(In case you know what you came here for, and don’t want to read my long-winded intro, here’s a link to the article you really want to read: Credit Card Processing Guide for Small Businesses – The Simple Dollar.)

I get contacted pretty often by companies asking if they can submit to my blog, or if I’d be willing to tout their product, website, app, etc.  Generally, the answer is “no” — I started this blog as a sort of collection of searchable bookmarks for myself, to save the research and resources that I’ve found helpful in my own practice and for clients; not as a marketing tool, and certainly not as a platform for folks to sell their solutions.

However, once-in-a-while, the information that I’m sent is so valuable and useful that… well, it fits all my criteria for bookmarking and sharing, and I feel lucky that the resource landed in my lap.  This is one of those posts.

I have mixed feelings about personal finance site The Simple Dollar — though much of the content is excellent, some of it is oversimplified, and certain articles seem to encourage readers to believe they can handle challenging financial situations without the advice of a professional.

But this article is the best I’ve ever seen on the topic of credit card processing for small businesses.  If you are starting a small business and haven’t yet made the decision about whether or not to accept credit cards; or if you’re at the point in your business’ development where it’s time to make the leap, but you’re not sure in which direction; or if you’re already accepting cards but are worried you’re paying too much: read it.  It’s comprehensive, full of information and examples, and if you’re willing to take the time to study it and take notes, you will not regret the investment.  In fact, it will likely save you time — and definitely money — in the long run.

“Due to the lack of transparency and hidden fees scattered throughout the credit card processing industry, there is a gross misconception of how debit and credit card processing work. This creates a challenge for many small business owners because making an uneducated decision could cost time and money.  For this reason, The Simple Dollar has developed a guide that aims to help small businesses gain in-depth knowledge about credit card payment processing, along with practical strategies to manage their fees and get the most out of their services.”

They offer advice on how to find the lowest possible credit card processing cost:

• Isolate the markup
• Choose a pricing model (pass-through pricing is cheapest)
• Compare multiple processors with fees up-front and in writing
• Calculate the total cost
• Negotiate favorable terms (they even offer a list of terms they specifically recommend working on)

As well as suggestions on how to keep costs low, including tips for avoiding punitive interchange rates:

• Track the processor’s fees
• Interchange optimization
• Avoid — Processing expired credit cards, Duplicating transactions, Setting a minimum or maximum limit on your transactions, Charging a usage fee for credit card transactions, Displaying full account numbers on your receipts, Processing Internet transactions with your retail merchant account, Running your personal card through your merchant account, and Splitting one transaction into several smaller transactions

So, give it a read, and share it with others you think might find it useful.  There simply aren’t many guides out there on this topic that are as worthwhile as this one: Credit Card Processing Guide for Small Businesses – The Simple Dollar.