Payment processing companies can help businesses accept credit card payments. However, as a business owner, there are a few questions you can ask each payment processor before you decide on a provider.
Perhaps one of the most important factors influencing processor choice is cost, and because the industry is unregulated, costs can and will vary. You can also visit https://jnamerchant.com/ to know more about payment processing.
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By getting the needed answers to the right questions, you can determine which payment processing company is best for your situation.
Your first task is to get a stable breakdown of the discounted rate that will be charged to your merchant account.
The discount rate is calculated by the credit card issuer and is usually based on a percentage of your monthly sales.
They can range from 1.5% to more than 5% and can depend on the type of business, volume, average ticket price, or average customer sales.
Companies that are considered high risks, such as companies with higher ticket prices or e-commerce companies, are usually subject to higher discounts.
Contract arrangements offered by payment service providers usually have a term of 3 years, but you will need to find out what fees apply for early termination.
In addition, the agreement may also stipulate that your contract will be automatically renewed for another 3 years after the deadline if you are not contacted within a certain period of time.
While auto-renewal can be useful if you want to explore other options, be sure to understand the terms.