Given the state of the market today it is becoming increasingly unusual to find a business of any size that does not accept credit cards. Even the smallest mobile business are accepting credit card payments given the decreased cost of mobile processing solutions. In addition, the internet makes it possible for any business to remain open and profitable around the clock with an ecommerce solution.
There are numerous companies offering small business credit card processing solutions. However, the level of service can very dramatically for one provider to another.
So, as a small business what considerations are necessary if you are ready to proceed with a credit card processing solution?
Considerations for selecting a small business credit card processing partner.
All credit card processing providers offer their service in exchange for a fee that is tied to the transactions completed by the merchant or business. These fees are made up of the following:
- Interchange – this is the fee changed by the bank that issued the credit card the customer is using to pay with. This fee is a fixed cost and cannot be negotiated. The fee or rate represents the wholesale price of accepting credit cards. The fee is made up of a percentage of the sale, as well as a per transaction cost.
- Association Dues and Assessments – these fees are charged by Visa, Master Card, Discover etc. and are also a fixed cost that can’t be negotiated.
- Interchange Markup or Margin – this is the additional cost the credit card processor adds on to the interchange, dues and assessments in order to make a profit. This fee is negotiable and is determined by the risk profile associated to the industry of the business seeking an account.
As a small business it is important to understand that you have the ability to negotiate the markup charged by the processor. It is also helpful to understand the different pricing structures for credit card processing.
While price is an important factor when choosing a provider there are also other elements that should be considered.
- Track Record – How long has the provider you are considering been in business? Ask for references if possible. Check the provider in the better business bureau. Also, check services like the rip off report.
- Merchant Agreement – Make sure you review the agreement carefully before signing to make sure you understand the agreement you are making.
- Network Compatibility – When looking to deploy the processing solution you want to make sure that the provider you select has adequate network compatibility to work with any existing equipment as well as future equipment.
- PCI DSS Compliance – The Payment Card Industry Data Security Standards are the rules set up by the federal government for the protection of card holder data. It is very important to select a provider that is PCI DSS compliant.
- Support – Some providers do not offer round the clock support. Additionally, it is common for most providers to outsource support overseas where it is difficult to get the proper level of tech support. There is nothing more aggravating than having an issue with your income and not getting the help you need.
We hope this is helpful as you consider small business credit card processing. If we can be of assistance please don’t hesitate to call our friendly staff at (800)917-8026.
The development of mobile credit card processing establishes a cost effective mechanism for any business to expand its reach. As this technology matures the solutions that are available for mobile credit card processing are more abundant, simpler and faster than ever. Is a mobile processing solution right for your business?
As more merchants adopt mobile technology it’s easy to argue its influence on simplifying sales. A mobile credit card processing solution can be used to transact sales from anywhere a cell phone can be used. This produces an environment in which revenue can be generated virtually anywhere. A mobile processing solution augments your payment acceptance options weather you have a retail store, ecommerce site or mobile sales organization. Here are the top questions to ask yourself as mobile processing solutions become more affordable and available.
Top questions to ask
- What do my customers expect? If I don’t have the ability to accept a credit card will that cost me a sale?
- Are there sales opportunities outside of my traditional sales channel? If so, how do I reduce my risk of fraud, prevent losses and lower my processing costs?
- Do I own a smart phone or tablet and would it be convenient if it were a credit card terminal?
- Would it benefit my business to have more customer information such as phone, email and address?
If you answered yes to even a small portion of these questions than a mobile credit card processing solution is a good fit. The convenience of having a payment processing solution tied to your iPhone, iPad, Android phone or tablet makes any situation a revenue generating opportunity. This technology is how contractors, inspectors, delivery services, caterers, therapists, etc. are turning handshakes into income.
Get started with a mobile processing solution.
What is interchange when referring to your merchant account pricing? This is a common question that once understood can help you to drastically reduce your credit card processing costs.
What is interchange?
Simple – it’s wholesale. Wholesale is the price the manufacture sells the product to the retailer at. The retailer marks up the price and then sells the product to the consumer. This same thing happens with credit card processing.
The credit card associations (Visa, Master Card, Discover, American Express, etc) and the issuing banks (Chase, Capitol One, etc) set the wholesale price for processing credit cards. This wholesale price is called interchange.
The processor then marks up the wholesale price or interchange price and that is the pricing you see on your merchant account statement each month. Just like every other wholesale to retail industry there are no set standards on the mark up for the credit card processing industry. Therefor if you do not understand the margin that your processor has built into your rates it’s hard to know if you are over paying for the service. Here is a detailed analysis of how the interchange margin is calculated.
No one can pay less than wholesale or interchange to process credit cards, so the closer you get to interchange the better deal you have received.
Would you like a wholesale or interchange pricing quote? Simply provide us with some information on your business and a representative will generate a pricing proposal.
Are you looking for a simple way to accept payments from your Android mobile phone? There are a few solutions out there and some are better than others depending on your total or estimate monthly processing volume. For merchants that have a total or estimated monthly volume of $4,300 or less, it is more cost effective to use a solution like Square Up. For businesses that are, or are planning to, process more than $4,300 a month, a traditional merchant account is more cost effective.
PayFox is an Android compatible mobile payment processing solution that allows your business to accept card present transactions. The solution consists of the PayFox mobile payment application available through the Android Marketplace combined with swipe device that plugs into the headphone jack of your Android phone.
Card Reader Capability
- Multi-direction card capture
- The lowest processing rates given swiped transactions
- Little to no battery consumption
- External power source not required
- Small and portable
The solution provides your business a simply, cost effective way of transacting payment on the go. The solution has integrated signature functionality that allows for the customer signature to be captured directly on the device with email receipt capability. There is also built in tip capture for industries that accept tips. The solution is 100% PCI compliant so there is no risk of customer credit card information being lost or stolen. Additional security features reduce fraud with address verification services. The solution also has built in geo-location functionality to add map locations to the receipt.
For more information and pricing please call our friendly staff at (800)917-8026.
Is your business looking for a simplified system for check acceptance? Are you wasting valuable time making trips to the bank to deposit checks? Are you concerned about bounced checks? If you have any of these concerns, an electronic check acceptance system may be your answer.
CrossCheck is a revolutionary system that gives your business the ability to electronically process and settle checks from a single point of sale (POS). Think of the CrossCheck as a system to process checks in a similar fashion to accepting credit cards. The CrossCheck system has two distinct and separate functions. These functions can be enabled together or separately.
The verification process runs the customer’s check information through their bank to verify the customer has the funds necessary to complete the transaction. The process takes a matter of seconds and returns a recommendation for approval or decline. Check conversion is also available with this process. Check conversion converts the customer check information to an electronic format for deposit in your business checking account.
The guarantee process guarantees the customers check and protects your business from losses associated with bounced checks. Check conversion is available with this process as well.
Both processes are available with a supported check reader. The guarantee process with conversion requires a check imager. A check reader scans the check and reads the account and routing number automatically. A check imager captures a picture of the check so that the original can be returned to the customer.
Would you like more information on CrossCheck? Simply provide you contact information and a representative will be in touch shortly.