Why Entrepreneurs Should Be Careful When Choosing Credit Card Processors

We get it: running a business is hard. With so many things to look after—employees, market trends, expenditures, etc.—some things are bound to fall by the wayside and receive less attention by default. One thing that absolutely cannot be overlooked is credit card processing, it's your second largest expense behind labor and a $900b industry thriving on businesses overlooking their merchant services. Every business must thoroughly go over their processing at least once a year, and more if they’re really serious about their bottom line.

This post is from SwipeSum CEO Michael Seaman, a veteran of the credit card processing industry on a mission to give more power to merchants everywhere. Follow @michaelbseamanWe get it: running a business is hard. With so many things to look after—employees, market trends, expenditures, etc.—some things are bound to fall by the wayside and receive less attention by default. One thing that absolutely cannot be overlooked is credit card processing, it's your second largest expense behind labor and a $900b industry thriving on businesses overlooking their merchant services. Every business must thoroughly go over their processing at least once a year, and more if they’re really serious about their bottom line.The first step in evaluating your processing is, of course, choosing the best credit card processing company available for your unique business setup. The plethora of providers out there might intimidate and confuse business owners, who in turn might not give this process the consideration it deserves. However, diligent and responsible owners will take the time to ensure that the company they select meets certain criteria, and they will always look beyond the companies that seem to have the lowest rates at first glance.What are some of the details that entrepreneurs should focus on? Is the person selling you credit card processing working on commission? Hidden fees in the confusing agreement presented to you along with markups are among the most important ones on this list. The highlighted rates you're being sold only tell part of the story; in the end, you might end up paying a lot more than what you initially thought (thanks to dues and assessments, cancellation fees, etc.). For example, some companies might proudly advertise low wholesale fees but pad interchange to make up for the loss, and this is one of the major reasons why careful study of a company before committing to it is mandatory. Some companies might not divulge their rates and fees right away, and you should always look at these with suspicion. What are they trying to hide?With SwipeSum, we are a merchant advocate. You won’t get any hidden fees or misleading taglines to reel you in. We are committed to full transparency, so you don’t have to worry about expecting certain rates and/or services and getting something else. With SwipeSum, what you see is always what you get, and we promise we will get you the best deal possible.Speaking of deals, another thing to watch out for is transaction limits. This is especially important for small business owners and anyone in charge of a startup. Since they might not be fully settled yet and have a hard time predicting their sales and revenue, they should not commit to a company that forces them to generate a certain volume of sales each month.[embed]https://www.youtube.com/watch?v=MKPvKIdEGng[/embed]Of course, we all know how important privacy is, especially in 2018. It feels like we have less and less of it every day, and there are certain credit card processing companies that do not guarantee it. We don’t like that here at SwipeSum, and that’s why we never share your business’ name or your contact information when negotiating with processors on your behalf. We make sure that you’re always taken care of, and you shouldn’t expect anything less from any company on any type of business transaction.

Michael Seaman

Michael is the co-founder and CEO of Swipesum. A veteran of the payments industry, Michael and his brother Stephen have led Swipesum since its inception in 2016. In his free time, Michael likes to play with his two daughters and skateboard.

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