Whether you’re a merchant who either runs an online or in-person business, you would know there are so many different kinds of credit card processors to choose from. Down below is a review on the different kinds of services.
Of course, sometimes it may be hard to find the best processor for you. Depending on what kind of business you run, you will have to do a little research to find one that best fits you.
Luckily, this review has some well known credit card processor and merchant service providers that will show you a general rundown about two different kinds of processors, direct and third party.
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Table of Contents
About Credit Card Processing
Before deciding on just any merchant service provider, merchants should always consider all the various factors and features that each kind has to offer.
Merchant Service Providers (MSPs) manages merchant agreements and services.
They also handle all the application process including rates and fees and preparing the contract.
To sustain a more successful business, MSPs always have services such as:
- Payment Gateways
- Virtual terminals
- Credit Card Terminals
- POS Systems
Additionally, MSP will support you on any issues relating to your account. However, if something happens to go wrong with a transaction, you will have to contact the payment processor for help.
Payment processors are in charge of securing the process of your payments.
An MSP can also be a direct processor, meaning that both merchant accounts and processing services are offered.
MSPs usually set up and maintain merchant accounts, but they will use a third-part company to handle the processing side of things.
Credit Card brands organize the processing networks, as well as dictating the interchange rates and defining usage rules. There are several brands in the U.S. like Visa and Mastercard.
Banks issue credit cards to extend credit to customers whenever they make transactions with their cards.
However, merchants barely interact with issuing banks.
A Payment Gateway links an online payment to the bank that processes it. They are not the same as merchant accounts.
Internet merchant accounts combine gateway services and payment processors such as PayPal.
Mobile processors such as Paypal or Square Cash are payment service providers that does an indirect agreement with a card processor.
They use payment facilitators and third party processors to do this.
Using a PSP benefits growing businesses that tend to have a low volume transaction. PSPs can also waive monthly fees sometimes.
PSPs are the most ideal for merchants who process transactions once in a while.
Factors To Consider
Tier pricing is the rate structure for credit card processing services. This allows the processor group to interchange fees into different tiers.
There are two types of rate structures:
- Tiered Pricing
- Interchange-Plus Pricing
However, interchange-plus pricing is more encouraged since this structure breaks down the charges and shows the markup the processor is charging you.
There are other fees to consider with interchange-plus pricing as well, so be sure to ask your credit card service processor.
Normally, the contract that a service provider gives is about three years. These terms often include automatic renewal and early termination fees (ETF).
However, now more providers are offering month-to-month agreement with no ETF.
Merchant service providers is available for live customer service support depending on the merchant.
Best Merchant Services Providers/CC Processors
These are considered some of the most known Merchant Services Providers/Credit Card Processors.
Chase Merchant Services
Chase is recommended to those who have a large business with high transaction volumes. They are considered one of the top direct processors.
Intuit QuickBooks Payments
Intuit QuickBooks Payments is best known for its seamless integration which means it should install smoothly without any major problems.
Dharma Merchant Services
Dharma is considered one of the most ethical card processing companies. They offer competitive rates and caters to mid to large size businesses.
Square is best for those who want to start their own businesses and wants same day deposit.
PayPal is such a widely known service provider, but they are considered a low volume processor. You can conduct all transactions online or through their mobile app.
Google Pay is a payment processor that is most compatible with mobile devices, functioning as a digital wallet to make purchases and transactions more convenient.
Payline Data offers standardized pricing packages and you can find one that fits your business.
Helcim are generous and considerate enough to configure terminals for you and negotiate pricing plans to ensure that you get the most out of your business.
Stripe ranks pretty high when it comes to flexibility. They benefit both small and large merchants and continuously empowers businesses of all kinds.
After reading all the options that credit card processors have to offer, you can now better figure out which kind works best for the type of business you want to run.
There is not one single, best credit card processor, but there are some that can process more businesses over specific ones.
For associated banks that issue credit card processing, be sure to check out our list of Best Bank Promotions!
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