How to find the best credit card processor for your small business

In this 5-minute read:

  • How to determine the best credit card processor for your unique needs
  • Flat rate vs. “interchange plus” processing
  • Processors vs. aggregators
  • Is paying more for simplicity worth it to you?

Determining the best credit card processing company for your small business is no easy task to undertake. With rates that can change on a regular basis, confusing contract terms, and the sheer number of payment processors out there, it can cause any business owner a headache trying to figure it all out. 

Accept credit card payments on any hardware and get the best software and processing experience with Womply Payments. Tell us about your business and we’ll match you with the perfect payment processor for your needs. 100% transparent pricing, no hidden fees, and industry-leading rates from top processors. Click for more information or sign up for Womply Free!

As with most things in the business world, the “best” credit card processor for your small business really depends on your business model, and what kinds of transactions you have, and even your personality.

Are you the kind of person who likes to know all the details and read the fine print? Do you prefer a hands-off approach or do you appreciate being able to talk to a real person when you need help? Do you value convenience and simplicity above the lowest processing rates?

Depending on your needs, the best processor for you might look very different from the best processor for the small business next to you. 

Remember, Womply can help get you set up with the perfect payment processor for your needs. Hands-on, hands-off, flat rate or “interchange plus” pricing, all-online or in-person representative—whatever you need, we can help you get it. Click for more information.

Traditional processors vs. aggregators or payments services providers

Over the past decade there have been a lot of “disruptors” in the credit card processing world. You are probably familiar with one or two of these companies that provide card readers for free and give businesses the option of easy-to-understand flat rate processing and convenient setup at the expense of higher processing costs overall.

If you’re new to the credit card processing world and you prefer a “hands off” approach, one of these payments services providers might be right for you. However, you need to understand that flat rate processing almost always is more expensive than “interchange plus”… up to 20% more expensive.

Why flat rate processing costs more than interchange plus

Ben Dwyer at CardFellow gives an excellent explanation of why “traditional processors” almost always offer more competitive rates than the new trend of flat-rate payments services providers, which are actually “aggregators” rather than true payments processors:

“Flat rate credit card processing is not meant to be competitive; it’s meant to be easy to understand. Businesses that become fed up trying to decipher credit card processing statements often gravitate toward flat rate pricing simply because they feel they have a better handle on charges.

A pricing model called interchange plus pricing allows businesses to have the best of both worlds — a flat, fixed markup from the processor and competitive pricing.”

If you’re interested in interchange plus pricing, be sure to talk to your merchant services provider and see what they can do for you. Once you have a handle on how this pricing model works, you might decide that a seemingly simpler—but more expensive—flat rate model isn’t the best for your business. Dwyer continues:

“Simplicity seems like a small comfort considering flat rate pricing is typically 20% more expensive than other forms of pricing, but nonetheless, some businesses are willing to pay to have a flat rate. Paying more for convenience may make sense for your business, just remember that in most cases you will be paying more. Don’t confuse simplicity with low cost.”

Remember, Womply can help you find the best processor for your specific needs

We’ve covered the popular pricing models and discussed processors vs. aggregators, but there are hundreds of processing options with different offerings, rates, POS hardware, software add-ons, and approaches to processing, which may offer different features you’re looking for.

Navigating the merchant services and credit card processing world can quickly become overwhelming. There are almost too many options available to choose from and it can be hard to know which one is the best for your company. 

Womply Payments can help make this process a little easier. We understand the payments space and have direct relationships with several of the nation’s top credit card processors. 

With the help of Womply Payments, complex research and difficult questions can become a little simpler for you. We’ll also help get you set up with the payment processor that’s absolutely perfect for your business, and provide additional resources for retaining and growing your customer base. 

Click here to check out our small business loans resources. Learn more, plus get free reputation monitoring and customer insights when you sign up for Womply Free!

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