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There are many points of contact along the customer journey. The transaction is, of course, one of the most important, if not the most important.
The way you accept payments matters to both you and the customer. You need to have the right software and / or hardware to ensure that the transactions are easy and secure for both parties.
Additionally, as a business owner, you need to know that you are not spending money on substandard services or unnecessary additional fees.
Hence, this post covers everything you need to know about choosing the right credit card company. I will also present my top offers for a variety of companies of different sizes and with different requirements.
The top 10 credit card companies
- Payline data
- Dharma Merchant Services
How to choose the best credit card company for you
When choosing the right credit card company for you, there are key elements to consider:
Take a close look at the payment terms and fees. Different companies offer different pricing models, and things can get a little more complex.
First, there are exchange fees, which is the percentage the company takes on every transaction made. Full-service credit card companies also charge a monthly fee. Additional costs may also apply, e.g. B. Setup costs or minimum monthly fees.
2. Accepted Payment Methods
Nowadays you need a payment processing company that accepts more than just debit and credit cards. Digital wallets like PayPal, Google Pay or Apple Pay have become very popular.
3. Customer experience
When shopping, customers want the entire experience to be quick and easy. This is particularly important in e-commerce, where the checkout process needs to be optimized.
In fact, a long and complicated checkout process is the number one reason consumers are leaving their carts in 2020.
It is also important that the payment gateway is secure as this is obviously sensitive data. So look for items like PCI compliance and encryption.
4. User experience
Of course, you or your employees will be the ones who actually use these systems. Therefore, software, apps and / or hardware must be user-friendly.
Additionally, the technology is likely to encounter a bug or problem at some point. This means you need a credit card company that has great customer support. The reason is, the longer your payment processor goes down, the more sales you lose.
Now that you know what to look for when looking for credit card companies. Let's see how these work.
The different types of credit card companies
There are two main types of credit card companies. Here is the 411:
Credit card processors
A credit card processor is the intermediary who takes care of transactions. The processor takes the money from the customer's account and deposits it into your merchant account. It also ensures that the transaction information is correct, the customer has sufficient funds, and the payment gateway is informed of the success of the transaction.
Full service credit card processor and merchant account
Full service providers do the same thing as credit card processors, but they also provide a merchant account so you don't need an additional merchant account with a bank. These providers usually offer lower exchange fees, but they also charge a monthly fee and additional fees such as: B. the above setup fees, etc.
Depending on the size of your business and the amount of payments you are receiving, you need to calculate what type of credit card company will keep costs down overall. Look for companies that are transparent and straightforward about the way they work and who have fees.
# 1 – Square – The best for ease of use
Square is an extremely popular, low-cost credit card company for online and brick-and-mortar businesses.
The POS app is feature rich and easy to use. Square is also known for delivering an exceptional, seamless range of POS systems:
Bonus: You can get the software and Square Reader for free.
The beauty of Square really lies in its simplicity. The company offers a transparent, uncomplicated price model: 2.6% + 10 ¢ for every tip (mobile payment), dip (chip card) or swipe (magnetic stripe card) at the POS and 2.9% + 30 ¢ for e-commerce transactions.
Other benefits include active fraud prevention, end-to-end encryption, a quick login process, and live telephone support.
In essence, Square is an easy-to-use all-rounder that would be an excellent choice for a wide variety of businesses.
# 2 – PayPal Commerce Platform Review – Best for Individuals and Low Volume Sellers
You're no doubt familiar with PayPal (unless you've lived under a rock), but you may not know the trading platform that well.
The PayPal Commerce platform allows you to make payments online, in-store, on the go with an iZettle card reader, QR code, over the phone and via social shopping links:
If you're a solo preneur or a small business just starting out, the platform is a fantastic choice for you. PayPal offers a flat rate system in which you only pay for the processing services you use.
The other great thing about PayPal is that it is a very well known and trusted brand. Hence, promoting the fact that you accept PayPal payments can lead to more conversions.
Overall, the PayPal Commerce platform is a safe, easy-to-use, and affordable solution for beginners, individuals, and low-volume sellers.
# 3 – FIS – The best for small businesses
FIS (formerly Worldpay) is a global banking software provider providing payment processing solutions for large businesses, small businesses, and e-commerce businesses.
However, this company mainly focuses on small businesses serving a range of industries including grocery, retail, dining, and personal and professional services:
And this is where FIS really shines when they work directly with small businesses to offer them competitive terms and prices. You need to contact the FIS to get a quote.
FIS also stands out as an excellent provider thanks to its excellent 24/7/365 customer support. In addition, the software can be integrated into over 1000 POS systems. This is ideal if you don't want to purchase any of their smart terminals.
FIS is the choice for you if you own a small business and want a customizable solution.
# 4 – Stripe – Best for Internet Businesses
Stripe is designed for a number of online businesses including e-commerce, mobile commerce, subscription services, marketplaces, and other platforms. So, if you're primarily a web-based business, Stripe is the choice for you.
