Taking Advantage of Merchant Services for Business
If you have an online business the ability to process payments requires you to have merchant services. The more payment options you give your customers, the more sales you’ll end up making. The most common merchant services offered are the ability to process credit cards. Most people shopping online want to pay with a credit card and if you do not offer this, they will most likely not buy.
Choosing a Credit Card Processor
The first step in processing credit cards is finding the right merchant account. There are many to choose from but paying attention to what merchant services are offered will help you find the one that is best for your business.
When Does Funding Occur?
Many merchant services that also include credit card processing will transfer the money to your bank account within one day. When you know which credit card sales are deposited and when, it will make a difference in planning your strategy.
How Much are the Merchant Service?
A major aspect of having a merchant account is how much does the company charge. You will need to know this upfront to be able to plan your budget accordingly. However, you will want to comparison shop to make sure you are getting the most for your money.
Are there Contracts Involved?
When dealing with a merchant services provider, you will want to find out about contracts and what their terms are. Obviously, in the beginning you probably need a trial period to may sure the company will meet your needs. After that, you will feel more comfortable signing a contract.
Setting up payment processing online and working with a new merchant account can seem overwhelming. However, if you take your time and do a bit of research, you will find the account that work best for you.
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Merchant Services: Finding the Best Provider
Selecting the right merchant services provider can make a world of difference to your business. There are hundreds of providers out there who are ready to offer you the best rates. It is important that you be careful in selecting the appropriate provider for your business. There are certain things that you would need to consider while searching for one.
The first thing that you need to look at is the price that the provider is offering. It is important that you ensure that you are getting a good price. The only way to do this is by comparison shopping. Make sure to compare the prices of different providers and pick the one that is offering the best rate.
Customer service is another important consideration when searching for merchant services. Suppose you encounter a problem with a credit card payment and there is a customer standing in front of you, will you be able to get timely help from the company? Will there be someone to take your calls late in the night if there is an issue? Most companies assure 24X7 technical support. Many businesses choose customer service over pricing as the former is crucial to the success of a business. If customer service is important to you, make sure to make enquiries about the quality of service of the provider you are considering.
Check the funding options of the providers. While some might deposit the funds within 24 hours, there are others that might take a couple of days. Make sure to know in detail about the funding options of the providers and if you are okay with them.
Reputation is a very important factor when searching for a suitable merchant services provider, you can Google the name of the provider to check for any negative feedback about their services.
Whether you are setting up a merchant account for the first time or just shopping for better rates, it helps to know everything you possibly can. The more information you have, the more educated your decision will be.
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Fees are More Important than Merchant Account Rates
Many retailers, particularly start-up retailers, are often so happy to find someone who will set them up to accept credit cards that they fail to realize that there are many different merchant account providers and they all offer different merchant account rates for their services. As in most other things in life, it frequently pays to shop around a little before you sign your name to something that is easier to get into than it is to get out of.
It would be so much easier if merchant account rates were just a single number which could be easily compared from one provider to another but this is not the situation. Instead, there are a number of sliding fees and rates, frequently coupled with set-up and monthly minimum fees that can turn the best deal on paper into the worst deal in practice. Here are some things to watch out for.
• The two basic fees are the individual transaction fee and the discount rate. Every transaction is charged a fixed processing fee, usually in the 0.15 to 0.50 range. In addition, the credit card company takes a “discount,” or a percentage of the total transaction price. This generally runs in the 1.49% range for solid retailers and can go up towards 4% for Internet-based purchases, due to their greater likelihood of fraud. The fee/discount ratio tends to balance out, in that a provider with a higher fee will require a lower discount and vice versa.
• Underneath these headline figures lurks a series of one-time setup, programming, and equipment fees, plus a set of daily and monthly service fees that can cost more than many low volume retailers make through an occasional plastic purchase. For those who are just starting their business, these are the costs that need to be carefully considered.
For companies that are just getting started or ones that only do a small gross amount of credit purchases a month, it is important to choose the company that offers the lowest overhead costs as opposed to the one that offers the lowest merchant account rates.
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Find the Best Merchant Account Rates
If you are setting up credit card processing online, you will need to know what the merchant account rates are to ensure that it will work for your business. There are different fees that come along with having a merchant account and you will need to know these before you open an account.
The Transaction Fees
Many new business owners assume that the merchant account rates only consists of the transaction fee, but this is not true. A transaction fee occurs every time a credit card payment is processed. Typically these are flat fees rather than a percentage. For online accounts, the average transaction fee is around .30, which doesn’t sound like a lot but it adds up.
