In case you are planning to sell your products online, consider
processing credit card transactions. You can process credit card transactions by opening a merchant account or by using a third party payment processor. Before deciding on a payment processor, go through the terms thoroughly.
- Set up fee: Some companies ask for an upfront amount for registration for their services. Others don't require any set-up or registration fees.
- Transaction fee: Most payment processors charge a certain amount for processing that is done through them from your website. This is usually a percentage of the total transaction amount and can range from as low as 2% to as high as 20%.
- Other associated fees: Some credit card processing companies also collect other fees that may not be stated clearly.
- Products: Check the type of product that the company will let you sell. Some companies have no restriction over the kind of products sold through them.
- Payment transfer: Different credit card processing companies have different methods of transferring credit card processing to its clients and charge various fees for the service. You can ask the processing company to mail the check or request an ACH transfer to your bank. In case you are an international customer, you can ask for an international wire transfer.
- Payment frequency: Different companies have different payment frequency. Some pay immediately after the customer makes the payment, some make in weeks and some in months.
- Customer Service: This is most important for a credit card processing company. It is essential for a payment processing company to respond promptly to inquiries and to be customer friendly and reliable. The company should preferably have a reliable support system in place and respond to inquiries within 24 hours.
