With so many payment processors out there, how do you decide which one you should choose for your business? A new study from NerdWallet suggests both brick and mortar, as well as online small businesses, consider a number of factors before picking a provider. In order to narrow it down to what should work for you and your customers, we put together thee helpful tips:
1. Determine your average transaction amount and how much you make a month
Your best option is largely determined by how many credit card transactions you do and the monetary value of those transactions. For example, purchases that come in below $17 are great for PayPal Here or Square. Another convenient option is Breadcrumb by Groupon, which are ideal for small businesses that often have transactions over $400 or the average transaction amount comes in above $26.
2. Decide if you need to accept payments on the go
If accepting payments from your smartphone or tablet would make life easier for you and your customers, there are other options available for you. Companies like Stripe and Square specialize in this payment type and allow you to accept payments the following day. This type of processor is ideal for out-of-office industries like HVAC and industrial cleaning companies, as well as food trucks.
3. Always ask if they charge extra fees for certain types of credit cards
Keep in mind that certain processors, like Breadcrumb, charge more for American Express than other providers. Always ask if there are extra fees for different types of credit cards.
Have any payment processors you’d recommend? Weigh in below.