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4 Key Factors to Consider When Choosing A Payment Option for Your Business

Blog / Business / Payments as a Service

4 Key Factors to Consider When Choosing A Payment Option for Your Business

Payment facilities are essential for businesses across the UK, but have you considered the actual costs involved?

A simple online search reveals numerous advertisements and incentives from different providers, each claiming to be the best choice. However, it’s essential to look beyond the sales pitch and consider the actual expenses associated with merchant services.

Here are some key factors to keep in mind:

Setup Fees

When signing up with a new provider, a setup fee is often involved. The amount can vary depending on the supplier and the type of service you require, such as a card machine, online payments, or a virtual terminal. Make sure you are aware of these fees before entering into a contract.

Monthly Fees

Suppliers charge monthly fees in various forms. This could include the rental cost of a card machine or the usage fees for their services. Prices can significantly differ among providers and depend on the specific service you need. Some providers may entice you with no monthly fees, but be cautious. There may be limits on the number of transactions per month, a requirement for a minimum monthly amount, or higher transaction fees to compensate for the lack of a monthly fee.

Transaction Fees

These fees are a percentage of each payment (transaction) processed by your business. It’s crucial to carefully review these fees as they fluctuate monthly based on the volume of transactions you handle. Transaction fees can also vary depending on the payment method, such as Mastercard, Visa, or American Express. A low transaction fee is essential, as some providers offering no monthly costs may have higher transaction fees surpassing a different supplier’s monthly fee.

Additional Costs

Suppliers may have additional costs that you need to be aware of, such as chargeback fees, PCI fees, refund fees, and authorization fees. It’s essential to clarify if there are any additional costs associated with your chosen supplier.

Conclusion

In summary, selecting a merchant services provider involves carefully considering various costs. Take your time to understand and evaluate all the expenses associated with your preferred payment method. Don’t be swayed by the allure of the cheapest offer alone.

At Fidelity Group, we prioritize transparency in our pricing. We can offer the lowest transaction fees through our partnership with multiple acquiring banks.

Contact us today for a free quote and discover the true value of our services.