Skip to main content

The Cheapest Credit Card Processing For Small Businesses


Every business needs a credit card processor. Plastic money is so much more convenient and offers a lot of flexibility and advantages to the customers. However, small or high-risk businesses that have more probability of shutting down find it hard to find a reliable credit card processing service.

Different processing rates, terms of contract and variation in fees tends to bewilder the merchants in finding a suitable and cheap processing service. Small or new businesses need to save money and for this reason they look for cheap credit card processing companies. A business owner can either opt for a traditional merchant account or choose a payment service provider (PSP) to process payment. Let’s understand what these are:

Merchant Account

A merchant account is the traditional way of going about payment processing. As a merchant you are given a unique identification number. They are costly in the sense that you would have to keep paying a certain recurring fee apart from the other transaction fees and chargebacks. It also provides a lot of ancillary services like customizable gateways for payment, ACH (eCheck) payment support and a few others.

Payment Service Provider (PSP)

A PSP is an aggregate account in which multiple accounts are clubbed into a single one. PSPs have a poor service record and these accounts may get frozen at the first hint of a fraud or trouble. A PSP account can be your option in the beginning when you are fairly new in the business but it is not a reliable way to process funds.

It is essential to understand that a company offering low fees for payment processing might not be your cheapest option as a business and a cheap payment processor isn’t always good. Payment processing is an integral part of business and it needs to be of a certain standard to avoid major losses.  The best bet for small and new businesses is a flat-rate pricing system. It doesn’t charge a monthly account fee or any other fees that other traditional merchant accounts charge. Companies like PayPal, Square, Payline etc. offer great options.

When does flat rate pricing work well?

Flat rate pricing works immensely well for small to medium sized businesses. Newly started businesses that don’t have a lot of funds to process and don’t want to end up paying high monthly fees can opt for these. So, if you have just started a business and want to flatten out your payment processing expenses, flat-rate pricing makes it fairly easy to accept credit cards without the commitment and hassle of a full service payment processing service.
Labels:
Location: United States

Comments

Post a Comment

Popular posts from this blog

Offshore Merchant Account: Why Your Business Need it?

Credit card payments have improved the prominence of many online businesses. If you have an eCommerce site, it will certainly do the same for you too. But then you will require to make certain that the offshore merchant account system you select is protected and secured for any kind of payment transfers. Getting an offshore merchant account would be a prudent thing to do. There are offshore merchant account providers in the market these days who can assist you with this. A business may not be able to run without having a merchant account as it allows the business owners to hassle-free credit card transactions. An offshore merchant account allows you to get away from paying high taxes. It gives you the chance for international trading, whereby offering multicurrency accounts.  Moreover, it also improves the potential of the company. By having installed, you can anticipate acquiring higher sales every month. Also, it decreases the tax liabilities of your business. With this, you
26 comments
Read more

Why Businesses These Days Swear By Online Payment Processing?

If you own a small organization, you must be accepting payments via checks or cash. Though this seems easy and working for you at the moment, the rapid growth of credit card processing will surely affect it later. This is because every business is turning towards online payment processing services and accepting cash or check is reaching the edge of extinction. Well, there’s nothing to feel worried about, as online payments offer a number of advantages to the business as well as its customers. Nowadays, consumers feel more comfortable paying online. Therefore, websites that still don’t allow customers to use credit or debit cards are going out of step. Speed up the process There is no denying the fact that online payment processing is faster and better than manual payment. This is because there is no need to wait for the check to arrive or keeping any eye on it to see whether it’s clear. Right from submitting the payment to updating the bank account takes just a few seconds
8 comments
Read more

How To Choose The Best Payment Processor?

  Choosing the best payment processor for your business can be tricky considering it involves so many factors and variables. As a business owner, one might be perplexed as to which model fits their business best and minimizes losses in terms of chargebacks and friendly frauds. However, there are several guidelines and tips out there to solve this mystery and chalk out a clear checklist to determine the payment processing services one needs. If you are a startup or small business, laying down the foundation of your e-commerce business and setting up a payment processing system to receive money from the customers becomes imperative. It becomes difficult to find a reliable payment processing service sometimes, it is mainly because:     1. Your business is classified as high-risk.     2. You are a newcomer or an unknown brand or business.     3. If payments take a long time to process.     4. If there are more ‘card-not-present’ transactions. A trustworthy payment processor provides you s
6 comments
Read more