5 Credit Card Processing Mistakes and How to Avoid Them

 

At present, there are 1.27 billion credit cards across the US, with the majority of them in constant use.

Credit card payments were once for financing big-ticket purchases. But Americans now prefer to pay by card for everything, including everyday items such as groceries, dry cleaning, and takeout coffee. In short, whatever service you’re selling, there’s a good chance that your customers want to pay by card. And that any trouble with your credit card processor can often cost you big.

So what are some of the credit card processing mistakes you should avoid making? Let’s take a look!

  1. Denying Credit Card Payments

Card payment options for customers are now an essential service that all businesses should offer, no matter how small. You might think that you’ll save money by avoiding the fees associated with processing credit card payments. But in reality, it’s one of the biggest mistakes that you can make. Businesses that deny credit cards miss out on thousands of dollars worth of sales every year and this is only likely to increase in the future.

  1. Leasing Credit Card Processor Hardware

While many businesses recognize that credit card processing is a must, they make the mistake of thinking that buying the equipment outright is too much of a commitment.

Leasing deals often sound good on paper but buying the hardware always works out cheaper in the long run. Plus, leasing means that you won’t even own the machine at the end of the agreement. In contrast, if you ever need to, you can always sell the hardware to recoup some of its cost.

  1. Not Checking for Hidden Fees

Whether you’re looking for medical office credit card processing solutions or a basic system for your neighborhood store, you should always check for hidden fees. For example, some processors may charge more to process a premium or foreign-issued card. And, while early cancellation fees are typical, these fees shouldn’t exceed the cost of buying out your contract. Checking the small print for these kinds of sanctions and fees is a must when comparing different processors.

  1. Agreeing to Unachievable Volume Commitments

Many credit card processors expect their clients to process a minimum number of payments each month. Some even put a penalty clause in their agreement if the client fails to meet a minimum threshold.

If you’re a startup or a business that experiences seasonal fluctuations, you may not be able to predict how many credit card payments your business will process per month. In this case, it’s a big mistake to agree to volume commitments.

  1. Overlooking Data Security

Apart from the fees, one of your main concerns will be providing secure credit card payments. When choosing a payment processing provider, only consider those that take data storage seriously and have a record to prove it. When you consider that even Target experienced a data breach, you can never be too careful about credit card payment security.

Credit Card Processing Mistakes to Avoid

As these credit card processing mistakes show, there are many ways that businesses can slip up.

But, now you know what not to do, it should be a lot easier to find a credit card processor that works for you and your customers.

Want more helpful advice and news updates? Be sure to check out our other blog posts for all the latest tips and tricks!

Anjali

I am an author at DoTricky for the past 1 years. I like to share information and knowledge. I love expressing my thoughts through my articles. Writing is my passion. I love to write about travel, tech, health, fashion, food, education, etc. In my free time, I like to read and research. My readings and research help me to share the information through my thoughts.

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