Don’t you love it when people write articles about subjects they clearly either don’t know about, don’t know the best resources for information or are just out to make money on what you read via affiliate, advertising or referrals, so it doesn’t matter? That’s the case with articles on “Best Credit Card Processing Services for 2020″. I’ll dissect some reasons why and how to really help you find what you need.
First, there are some critical factors which determine what is the best credit card processor for your business:
- Volume- a couple transactions or a lot each month
- Transaction size average- For example, under $25 or over $5,000?
- Transaction type- phone or mail (MOTO), in-person (Retail), or ecommerce (any type of remote payment, including e-invoice, text and ecommerce shopping cart. on the road.
- How the sale occurs: tradeshow, water, plane, home service, phone sales, invoice, physical store, shopping cart, online pay page
- Business type- distribution, service, restaurant, fuel, travel, etc
Only with information above should anyone recommend what is the best credit card processing service because it impacts how you need to get paid and how much cost will vary depending on the solution. As you can imagine, the matrix of options gets complex. Examples:
- During Covid, someone decides to make masks at home and sell them. In that case Paypal might be the best solution because of it’s flexibility and simplicity.
- A window and door company has wholesale to the trade and retail consumer sales. This company needs technology to properly manage authorizations for both sales types. I recommend using an agnostic technology solution and a processor that supports level 3 data, which all the big ones do.
- A restaurant needs to expand their pick up and delivery options due to Covid-19 and projected dining changes over the next 10 years. They need omnichannel technology that will work with different platforms, such as Uber Eats and Door Dash, plus their own online ordering, text specials, and pay at the table.
My general rule of thumb is that for under $250,000 annually it almost doesn’t matter what you pick because the difference between one and another on price will probably be inconsequential. For that reason, I don’t work with businesses that small; just do your research and pick one that you can get out of later if you don’t like it or grow too much and needs change.
Secifically addressing solutions others are touting as the top 10 best my answers are relevant for B2B merchants, and businesses that have a B2B element:
Square: This started as a mom and pop solution for service people, artists (art shows), and other small business needs. I’d dig deeper into options.
Payline Data: I never heard of them and had to look it up. Payline Data is a reseller for First Data and Fifth Third Bank. More on what that means at the end.
Intuit Quickbooks: My pet peeves are fees are taken out of transactions daily, creating extra burden for reconciliation, bundled pricing, which is higher than alternatives, and issues with how it handles customer name and cardholder name differences, since B2B the customer is usually a business.
Helcim: