Best Credit Card Processing Service

How to choose the best credit card processing service?

The best credit card processing service is one that is best suited for your specific business type and exact processing needs. It needs to be right for your business model and the company you work with must have the customer care support services that meets your needs and expectations.

The choice of credit card processing is between an "in-house developed credit card processing system", or "outsourced service" or , a "third-party processing".

But before considering your options, you would need to consider what are you specific needs and how do you define and establish what you need?

Selecting the best credit card processing service is essential to the future well being of your business payment processing. Whether you are a retail merchant or a Web based merchant, or whether you need a simple credit card processing service to integrate with your Website or need an advanced transaction processing service with payment gateway and virtual terminal and back-end database integration - you will need a merchant processing that is dependable, reliable, robust, and a merchant account that does not freeze your funds, and allows you to grow your business as and when you can.

Choosing a credit card processing company depends on whether you need technical assistance with integration, deployment urgency, integration lead-time, shopping cart software programming and integration with your Website. In most cases, cheap credit card processing services do not offer integration services and you would have to use a programmer in your company to integrate the credit card processing system, payment gateway, and the merchant account integration. Or you can also outsource the technical integration to a programmer who will be happy to do that for you, for a fee - assuming that the programmer is familiar with the credit card processing service you obtain.

You can however choose a credit card processing service with an integrated merchant account and shopping cart software that includes the technical integration to a back-end database in your company or to your existing Website.

In either case you are going to need scalability, reliablity and security as your business cannot accept or tolerate their absence in credit card payment processing.

The best credit card processing is one that meets the needs of your business precisely and matches your business model. For instance, if you are selling shippable goods like books, CDs, computers, furniture, household goods, or business suppliers then you are going to need a credit card processing service that has variety of shipping options with real-time tracking and delivery information. If you are selling downloadable software, audio and video online, airline tickets (eTickets), hotel booking, etc. you do not need shipping module or shipping calculation, handling, or tracking.

Most credit card processing services are more appropriate for one type of product than other types, e.g. ideal for physical goods instead of downloadable goods, or good for downloadable goods and online services but not ideal for subscription and membership.

Very few companies can offer a comprehensive credit card transaction processing service with fully security features, complete management and maintenance, integrated payment gateway, integrated shopping cart software, integrated merchant account and merchant processing, all marketing reports and tools, and inclusive of virtual terminal, shipping module, full tax calculation module, tracking, as well as coupon codes, fulfilment tracking and management, AND integrated affiliate managment system. Contact our sales department for additional details.

The choice of credit card processing is between an "outsourced service" or "in-house developed credit card processing system", and third-party processing.

In-House Developed Credit Card Processing Service

Many companies may wish to have an internal (in-house developed) merchant account system, but how many can afford to design, develop, and build such a large application?

The costs of developing an in-house credit card processing service can easily surpass $1 million and the cost of mainaining it, including the servers, networking equipment, proficient technical staff, security experts, security monitoring and upgrade, reliable datacenter for network scalability and robustness, and back-up generators and redundancy - could cost anywhere between $100,000 per year (for very minimum) to upwards of $1 million per year.

If you could get a very good service from a reliable service provider, for as little as $100 per month, would it be worth it to outsource to a reliable and reputable credit card processing provider?

Outsourced Credit Card Processing Service

Why outsource credit card merchant processing?

If your only option was to develop an in-house credit card processing system then consider that outsourced credit card processing is being used by almost all Fortune 5000 companies and even the government agencies and NASA, EPA, and even the department of Defence.

It is very costly to build an in-house credit card processing system and utilize it only for your company, since the same system that you would use for your company can be used bay another, probably 1000 other companies on the same network with little effect on the bandwidth and utilization. A transaction transmission does not contain video or audio and it only contains a few kilo bytes for secure data transmission and credit card number and expiry information. This is hardly any heavy data tranmission for a server over the Internet or over leased-lines.

It makes a lot of sense to use an outsourced credit card processing service and about 99% of businesses and companies and government agencies use outsourced credit card processing.

Third-Party Credit Card Processing Service

The ugly, mean, step-sister.

Hardly a day goes by and our company does not have a telephone call from a prospective customer who is using a third-party processing service and not hear awful stories of how they were treated. For instance, our company used PayPal service to give an extra option of flexibility for clients and we experienced disappointment after disaster. PayPal for instance refused to accept that the paypal account is for a company and hence should be transferred from one assigned manager to another. Paypal maintained that if one of our managers, responsible for our account with Paypal, leaves our company and retired in another city or goes to another company, the account cannot simply be transferred to another manager. The new manager must open a NEW account, new email, new everything. We discussed this with them extensively and even their supervisors would admit that their system non-transferrability to a new manager is ridiculous. Also, another illogical expectation by Paypal was to have our manager (of a corporation) to give their own personal social security number instead of corporate tax ID number. Paypal refused to accept corporate tax ID for a debt card account with merchant processing. In every aspect of our business, we tried to have a Paypal option for our clients, but again and again merchant processing service by Paypal was so ridiculous - we had to just close the account. It was like talking to a brick wall. Their customer service was simply appauling and we could barely ever get them on the telephone.

Paypal is not alone in its service nonsense policies. Other third-party providers are not much better, although may be more customer-centric because they are smaller than Paypal. The rates for merchant processing is as high as 30% by third-party processors, they can freez your account and they often do without a fair and just way for doing so, other than ... "it is our policy" excuse, and your customers are not really your customers since they are the merchant account owner. If all that is not a worrying consideration, third-party processors can, and often do, at some point freez accounts and hold on to funds from your sales for an indefinite time until they are convinced that they should. The Internet is full of customer complaints about third-party processors and their harsh practices. Not to blame them for everything, it is worth adding that majority of their customers are merchant that cannot get a merchant account for their business directly and hence need to rely on third-party processors and these customers (adult sites, gambling sites, etc.) are not the nicest customers and have high-risk potential which could lead to loss of merchant account by the third-party processors. But genuine businesses and home-based businesses selling goods and services should not suffer the wrath of third-party processors simply because their other customers are high-risk and they need to set a ceiling much higher than it needs be for lower-risk merchants.



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