- May 19, 2017
- Posted by: david
- Category: Thoughts
Majority of shoppers use some sort of plastic card to pay for their purchases. With regard to online shopping the numbers increase, after all you can’t really pay cash via your computer. All ecommerce retailers need to have some sort of credit card processing system in place. There are many companies offering their services and while most are legit, some will do anything to get a couple more dollars out of you and your website.
Granted everyone is human and not all processing errors that occur are with the intention to rip you off, which brings us to our main point, a merchant MUST be on top of his credit card processing. He MUST be sure to read through his monthly processing statements. If you are like most merchants, a paper or email with numbers, dollars, and fees, especially when it’s .15% is not something you enjoy poring over. But it is SO important. Numerous times there have been merchants who unfortunately only discovered after much time had elapsed that they had been charged astronomical fees for no reason, and because they had never perused a statement this information was all but hidden from them. It is important to know how much is the normal percentage for credit card companies to be charging per transaction and any larger amount should garner your attention and you should either make a phone call or send an email questioning the mount. Processing companies who see a conscientious merchant will most likely stay far away from trying to pull any tricks on you, after all they see that you are on top of it. if for some reason this system wont work for you hire an experienced accountant to routinely audit your statements for anything funny.
Additionally a merchant should be aware of the terms of his contract. no credit card company is going to say now that you have increased the amount of processing transactions you are eligible for a lower rate. A merchant needs to be familiar with all the terminology and he needs to tell the company, “As per our contract now that i have exceeded x amount of transaction i am eligible for a discounted service rate, etc.” because the company isn’t coming running to enlighten him with the great news!
A conscientious merchant is a successful merchant. A merchant who makes sure no parts of his business are over-looked is already many steps ahead of the game.