Unless you have been asleep for the last decade, you already understand the importance of accepting more than just cash at your place of business. As the prevalence of contactless and international payments skyrockets, this necessity has become even more pronounced. No matter what types of non-cash transactions you choose to accept, you will need to establish a relationship with a payment technology company.

What is a payment processor?

Whenever you accept credit card, debit bar, echeck, or online payments, you must have a “middleman” to act as a liaison between you and the various financial institutions that are involved in the transaction process. In simplest terms, this is your payment processor or merchant services provider. Since you will be working closely with this entity for the foreseeable future, and since the fees you are charged can vary widely among vendors, it is in your best interests to choose your provider wisely. The following tips can help to take some of the fear and trepidation out of this selection process.

Determine your business’s needs.

As we have implied above, not all payment processing companies are created equal. In fact, the best one for you will depend on the type of business you operate. A brick-and-mortar store, for example, requires one set of features, an ecommerce company needs another, and a hybrid business necessitates additional considerations.

If you only run a physical store, you will need to find a company that can provide you with a point of sale (POS) system that will allow you to securely read customers’ credit and debit cards and, as is ideal in today’s consumer environment, also accept contactless payments from smart cards, wearable devices, and mobile phones. This set of hardware and software should also come equipped with additional tools that will help you manage your inventory and employees, generate sales and financial reports, and work with the programs you already have in place.

Ecommerce businesses have their own set of needs. Along with the requisite shopping cart where buyers store items before purchase, online merchants also must purchase a payment gateway service that securely links their site to the other players in the payments process. Look for a merchant account provider that offers gateway access that is both safe and easy for you and your customers to use. Ideally, it should enable them to complete their transaction without ever needing to leave the familiarity of your website.

Assess your business’s risk.

Depending on the industry you operate in or the number of forced refunds or chargebacks you experience, your payment processing company will decide if your business represents a low or high level of risk. If you ultimately fall into the latter category, you may have to pay the higher fees associated with high-risk merchant services.

Opt for transparency.

In recent years, most payment technology companies have made it their mission to display a high level of integrity and visibility in all of their dealings. Even so, you should remain watchful.

Undisclosed fees are one of the most frequent difficulties that business owners encounter when dealing with payment processing companies. These are just some of the most common.

• Additional annual fees.
• PCI compliance fees to cover the cost of keeping your customers’ data secure per card industry data security standards.
• Monthly minimums — charged if you fail to meet a minimum level of processing fees.
• Batch fees whenever you settle your daily transactions.
• Terminal or gateway fees.
• Early termination fees if you cancel your contract before the original term was supposed to end.

While what you need to pay to the credit card companies for each transaction is not negotiable, many of these often invisible fees are. Don’t sign on any dotted lines until you are absolutely certain of everything you will be expected to pay.

Keep customer service in mind.

When you run a business that accepts non-cash payments of any kind, difficulties with your payments hardware can quickly bring your checkout line to a screeching halt. There are other issues that can arise as well, including unexpected chargebacks, confusion about your account, and even misunderstandings regarding how to use your equipment. Time is money, and you cannot afford to have your operations suspended any longer than is absolutely necessary.

That’s why you should make sure to select a payment processing partner that offers excellent customer service and technical support. The bottom line is that you need to work with a partner that will be there at all times to help solve problems as they happen.

In the end, you are the best judge of what your business needs in a payment processing company. Taking the time to evaluate your requirements before thoroughly assessing your options for a merchant services provider will make the selection process infinitely easier. Remember, the payment technology partner you ultimately pick will be a vital ally as you serve your customers, so choose wisely.