Ensuring Data Security: How to Pick a Credit Card Processor with Top-notch Protection
So you’ve built an amazing online business and now you’re ready to start accepting credit card payments from your customers. That’s awesome! The next step is finding the right payment processor for your needs. There are tons of options out there, from huge companies like PayPal and Stripe to smaller providers that cater to specific industries. How do you choose?
We’re here to help break down the top credit card processors so you can find one that fits your business perfectly. We’ll compare fees, security, customer service, and more. We’ll also share tips from other business owners on what they love (and don’t love!) about the processors they use. By the end of this, you’ll be able to confidently sign up for an account and start taking payments right away. Sound good? Let’s dive in!
What to Look for in the Best Credit Card Payment Processors
When choosing a credit card payment processor, there are a few must-haves to consider:
Low processing fees. Look for a processor with interchange-plus pricing, a flat rate, or low percentage fees. Some charge a percentage of each transaction, while others charge a flat monthly fee and lower per-transaction rates. Compare rates and see which model is most affordable for your business based on average transaction size and volume.
Fast funding. The faster you get paid, the better. Look for a processor that deposits funds in your account within 1 to 2 business days. Some offer same-day or next-day funding for an extra fee.
Solid security. Your customers’ financial data should be protected. Choose a processor that uses encrypted connections, fraud prevention tools, and PCI-compliant data centers.
Reliability and uptime. Look for a proven track record of over 99% uptime and reliable service. Check reviews to ensure they have a reputation for consistent uptime and performance.
Integration options. If you have an online store, you’ll want a processor that integrates easily with your shopping cart. Many integrate with platforms like WooCommerce, Shopify, and BigCommerce. Some offer custom integrations and APIs as well.
Customer service. Things can go wrong, so you’ll want a processor with 24/7 customer support via phone, email, and chat in case you run into any issues. Look for a company with a reputation for providing prompt, helpful support.
By evaluating credit card processors based on these key factors, you can find one suited to your business’s needs and budget. Choosing the right payment processor can save you money over the long run and provide the best experience for your customers.
Top 5 Credit Card Payment Processors of 2023
When it comes to accepting credit card payments, you have options. The top processors for 2023 make it easy to get set up and start taking payments right away.
Square
Square is a popular mobile option ideal for small businesses. They charge a flat rate of 2.6% + 10¢ for each tap, dip, or swipe. Square sends you the reader for free, so you can start accepting payments via their app immediately.
PayPal
Chances are, you already have a PayPal business account. Their credit card processing rates are a bit higher at 2.9% + 30¢ per transaction, but they do offer month-to-month billing and no long-term contracts. PayPal is a trusted name, so customers will feel secure paying through them.
Stripe
Stripe powers payments for companies like Lyft, Shopify, and Slack. They offer customized solutions based on your business needs with rates ranging from 2.9% + 30¢ for swiped transactions up to 3.5% + 15¢ for keyed-in payments. Stripe does have some setup fees, but no monthly minimums or long-term commitments.
Authorize.Net
A major payment gateway, Authorize.Net integrates with many POS systems and shopping carts. Their rates start at 2.9% + 30¢ per transaction for card-not-present payments and 2.5% + 10¢ for swiped payments. They do charge monthly gateway fees and require a two-year contract, so they may work better for larger businesses.
Braintree
Owned by PayPal, Braintree offers competitive rates and seamless integrations. Plans start at 2.9% + 30¢ for card-not-present payments and 2.5% + 10¢ for swiped payments. Braintree charges no monthly fees, offers month-to-month billing, and has no long-term contracts, so they can be a great fit for any business size.
Pros and Cons of the Most Popular Credit Card Processors
When choosing a credit card processor for your business, it’s important to weigh the pros and cons of the top options. Two of the most popular are Stripe and Square.
Stripe
Stripe is a popular choice for e-commerce companies. Some benefits of Stripe include:
- Seamless integration with many e-commerce platforms like Shopify, BigCommerce, and WooCommerce. This makes it easy to get up and running.
- Competitive transaction fees are around 2.9% + $0.30 per transaction.
- Robust API for custom integrations. If you have a developer on staff, they can build a custom integration to suit your needs.
- Accepts all major cards including Visa, Mastercard, American Express, Discover, JCB, and Diners Club.
However, some downsides to consider are:
- Monthly minimum fees can be $20-$30/month. This may not work well for small-volume businesses.
- Customer service can be slow to respond at times. As a large company, support wait times may be longer.
Square
Square is another very popular choice, especially for small businesses. Some pros of Square include:
- No monthly fees or minimums. You only pay transaction fees of 2.75% per swipe, dip, or tap.
