Written by: Clayton Shivers

Choosing the right credit card processor for your small business is a critical decision that can significantly impact your operations and bottom line. Here are five key factors to evaluate when selecting a credit card processor:

1. Compatibility with Your Business

When selecting a credit card processor, it's crucial to ensure that the solution is tailored to your specific business needs. A one-size-fits-all approach rarely works in the diverse world of small businesses. Look for a processor that offers customizable solutions and takes the time to understand your unique requirements.

Consider the following aspects:

• Industry-specific features
• Integration with your existing systems
• Scalability to accommodate your business growth

A processor that provides a tailored solution will help streamline your operations and improve overall efficiency.

2. Customer Service Quality

The quality of customer service can make or break your experience with a credit card processor. When issues arise, you need prompt and effective support to minimize disruptions to your business.

Key factors to consider:

• Location of the call center (U.S.-based vs. outsourced)
• Availability of support (24/7 vs. limited hours)
• Multiple support channels (phone, email, live chat)

Opt for a processor that offers U.S.-based support for better communication and understanding of your business needs.

3. Cost Structure and Transparency

Understanding the cost structure of your credit card processor is vital for maintaining healthy profit margins. Look for a processor that offers transparent pricing and is committed to keeping your costs stable.

Important considerations:

• Pricing model (interchange-plus, flat-rate, or tiered)
• Additional fees (monthly, annual, PCI compliance)
• Availability of no-cost solutions like dual pricing

A processor that offers dual pricing can help you offset processing costs while providing flexibility to your customers.

4. Future-Proofing and Growth Support

Your credit card processor should be a partner in your business growth, not just a service provider. Evaluate how the processor plans to support your business as it evolves.

Look for:

• Regular updates on new payment technologies
• Affordable upgrade options
• Scalable solutions that grow with your business

Avoid processors that charge exorbitant fees for upgrades or fail to keep you informed about industry developments.

5. Comprehensive Payment Acceptance

To maximize your customer base, you need a processor that allows you to accept all major card brands and payment types without prohibitive costs.

Ensure the processor offers:

• Acceptance of all major credit card brands
• Competitive rates for premium cards (e.g., American Express)
• Support for alternative payment methods (e.g., mobile wallets, contactless payments)

By accepting a wide range of payment options, you can cater to all customer preferences and potentially increase sales.

By carefully evaluating these five key factors, you can select a credit card processor that not only meets your current needs but also supports your business growth in the long term. Remember, the right processor should be a partner in your success, providing tailored solutions, excellent support, fair pricing, and the flexibility to adapt to your evolving business requirements.