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September 29, 2022

Most Frequently Asked Questions About Payment Processing

Jarett Theberge

Written by:

Jarett Theberge

Most Frequently Asked Questions About Payment Processing

Payment processing is one of the cornerstones of running a business in the 21st century. With more ways to pay than ever before, you need a reliable and cost-effective processing partner to help things run smoothly.

Key Takeaways You Will Get from This Article

1. The cost of credit card processing will depend on the processor, card networks, and industry you’re in.

2. You can normally receive money from your sales within two business days. 

3. Find a payment processor with 24/7/365 live customer support.

4. Most retail businesses can see their new account up and running in one to two business days.

 

Yet, you could be a new business owner who isn’t quite sure how to navigate the payment processing and merchant services industries. It would benefit you to run up on your research before picking up the phone and getting into a lackluster agreement that doesn’t suit your business very well.

 

Don’t worry because Electronic Merchant Systems (EMS) is here to help set the record straight. For over 30 years, EMS has been providing innovative merchant services and payment processing solutions to businesses around the country.

 

Below we provide answers to the eight most frequently asked questions we receive when merchants are looking to start a payment processing partnership. We hope this piece answers your questions and gets you closer to receiving all the benefits of payment processing.

 

Let’s get started!

 

"How is credit card processing priced?”

We wish there was a short and to-the-point answer to this question, but it’s long-winded. At its most concise, the cost will depend on the processor, card networks, and industry you’re in. Different pricing models can affect the overall prices. The most popular pricing models are tiered, flat rate, and interchange plus. You can read more about the cost of payment processing in one of our blogs. 

 

“How soon can I get my money?”

Generally, you can receive the money from your sales in two business days. But the good news is that some payment processors provide next-day funding for card-present transactions to receive your money quicker.

 

“How is your customer service?”

Even though payment processing and merchant services are here to make your life easier, a lot can go wrong. Ideally, you want a payment processor with 24/7/365 live customer support whenever you need it. Support should be available through phone calls, email, and online web chats. 

 

Everyone says they provide excellent customer service, but you should check the company's Google Reviews to see what their customers say. 

 

“What does high-risk mean?” 

The term “high-risk” refers to the stability and security of your business’s industry. Generally, industries that have a higher likelihood of fraud are considered high-risk.

This can include adult entertainment, casinos, or businesses in the cannabis industry. This is a common question as high-risk businesses may have to pay premium pricing and have trouble finding a processor altogether.

 

“Why do you need my social security number?”

When a processor asks for your SSN, they aren’t trying to pull a fast one on you. However, this is something to keep in mind if you’re the target of a merchant services scam.

Your SSN ensures your identity. Plain and simple. Your SSN is attached to your bank account, business license, and more—all information a payment processor needs to start a partnership.

 

“Why do you need to pull my credit?”

This boils down to risk. Not like high-risk, as we mentioned before, but the risk for the payment processor. Let’s say you’re business is hit with a chargeback, but you don’t have the funds to cover it.

The payment processor must now fit the bill you couldn’t cover for the chargeback. A basic credit check will determine if you’ll make good on these debts and give the processor more confidence in partnering with you.

 

“How long does the process take?”

The time it takes to get set up with a merchant account depends on your industry. Most retail businesses can see their account up and running in one to two business days. However, if you operate within a high-risk vertical, you could wait between five and seven days.

 

“Switching payment processors is a pain; why should I do it?”

Many current businesses already have a payment processor that they’re working with. However, that business may be providing lackluster services, and you might need a change of partners. Switching payment processors can create tangible benefits for your business.

When you’re searching for a new processor, you may find you’re missing out on tons of great perks. Lower cost can be the biggest plus, but what about bundling cash discount programs, web design, and loyalty programs? What if you have outdated and slow POS terminals that need to be upgraded?

 

Are you sure you paying competitive rates? Check to see if you can get a free rate review that details what you are paying for and get a side-by-side comparison. 

These are all things to consider when you’re thinking about switching processors.

 

What’s Next?

Hopefully, one if not all of your big questions have been answered in this piece. If you’re still on the fence about choosing any particular processor, please download our free guide on How to Choose a Payment Processor

But, if you’re ready to start a processing partnership today, look no further than Electronic Merchant Systems. 95% of business owners see savings when they begin processing with us, and we’d be thrilled to start that conversation with your today.

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You may also be interested in these helpful articles:

Laws and Regulations in Payment Processing You Should Know For 2022

The 7 Best Payment Processing Companies for Small Businesses in 2022

What's the Best Accounting Software for Small Businesses?

 

 

 

 

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