Ecommerce Credit Card Processing: Choosing the Right Processor by Avoiding Pitfalls
After reading a whole lot about credit card processing and processors youâ€™ve
decided to choose one ecommerce credit card processing company out of hundreds.
Have you made the right choice, though? How would you know? The one thing you
should know, is that ecommerce credit card processing is an inevitable part
of an ecommerce business. The selection process of an ecommerce credit card
processing service provider has to be carefully controlled and the selection
itself must be cautiously made.
Many things have to be taken into account.
â€™Ecommerce credit card processing includes many expenses and the
choice pretty much depends on these,â€™ might say a typical ecommerce
Not at all! But now that you mentioned fees let us just delve a little here.
Most (about 90%) of ecommerce credit card processing service providers never
show you ALL the fees and expenses that youâ€™ll have to undergo using ecommerce
credit card processing. Donâ€™t be led into â€™trapsâ€™ that have
â€™NO HIDDEN FEESâ€™ labels.
â€™What are you talking about!? â€™No hidden feesâ€™ means
â€™No hidden feesâ€™, right?â€™
Wrongâ€™ Yes â€™ W.R.O.N.G! They are quite right from their point of
view. BUT, from your position they are completely wrong. Ecommerce credit card
processing isnâ€™t just your online business and the bank; itâ€™s also
the gateway and the government (typically, but the chain might contain far more
links than you may think). The ecommerce credit card processing service wonâ€™t
charge you commissionâ€™ â€™but the gateway will. The ecommerce credit
card processing service wonâ€™t charge you taxesâ€™ â€™but their
To avoid this pitfall you shall have to read ALL the contract of the ecommerce
credit card processing service. And when we say ALL we mean ALL; everything
â€™ the foot-notes, N.B.â€™s and fine prints. Do not sign anything before
youâ€™ve read it.
Another common pitfall and an important thing not to overlook are chargeback
fees. Chargeback fees are sort of fines that the bank imposes on ecommerce merchants
because of their clients not being satisfied by the product or service the ecommerce
merchant had provided. Chargeback conditions, policies, and fees vary from one
credit card company to another. Again, you shall have to read the whole contract.
So, donâ€™t forget to add all the â€™hidden feesâ€™ to the service
fees when choosing an ecommerce credit card processing service provider. Evaluate
all your expenses in different business situations, harsh as they may seem.
Your business incomes and profits will depend on you making the right choice
when selecting from the many dozens of ecommerce credit card processing companies