It’s very important that you ask the right questions when you are searching for a payment provider. Here are a few things to consider before signing up with a merchant service provider.
Do you have Processing Limits?
In the same way, minimum processing thresholds can occur; MSPs might have limits on the processed amounts. The limits are typically expressed as a percentage, for instance, $1000/$5000. This means you’d have a limit of $1,000 per transaction and $5,000 monthly.
Who Should I Contact for Customer Service?
If you discover that customer service isn’t handled by a person, you might want to seek another provider. While you should be optimistic that payment processing will occur fast, sometimes things could go wrong. When you have a customer in front of you who’s ready for a purchase, you wouldn’t want to contact customer service or to wait on hold and hope that a person will solve the issue. Make sure an MSP treats you as a priority rather than a number.
Do I Need to Sign an Agreement?
Perhaps this might be the most significant question. Contracts tend to bind you to all the unsatisfying service and steep charges that MSPs issue you with. If an MSP is being genuine, there would be no need to bind you into an agreement. Just know that you should be in a position to take your business elsewhere if you aren’t receiving deserved attention.
Are There Markup Charges Above Interchange?
Conventional MSPs will constantly charge a markup above the interchange. Understand what the markup for that MSP is and the different types of pricing models. Know what you are paying for. This is how providers generate a variable profit on you and the business.
Will I Incur Ancillary Charges?
Numerous merchant services are infamous for charging merchants whenever they get the chance. You can expect statement fees and monthly maintenance charges. The reality is that none of the charges are necessary. They simply give providers a chance to dig into your pockets. If a prospective provider begins listing charges that will emerge on the statement, note that you wouldn’t need to pay them through another provider.
Bottom Line
Whether it’s credit card incompatibility or equipment malfunctions, the last thing you want is anything that could jeopardize your business. Therefore, you want to make sure you partner with the right MSP.
At Loyent, we go against hidden fees and contracts. To learn more about how we can help you grow your small business, connect with one of our payment advisors. We’re always happy to answer any questions you may have.