Credit cards are the lifeblood of an online store. A store needs to be able to process credit cards quickly, effectively, and with little to no errors. When everything is being processed properly, you won’t lose out on sales. When there are problems with online credit card processing, sales suffer in an online store.
Since credit card processing is so vital, here are some processing issues to avoid.
1. Slow and Faulty Software
When signing on with the credit card company, it’s important to know what software they’re running before you sign. This gives you a chance to do your research on the software and see if there have been any known problems with it.
The success of your business depends on your online credit card processing abilities. You should be able to process credit card payments quickly and effectively. If the software can’t do so or if there are problems, you will lose business. You can’t afford that.
Learn about the software being offered to you and make sure there are no obvious problems with it.
Using a good credit card processing system means you should be able to avoid most chargebacks. Chargebacks occur when a customer sees a payment on their bank statement but doesn’t know how it got there. They then go to their bank and ask them to reverse the charge. You then take on the loss for the refund.
Oftentimes, chargebacks are related to fraudulent activity. Avoid chargebacks by getting a great online credit card processing system that takes security and fraud detection seriously.
3. Exorbitant Fees
Another credit processing issue to avoid? High fees. Processing companies will take a fee per transaction for credit cards. They may also charge you other fees for their services.
Before you sign anything, be sure to look at the contract and read all of it. Know exactly what kind of fees you’ll be charged for credit card transactions, and compare those charges to other companies. Some companies’ fees will be much higher, and you don’t want to get caught up in an expensive situation.
4. Signing with a Volume Requirement
Another thing you have to watch out for in contracts with credit card processing companies is a volume requirement.
A volume requirement is where you’ve committed yourself to a certain number of transactions or dollars spent over a certain period of time. If you don’t make that number, the processing company will charge you another fee.
5. Inability to Use Other Payment Options
Credit cards are one of the main methods of payment for both online and brick-and-mortar stores. Other types of payments can include gift cards and prepaid credit cards. Your credit card processing company should be able to handle those kinds of methods of payment as well. Before you sign a contract, determine if they can process these cards as well.
You want to be able to make spending money as easy as possible for your customers. That means your store should have no problems accepting credit cards, gift cards (if you offer them), and prepaid credit cards. If you do have problems, customers will simply shop elsewhere.
It’s vitally important to avoid these credit card processing issues. Your store exists to make you the most money as possible, and that can’t happen if you have problems like the ones mentioned above.