Settlement Fees
Some merchant account rates also have a settlement or batch fee, which is when the money is sent to your bank. It is a processing fee and this typically happenseveryday. You’ll need to find out if this is a fee and how much it will cost.
Monthly Minimum
If the merchant account rates provider requires a minimum amount of credit card sales on a monthly basis and you’re below it, they will charge a fee. However, this fee is charged instead of your processing fees. This is about $15 per month, but can be higher depending on the merchant account.
Annual and Statement Fees
Some merchant accounts charge to generate and send monthly statements to you. In addition, some have an annual fee as well.
Knowing all the fees before you sign up for the account is crucial. You want the account so you can make money not spend more than you have to. The fees to have a merchant account are relatively low for the most part, but some are higher. A little online comparison shopping can save you a lot money.
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Different Merchant Account Rates
For any retailer or service provider, one of the keys to being successful is being able to provide customers with the convenience of having a number of different payment options. One payment option that needs to be accepted is credit cards, which are very convenient for customers. In order to accept credit cards, businesses will need to have a merchant account established. In order to save the most money possible, a business should do their best to find the lowest merchant account rates possible.
When a business searches for merchant account services, they will find that they rates they are charged could vary quite a bit from one service provider to the next. Typically, the merchant account rates follow a three tiered system. The first tiered system is typically the cheapest. Under this tier, a retailer is allowed to accept standard credit and debit cards either online or in person at a physical store. This is the cheapest of all merchant account services.
The second tier, which is also known as the mid-qualified rate, is the rate that is charged for cards that are not accepted by the first tier pricing system. The types of cards that are offered under this pricing system are typically credit cards with high rewards programs. Credit card providers typically charge these higher rates as they will have to offset some of the costs that come with providing rewards to their customers.
The most expensive merchant account rates come with the third tier, or non-qualified rates. Merchants that fall into this category typically have less conservative credit card acceptance rules, which add risk to the credit card provider. For example, merchants that fall into this category are not required to settle credit card batches on a daily basis, or they may not be required to verify zip codes when accepting credit cards.
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Accept Credit Cards to Solve Small Business Cash Flow Problems
Small Businesses and Cash Flow
One of the fundamental distinctions between large and small businesses has traditionally been the issue of working capital. Successful large company managers develop and execute business strategies with little thought to daily cash flow. For many small business people, nearly every decision involves a consideration of its impact on cash flow. If you can accept credit cards, you can improve your cash flow.
The process of issuing statements and collecting accounts receivable presents a monthly headache to many small companies that are short on resources and cash. Even the acceptance of paper checks can create unacceptable risks to a small business. These constraints result in loss sales and customers.
Being able to accept credit cards changes this situation. With the Internet representing an increasing source of business for many companies, the necessity of accepting electronic payments is unavoidable. The ability to accept credit cards improves cash flow while keeping customers happy.
The Reality of a Cashless Consumer
We are not yet at the point of a totally cashless society. At the same time, many customers of all income levels increasingly depend on their credit and debit cards instead of cash. Many employees receive their paychecks by direct deposit. They handle very little cash, paying for most transactions with plastic.
Paper or Plastic?
The supermarket question now has added significance. Customers expect every business, large or small to accept credit cards. This process is actually a win-win for both sides. The merchants gain immediate access to funds that are transferred from the customer’s account to the merchant’s. The risks and hassle of handling cash is eliminated for customer and merchant. There is also a clear record of each transaction that doesn’t depend on keeping track of paper receipts.
A century ago a small business agonized over the necessity of adding a phone to its operations. The world of business is rapidly reaching the point where any small business without the ability to accept credit cards will be the same as one without a phone.
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Benefits of Retail Credit Card Processing
Even a small business can lose out on sales if they do not have Retail Credit Card Processing set up. Most people do not carry cash any longer and checks are archaic in many ways. Most people carry a check card that is connected to their bank account and has the Visa or MasterCard logo on it.
While a check card can be processed as an ATM using a pin number, many forego this option. The main reason they choose to use the card as credit is many receive a percentage in cash back every time they use the check card as a credit card.
As business, and especially a retailer, not being able to accept credit card payments will turn customers away. People have choices and if you don’t accept credit cards, the store across the street probably does.
Retail Credit Card Processing
There is no way to grow a business if you do not accept credit card payments. The fees you pay for having a merchant account and processing credit cards is minimal compared to losing paying customers.
Making payment as convenient for customers as possible is what will help grow your business. If you operate an online business, it is essential that you accept credit cards or you will not be in business for long.
