When you’re looking for credit card processing for small businesses, it takes a little effort to begin to see what’s at stake. Because your processor is a part of every truncation that goes through your business, you want to choose the right one. One of the determinations you will need to make is whether you are interested in third-party payment processing or if you would like to set up a merchant account and work directly with a payment processor. There is much to consider when making this decision.
Third-party payment processors and payment aggregators are companies that provide interface between merchants and merchant services providers, allowing you to accept payments without setting up a merchant account. For some small businesses, this may be an appealing option, but it is important to know that there are both pros and cons to using third-party payment processors.
One of the biggest benefits of using a third-party payment processor is that account set-up is easy and fast. However, third-party payment processors usually charge higher transaction fees. On top of this, accounts are typically less stable. Additionally, one of the biggest cons of using a third-party payment processor is the lack of convenience. When using a third-party payment processor, funds can be withheld any time a processor determines charges to be fraudulent, whether or not they are. Finally, when working with third-party payment processors, customer service is typically not great. Though there are many reasons to consider using a third-party payment processor, there are also many reasons you may wish to work directly with a payment processor and set up a merchant account.
If you’ve decided to set up a merchant account and work with a payment processor, there are several things to look for. The first is PCI compliance. There are many requirements that go into making sure transactions are secure, so when choosing a payment processor, a big thing to look for is whether the processor you are working with is going to help you stay PCI compliant. In addition, you may wish to determine if the processor charges additional fees for their PCI compliance services.
The next factor may be compatibility. Does the payment processor you are looking at help you stay compatible with other software and tools for small business? It is important to consider whether a payment processor will integrate with the software you are using and may use in the future.
Finally, when considering your payment processor, you may want to determine if your processor provides fraud protection. Look into options that take efforts to increase security and protect businesses and consumers. At Moolah, while providing credit card processing for small businesses, we work with DataGuardian and Authorize.Net to offer fraud protection and even help with PCI compliance. This not only ensures you are PCI compliant but protects you from fraud, with $100,000 breach protection. Furthermore, we do so for free. A merchant account like the one offered by Moolah is a great option for many businesses and combined with Moolah’s great customer service and helpful partnerships, you’ll be ready to succeed.