Payment Processing Services for Your Business

If you have a business, it is crucial to understand how payment processing services work. Not having a good understanding of the sector can have a negative impact on your business and bottom-line.

The type of payment processing you choose will depend on the type of business and where you operate from. For instance, those in e-commerce may have different requirements from retailers. While there are some services like credit card processing that cover all kinds of businesses, others are very specific.

We will look at the solutions available and the market that you can use in your business.

Services for Processing Payments

When you are running a business, it is vital that you give your customers as many options as possible to allow them to pay for whatever they purchase. When a customer feels that the process is easy, they are likely to come back thus increased sales for you.  

We will explore some payment methods you can think about investing in for your business.

Payment Processing For Credit Cards

Payment processing for credit cards is a very basic merchant service, and it is very likely that soon all businesses will have it. To be able to accept credit card payments in a business, you will have to open an account with a Merchant Bank or a third-party payment service provider (PSP) like Square or PayPal.

Many providers have no problems with credit cards such as MasterCard or Visa. Some providers will not accept cards like JCB, Diners Club or Discover. Also, find out the requirements concerning American Express and Amex.

Payment Processing For Debit Cards

Many merchants support debit card transactions, but you need to take note of the Interchange rates. Interchange rates for debit card transactions are lower than for credit cards because the bank does not issue credit when a buyer uses a debit card. If the cardholder has sufficient funds, the payment approval and cash withdrawal is immediate.

If you do not take note of the Interchange rate, you will end up losing money anytime a customer uses a debit card. Check what the tiered pricing and flat rate plans are before you sign up for this service.

eCheck or ACH Payment Processing

eCheck payments do not go through the Credit or debit card networks. as a business owner, you will need to sign up for a separate processing service if you want to use this option.

Having the eCheck option will allow you to accept paper checks and bank transfers. eChecks have the advantage of low processing rates because, like debit cards, the money comes straight from the customer’s account. the providers will, however, charge you $20 – $30 fee every month.

If you have a small business, the monthly fee may not make sense, especially if you rarely use the facility.

NFC Mobile Wallet Payment

There are many NFC mobile wallet payments you can choose, including Google and Apple Pay. The two have been in the market for quite a long time, but the uptake has not been very good. You can integrate them with your point-of-sale and credit card terminals so that it becomes an option for your customers. The main advantage of NFC Payments is that they are quite secure.

Processing Payments via Mobile

With smartphone technology, many companies are investing in apps which allow you to use your phone as a credit card terminal. For a business, plug in a card reader using a headphone jack into the mobile phone, and you will have a mobile payment system. You can also find card readers that you can connect to your phone via Bluetooth.
Having a mobile payment system in a business is a good idea because it is not as expensive as having a wired terminal.

Processing E-Commerce Payments

It is possible for a business to get payments via the internet. You will need a gateway, which is software that allows you to send data to your provider. Some of the advantages you will get with a gateway are support for; online invoicing, recurring billing and a database to store customer information.

Processing high-risk payments

If you have a business that falls into the high-risk category like firearms and ammunition, airlines, CBD oil, among others, you will find that some providers will not be willing to work with you. However, there are those who will; be ready for higher processing rates and account fees than you would get for a typical business.

Processing Low-Volume Payments

If you have just recently started your business, you may want to look for a provider who will not charge you high rates. Low rates will make sense because the amounts you will be transacting are few or low in value. You may want to use a payment services provider (PSP) because they do not charge a monthly fee. If you decide to terminate your contract with them, you will not pay any fees, and the contracts usually are short-term. Payment service providers include PayPal and Square.

Processing Non-Profit Payments

If you run a business in the non-profit sector, you can consider any of the processing services we have highlighted above, or look for one that specializes in non-profit organizations.

Final Thoughts

When shopping for a service that processes payments for your business, look for one that suits the kind you are in. Also, check that is not costly to maintain. Make sure you have a thorough understanding of the terms and conditions. Poor understanding of contracts can get you into legal and financial problems. Carefully evaluate what each plan offers and how much it will cost you in the end.

Note that some additional features may cost you extra. While the features may add to what you offer your customers, only do so if it makes economic sense. Most of all look for one is convenient and easy to use so that your customers keep coming back. For more information about the topic in Australia: https://www.shopify.com.au/blog/turn-showrooming-into-sales-introducing-buy-online-for-shopify-pos

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