Credit Card Processing: What You Need To Know

There’s no surprise that as a business owner, the words “credit card processing” make you want to rip your hair out. The endless phone calls, barrage of emails and starving sales people buzzing in your ear can feel as if you’re being attacked. The payment industry has mirrored the image of used car dealerships with the addition of cheap suits, fake smiles and a quick from the hip “Let me see your statement”. Although there is a reason there are so many payment processing companies around. MONEY…. Your hard earned money. Don’t lose hope! Not every one of these processors is out to screw you! I’m here to tell you exactly how to identify an honest and reputable company over a scam that’s out for your dough and nothing else. Let’s be honest, you’d like to save money, just without the hassle and change that may or may not impact your day to day operations.

First things first, lets talk reviews. is hands down the BEST source of information when it comes to making your decision. Phillip Parker left the industry and expose the bad guys. A direct quote from Phillip himself: “I’ve made it my mission to disrupt the merchant account industry by exposing the companies and people that engage in unethical business practices.” Card Payment Options is basically Yelp for credit card processing. If you are even considering a change, do your research first. Enter the business name in their search bar and click on their link. It will rank them from A to F, include reviews, individual company features and what makes them positive or negative.

Now that we’ve covered review, let’s talk about the actual pricing. Every payment processing company in the country gets their rates the same at wholesale from the issuing banks. Which is why companies want to see your current statement, in order to drop your pricing by a bit and keep the rest for themselves. Always know that there are margins to be worked with and if the processor isn’t in the negative, there is room for savings. When you are contacted by a company, there is one MAJOR question you need to ask before moving forward: Do you operate on interchange plus pricing? If the answer is anything but YES, run for the hills. Tiered pricing is where all 400+ card types are bundles into 1-4 different fees. Which sounds attractive and simple on the surface but when you dig deeper the truth is revealed. Tiered pricing allows the processor to overcharge by, at some times, up to 3%. So remember, tiered pricing is garbage and interchange is in your best interest.

When it comes to signing paperwork, make sure you have every verbal agreement in writing and as clear and transparent as possible. 90% of these companies will try and sneak something by you. Whether thats a termination fee, additional fees (sometimes $100s per month), equipment lease, hidden charges etc…… Have all of their fees clearly written down and signed off on by the agent. Don’t forget to save your paperwork immediately!

Don’t forget, there are some great companies out there that offer low and fair pricing, amazing customer service and an optimistic change in your perspective on an industry that appears to be as scummy as imaginable.

If you’re ready for a positive update in your business reach out to Beacon Payments, an A+ ranked business based in Downtown Boston, MA. Dave Selenow, Jerry Kadish and the rest of the gang have worked incredibly hard to build the wonderful reputation they have today. Interested in seeing what could be saved? Email a statement to Kevin Pheley with Beacon Payments.

Kevin Pheley – 1-617-943-4658


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