What questions should I ask before choosing a payment processing service?

Clint, even a small entity should use an RFP process to evaluate the responses from a number of providers. This RFP should be unique to your entity's technical, accounting and operation structure, with input from those departments in the creation of the RFP. I would never allow entities to come in and pitch me their services until this process is completed and I've narrowed down my choices. At that point allow the people in those departments who are going to have to work with that service provider included in the evaluation process so that all affected parties have an ownership in the final selection.

Since it seems that you are a small entity, ask a service provider if they will share with you examples of RFP's from similar sized organizations if you need help in developing your own RFP.

check out www.merchantbillofrights.com. A lot depends on the type of business you have. If you are a new business, be careful of processors that will limit your monthly volume, if your business takes off and the volume increases, they may hold the excess for several months to insure against chargebacks. I have seen this practice actually put merchants out of business.

Here is great info when you are interviewing processors.
http://www.veritransllc.com/veritrans-inbox-guides/5-hidden-fees-to-avoid/

http://www.veritransllc.com/veritrans-inbox-guides/beware-of-fees-in-the-fine...

One of the benfits we offer is NO CONTRACT and NO TERMINATION FEES.
Call me for a quote if you like 866-474-4144 x 111

Check their record with the BBB 1st. If that looks good, go to their web site. See how long they have been in business and who handles their back end. Also look at the web site for clues to how they do business. Do they require a contract along with termination fees? I would also look for testimonials and maybe get some current customers you can call to ask about the customer support.

I don't sell or promote merchant processing, and I come from 35 years of experience running service and retail businesses. Today's card purchaser is a drastically different customer than in the past. From less than 1% of transactions being debit 15 years ago, debit now far exceeds credit card transactions. Debit is much less for a merchant than credit, and even more so with credit rewards, so try to focus at least a part of your search on a provider that will give you the lowest rate for debit (1.15 + transaction fee + profit) instead of "tiering" you into a group that will rate up your debit transactions to a credit card transaction rate which could double your processing costs. I understand a few companies, including Heartland, does this so check to make sure before you sign with anyone.