I would say that there are three main things that retail business owner should be thinking about when considering merchant services and particular pricing.
The first one is the pricing format that they are receiving from their provider. The second one is customer service, and the third one is the reputation of the company that they are going to be doing business with. As far as pricing goes, Evan, I would say that the most competitive pricing in our industry right now is called “interchange pass through”. It’s the same pricing format that major retailers such as Wal-Mart, The Home Depot receive from their credit card processors and now, because of competition in our market, an average business, a small to medium sized retailer can now receive the same pricing structure. It’s very transparent and becomes much easier to negotiate pricing because you can see the exact markup that your credit card processor is charging you.
The second thing that is really important for a business to consider is customer service. Is the company that they are going to be working with; do they have a call-center that they call into for support? or is it a local company that has technicians that can come onsite to help you with any of your technical problems or anything that could happen with your credit card machine?
Reputation of the company
I would say the third thing that is also really important for a retailer to consider or any business in general, is the reputation of the company that they are considering doing business with. Is this company that you found through a telemarketer or a mailer? Or through searching on the internet? Or are you considering doing business with a company that’s a referral from a collogue, potentially an accountant that you work with, or even your landlord could have referred you to the company that you are considering doing business with? I’d say those last three are probably your best options as a business owner for finding a company that can get you the best pricing.