Selecting the right credit card processor for your system
From: allbusiness.com
This may seem like a simple task, but generally there's more to it than meets the eye. Too often, the focus is only on "what is your rate?" But upon closer review, there is so much more to the world of credit card processing. Franchising ads unique requirements to most business functions and credit card processing is no different. Most franchisors work diligently to get the best rates and services for many of the basic needs of their franchisees. However, due to the complexity of the processing industry, many franchisors may leave their franchisees to find this service on their own. Typically, a franchisor will only seek out the best solutions for the corporate-owned locations. And, while they may possibly let the franchisees know who they are working with for these larger locations, they may not assist in developing a formal program for the rest of their franchisees.
Franchisors too often assume that the franchisees will be able to shop for the best rates on their own or that they would prefer to get this service from their local bank. However, with the rapid advancement of technology in this arena, coupled with rising Visa/MasterCard interchange rates, this "Let them find it on their own" attitude does not help franchisees. Franchising Perhaps the most important thing to consider is whether the vendor chosen can deliver the desired results to your franchisees. A processor might do a fairly good job of getting locations set up and running. But how would it handle more complex situations, such as the multiple owners and locations found in franchising? It makes sense to ask a vendor how many franchise systems and programs it has launched and the penetration levels of their program into the systems they rolled out.
Your processor should understand the unique challenges presented in the world of franchising. Ask the processor how it will get locations signed up and set up, and what ongoing support can be expected. Find out how it would handle new-store openings and how it would keep you and your franchisees current on changes in the processing industry. The best pricing and products will be of little benefit to your system if your processor can't implement a plan efficiently and flawlessly. Franchising places unique demands on most business functions, credit- card processing being no exception. Most franchisors work diligently to get the best rates and services for their franchisees' basic needs. Rate is only one factor In many cases, the rate is automatically deducted from a business' checking account and therefore accepted without.
This may seem like a simple task, but generally there's more to it than meets the eye. Too often, the focus is only on "what is your rate?" But upon closer review, there is so much more to the world of credit card processing. Franchising ads unique requirements to most business functions and credit card processing is no different. Most franchisors work diligently to get the best rates and services for many of the basic needs of their franchisees. However, due to the complexity of the processing industry, many franchisors may leave their franchisees to find this service on their own. Typically, a franchisor will only seek out the best solutions for the corporate-owned locations. And, while they may possibly let the franchisees know who they are working with for these larger locations, they may not assist in developing a formal program for the rest of their franchisees.
Franchisors too often assume that the franchisees will be able to shop for the best rates on their own or that they would prefer to get this service from their local bank. However, with the rapid advancement of technology in this arena, coupled with rising Visa/MasterCard interchange rates, this "Let them find it on their own" attitude does not help franchisees. Franchising Perhaps the most important thing to consider is whether the vendor chosen can deliver the desired results to your franchisees. A processor might do a fairly good job of getting locations set up and running. But how would it handle more complex situations, such as the multiple owners and locations found in franchising? It makes sense to ask a vendor how many franchise systems and programs it has launched and the penetration levels of their program into the systems they rolled out.
Your processor should understand the unique challenges presented in the world of franchising. Ask the processor how it will get locations signed up and set up, and what ongoing support can be expected. Find out how it would handle new-store openings and how it would keep you and your franchisees current on changes in the processing industry. The best pricing and products will be of little benefit to your system if your processor can't implement a plan efficiently and flawlessly. Franchising places unique demands on most business functions, credit- card processing being no exception. Most franchisors work diligently to get the best rates and services for their franchisees' basic needs. Rate is only one factor In many cases, the rate is automatically deducted from a business' checking account and therefore accepted without.
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