If you’ve ever had to find a new credit card processor, then you know there are countless moving pieces, complex terms and conditions, and scary costs in the fine print. There are many factors to consider when choosing an Acumatica credit card processing provider. Here are three common traps to remember next time you wonder if you're paying too much to process credit cards.
What you're going to see a lot is grossly overstated savings. There are many ways for a processor to show you big savings. You should verify what they're promising in writing and be able to calculate the savings yourself. In order to save money, pay attention to promised Level 3 savings, but be wary of processors that don't deliver. Work with a payments provider like Paya to ensure accurate savings.
Leasing processing equipment such as terminals may seem like a convenient option at first, but it can actually end up costing you more in the long run. Credit card companies often use equipment leasing as a way to make extra money off of merchants, and it can lock you into a lengthy contract with little flexibility. This is why it is generally recommended to purchase any equipment you may need instead of leasing it.
When you purchase equipment, you have the freedom to choose the best option for your business without being tied to a specific provider. Additionally, purchasing equipment is usually much cheaper in the long run compared to leasing. In fact, it can be up to 100 times cheaper to buy equipment outright rather than leasing it over time.
Purchasing your equipment empowers you to make decisions that are best for your business without being tied down by long-term contracts or unnecessary expenses. Don't fall into the trap of leasing equipment – instead, invest in your business's success by purchasing the equipment you need.
It is essential to always request an annual rate review from your credit card processing provider to determine if you can secure a better deal each year. This practice allows you to stay informed about the current market rates and ensures that you are not overpaying for the services provided. By regularly evaluating your rates, you can take advantage of any cost-saving opportunities that may arise.
In addition, it is advisable to avoid tiered pricing structures when selecting a credit card processing provider. Tiered pricing models tend to be the least transparent, making it challenging to understand the fees and charges associated with each transaction. Moreover, these structures often result in higher costs for businesses, as they are designed to benefit the processor rather than the merchant. Instead, opt for a provider that offers interchange-plus pricing, which provides a more straightforward and cost-effective fee structure.
By prioritizing an annual rate review and avoiding tiered pricing structures, you can ensure that you are getting the best possible deal from your credit card processing provider. This proactive approach not only helps you save money but also promotes transparency and accountability in your financial transactions. Remember, being informed and vigilant in your decision-making process is crucial when it comes to optimizing your business's credit card processing operations.
Paya is the leader in delivering simpler, more efficient, and deeply integrated payment solutions with more than 25 years of industry experience and 2,000+ industry customers and partners. Paya is committed to delivering best-in-class integrated payment solutions across the full suite of Sage ERP products. We are proud to be Sage’s preferred partner for Integrated Payments in the US.
At Paya we are unique from our competitors because we emphasize solutions engineering, engaging our domain experts as part of the early sales process. Through a collaborative but simple hands-on process, we develop a deep understanding of our partners’ current processes and pain points and requirements to ensure you get a platform and system with the capabilities you need. Paya has enabled businesses to optimize billing and invoice processes, deliver more payment options and flexibility to their customers, and improve back-office efficiencies.
Contact Paya's Acumatica Integrated Payments team to schedule a free consultation today!
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See Paya's Acumatica Integrated Payments solution on ERPVAR's site.