Mar 8, 2011

The Best Credit Card Processor For On-the-Road Selling

Finding the best credit card processor for a small business can be difficult.  On a dark, clear night, look up into the sky and imagine trying to count all the stars.  You could spend the rest of your life doing so, and never finish the job.  It's said that there are over one hundred billion stars in our galaxy.  Now stretch your imagination around this number: Credit and debit card transaction in the US last year were about 1.76 trillion dollars; that's over one hundred thousand times the number of stars in the sky.  Over 20 billion times last year, Americans whipped out their plastic to complete a transaction. Add the technologies of online bill paying, electronic checks and one-swipe card readers to the old methods of cash and paper checks, and it is clear that any business today must accept many different payment forms in order to operate effectively.  Finding the best credit card processor for your particular business can be challenging.  Bricks-and-mortar retailers and service businesses spend a lot of money on card processing equipment and processing fees.  In addition, most credit card processing companies require a business to sign a four year contract. These contracts are nasty business: they allow the credit card processor access to the business checking account so that monthly fees can be automatically deducted and merchandise returns can be backed out.  In addition, most processing companies require the owner to sign a personal guarantee, and if the new business folds after one year, the owner is on the hook for all of the lease and equipment charges for another three years.  If business owners would spend some time trying to find the best credit card processor for their business, they could save themselves a lot of aggravation.   You can avoid signing a long-term contract and leasing expensive terminals by using PayPal as your credit card processing company.  By choosing Paypal, you will also avoid an account set-up fee and early termination penalties. Paypal is the least expensive way to get started accepting credit cards, and perhaps the best credit card processor for a small business. Paypal offers a virtual terminal that you can access anywhere there is an internet connection; that means there is no equipment lease needed. With Paypal, you pay a monthly fee of $30, plus 30 cents per transaction.  There is also a "percentage of the sale" fee which varies from 3.1% to 2.4 %. .  Although these fees are slightly higher than you might pay to a traditional card processing company, when you consider that there is no long term commitment to  rental equipment, Paypal is cheaper in the long run and perhaps your best credit card processor.    Paypal can be used to process orders you take over the phone, by fax, in the field, and online, which is what the best credit card processor should do.  If you do a lot of mobile shows like Antique Shows, your customers can pay right on the spot with a mobile card reader attached to your smartphone. Paypal can move money in and out of your business checking account just like a traditional processor, or, if you prefer, can hold your money in your Paypal account.  You can access your Paypal account with a Paypal debit card, and Paypal credit cards are available.  All in all, Paypal is the best way for a new business to start accepting credit and debit card payments and undoubtedly the best credit card processor for a mobile small business.


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