When it comes to choosing the right card payment provider, it’s not something to rush. Take your time and gather a few quotes.
Selecting the right card payment provider requires thorough consideration, so don’t rush the decision. Take your time to gather quotes and fully understand what you’re paying for to avoid any unexpected surprises once you’ve signed the contract.
Here’s a comprehensive breakdown of the key factors you should pay attention to when assessing your payment bill:
1. Understanding the Payment Bill: Different Card Processing Rates
Make sure you know how much it costs to accept each type of card, including debit, credit, corporate, overseas cards, and other schemes like AMEX which have higher fees.
If you have a souvenir shop, and the majority of your customers are using overseas cards, it’s important to make sure this fee is affordable, or it will quickly amount to higher costs for your business. Some businesses also choose not to accept certain cards like AMEX if the fees are higher than Mastercard and Visa.
2. Decoding Terminal Charges in Your Payment Bill
This is a monthly fee for renting the card terminal. Check that the terminal suits your business needs, including its make, model, and more importantly, how it connects.
3. PCI DSS Compliance Fee:
This fee is a compliance fee to show that you’re keeping your customers’ card details safe. It can range from zero to £4.99 per month. Remember, not being compliant can lead to hefty fines.
4. Cardholder Not Present (CNP) Fees:
If you take payments without seeing the customer face-to-face, there may be an extra charge. If you do this a lot, think about getting a Virtual Terminal as you have a higher risk of chargebacks if you accept CNP payments with a card machine.
5. Refund Processing Charge:
Some providers charge a fixed fee (usually between 20-50 pence) for processing refunds, or they might apply rates based on the card type, or both.
6. Chargebacks:
This happens when a customer disputes a transaction, usually with credit cards. It can cost you £30 plus the value of the disputed items. While chargebacks are less common with debit cards, they can still happen.
7. Minimum Monthly Service Charge (MMSC):
This is the minimum amount you have to pay if you’re not processing any payments. So, if your business is quiet for a month, you’ll still have to cover the terminal rental plus the MMSC.
8. Authorisation Fee:
This is a fee per transaction charged by the processor. If you’re a business with lots of small transactions, like a convenience store or café, a higher authorisation fee can add up to higher costs. These fees can vary from zero to 6 pence.
9. Settlement Method:
Check whether your bill is calculated gross or net. With the gross settlement, you get one invoice for the month’s charges, while with net settlement, the charges are deducted before the money is deposited from your card sales.