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What credit card processor do you use?
My business partner and I are looking to get a credit card processor for both of our registers, but we are having trouble comparing machines. Each one says they'll save us money, but how do I know which to use? Is there any comparison guide out there for this type of equipment?
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3 Answers
Dave,
I guess I would need some clarification as to what exactly you are wanting to compare before I can intelligently answer your question - are you wanting to compare merchant services providers themselves or the actual hardware used for processing transactions?
When comparing service providers, a few words of friendly advice I would certainly offer you are: Make sure to read the fine print in it's entirety prior to signing any contracts and make sure to pay special attention to the fees, either add-ons or passthroughs. There's many different ways companies can structure rates and fees, some of which appear, on the surface, to be "great deals" but, in reality, are far from it.
It may seem like common sense, but you might be surprised by the number of people who don't take the time and effort to fully read and understand what they're signing on for. Ask LOTS of questions and get things documented IN WRITING.
If you Google - 'credit card processing comparison' or 'merchant services comparison' - you'll have some options for various sites that offer information along these lines, but do keep in mind that many of these are sponsored by providers themselves and may be slanted towards a particular company or product - I'll leave that to your determination and judgment.
When looking at the hardware involved, it's always my advice to start by clearly defining what exactly it is you want to accomplish with the equipment. Do you simply want to swipe a card through a terminal or do you need integration with other systems such as inventory, reporting, or crm systems?
One overarching thing to keep in mind with equipment is it's compliance with things such as PCI DSS or PCI PED standards, the country it was designed, manufactured, and licensed for, and fees that a service provider might charge you to program or reprogram a piece of equipment – it doesn't always make the best sense to buy the 'cheapest' piece of equipment you can find online.
Final thought on equipment – get what will meet your needs now and for the foreseeable future, and don't be too concerned about additional “bells and whistles” that people may try to sell you on. In some cases they may provide you with favorable opportunities to provide additional/alternate services to your customers, but in many others they are simply a way for the provider to make additional revenue from you with no good return for that investment.
You may certainly contact me if I may be of any additional assistance.
Todd Thomson
Community Relations
Wholesale Merchant Processing
800.953.6764 x 525
toddt@wmphq.com
Dave,
I agree with a great amount of what Todd has posted. The biggest thing (in my opinion) when comparing processors – is to find out if they are both speaking the same “language”. Basically, there a couple of different ways to write an account, so having it being a true apples-to-apples comparison is very important.
I also agree to watch for the hidden fees. If they will not fill-out a contract with the rates & fees quoted, and then leave it with you, do not do business with them. I have seen contracts for as long as five years with some pretty hefty termination fees – not to mention some of the clauses to terminate the contract are very sneaky. Take your time and fully compare everything. There is a reason it is called “small print”.
I would also suggest to obtain a few (3) references from the prospective processors. Call the references and ask a few questions. 1-How was the changeover or setup? 2-Did your rep follow-up when you had those standard questions just after the signing? 3-Does your representative follow-up in a timely manner when you call with an issue? Not everything has to be done in person – I have many customers in other states. But your sales rep is making money from you on a monthly basis. As such, expecting some contact is not asking too much.
Last but not least – do not lease a machine – period. Buy a machine that is fully PCI DSS compliant for the next round.
If I can help you further I would be more than happy to assist further without any expectation of you becoming my customer. Figuring out merchant processing is hard enough without setting a ton of preconditions.
Mike O’Sullivan
Valued Merchant Services
(330) 322-4950
mosullivan@valuedmerchants.com
The best thing for you and your partner to do is to get multiple quotes from processing companies and compare them from there. Comparing prices will help you find if you are getting involved with any companies that are trying to scam you. Getting multiple quotes will also help when you negotiate with sales agents if they know you have other quotes. I got several quotes from http://www.buyacreditcardmachine.com/index.html they were very helpful in putting me in contact with other companies so that I could get more information and quotes.
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