“I believe very strongly in local support and representation,” says Mark Tannen, owner of Tannen & Associates in San Jose. “Most business owners have never met their credit card processor. We’re transferring money in and out of their accounts, so it’s important for them to know who they’re dealing with, especially with outsourcing becoming more common.”
Where’s my money? Why is it on hold? Why was the transaction declined when the customer is financially well off? A business needs to have quick and accessible answers to questions such as these. It’s much easier when you’re able to call a service company in your local area to find out exactly what’s going on.
Look for a company that can educate you on federal rules and regulations, as well as PCI compliance. “Most merchants don’t understand PCI compliance,” says Mr. Tannen. “It’s imperative that it’s explained to business owners, because the consequences of being non-compliant when there’s a breach can be quite serious.”
It’s also important to find a company that won’t indiscriminately change rates on you. Mr. Tannen says it’s preferable to have an interchange-plus credit card processor—a company that’ll give you an acceptable, agreed-upon markup over cost rather than an arbitrary rate that can be changed. This allows for more transparency. “Look for a reasonable cancellation fee as well,” says Mr. Tannen.
