How Do I Choose a Credit Card Processing Company? Expert Tips and Advice [2023]

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By Paul Martinez

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Credit cards are widely accepted around the world and are one of the most convenient ways to make a payment nowadays. However, while this might be the case, they also come with fees and high-interest rates. So, if you want to accept credit cards, you need to question yourself: how do I choose a credit card processing company?

How Do I Choose a Credit Card Processing Company? Factors to Consider for Selecting the Right Payment Processor

Choosing the right credit card processor can be confusing. There are dozens of companies offering services such as merchant accounts, fraud protection, and customer service. It may be helpful to also read this article, which is our guide to credit card processing before making any decisions.

The good news is that there are some things you should consider before signing up with a new provider – and we’re here to talk you through them all.

So, to find out how to choose a credit card processing company, read on!

What Is A Credit Card Processing Company?

A credit card processing company provides merchants with tools for accepting credit cards in their stores or online.

A credit card processing company may provide a merchant account, which allows them to charge customers’ credit cards on behalf of the merchant.

This means that the credit card processing company will handle all transactions made by the merchant.

The credit card processing company will then send the money collected from the sale back to the merchant. In return, the merchant pays a fee to the credit card processing company.

If you decide to use a third-party payment processor, make sure it has an excellent reputation. You can find out if a company is reputable by reading reviews on sites like Google, Yelp, and Angie’s List.

You can also ask your peers about the company. Ask other business owners how satisfied they were with their experience using the credit card processing company and what kind of support they received.

How Do I Choose A Credit Card Processing Company?

Credit Card Processing: Simplifying Transactions and Secure Payments

When looking at different providers, here are some factors to consider:

Transaction Fees

Most processors charge between 3% and 5% per transaction. Some charge less than 2%. It’s important to know what your costs will be upfront so you don’t get surprised later on. There are also ways to offset credit card fees, which you should also be aware of. 

There are some powerful merchant solutions out there that are combating inflation and revoutionizing the way payments are processed.

One more thing, if you do not qualify for processing the realm of Stripe or Square and have a more unique business that does not fit those bigger companies, there is processing available for MOST businesses. If you do have to go that route, also understand that the fees are negotiable.  

Unique Credit Card Programs

Many providers offer reward programs for using their services. Check out each company’s website to see if they have any special offers. You may even find free trials available. 

One of the things you will want to consider depending on the type of business you are in is which companies have the capacity to get you processing now, but also grow with you as you grow. Avoid the generic “Mid Getters” that just want to profit off of you. Choose a company that can provide you the best overall solutions based on a five year plan of where you want to be. 

Customer Service

Make sure you feel comfortable talking to someone in case you need help. Ask about how long it takes to resolve issues or questions. Also, ask how often they respond to emails.

Security

Look at the security measures used by the company. Does the company use SSL encryption to protect sensitive information? Is the site PCI compliant? These are all factors that affect your online transactions.

Technology

What type of technology does the company use? Are they PCI compliant? Will they support mobile payments?

Business Continuity Plan (BEP)

This is an insurance policy that protects against downtime due to disasters. Find out if the company has one and what it covers.

Credit Card Compatibility

Some companies only allow certain types of cards while others accept most major brands. Know what options are available before signing up.

Terms & Conditions

Read through these carefully. Some companies require additional fees or terms when you sign up. Be aware of any hidden charges.

Acceptance Rates

Find out if the company accepts your business. Some companies specialize in specific industries while others accept almost every industry.

Support

Find out if the provider has phone support or live chat. Also, check if they offer email support or 24/7 access via social media.

Reputation

Find out what other businesses say about the company. Do they have positive reviews? Is the company well known within the industry?

Pricing And Payment Plan

Find out if there is a setup fee or monthly service fee. Compare pricing among different providers. Some companies offer discounts for large volume purchases.

Taxes

Find out if taxes, including VAT, are included in the price.

Fraud Protection

Find out if fraud protection is offered. Some companies offer free fraud protection services. It is important that your online payment method is safe and secure. 

What Are Some Of The Best Credit Card Processing Companies?

Top Credit Card Companies: Overview and Comparison of Leading Card Providers

The following list includes some of the top credit card processors:

Authorize.net

This is one of the oldest and largest providers of credit card processing solutions. They offer all-inclusive plans at competitive rates. Their technology is trusted by over 200,000 merchants around the world.

PayPal

The online payment platform offers simple, secure, and affordable ways to send and receive money worldwide. It also offers an easy way to collect payments from your customers.

Stripe

This is another great option for those who want to start accepting payments right away.

It is very user-friendly and offers a variety of features including subscription management, recurring payments, direct deposits, and more.

Square

This is a popular option for small businesses because it makes selling physical products easier than ever before.

With Square, you simply download their app onto your smartphone and accept credit cards through that. You can even add custom designs to your receipts!

Braintree

This provider specializes in PCI compliance and has a wide range of options available for both new and existing customers. They offer everything from basic transaction processing to full eCommerce solutions.

Authorize.net

  • Secure Payment Gateway

  • Versatile Payment Options

  • Recurring Billing and Subscription Management

PayPal

  • Secure Online Transactions

  • Convenient Payment Options

  • Wide Merchant Acceptance

Stripe

  • Developer-Friendly Integration

  • Global Payment Acceptance

  • Real-Time Analytics and Insights

Square

  • All-in-One Business Solutions

  • Versatile Payment Options

  • Real-Time Analytics and Reporting

Braintree

  • Seamless Payment Integration

  • Advanced Fraud Protection

  • Subscription and Recurring Billing

Final Thoughts

There are many factors to consider when choosing a credit card processor. 

However, the most important thing to remember is that every merchant needs to find a solution that works well with his or her business model. If you want to dig in and research more we have a solid processing resource library with super helpful articles. 

There are many options available today, so finding the perfect fit shouldn’t be too difficult – so long as you make sure to take into account all the tips that we have shared above.

Thank you for reading, we hope that this guide has been helpful.

Frequently Asked Questions

What Factors Should I Consider When Choosing a Credit Card Processing Company?

Consider factors such as transaction fees, processing rates, contract terms, customer support, security features, ease of integration, and compatibility with your business’s sales volume and industry.

What Factors Should I Consider When Choosing a Credit Card Processing Company?

Yes, credit card processing companies can be divided into traditional merchant account providers, payment service providers (PSPs), and payment gateways. Each type has its pros and cons, depending on your business needs.

How Do Transaction Fees Vary Among Credit Card Processing Companies?

Transaction fees can vary based on the company’s pricing model (e.g., flat-rate, interchange-plus), the type of transaction (swiped, keyed-in, online), and the types of cards accepted (credit, debit, rewards cards).