8 Credit Card Processing Tips for Success

Finding the right payment processing provider is a bit like preparing for a Black Friday sale. It takes due diligence and the right knowledge to look past flashy offers. A great provider doesn’t just provide services; they help determine the best ways to streamline payments and grow your business. It’s important for any business to stay on top of the latest credit card processing tips. 

Why is credit card processing important? 

Credit card processing is a crucial aspect of running a successful business. It’s essential to understand the best practices and strategies for processing payments efficiently, securely, and cost-effectively. Whether you’re a seasoned entrepreneur or just starting out, it’s important to know how to streamline your payment processing. Knowing how to streamline your payment processing will ensure a smooth experience for both you and your customers.  

8 Credit card processing tips to change the future of your business 

To help you create the best payment process for your business, we’ve identified eight credit card tips that are sure to help you make more sales.

Weigh convenience against cost 

The first of the many credit card processing tips to write home about is weighing convenience against cost. For example, all-in-one services like Quickbooks seem great, but they come with a price tag. Quickbooks is designed to work only with other Inuit software, and Intuit’s merchant services charge premium rates.  

Inuit also expects users to pay tiered rates for their services and doesn’t offer interchange plus pricing. Many card processors offer integrated plugins for Quickbooks but have a varied success rate and may require extra steps. If you’re considering using Intuit/Quickbooks software to process payments, ask yourself if convenience is worth the cost. You wouldn’t be alone, as 18% of small businesses don’t use accounting software. 

Look for competitive interchange rates 

It used to be hard to get competitive interchange pass-through processing rates unless they had a high sales volume. Luckily, times have changed.  

Look around carefully for competitive interchange rates as you shop for a processor. You can even get free, instant credit card processing quotes to determine your own eligibility. If your business makes physical payments where you accept cards in-person, the average interchange rate is around 1.71%. If you’re an eCommerce business, your average interchange rate will be about 1.91%

Follow PCI DSS guidelines 

PCI DSS (Payment Card Industry Data Security Standard) are guidelines set by credit card companies. Because businesses are liable for losses of cardholder data, PCI DSS guidelines help merchants safeguard customers’ banking information. Lack of PCI compliance can result in huge fines if the information is leaked or stolen.  

Know your PCI standards and make sure both you and your processor remain compliant. Following PCI DSS guidelines isn’t just one of the credit card processing tips to follow, it’s necessary for all merchants. Typically, PCI DSS compliance costs small businesses $300 per year, while large businesses may spend up to $70,000 or more. 

Don’t confuse “low rate” With “best deal” 

A low rate doesn’t always mean the best deal for your business. Low rates and interchange pass-through prices are great, but that’s only part of the best processing solution. Get a credit card processor that can help your business get and keep low interchange charges with interchange optimization. The feature alone will save you in the long-term and is well worth a small markup. 

Use knowledgeable sales representatives  

A good sales representative should be able to help set up your merchant account with everything needed. That includes the right sales volume, ticket declarations, and lowest interchange rates. Many credit card processors only teach sales representatives the bare minimum about merchant accounts, which results in serious errors. Look for Independent Sales Organizations (ISO) with knowledgeable sales teams and avoid working with ignorant sales representatives.  

Be prepared for chargebacks 

Every business should have a thorough chargeback prevention plan in place to maintain an acceptable level of chargeback ratio. Having a high chargeback ratio (1% or more) can get a merchant account canceled and funds withheld. Chargebacks can be issued for up to six months, so it’s important to keep previous order information handy as evidence. 

Keep up with interchange updates 

Visa, MasterCard, and Discover have interchange updates twice each calendar year. These updates can include adjustments to rates, fees, and guidelines. It’s important not to assume that interchange “updates” means higher fees and tightened guidelines. Instead, keep up with any changes in case they offer better options for your business.  

Understand your statements 

Statements can be confusing, but it’s important to understand them so you can evaluate your processor’s rates and fees. Processors also often post important changes on the first page of your processing statement. If you’re not sure how to read your statements, contact your sales representative for assistance. 

Stay up-to-date with credit card processing tips 

PAYARC provides payment processing solutions to all types and sizes of merchants. We understand the challenges of managing a business and give our merchants the latest technology and payment options. This helps them so they can focus on what’s important — growing their businesses. Our payment processing solution offers the tools needed to accept payments online and lower the risk of fraud.  

Contact us today to get started on growing your business!