How to Choose the Best Payment Processor for Your Retail Business

A very challenging part of running an entrepreneurial store is getting paid. This process can cause you headaches, which usually include how to get the best payment processer to accept debit and credit cards.

There are a lot of payment processors to choose from and the technology is always changing. Some of the most popular ones are Moneris, Square, TD Merchant Services, Payfirma, and PayPal. Most businesses were using chip cards comfortably but the system is evolving quickly and people are starting to opt for tap payments.

Business owners are usually complaining about unexpected charges and fees. Another common complaint is that the contracts of payment processor companies are not transparent. This was why a CoC (Code of Conduct) was released in 2010 addressing debit and credit card companies. This code has really helped in cleaning the industry up, but as an independent pharmacist, you need to be diligent and careful when you want to choose a payment processor.

Here are some tips for retailers and startups to consider when going for a payment processor:

  • Read the fine print

There are some contract or service documents we normally skip through such as Apple iTunes or cell phone; however, it is advisable for you as a retailer to read the code of conduct guiding the debit and credit card industry carefully.

Learn the code and know it. It is a really important document even though it’s completely voluntary. Before you opt for a payment processor, read the code and after you’ve reached an arrangement, go through the contract very thoroughly.

  • Know the players

The payment-processing companies out there are too many and each one has its own conditions and services. There are also niche players that tend to some categories of companies. As an independent pharmacist, it is important to do your research before starting to communicate with one. It is advisable you go for the established, larger players.

It is also important to check with the associations you belong so as to know if you can get lower rates as well. Also, if anything goes wrong, you won’t be entirely alone as there will be support.

  • Don’t lease or buy, rent the equipment

The technology payment processors use is constantly changing. If you purchase the equipment, you’ll need to replace it in a couple of years. Also, the equipment may often break down so retailers will likely get faster service if they rented the equipment rather than own it.

When leasing equipments out, payment-processing companies usually tie down small businesses with long-term contracts. This means if you’re unhappy, you won’t be flexible enough to get out.

  • Follow the technology

It is possible you are comfortable with your current system and you don’t want to switch to any latest payment technology or Apple Pay, but your customers may prefer these other options and you may need to make the investment. Your urgency level has to be driven by your customers’ needs.

It’s really about the preference of your customers. However, if you’ll be investing in a company’s network and hardware, you should opt for one that gets better progressively and also offer you many choices so as to satisfy your customers and you won’t need to change the system often.

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