks and credit card processing solutions, one has to factor in the type of business and industry they are in and also how much processing volume they will transact. There are some companies that specialize in certain merchant services for example they may cater to the restaurant industry or they may cater to travel companies. They may specialize in low risk and having an extensive prohibited list of merchants that they will not underwrite were process for. When you are applying for merchant account processing services and comparing companies, when selecting a provider you should consider the following criteria:
- Are you dealing with a large bank or a smaller one. It's like are you going to McDonald's for lunch or are you going to a local café. Do you want a mass-market experience where the agent you are speaking with doesn't know anything about your business model or do you want a small business experience where the staff and team that you are speaking with try to understand your customers and business model. Frequently, many banks the person you're dealing with are just customer service reps who input information in mass-market but don't spend any time learning about your company. Be wary when dealing with large banks such as Intuit, Chase Payment Tech, First Data, Pipeline Data (Please Avoid, terrible company), Costco, Sam's Club, do you really expect to get great merchant services with your groceries and office supplies? A quick search online may reveal poor reviews and complaints about these companies. Again these are very large banking institutions that are mass marketed and are not necessarily small business friendly. In some cases like Intuit, you're not really dealing with them but a third party provider white labeled as Intuit sevices. So you should expect a small business experience dealing with us in comparison to dealing with a large bank.
- Frequently, we hear stories of these mass-market banks that accept merchants in mass only to give them very bad customer service hidden fees, and abruptly drop them with no warning. We assume this is the type of business you do not want to deal with. There are numerous examples of bad experiences online from certain banks. A quick search on a search engine will reveal numerous complaints from certain credit card processor providers. http://www.internet-merchant-account.com/
- Next you want to take an account set up fees, early termination fees, and transaction fees. Fortunately we have zero set up fees and zero early termination fees. Transaction fees vary from market to merchant and it is difficult to compare one rate from another without comparing the business models and customer clientele profiles. Typically, most retail establishments will pay rates lower than 2%, in the 1.5 to 2% range in comparison to Internet website companies that pay higher rates. For online business rates usually fall in the 2 to 4% range but in some cases they may be higher again it depends on the merchant. For offshore or international solutions their rates in comparison may go from anywhere from 4% to 10% depending on the company and provider.
- Internet merchant services, e-commerce websites and shopping cart systems will typically have a higher rate in comparison to retail merchant providers. This is due to the nature of the business, businesses that takes credit cards in person have lower fraud rates and also tend to have lower chargeback rates. Because a customer usually can return a product easily, the chargeback rates are lower. Also due to the personal relationship and the physical card swipe and signature on a receipt, retail establishments always enjoy lower rates than e-commerce websites and online companies.
- Be wary of other companies with unusually low posted transaction rates. These rates are to lure you in under false pretenses. Without knowing the nature of your business, these rates posted in many cases are unrealistic and only suitable for a very small portion of merchant service clients. So if you see a very low rate posted in big bold letters on a credit card processing service website, those rates likely won't apply to you. You know the old saying if it's too good to be true it probably is. Also keep in mind that merchant service companies are also a business, to make a profit and if there is no profitability with extremely low rates, they have to cut costs in other ways like customer service and support to remain profitable. Old saying such as "if it sounds too good to be true it probably is" and "you get what you pay for" apply equally to credit card processing companies.
High Risk Credit Card Processing Comparison Services:
In conclusion fortunately we offer a customized solution for each individual business taking into account their business type, owner operator, small business experience, transaction history if any, and we provide a superior service and experience in comparison to our competitors. To get the process started please call us or email us and a knowledgeable friendly agent will assist you with all of your merchant service needs.