Credit card processing is also more secure and another reason people prefer to use it. The store receipt can be lost, but they always have the monthly statement from their credit card company or bank.
When choosing a credit card processing service for your company, you will want to check out the fees. These can vary from one company to the next, so make sure you read the fine print. Once you begin accepting credit cards, you will watch how quickly your business begins to grow. Any fees associated with the merchant account will more than pay for itself with the increase in business.
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The Necessity of Retail Credit Card Processing
When you stop and think about it, taking credit cards and not taking cash probably makes more sense than doing it the other way round. Apart from a few drug dealers, who really carries a lot of cash around with them these days? The answer is nobody. Anyone who expects to need cash is likely to look around for an ATM and grumble about the inconvenience.
This is what makes retail credit card processing so important to today’s businesses. Everybody who can actually afford to buy your products plans on paying for it with a credit card, so it is pure common sense to make the transaction as swift and smooth as possible. While it is true that some traditional and low-cost marketers do a lot of business in cash, this is because they cater to a group of people who are not particularly credit-worthy to begin with. These are people who cannot afford to make a lot of expensive purchases, much as they might want to. Leaving these low end consumers to other companies allows one to offer higher-margin items that are more in demand due to the advertising support that their manufacturers provide via television, radio and other mediums.
Retail Credit Card Processing
A retailer who does not take credit cards, or one who counts on his customers using his ATM as a substitute for setting up his point-of-sale terminals to accept all forms of payment, is simply kissing a large portion of his potential business goodbye. Few people would leave a fifty dollar bill on the sidewalk in front of them, yet they persist in thinking that it is okay to deny the opportunity of taking money from well-heeled people with plastic in their hands.
Business owners should avail themselves of the opportunity of relieving their customers of their money in the fastest, most painless way possible. Anything that slows the process down, or brings it to a complete halt, is simply a waste of money.
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Why Retail Credit Card Processing is Necessary
Retail Credit Card Processing is an absolute necessity for anyone with a retail business. There are still some establishments that do not accept credit cards, but with more people using plastic in one form or another, credit card processing is practically a requirement for any business that wants to maximize its sales potential. Furthermore, this processing can help retailers expand their business prospects online in ways that may not be possible without credit card orders.
Retail Credit Card Processing
In fact, it is very possible to miss orders when there is not credit card processing available. Many people have grown more comfortable with using credit cards and debit cards and there are also many forms of gift cards. Some people do not even carry cash any more. When a business is not able to process plastic, it can miss out on potential orders and miss out on expanding its client or customer base.
Furthermore, if a business does have an online presence and only accepts checks or money orders, customer satisfaction can suffer. It takes much longer to process checks and an order will not be processed until payment has been cleared. This means it can be weeks before an order is fulfilled. For customers who are used to a quick turn around on products and services, this can be very detrimental to a business.
Retail Credit Card Processing
Of course, local businesses may not feel the need to accept plastic, but this could be just as detrimental as only taking money orders or checks online. In fact, a business needs to make sure it has various avenues of payment including credit card processing. No matter the type of retail, the point is to get as many sales as possible. Not having a system to process credit card orders can be a deterrent for shoppers to any retail business.
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Payment Gateway Solutions are the Best Choice for Business
If you are not accepting credit cards at your place of business be it online or locally, you are losing sales. Processing credit cards has never been easier with payment gateway solutions. A gateway is what is used to authorize credit cards in any kind of sale that needs to accept a credit card payment.
Payment Gateway Solutions
The payment gateways not only authorize payments, but it stores the credit card information via encryption. This encryption is not readable, it is scrambled. This makes it impossible for hackers to see. Therefore, when the gateways process the card, it is via encryption to keep it secure.
The payment gateway process begins when a customer either enters their credit card online or a merchant swipes the card. This information is transmitted to a payment processor, which is established by the card’s bank. This information is sent to the cardholder’s bank where an instant fraud check is completed and sends back an approval or denied response to the merchant. The money is typically moved instantly from the customer’s account to the merchant account.
If you have ever used your credit card or check card at a store and watched the cashier swipe your card, you know the how it works. The entire process of sending the information to the gateway, then to the processor, to the bank, and then finally back to the merchant happens in seconds.
The payment gateway solutions are critical for your business. It is the first point of entry for the card and it therefore needs to be solid. Fraud protection is another solution that some gateways offer.
If you are ready to begin accepting credit cards, you will find many great payment gateway solutions to choose from. It is a great choice for any kind of business and today, this is very affordable compared to several years ago when credit processing was beginning to change with technology.
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