- Free magstripe reader included to get started. You can later upgrade to a contactless chip reader for a small cost.
- Fast, responsive support. As a company focused on small businesses, customer service is a priority.
- Easy to use the dashboard to track sales, issue refunds, and more. Minimal technical know-how is required.
However, some potential downsides are:
- Limited ecommerce integration options compared to Stripe. Primarily focused on in-person payments.
- Slightly higher transaction fees at 2.75% per transaction. Adds up for high volume businesses.
- Less customization is possible. Square has more limited options for custom or unique setups.
In the end, you have to weigh factors like your business model, technical needs, and costs to determine the best solution for your company. With a bit of research, you can find an option to suit both your needs and your budget.
Important Features of Credit Card Processing Services
Choosing a credit card processor that offers certain key features will ensure your business’s payment transactions are secure, efficient, and cost-effective.
Reliability
You need a processor that offers consistent uptime so your customers can pay anytime without issues. Look for a reputable processor with a proven track record of reliable service and multiple data centers in case of outages. Some top-rated processors offer 99.9% uptime or higher.
Security
Make sure any processor you consider is PCI DSS compliant to securely handle sensitive customer payment data. Encrypted swipes, chips, and EMV protect against fraud. Tokenization substitutes card numbers with randomly generated tokens to add an extra layer of security.
Competitive Pricing
Pricing can vary significantly between processors. Look for transparent, straightforward pricing with competitive rates for transactions, monthly fees, equipment, and chargebacks. Interchange-plus pricing passes through wholesale rates with a fixed markup. Flat-rate pricing offers predictable per-transaction fees but may cost more. Some processors offer month-to-month contracts with no early termination fees if you want flexibility.
Robust Features
A full-featured processor should offer solutions for e-commerce, mobile, and in-person payments. Look for features like virtual terminals, POS integration, shopping cart plugins, customer management portals, reporting tools, and mobile card readers. APIs allow integration with third-party software. Some processors provide additional services like cash advances, gift cards, and loyalty programs.
Customer Service
Around-the-clock customer support is essential in case of any issues with your account or transactions. Look for US-based phone support, live chat, and a dedicated account manager. Processors that value customer service will resolve problems promptly and provide ongoing assistance to help your business succeed.
Comparing processors based on these key features will help ensure you choose a service tailored to your business’s specific needs. The right processor can save you time, money, and headaches—so you can focus on what matters: keeping your customers happy!
How to Choose the Right Credit Card Processor for Your Business
Choosing a credit card processor is an important decision for any business. The right one can streamline your operations, while the wrong choice can be a costly mistake. Here are some tips to help you find the perfect match:
Fees
Compare the types of fees charged by different processors like interchange fees, chargeback fees, and monthly/annual fees. Interchange fees are charged by card issuers like Visa and Mastercard, so you want a processor with competitive markup rates. Chargeback fees can add up quickly if you have a lot of disputed charges, so check the details. Monthly fees typically cover statement generation, customer service, and gateway access. Find a processor with fees that fit your budget and business model.
Hardware
If you need equipment like card readers or POS systems, consider processors that offer compatible hardware options. Some provide equipment for free or at a discount. Make sure any equipment is EMV-compliant to accept chip cards.
Security
Processing credit cards means handling sensitive customer data. Choose a processor that utilizes point-to-point encryption to keep information secure. They should also be PCI-compliant, meaning they follow strict data security standards.
Gateway
The gateway is the technology that processes card payments. Processors frequently partner with major gateways like Authorize.Net. Check which gateways the processor integrates with and opt for one that works with your existing systems.
Customer Service
Look for a processor that provides quality customer support to help resolve any issues. They should offer phone support as well as additional resources like knowledge bases, webinars, and user forums.
By comparing fees, hardware, security, gateways, and customer service, you can determine which credit card processor has the right mix of features and costs for your needs. The time you invest upfront will pay off through a seamless payment system and satisfied customers.
Conclusion
So there you have it, the best credit card processing services to accept customer payments with the lowest fees and best features. With so many options out there finitely be overwhelming to figure out which one is right for your business. But now you’re armed with the information to choose a processor that will save you money, keep your customers’ data secure, and make it easy for people to pay you. At the end of the day, that’s really what it’s all about – finding a solution that helps your business run as efficiently as possible so you can focus really matters to you. Hopefully, this guide has helped simplify the decision and pointed you in the direction of a credit card processor that checks all the important boxes. Here’s to growing your business and making more sales with a payment solution you can feel confident in.
