Merchant Processing: Is The Lowest Rate Always The Best Option?

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Merchant Processing: Is The Lowest Rate Always The Best Option?

Though every business needs merchant processing services, it’s not a bill that most business owners look forward to paying. In fact, many entrepreneurs often bemoan the fact that their merchant processing bills are as high as they are. While there’s obviously reason for many companies to seek out the cheapest services they can, it’s not always wise to choose the cheapest possible merchant services company to do your processing. Here’s why:

  1. You might be skimping on good technology. The quality of your processing technology matters more than you’d think. Using outdated technology can put your company at risk of credit card fraud, while using “bare bones” card readers can mean that you’re missing out on apps and functions that could make your company run more smoothly.
  2. It may mean cutting corners that you shouldn’t be cutting. Experts agree that every retail store should accept Visa, MasterCard, and Discover cards at a bare minimum. If you’re paying the lowest rates on the market, chances are that you aren’t getting all three major cards. This can lead to major profit losses over the course of the year.
  3. Rates might be low, but that doesn’t mean that they won’t try to add fees on top. Unusually low rates can often suggest hidden fees. It makes a lot more sense to choose an honest company with affordable interest than to gamble on a suspiciously low cost service that will likely have steep hidden fees at the end of every month. At the very least knowing your interest rates don’t come with hidden fees will make it easier to budget.
  4. Cheap merchant processing often comes with cheap service. You need to choose a merchant processing company that will answer questions, solve problems, and keep in touch when you need help. If you are paying abnormally low rates, don’t be surprised if the company in question won’t offer prompt assistance when you need it the most.
  5. Most busy companies need more than just the basics, anyway. Most companies that charge higher rates do so because they offer more services to the businesses they work with. Busier companies need to look into better POS terminals, more forms of payment, and smartly designed customer loyalty club cards. Only quality merchant services companies can offer all that – and that means that business owners should avoid extremely cheap groups.

Though it’s smart to avoid extremely low rate merchant processing services, there’s nothing wrong with looking for a company that’s affordable. Thankfully, reasonably priced merchant services companies that offer stellar service and technology are out there. Once you sign with the right company, you’ll understand why paying a little extra for quality services is always a bargain.

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