What also makes it the best choice for online businesses is that the company provides tons of pre-built integrations and pre-built checkout forms for major ecommerce platforms, subscription services, and the like:
There's a simple pricing model for the 2.9% + 30 ¢ levy with no additional monthly or setup fees.
Stripe is also one of the most technologically advanced solutions out there, aiming to improve the machine learning platform and models for smart optimization.
If you are looking for an affordable credit card processor that will easily integrate with your online business, choose Stripe.
# 5 – Payline Data – Best for High Risk Merchants
Payline Data offers personal, online and mobile payment solutions for businesses of all sizes.
This is the best option for high risk traders who are struggling to get approved for accounts elsewhere. Thanks to its partnerships with major banks and a world-class support team, Payline Data can simplify the management of high-risk accounts.
Payline Data's pricing model is a little more complex than other options because of its setup, monthly, and other additional fees. Look here:
However, you can use the payment calculator to find out exactly what your monthly costs will be.
Another benefit of using Payline data is integration with major POS, shopping cart and accounting software providers, as well as developer APIs for a customizable solution.
As long as you weigh the costs carefully, this could be the easiest and cheapest option for those looking for a risky merchant account.
# 6 – Fiserv – The best for wholesalers
This company offers a convenient, secure and reliable payment processing service, as well as end-to-end accounting services should you need them.
What makes Fiserv the best choice for high volume retailers is the fact that they can negotiate great prices and terms on Exchange Plus. Or, you can opt for flat-rate pricing through the Clover platform.
Fiserv recently partnered with the international payment processing leader First Data and is also a great option for those who do business worldwide.
Seven of the ten largest digital retailers trust Fiserv. Additionally, retailers can accept a number of payment methods popular around the world, such as Alipay.
Fiserv is the right choice for experienced, high volume and global retailers.
# 7 – BitPay – The best for accepting crypto
While BitPay isn't technically a credit card company, it's a forward-thinking payment processing company for those looking to add crypto to the mix.
BitPay, the Mark Cuban Shark Tank powerhouse, lets you accept a range of cryptocurrencies online, via email, and in-store.
The way it works is simple: the customer receives an invoice, pays in crypto at a set exchange rate, BitPay converts the payment into your local currency and you receive the payment in your account the next day:
Because of the nature of the crypto, you can accept payments from all over the world without having to worry about fraudulent purchases. In addition, BitPay promises a flat fee of 1% and no hidden fees.
So if you want to expand your reach and gain access to the crypto market, BitPay is for you.
# 8 – Adyen – The best for growing businesses
Adyen is not for newbies. His clients include companies like Uber, Virgin Hotels, Hunter, and Spotify. So it's perfect for growing companies ready to take their business to the next level.
You can benefit from transaction optimization to get the most revenue from your sales, as well as detailed reports on the platform to better understand your customers and support growth:
The fees vary depending on the payment method used. However, Adyen does provide a transparent list of all fees for each payment method on its website.
Further advantages are data-driven security, fraud prevention and access to a dedicated team of payment specialists who can advise you competently.
Overall, if your focus is on growth, Adyen is the perfect partner.
# 9 – Dharma Merchant Services – The best for fast service payments
Dharma is a low cost credit card processor that specializes in retail and fast service transactions. In other words, if you own a restaurant, bar, fast food place, or other fast food restaurant, this is a great choice for you.
The company offers a low fee of 0.15% and $ 0.07 per transaction over the exchange for store fronts and restaurants:
In addition, the virtual terminal and the app are free. The ecommerce rate is a bit higher at 0.20% + $ 0.10.
With Dharma, you also benefit from exceptional customer service. If you are new to credit card processing, there is no charge for advice and any questions you may need. They also provide 24/7 technical support.
Choose Dharma if you have a fast service business and need assistance along the way.
# 10 – Fattmerchant – The best for professional services
Fattmerchant offers a range of intelligent payment processing solutions but is very popular with professional service providers.
The reason for this is that the platform has the ability to send invoices and retrieve recurring payments quickly and easily. There is also the option to create payment links and even buttons to take payments for subscription services.
The platform has functions that accelerate your business processes through automation, e.g. automated payment reminders:
Fattmerchant offers a different pricing model than many other credit card companies. There's a flat subscription fee starting at $ 99, but a 0% exchange surcharge and no annoying additional fees.
In essence, Fattmerchant's software is a fantastic choice for a number of businesses, but especially businesses that provide professional services or make recurring payments.
Of course, there are several criteria to consider when choosing a credit card company. Often times it depends on the nature of your business and the size of your payments.
In addition, some options are better for smaller businesses or beginners, while others offer more advanced solutions for more experienced, higher-volume businesses.
Most of all, you want a company that offers visibility, security, strong customer support, great software and hardware, and the right pricing model for your needs.
Now it is up to you to further explore these top providers and make the right choice.