In our past articles, we’ve discussed the importance of accepting credit card payments for a business. Credit card payments make your business accessible to a wider range of market and provide your customers with shopping convenience. As a business owner, you may already be considering this option to enhance your services.

One important aspect about online payments is choosing your business credit card processor. What particular features should you look for in your credit card processor and how can you use it more effectively?

First thing you would want to check on are the costs. How much will you be required to pay? A reasonable fee that credit companies often require would be at least 1.65 percent to 2 percent from your total credit card transactions. Although some credit card processors may offer cheaper rates, some may even go below 1%, these incredibly low rates often come with a catch.

You may be asked to pay additional fees to make up for the low rates or you may be surprised to find that the cheap rates are only temporary. To be sure, always shop around for rates from different companies first before settling on one. Read the entire contract terms and conditions to see if there are “hidden cost” within the deal offered.

Don’t forget to inquire about the lag time of your credit card processor. The lag time refers to the length of time it will before your receive your customer’s payment in your account. Ideally, a lag time of 1 up to 5 days is sufficient for the operation of your business.

The equipment used in processing credit card payments is another important factor to consider. It is wise to shop around for the prices first before making your purchase. Different providers sell this equipment at different prices. As of now, most credit card processing equipment are priced at around $300 to $800 or more depending on the seller. Take note that you may need to acquire a separate phone line for your processor.

Wireless credit card processors are now introduced in the market but these are usually more expensive than the traditional units. If you’re in a business where mobility is a necessity, then wireless processors would be a great convenience. Nevertheless, if you have a permanent shop, a standard credit card processor would be a more practical choice.

Don’t forget to inquire about the lag time of your credit card processor. The lag time refers to the length of time it will before your receive your customer’s payment in your account. Of course, more than anything else, the security features of your credit card processor should also be your concern. Make sure that it has a “password protect” option and modern security features.

Study all the functions of a particular device before taking your pick. See to it that you are fully aware of how to use the device correctly and the precautions you should take in accepting credit card payments from your customers.