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Payment Processing Services Ideal For Small Businesses

You will find below some of the payment processing services you might need to support the primary payment methods available.

Brayden Mccoy
4 months, 2 weeks ago

Small businesses can find things very confusing in the world of payment processing services due to the high stakes and possible adverse effects resulting from wrong decisions. Everywhere, you'll find some fast-talking sales agent trying to sign you up to a service you don't know about. Usually, these services come at high costs and long-term contracts. 

Without a proper understanding of basic payment processing services, you're likely making a regrettable decision, especially if you don't know which specific things to look out for when signing up for such services. Usually, merchant service providers offer every business a full range of services and products to select from. However, these products and services are generally more geared toward the requirements of larger companies, much to the disadvantages of smaller businesses. 

Hence, this article offers readers a quick overview of the primary merchant services most small businesses use to accept debit cards, credit cards, and other forms of electronic or cashless payments. Also, we'll briefly discuss some of the best payment processing providers in the industry. All these providers are good sources to find easy-to-use solutions at a relatively affordable rate. 

That's if you're comparing with the charges you'll have to pay with major credit card processors. 

Payment Processing Services

For the sake of customer retention, it's vital to give your customers a wide range of payment options. You'll notice increased sales through this single approach to payment. Also, your business doesn't make its profits by spending more money than it makes. Hence, you don't want to invest in payment methods that few or no customers currently use. 

Therefore, though the aim is to support more options in the payment processing industry, it doesn't mean you should grab everything out there. As such, you'll find below some of the payment processing services you'll need to support the primary payment methods available. 

Credit Card Payment Processing

Credit card processing is a primary merchant service, and it would be financial suicide not to find a provider that offers this service. To begin accepting credit cards, you'll require either an account with a payment service provider (PSP) or a full-service merchant account.

Generally, almost all providers in the payment processing industry will enable you to accept the major cards like Mastercard and Visa. However, it doesn't stop there; several other minor cards are very popular with different demographics. Some of these are JCB, Diners Club, or Discover.

In any case, you'll find out that American Express receives a different treatment because these cards function both as the credit card association and the issuing bank. Luckily, the process for accepting AMEX cards comes easily through their OptBlue program. Credit and debit cards are among the most recognized cashless options in today's marketplace, so you can't take any chances with them. You have to pick the best option. 

Debit Card Payment Processing

payment processing services

It's hard to find a payment processing services provider that doesn't support debit card transactions. However, you still need to be aware of the fact that credit card transactions attract higher interchange rates than debit transactions. It's easy to explain why this is the case. 

During debit card transactions, credits aren't issued by banks like it is in the case of credit cards. Usually, funds are withdrawn for the purchase when a customer's account has sufficient funds to cover the cost of the transaction. The transaction is immediately approved in this case. 

However, you need to know that some merchant services providers set rates without regard to this critical fact. This implies that you'll pay higher charges even for debit transactions. Flat-rate plans and tiered pricing plans are usually the stuff to pay attention to here. Hence, you want to carefully look at the proposed quote for your rates before you finally sign up. 

On the other hand, interchange-plus pricing doesn't have any of these problems, because you receive the actual interchange rate. Plus, each transaction only attracts the same amount as the processor's markup. If you would like to know more about the subject of debit card processing, please stick to this blog for other excellent resources on payment processing. 

Mobile Payment Processing

Nowadays, you'll find that your payment processing services are not complete if it can't accept mobile credit card processing methods. You can have the traditional or bulky wireless terminals for receiving these payments, or you can go for the more advanced options. Often, small businesses find these bulky terminals expensive. Prices range from around $1500 to $2500 each month. 

On the other hand, smartphones coupled with affordable card readers, offer inexpensive and straightforward mobile processing apps. Hence, you need to decide which choice you'll make.

NFC Mobile Wallet Payment Acceptance

NFC-based payment options like Google Pay and Apple Pay are experiencing slow adoption from consumers. Mainly because they've only entered the market not too long ago. However, time will undoubtedly see an increase in their popularity. Hence, your payment processing services should include these two if possible. 

Most POS systems and modern credit card terminals can support these NFC-based mobile wallet methods. However, you want to check with your vendors for the specific requirements you have to meet to accept each NFC-based method that interests. Though the user's debit or credit card and the NFC-based payment methods are connected, they come with a unique advantage. 

Among the methods of payment in the payment processing industry, these NFC-based methods offer more sophisticated protection and security from fraud, especially if you decide to compare them with traditional EMV card reading methods and magstripe methods. 

ACH Payment Acceptance

payment processing industry

Debit and credit cards work on a different network on which eCheck (ACH) operates. Due to this fact, you will need to sign up for a new ACH processing service as an additional feature required for the set up of your account. 

Though this might seem like too much of a trouble, you need this optional network if you will accept paper checks and bank transfers with check scanning hardware that's optional. Usually, the rate for eCheck payment processing services is quite low. This is because the funds needed to complete the transaction come directly from the customer's bank account. 

Nevertheless, your charges will include a separate fee (often between $20.00 - $30.00 each month) to add the support for eChecks to your account. Unless your small business has a considerable amount of customers paying with check, adding an eCheck processing service to your account might not be the smartest move. 

List of Top 10 Payment Processing Companies 

Below is a shortlist of some of the best merchant payment processing services. These offer small businesses, the best payment packages, and solutions. Be sure to read the full review of these payment merchants later on in our blog. With this information, we hope you get to decide the best companies that are a good fit for your business. 

  • Square
  • CDGcommerce
  • Helcium
  • Dharma Merchant Services
  • Payline Data
  • Fattmerchant

Takeaway

You need to exercise great caution when selecting payment processing services providers like those listed above. That's why it's vital to dig into research and adequately evaluate the different plans and contracts each provider offers. 

Plus, you have to accurately estimate your total costs before settling on any specific merchant service provider, because this is one of the main things that affect your bottom line in the long run. Often it takes next to nothing to get a basic account for processing credit or debit cards. However, your overall costs significantly increase because of additional services. To learn more, please check out our blog.