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Credit card processing is particularly known as merchant services, but it is extremely challenging to understand. The endless payment pricing rates, different hardware categories, and the different choices available make some things challenging. Of course, getting the suitable credit card processing rates is generally the top of things, but you can consider different factors when choosing a suitable credit card processor.
When we consider small businesses, these are the base of our economy, and the small businesses must get reliable facts for the payment processing. Moreover, it helps them to focus on their customers entirely. Here is a quick guide that provides insights regarding the quick tips for small business payment processing.
Customer service involved in payment processing
Different problems can arise, and sometimes those situations are extremely simple. Those include forgetting passwords or a connection issue that arises in between. Occasionally, a few condemn hardware problems or raise red flags due to possible fraud. When things are not in order, you need an efficient customer service team that is extremely reliable and friendly throughout the overall process.
When considering the credit card processor, you need to look for the reviews and testimonials and check how you can get in relation with the customer service team. You need to test them out, but make sure that the customer service is a primary reason that makes merchants avoid considering their current credit card processor. The suitable customer service in payment makes a complete world of difference.
Rates involved in Credit Card Processing
The cost involved with online credit card processing is among the most challenging parts involved of any payment. Among them, the biggest issue is that there is not any reliable pricing method used across the industry. So, it is important to compare the entire pricing with effective rates. An “effective rate” is calculated as an average percentage over the transaction charged for processing a credit card. Further, the involvement of effective credit card processing rate includes all the fees, including the transaction, monthly rates, flat rates, etc. Many people think that the percentage rates are the ones that need to be considered, but that is far from the truth actually. The basic formula to calculate an effective rate will be –
Total fees/ Total gross sales volume = Effective Rate
One-time promotions are among the common things involved in credit card processing. However, if you consider a one-time promotion involved in the online credit card payment processing, start with calculating the cost after the promotion.
Chargeback Involvement in Payment Processing
Simply, a chargeback is considered a refund initiated by a credit cardholder, and typically, the merchant service provider issues a chargeback with their point of sale terminal. In a chargeback, the customers do it with their banks. Most frequently, the merchants are not even aware of what is happening. Here is how it works –
- A cardholder considers the charge on their credit cards to be invalid.
- The cardholder gets in contact with their banks and makes a request for a chargeback.
- The banks take the initiative to charge a cardholder credit card.
- The initials purchases amount with the chargeback fee is taken from the merchant’s bank account.
The credit card processing industry involves an extremely complex pricing of any industry. However, to make it more challenging, the industry is so competitive that maximum processors do not try to make it transparent and even try to misguide the actual price involvement. The complex thing is that the payment processors include challenging monthly statements with so many line items that it is extremely difficult to determine what you are paying.
