Justin Proctor

payment processing providersAccepting credit cards at your business is an absolute necessity in today’s society and the average consumer continues to move away from cash and towards plastic. Payment processing solutions can sometimes be difficult, as well as the relationship with your payment processing provider. Although, all payment processors are different, and provide different pricing, services, and equipment, understanding some of the most common misconceptions about payment processing providers as a whole, and your role as a merchant can reduce your stress level and keep your hard earned revenue in your pocket, where it should be.

The following are 5 common misconceptions about payment processing that may have either deterred your business from accepting credit cards, and created some confusion with your payment processing provider. Let us help clear the air.



Credit and debit cards charge cost the same at accept with any payment processing solution. Fact, many companies use a tier structure in which it costs much less for customers to use a PIN with a debit card than a credit card, particularly one that offers rewards. Many processors will use a flat fee for debit rather than basis points on the transaction like it is for credit card processing. Ensure that all fees are very well explained when signing up with a payment processor. 



Only banks can provide payment processing for your business. Fact, large payment processing providers and ISO’s are often cheaper and provide better value adds to your business, especially when it comes to online solutions. Take the time to go through a few different payment processing providers and see which one best fits your business.



A “monthly minimum” means you pay that minimum each month regardless of volumes. Fact, if a monthly minimum of $25.00 is set to your account, and you only process $15.00 in fees, you will have to cover the $10.00 difference. However, if you process more than $25.00 is fees, the monthly minimum no longer applies, and that $25.00 fee is waived. This is very typical with most payment processing providers.



There is nothing I can do to prevent chargebacks – the cardholder always wins. Fact, There are numerous ways to prevent the amount of chargebacks that you receive to your business. Establishing a secure payment processing process when dealing with customers will help create good habits. Always check the name on the credit card, and when in doubt, ask for a secondary piece of ID. There is no law that says you have to accept a credit card from a customer. You have the right to refuse any business you feel may be fraudulent or if you are unsure. Also, always keeping signed receipts of the transactions for your files is a great habit to keep in case you need to fight a chargeback.



Always choose the processing company with the lowest rate. Fact, you’re better off looking at your overall business needs before you make this decision. Contracting with a payment processing provider with the lowest rates will 9 times out of 10 get you into some hot water. Service and support will not be up to par, the equipment may be out dated, and return policies or tech troubleshooting may be difficult to negotiate after the contract has been signed.


Choosing a payment processing provider can seem daunting. However, you can avoid most of the pitfalls. Use these misconceptions to help make the right decision, and ask as many questions as it takes for you to feel comfortable. Great payment processing providers will give you all the information upfront, and will help reduce the amount of questions you have.


merchant services provider

Justin Proctor

As director of sales, I run the day-to-day sales department at BNA Smart Payment. I’m responsible for recruiting, training, coaching, and retaining top sales reps and leading a customer-first sales team. I lead an awesome team of revenue-generating machines (aka salespeople) on the front lines of the sales process, move the pipeline forward, build inbound sales playbooks, and implement processes to drive revenue.
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