With the trends of digital adoption witnessed after the Covid 19 pandemic, businesses are rapidly considering accepting credit card payments to expand their customer base. Accepting credit card payments allows businesses to expand their eCommerce services and enhance their revenue.
However, to accept credit card payment, it is essential to procure the services of a credit card processing company. Given that there are hundreds of available choices in today’s market offering their own range of perks and benefits, it can be a headache for business owners to review the options and select the right one for their business. Some companies impose transaction fees on every transaction, whereas other companies charge flat fees on a limited number of transactions. Each option has its own pros and cons.
In this article, we will review the most popular options and provide an overview of the best choices for your business.
What is the best credit card processing for small businesses?
Deciding to become a credit card merchant is a significant step for a small business. Whether you’re thinking about offering credit card payments from the start or thinking about expanding your existing business prospects, offering credit card payments is a significant step for your business. It is natural to ask the question, “what is the best credit card processing for a small business.”
To simplify your decision, it is a great idea to explore the key variables in your preferred credit card processing company. Here are some things to keep in mind while deciding on a credit card processing company for your business.
Point-of-Sale (POS) Integrations
Most modern businesses require effective POS terminals to facilitate digital payments. These terminals come with integrated payment processing abilities to allow customers to pay through different payment options.
POS hardware and software simplify the sales process by providing you with an in-depth insight into customer spending and upcoming payments. Accurate financial projects can help you plan your business prospects and devise better strategies.
Some of the most common POS options include:
- Barcode Payments
- QR Payments
- Credit/Debit Card
- NFC Payments
- Mobile Wallet Payments
It is essential for your business to provide support for these payment methods to ensure that customers are able to make payments in a convenient manner. Your preferred credit card processing company should also provide POS support to help your business continue with physical sales as well.
Transaction Cost Management
Transaction costs as a natural element of eCommerce operations. Every business strives to minimize transaction costs to maximize profile and improve efficiency. Understanding the transaction costs offered by your credit card processing company is essential before you make the final decision.
Here are some of the most popular forms of transaction costs charged by companies.
Monthly Subscription Fees
Monthly subscription packages allow companies to have access to payment processing services under a fixed monthly package. These fees usually cover a limited number of transactions with fees associated with batch processing and handling.
Flat Transaction Fees
Flat transaction fees are imposed as a fixed cost of handling every transaction. Usually minuscule, this fee is charged upon every single transaction regardless of the transaction volume of the company.
Percentage Based Fees
Percentage-based fees are charged as a percentage of the transaction volume. This fee model is great for companies that are looking to minimize their initial startup cost but turn out to be costlier in the long haul for companies with higher transaction volumes.
Hybrid Transaction Fees
Hybrid transaction fees often come in the form of a combination of flat and percentage-based fees. The wide majority of credit card processing companies use a hybrid model to charge transaction fees. Hybrid fees often come in the form of different payment tiers based on total transaction volume and selected packages. Transaction cost can be a significant factor in deciding your credit card processing partner. Especially for companies running on thin profit margins, it is essential to carefully consider the available options before making a final decision
If you’re interested in knowing more the role of online payments in digital commerce, check out eCommerce and Online Payment Systems.
Factors In Deciding The Best Credit Card Processing For Small Business
As you explore the different credit card processing options for your small business, you might be wondering about the elements that you need to consider while making your decision. Even though the specific criteria will vary from business to business, here are some factors that you should keep in mind while looking for a credit card processing company.
Multiple Payment Processing Options
Having multiple payment processing options improves customer engagement by offering a diversity of options to customers. Whether your customers prefer to run the transaction through card readers, barcodes, NFC, or other forms of payment, you should be able to cater to their requirements. Going with a payment provider that offers multiple payment options is a great way to cover your customer base.
Clear Fee Structure
One of the most important elements when it comes to credit card processing is transparent fees. You want to have a clear understanding of the costs and fees related to the transaction before you partner with a payment processing service. At any given moment, it is important to stay up-to-date with your processing costs and timeline.
With customers preferring smartphone-based transactions, it is important to shift to a customer-friendly interface to simplify transactions. Whether it is your employees that are handling the software or your customers, providing them with a simple interface can help them manage the payments smoothly.
Integrate the Best Option With Oceanpayment
Oceanpayment is the perfect partner to support your business with credit card processing and digital integrations. We’ve worked with hundreds of SMEs to help them expand their revenue and reach wider consumer segments. Our experienced team will work with you to ensure that you’re able to have the best credit card processing option.
To learn more about Oceanpayment and our digital services, check out more at https://www.oceanpayment.com/.