Since recently, the use of credit cards in daily transactions has become common. One of the best decisions a small business can make is to accept them. Unfortunately, it isn’t as easy as it may sound. For it to happen, other businesses are hoping to make money out of it whether it be issuing banks or credit card processors. This does not automatically mean that the cheapest option is always the one you should go for. There are other factors to consider which are equally as important. Before you put your name on that dotted line, you might want to consider:
1. Flexibility and leverage of the contract
Rather than just the convenience of it, a flexible contract could go a long way into saving your business money. Some things could happen including going broke, a change in regulations or even any other thing that could cause you to want to change your processor.
For a small business, a month-to-month contract renewal option would be suitable if there is no free trial option, at least, until you are sure that you can settle. Even after you are sure, you may want an option that allows you to manually renew contracts after 2 or 3 years rather than auto-renewal.
Also, you need to find out about the cancellation or early termination policy. Some providers usually have a non-cancellable clause within the contract. This could mean additional fees when you want to terminate your transactions.
2. Leasing and return policy of POS system
It is usually easier to choose to buy POS systems, that way you do not have to worry about returning them after use. In case you are unable to, you need to find out about who you are leasing from and the length of the lease. You could lock yourself into paying long after you no longer need the POS system.
3. Hardware and software that matches your particular needs
You need equipment that will serve your purpose to your satisfaction because after all, you are paying for it. Choose between wired or wireless systems, whichever works best for you. Consider if you can upgrade to avoid being stuck with obsolete technology.
You want software that can process your clients’ credit cards and a terminal that processes contactless payments for instance, then see if there is a provision for that before signing.
4. Customer support
Being able to get the help you need whenever you need it is a key factor to consider. Get a clear understanding of who will provide support and how they can be contacted. Ask the necessary questions and make sure you pick a workable support system for your business.
5. Security and reliability of system
You will be processing many credit cards at a time. This means that if the system malfunctions, you stand to lose a lot of revenue. It is important to know how potential providers handle outages and the impact it will have on your business.
Additionally, find out how they help to secure your data. A credit card data breach can devastate any business. Also, find out how they can proof your payment solution to adapt to the future.