The Top 4 Benefits to Employing a Third-Party Credit Card Processing Company
As a business owner or entrepreneur, you will sometimes need the services of a third-party credit card processing company. These companies help you save time you would otherwise spend managing your business merchant accounts. Even though these services come at a little cost, that cost is mitigated by what your business earns from the time saved. Not all business establishments need these third-party services though. It depends on the volume of your daily transactions, and the type of business you are running. To help you decide whether to use one or not, here are some of the advantages of using third-party credit card processing.
- Easy and Quick to Set Up
Setting up a third-party payment processor is very easy. All you need is an email address, a few documentations for verification and you are ready. With these documents scanned and ready, you simply go to any of these company’s website and initiate the registration. The registration is usually a few steps. Compared to setting up a merchant account, which requires a lot of paperwork and legal proceedings, a third-party payment processor seems like a brilliant idea especially if your business is still small and needs space to grow.
- It is Cheap and Easy to Maintain
The third-party payment processors charge a fee for their services, but it is insignificant compared to the amount you would use, running a merchant account with a payment processing company. If you are a start-up, it would only make business sense to use a third-party payment processor. You will save the limited capital you have to expand your business. You will also not be required to pay any monthly fees, when using these third-party processors. Monthly fees can be limiting to a start-up since there are times when you go for prolonged periods without making any profits. If you have an unnecessary expense such as a monthly fee to a payment processor company, then it might have a significant negative effect to your business.
- There are No Cancellation Policy Penalties
Most third-party payment processors do not have cancellation penalties. This is good since you do not have to worry about losing cash in case you want to get out of a bad business deal. However, you need to carefully check the terms and conditions of the payment processor you choose since some of them have hidden cancellation fees. You should also check possibilities of lengthy contract terms to avoid paying unnecessary fees long after you have sealed a deal.
- There are No Monthly Minimums
Unlike with merchant accounts that require you as a business owner to have a minimum volume of transactions in a given period, third-party payment processors will not need your business to have any minimum transactions. This means that if you have a small business, you will not have the pressure of reaching minimal targets. With merchant accounts, if your business fails to hit the minimum number of transactions, you might have to pay a penalty, which is limiting for a small business.