5 Myths About Merchant Processing

The processing of credit cards isn’t some uber-complex, mythical procedure. It’s actually incredibly simple thanks to the advances in modern technology. The wide availability of merchant processing solutions should make it clear how effective an option it can be.

Below, we take a look at a few of the most common myths about merchant processing to help you understand the truth about this vital addition to your business:

Myth: Privacy isn’t guaranteed with credit card purchases.

Truth: If you use an online database to store credit card details, there is the risk of the information being stolen. Even if you beef up security, you aren’t 100% safe. However, virtual terminals and mobile terminals both provide a safe way to process credit card transactions. Keeping your information off cloud-based databases is the key to reducing the risk of your clients’ private details being stolen.

Myth: Merchant processing fees can be very high.

Truth: Less-than-reputable vendors may charge exorbitant fees for processing credit card payments, but the best vendors keep their costs between 1 and 3% per payment processed. It may cost a bit more to accept credit cards, but it will increase the chance your customer will actually make the purchase. After all, fewer and fewer people are carrying cash every day, but EVERYONE has a credit or debit card.

Myth: The funds from the payments will be delayed or withheld.

Truth: Merchant accounts will usually require 1-2 days to properly process the transactions, but the risk of actual withholdings is much lower. Processing aggregators are more likely to withhold funds to investigate suspicious activity, but they have a lower fee processing time.

Myth: Smaller merchant processing solutions are more effective for small businesses.

Truth: If you’re processing small payments, you may think you want a small processing solution. Big mistake! You need something capable of handling high volume and large payments, just in case your business takes off and you start making major sales. The last thing you want is for your “boom” of success to stall because you’re not prepared to handle it.

Myth: The set-up of merchant processing is pricey.

Truth: This isn’t always the case. Many “point of sale” systems will actually send you the device you need to swipe credit cards and accept payments on your tablet or phone. Many vendors will send you a wired or mobile terminal free of charge when you set up the merchant processing software and account. There are some fees to set up the account, but they are worth it to ensure flexibility and versatility for accepting payments.


Credit card processing is the trend ALL businesses need to get in on today if they want to succeed. Make sure you’ve got what you need to process credit card payments and you’ll be set up for success.

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