Big benefits for NSBA Small Business members with our corporate partner, Stax.
Running a small business is no easy feat. Among all the problems small businesses tackle, payment processing shouldn’t be one of them. That’s why it's imperative to conduct research prior to selecting a payment provider. Then, evaluate on an annual basis if your processor is right for you.
As a new partner of NSBA, Stax is offering our members an exclusive offer of 2 MONTHS FREE plus a FREE card reader if you sign up today.
Ranked the #1 Best Credit Card Processors by US News & World Report in 2022, Stax has disrupted the payments industry with its subscription-based pricing model. Stax is a merchant service provider with total transparency built into its framework. All merchants have access to direct cost payment processing with 0% markups, no contracts, and no hidden fees.
To help you make an informed decision for your business, Stax has compiled 3 common payment processing challenges businesses face, and how to avoid them.
Lack of transparency
The payment processing industry is not one known for its candor. The difficult-to-understand processing statements and pricing tiers make it challenging for business owners to navigate payments. On top of that, many processors have hidden fees and charge for additional line items not initially disclosed to the business during the sales process. Higher fees can also be incurred as a business grows. Combined, these fees are one of the most common reasons for complaints in the industry.
How to avoid it:
When deciding which credit card processing company is best for your business, do your homework. Find out if the company charges different pricing tiers for different card types.
With a tiered pricing model, similar transactions are grouped together and categorized into tiers. Each tier is then charged a different rate. Depending on the types of transactions, you could be paying upwards of 3% in processing.
Try to steer clear of this pricing model and opt for flat-rate pricing options whenever available. That way, you know exactly what you’re paying for.
High Processing Fees
Another thing to watch out for when considering a payment solution is high processing fees. Business owners work too hard to pay extraordinarily high processing fees. And most have no idea what they're paying for in credit card processing, resulting in unnecessary money spent.
How to avoid it:
Avoiding paying inordinate amounts in processing by understanding the breakdown of different fees. The following are unavoidable charges every business must pay:
● Interchange - the required fee that credit card companies like Visa and Mastercard charge businesses to accept their cards - set by the credit card brands.
● Transaction fees - these are fees that are associated with each transaction run.
A few payment processing fees you should watch out for:
● PCI compliance
● Setup fees
● Account maintenance fees
● Statement fees
Know what to look for, and run when you see ANY mention of the extra fees. Choosing 0% processing lets you know exactly what you are paying for.
Lack of Support
When things go wrong, businesses need to know that they are taken care of and will be able to resolve their queries effectively. However, due to the high volumes of support queues and a growing number of businesses using credit cards, it’s not uncommon for support to be delayed.
How to avoid it:
Look for payment providers who offer dedicated, reliable, and timely support - via chat, email, and phone. A good way to see if a company offers this is by looking at the company’s reviews on sites like Merchant Maverick, Software Advice, and Google Reviews.
NSBA members now have an exclusive offer of 2 MONTHS FREE plus a FREE card reader if you sign up today!
Our new preferred payments partner is an industry leader with specialized solutions for small businesses. Contact Stax today to take advantage of their 2-month FREE offer EXCLUSIVE to NSBA members.
Stax is a proud partner of the National Small Business Association. Learn more and set up a free consultation with a dedicated payments expert.
Comments