5 Deadly Traps to Watch Out When Choosing a Credit Card Processor for Your Website
Friday, July 10th, 2009If your website is into sales, one payment method would be thru credit cards. If you take credit cards as a mode of payment, you need a credit card processor or provider. It is imperative that your processor should be a TRUSTED provider.
Some credit card processors incorporate gimmicks and traps to cheat unknowing merchants. Merchants should be careful. They should also be knowledgeable about these schemes to protect themselves.
TRAP #1. NO HIDDEN FEES!
You will think a provider is great, generous and reliable by the statement “NO HIDDEN FEES”. Think again! These companies have their own point of view. In your case, you will see that “NO HIDDEN FEES” is an understatement. ECommerce and online credit card processing is not only a transaction running between your online store and the bank. It also has a link with the government. ECommerce’s credit card processing may not charge you for its services, but the payment gateway does. The government also taxes the provider, who in turn passes you these taxes as charge.
Since these are hidden fees, you need to clarify these with your credit card processor.
TRAP #2. SUSPICIOUSLY AND INTRUIGUINGLY LOW RATES
Some service providers quote a very low rate. Be aware that this may just be an introductory rate. This rate can be jacked up automatically by your processor.
TRAP #3 CONFUSING RATES
Quotations are different from the exact fees. You’ll think you only need to pay a certain amount. Then find out that you are charged much higher. Some quotations do not even give a rundown of all the possible payments and fees. You need to verify and double check the statement that includes all the given fees.
TRAP #4 SNEAKY CONTRACTS.
Some processors give sneaky contracts that bind you to a long term engagement and commitment. You are not allowed to discontinue their services unless the contract is done. They will charge fees when you back out. Some even automatically renew your contract without notification. You still need to inform them in writing. These things are stuff you don’t want. You should avail the services of processors who don’t require you to sign contracts.
Established companies will do their best to keep you satisfied. So you won’t wander and look for services elsewhere. Some trusted companies even offer flexible agreements, without binding you to a contract.
TRAP #5. SCAMMERS!!!
There are greedy people who take advantage of good merchants. They ask for set up fees and would leave you hanging. So always invest and work with a legitimate company. An established company is always the right choice. Do not be deceived by promotions. Check if the processor’s name is in the Better Business Bureau’s listing. Hence, you are assured that your investments are safe and secure.