The old adage of, “If it sounds too good to be true…it probably is” is very much in play when shopping for a Credit Card Processor. There are no shortage of Reps out there who will unabashadly say “We have the lowest rates” or “We deal direct so we have the best price”.

Of course you want to pay the best price but beware of  the claims mentioned above, simply aren’t always true.

  1. Paying Lowest Percentage Rate:  Credit Card
    Processors will always put their best foot forward when trying to sign on a new customer. This, of course, means a offering a very low percentage rate. Be aware there are two issues to know about:

*  Processors cannot survive with offering everybody the “Lowest” Rate. What they won’t tell you is that within a few short months, without notice, those very low rates will be increased and you will be left with a higher percentage than what you agreed to and three years remaining on the contract.

*  Make certain you not only know what your rates are, but also what the monthly fees are, as well. Again, lowest rates are great, but high month end fees can often negate any savings you are hoping to realize.

  1. Dealing Direct with the Processor:  There are only a handful of Credit Card Processors in the marketplace. The sales reps you deal with are either “Direct” Employees of the Processor or members of Independent Sales Organizations who also deal “Direct” with the Processor. In short, no such benefit exists if / when you are told there is no middleman.

Credit Card Processng costs are approximately 3% of your Credit Card Sales. When shopping for a Credit Card Processor you should of course be concerned with the pricing, but there are other factors that should come into play as well:

  1. Deal with a Rep who will give you a “Zero” Pressure honest assessment of your current situation
  2. No Contract to sign
  3. Reasonable Processing Rates that will only increase upon notification
  4. Minimal Monthly Fees
  5. Superior Pre & Post Sale Customer Service
  6. Assistance with PCI Compliance Assessment

This is a purchase just like any other business purchase you make. You should consider all the options, not simply the “Lowest” price.