Third-Party Credit Card Processors
Are you starting a new online business? You should know that one of the most important things in online business is, well, to be able to accept payments online. And for that you’ll need third-party credit card processors. A payment processor is a third party between you and your customer that helps you process credit card payments safely and successfully.
There are a lot of different types of third-party payment processors. Some offer amazing merchant services, while others are inconsistent and flawed. It’s important that you pick the right one for your business! And luckily for you, Charge.com is a professional merchant service provider, which eliminates the need to work with any third-party credit card processors!
If you want to learn more about Charge.com’s merchant account services, give us a call at 1-888-924-2743 or contact us online now!
How Do I Choose the Right Credit Card Processor?
Watch out for hidden fees! Sometimes third-party credit card processing companies can be deceiving. When a fee seems too good to be true, that’s because it is not real, and there are other hidden fees they’re not telling you about. Payment gateways/processors are plentiful and there is a lot of competition, so prices are low. Make sure you do your research and hire only the best merchant service provider.
How Do I Quickly Access My Funds?
Just few years ago your money could be frozen in your own account for inspection of suspicious activities by payment gateways. You would not be allowed access to your own money for weeks. However, this is not the case now. Even in certain cases for anti-fraud response and inspections, things are carried out without locking your account. Work with payment processors that provide quick access to your funds, especially if you’re a small business.
How Secure is a Third-Party Payment Processor?
It is very important that your payment processor provides you data security. It should not be your job to keep track of that! It’s expensive to install a personal fraud detecting system, so what you need to do is work with highly secure payment gateway integration service providers.
Third-party processors typically charge much higher discount rates and transaction fees. The third-party processor has a merchant account that has its own fees that the processor has to pay, and the processor must then mark these fees up substantially to make a profit.
How Do I Establish My Own Merchant Account?
You have no need for third-party merchant accounts when you get your own, real merchant account with Charge.com. Our merchant payment services are perfect for businesses conducting internet, mail-order, and phone-order transactions — the discount rate for credit card processing is 1.79%, and the transaction fee is 15 cents per transaction.
Third-party processors typically charge more than twice that amount, charging a discount rate of 5% or more, and 50 cents per transaction. The processing costs with third-party processors are typically astronomical. Pay less by processing transactions through your own merchant services account with Charge.com!
How Does a Third-Party Payment Processor Work?
If you're new to payment processing, you may be wondering how a third-party payment processor works. You've heard good news about them, and you may have been told that there are many benefits, but you're not sure how a third-party payment processing partner can help you optimize your cash flow and reduce your fees.
Traditionally, when someone pays you, that charge is run through your point-of-sale terminal or via the checkout process on your website. For large businesses that have their own merchant account, it's as simple as plugging in the information and waiting for the purchases to start rolling in. But for smaller businesses that might not have the need of their own merchant account, it's not clear where to start.
The Dangers of Third-Party Payment Processing
With a third-party payment processing partner, you're told that you can forego all those fees and jump right in, collecting all types of payments without any issue. But while that third-party may be processing all those payments, they're also hitting you with significant third-party processing fees, which can end up costing you a sizable sum at the end of the day.
Many people incorrectly believe that third-party payment processing is just about avoiding the costly setup fees that typically come with your own merchant account while you're busy building your company. But what typically happens is that you end up paying those setup fees and more in third-party processing fees on each charge over the lifetime of your account.
Sure, if you just opened a store and you're unsure of what kind of volume you'll have and how much business you'll do, if any, you may be able to get by with a third-party agreement. But for businesses that are in it for the long haul, a third-party payment processor is more of a problem than a solution. Not only will you end up paying far more in fees, but you'll also avoid problems that can lead to your money being locked away for some arbitrary amount of time or having to manage fraud or chargebacks on your own.
Take control of your own money and finances! Get a real merchant account services with Charge.com by calling 1-888-924-2743 or contacting our team online now.
Third Party Processors Hold Your Money- We Don't
Third-party processors typically hold your money for a long time before paying you the money that YOU EARNED. The typical wait time is between 2 and 4 weeks! When you have your own merchant account with Charge.com, you will get your money in only 2 to 3 days
Keep a Third Party Off Your Billing Statements
When third-party processors process credit cards, the third-party processor’s name appears on the credit card statement along with the merchant’s business name. Sometimes, the merchant’s business name might not even appear on their customer’s statement at all. This looks extremely unprofessional for merchants and is bad for business. When you have your own merchant account with Charge.com, only your business name will appear on your customers’ statement, not ours.
Third Parties Aren't Typically FDIC Insured - We Are
When third-party processors hold funds, they are typically not FDIC insured. That means that if the processor goes out of business, it is unlikely the merchants will ever be able to recover the funds that were being held. When you get a real credit card merchant account with Charge.com, your merchant account is issued by Wells Fargo Bank and it is FDIC insured.