According to a recent survey, 64% of Americans have at least one credit card. Also, the average American has four credit cards.
It’s no surprise that credit card processing has become so popular in recent years. It makes purchasing things on credit extremely convenient.
Unfortunately, many misconceptions are floating around the industry about credit cards and credit card processing systems. It seems like everyone has their own opinion on the topic, but nobody is willing to research and get the facts.
We did some digging and found out the misinformation about credit card processing matters. Today we’re going to highlight some credit card processing myths that exist.
1. The Credit Card Processing Industry Is a Scam
False! While some bad credit card companies are out there, most credit card processors don’t engage in fraud or scams. In fact, most credit card processors have been around for decades and will continue to exist for years to come.
It would be extremely difficult to run credit card processors without strong credit card processing laws in place. This is why many companies are currently being prosecuted for their fraudulent actions and deceitful behavior.
Unfortunately, there will always be people out there trying to scam others using credit cards or credit card processing equipment. But that doesn’t mean the entire industry is a fraud.
2. The Fees That Are Associated With Credit Card Processing Are Too High
False! This credit card processing myth is based more on ignorance than anything else. There are many credit cards and credit card processors out there that don’t charge excessive fees for their services, yet people still think the payment processing industry as a whole is overpriced.
There’s no question that credit card processing fees can add up to become costly very quickly if you’re not careful with your business’ finances. However, this doesn’t mean that all credit card companies are expensive.
In fact, some of them offer competitive rates, which will help save money in the long run. All it takes is a bit of research to get the best merchant service.
3. Credit Card Processors Are Only Available To Big Businesses
False! While credit card processors offer many services to big businesses, they also provide credit card processing options for small and medium-sized enterprises.
If you own a business that’s considered “small” or “medium-sized,” it doesn’t mean you don’t qualify for credit card processing benefits. In fact, there are many credit card companies out there that will work with smaller organizations. The only thing standing between your company and the best credit cards is research.
4. Credit Card Processing Is Only Available To Businesses
False! While credit card processing is usually associated with business accounts, it’s not the only way to utilize credit cards. According to a recent survey, about 176 million consumers use credit cards instead of debit or cash for their purchases.
If you like making online and in-store purchases with credit instead of other forms of payment, then there are plenty of options out there that will allow you to use credit cards without having any business account whatsoever.
If you need an alternative to credit cards, you can go with ACH. Check out this ACH guide from Rotessa.
Choose the Best Merchant Provider for Credit Card Processing
Credit card processing seems to be a bit misunderstood these days. There’s been a lot of gossip and hearsay in the credit card industry, but none of it is based on facts or research.
We hope the credit card processing myths highlighted in this article have helped you better understand credit cards and credit card, processors. For more informative articles, be sure to check out our blog.