The Landscape for credit card processing is quickly changing. New media, new currencies, new methods of processing transactions, and new technologies for securing transactions are popping up each year. This in the wake of almost 40 years’ worth of magnetic strips which had served our market so well through the years. They are still very popular, but cards with” the processor” are much safer for your clients as they secure the data saved on credit cards from potential thieves. What else do you want to know? Continue reading.
Reducing the Risk of Fraud to the Client Will Lower Your Transaction Prices
There Are two great reasons to invest in newer technology and speak with a Valued Merchant Services rep about the most recent features that secure individual transactions. The first reason is that your customers will feel safer and they will be more prepared to frequent your establishment.
The second is that it will reduce your transaction costs.
Different When swiping, it is important to check the expiration date on the card, and input in the road number from the billing address, zip code and the security code on the back of the card when prompted. Again, this could help you save money on every transaction. For purchases where the card isn’t present, there may be specific information that the card chips need.
If this information is not provided, it might lead to a charge back.
To leverage credit card chips into reducing fees, it behooves smaller companies to be viewed as a company that adds value to a credit card processor. This is usually measured in the number of transactions. The firmer an establishment does, the larger the volume of trades, which puts money in the pocket of their credit card processor, who’s more inclined to cut you a deal.
Bigger Banks are the One’s Processing Credit Cards
Most credit card processors farm out the labor to larger acquirers, meaning that a local, smaller lender/acquirer is acting as a middle man. You don’t need to cut ties with the smaller lender, however, you’ll save money by having a bigger processor handle your credit card transactions.
Consulting with a Specialist
Most small business owners aren’t experts on credit card processing. It is one of those things where it will seriously pay off to check with an expert. There are many nuances to the transaction that many vendors would not understand unless they have been involved directly with credit card processing themselves.
Understanding what is flexible
There’s basically Two regions of the price you pay that are not ever going to change. Those include interchange and evaluations. The interchange fee is what card issuing banks accumulate and it’s essentially fixed with possible increases/decreases levied every April and October. Assessments are fees that are charged by the card manufacturers such as Visa, MasterCard, and Discover and they’re essentially the same across the board.
Processing companies will charge a markup fee for their services and this is where you can negotiate.
Vendors Tend to get hung up on fees and rates, but as a seller, you need to hone in on what the processing firm’s markup is based on. There are usually two primary pricing choices. For many smaller companies, particularly the ones who don’t do a high volume of credit card transactions, tiered will be the more expensive option.
Be Cautious of Long-Term Contracts
You Want to be cautious about getting locked into a long-term contract, and if you’re, make sure it comes with some type of leverage concerning pricing. Long term contracts will frequently lead to cancellation fees, and if you are not sure you are getting a great deal in the first place, then you need to shop around before marrying yourself to a credit card processing firm.
Purchase New and Stay Current
Mobile Processing is becoming increasingly more popular because technology itself may be used with various mobile devices. These include iPad tablets, smartphones, and just about any other mobile device you can consider. You do not want to get locked into paying exorbitant prices for a point of sale system that’s going to be obsolete in a couple of decades. Interchangeable parts are always the best.
Monthly Discounting is Far Better than Daily Discounting
Daily Blowing happens when a credit card processor takes fees day to day during the month. Monthly is when they include interest at the end of the month and it will give you greater control over your cashflow.
The Bottom Line
Suffice it say, it can be Overwhelming on the seller side to take care of all these different nuances to the credit card processing transaction. You require a team such as BlessPay that you can trust. Click Now to contact us or call 1-800-314-0234.