What’s the Best Way to Compare Merchant Services Options for Your Business?
As a business owner, you’re probably familiar with the constant influx of offers from various payment processing providers. They all promise big savings, advanced technology, and exceptional service—but how do you know which one is actually right for your business? Understanding the key factors to evaluate can save you time, frustration, and money, helping you find the ideal partner to support your payment needs.
In this blog, we’ll break down the most important elements to consider when comparing merchant services options, so you can make an informed decision that positions your business for success.
1. Processing Fees: Low Isn’t Always Better
Merchant services often advertise competitive rates, but it’s critical to understand the full picture. Processing fees generally come in three forms:
• Transaction fees: These are typically a percentage of the sale or a flat fee.
• Monthly fees: Many providers charge a monthly fee for maintaining your account.
• Hidden fees: Be on the lookout for setup fees, early termination fees, and PCI compliance fees.
It’s tempting to go for the lowest advertised rate, but don’t fall into the trap of ignoring additional costs. Take the time to ask for a clear breakdown of all fees, and calculate the total cost based on your average transaction volume. Sometimes, a slightly higher per-transaction rate is worth it for better service or extra features that save you time and money.
2. Compatibility and Integration with Existing Tools
Whether you’re using QuickBooks for accounting, an eCommerce platform, or a specific Point of Sale (POS) system, make sure the merchant service you choose integrates smoothly with your existing tools. The last thing you want is to spend hours troubleshooting integration issues or paying for extra software to bridge the gap.
For example, Tech-Payments offers seamless QuickBooks integration and supports a variety of eCommerce platforms and POS systems like Clover® and ExaTouch®. Ensuring compatibility upfront can save you headaches and streamline your entire business operation.
3. Industry-Specific Solutions
Not all businesses are alike, and neither are their payment processing needs. Some industries require specialized solutions, so it’s important to choose a provider that understands your business model.
For example:
• Restaurants often need POS systems that handle tips, split checks, and menu management.
• Healthcare providers require secure processing for co-pays and compliance with HIPAA regulations.
• Mobile services like contractors or farmers markets benefit from mobile readers and remote payment options.
Look for a merchant service that offers tailored solutions for your industry, like Tech-Payments does for automotive services, eCommerce, and healthcare providers.
4. Customer Support: It’s More Than Just a Call Center
The level of support you’ll receive after signing up is often an overlooked factor when comparing merchant service providers. While many companies offer 24/7 support, it’s important to go beyond the numbers and ask about the quality of that support. Will you have a dedicated account manager? Is the company hands-on with troubleshooting and upgrades?
At Tech-Payments, we pride ourselves on being more than just a payment processor. Our hands-on service includes IT infrastructure improvements, POS menu programming, and even support for setting up Microsoft Office 365® for your team.
5. Contract Flexibility and Length
Before signing on the dotted line, carefully review the contract terms. Some providers lock businesses into long-term agreements with hefty cancellation fees, while others may offer month-to-month flexibility. If you’re already locked into a contract with another provider, check if the new company can assist in terminating the old agreement.
Tech-Payments, for instance, helps many businesses get out of existing contracts and offers flexible terms to fit your growing business.
6. Security Features and Compliance
Security is crucial when handling sensitive payment data. Look for a provider that offers:
• PCI compliance: Ensures your business meets the industry standards for protecting cardholder data.
• End-to-end encryption: Secures transaction data from the moment it’s entered until it’s processed.
• Tokenization: Replaces sensitive data with a secure, non-sensitive equivalent.
If your business operates in a high-risk industry, make sure the provider can offer high-risk merchant accounts with appropriate security measures. Tech-Payments specializes in serving high-risk categories, ensuring safe and compliant payment processing.
7. Added Value Services
Beyond payment processing, many merchant service providers offer additional business solutions that can enhance your operations. Some might provide IT consulting, small business loans, or ACH payment options to help you stay competitive. These services can be invaluable, especially if they come at a lower cost or no markup, as is the case with Tech-Payments’ IT consulting offerings.
Final Thoughts
Choosing the right merchant service provider can make a huge difference in your business’s operational efficiency, cost savings, and customer satisfaction. By carefully evaluating fees, integrations, industry-specific solutions, support, contract terms, and security, you can confidently compare options and select the best one for your needs.
If you have more questions or want to hear real-life stories and case studies about how we’ve helped businesses just like yours, give Tracy at Tech-Payments a call today. We’re happy to help!