More and more people are opting for card payments lately. Their ease of use and convenience is making them a preferred option for all kinds of transactions. Thus, there is no need for customers to carry bulky cash or leave a product behind for shortage of cash. Another feature that makes it endearing for customers is that they get fast results. Thus, for a merchant, it is inevitable to have the means for credit card processing nowadays. There Best White Label Payment Gateway are two ways in which this can be done: credit card terminal and online payment gateways.
In the case of the credit card terminal, you have equipment which processes card transactions. You swipe the card and enter user information which is used to authenticate the card. However, this is not a real time setup and takes about a day to get the charge levied. Another issue is that they run on electricity or via battery. Also, they need to be plugged in as information is sent through wires and cables. So, it is not a feasible option for sales persons and small time entrepreneurs. On the other hand, online payment gateways are a secure and easy way to make credit transactions. But you need some means to connect to these gateways. With the launch of thousands of business applications that run on the iphone itself, this is not a problem anymore.
Merchants today must be able to offer customers the option of credit or debit payment. A service provider is necessary to accept this payment form in-store as well as online. Small businesses have a hard time transitioning over to electronic forms of payment because of the many fees involved, but company profit increases often make the expense minimal. A merchant service provider supplies the account, gateway, and additional services needed by a company to run and authorize cards. The account may be tailored to fit online, phone, mailed, mobile, or in-store transactions.
A card terminal is one of many gateways a business can choose. Credit payment acceptance is important because this particular payment form has become the preferred way to pay by most people. Consumers do not like carrying cash because it is unsafe. They also do not like having to go through a lengthy process to pay by check. Customers have been found to spend more on individual purchases using a credit or debit card. Not offering this option leads to missed profit opportunities.
Transaction fees are common among providers and are a percentage of the total sale amount. Providers may additionally charge monthly or yearly service fees. Sales patterns have to be evaluated when considering small business credit card processing. How many purchases will be processed each day? Will they consist of small or large amounts of money? Many companies will either charge a flat fee per purchase or a percentage. In some cases, a minimum amount of transactions must be brought in each month to receive the lowest rate. If the minimum is not met, a monthly service fee may be charged instead of the per transaction rate. This will depend upon the provider and the account setup chosen. A business handling many small sales a day can gain more by selecting an account with lower per transaction charges. Small numbers of larger purchases call for a minimal percentage fee instead of a low per transaction rate.
Not a day goes by that i don’t hear of another unfortunate tale of a business owner falling victim to a credit card terminal leasing scam. As the economy slows and times become tough the old saying, “desperate times calls for desperate measures”, seems to take on a new meaning in the merchant service world. This is one of many pitfalls gaining popularity in an industry riddled with half-truths and empty promises.
The credit card processing industry, as a whole is experiencing intense competition as sales reps compete to get there hands on and keep as many merchant accounts as possible. Business owners are successfully pitting several sales reps against each other to secure the lowest possible markup on their card transactions. Instead of relying on a high markup on processing, reps are now looking for more creative ways to squeak out a profit.
These can be a very expensive hidden secret awaiting you on your first bill. Make sure you know exactly what you are being charged per transaction, batch, address verification, monthly statements, compliance fee, etc. Most importantly, understand the total cost you are paying for your service. Credit card processing companies are getting very creative with their statements. Hint: The amount listed on the top of your statement is probably not the total cost that has been deducted from your account. Look for a line item that says “less discount paid” or something to that effect and add it to the amount listed on page 1 to see how much you really paid.
