Accepting Credit Cards as a Small Business

by / ⠀Startup Advice / October 13, 2022

small business credit cardsEntrepreneurs need to cover all of their bases, and one often overlooked base is payment processing. If your business plans to accept credit cards as payment at some point, you will need to choose a merchant account provider to process credit cards. Unfortunately,  choosing a credit card processor tends to be a long, frustrating, and inefficient process…and many businesses get ripped off along the way. Here are some tips to make sure that doesn’t happen to your business:

1) No cancellation fees allowed- Make sure to read the fine print from your credit card processing contract. You may be surprised to find a cancellation fee from at least $250 to several thousand dollars.  This fee is a way of guaranteeing your loyalty to the processor, regardless of your satisfaction with their service. The good news is that getting rid of this fee should not be a problem: most salespeople have the authority to waive it. To avoid this problem, talk to the salesperson and make sure the fee is waived in writing either in the contract or as an amendment. As a startup, making sure to have the no cancellation fee clause is a great hedge in case anything goes wrong.

2) Only interchange plus pricing– The bulk of the processing fee goes to Visa and Mastercard—this fee is called “interchange” and is set in stone. Interchange-plus pricing is the fairest form of pricing structure for your business, meaning that you pay the interchange fee plus a constant markup which goes to the processor as a service charge. Having this structure ensures there are no tricky fees or hidden costs, unlike tiered pricing structures.

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3) Comparison shopResearch shows that the best deal can be found by comparison shopping credit card processors–at least five. However, make sure to compare on an apples-to-apples basis, and be sure each processor knows that you are actively shopping. You can easily make your bids more competitive by leveraging the power of comparison.

4) What about PayPal?- If you’re in ecommerce, PayPal seems to be the no brainer choice for a processor.  It’s an ok choice in the beginning when credit card revenues are low and your service is growing. However, as revenue gets in the thousands it’s time to reevaluate since PayPal may be taking more of a cut for their service than a traditional merchant account provider.


TransFS is the comparison shopping site for credit card processors. Just like getting multiple quotes for airfare using Expedia, TransFS lets business owners compare top quality processors on an apples-to-apples basis and makes sure they get the best deal by not having any cancellation or hidden fees, and only interchange plus pricing. TransFS also launched the Credit Card Processor Directory, where business owners can rate and read reviews.

Don’t let bad credit hurt you: repair bad credit.

Related Post: Focusing on Your Core Values as a Small Business

About The Author

Matt Wilson

Matt Wilson is Co-Founder of Under30Experiences, a travel company for young people ages 21-35. He is the original Co-founder of Under30CEO (Acquired 2016). Matt is the Host of the Live Different Podcast and has 50+ Five Star iTunes Ratings on Health, Fitness, Business and Travel. He brings a unique, uncensored approach to his interviews and writing. His work is published on, Forbes, Inc. Magazine, Huffington Post, Reuters, and many others. Matt hosts yoga and fitness retreats in his free time and buys all his food from an organic farm in the jungle of Costa Rica where he lives. He is a shareholder of the Green Bay Packers.