Credit Card Processing Blog

The credit card processor a business chooses will have a significant impact on its operations. While the right processor can help a business grow, the wrong one can hold a business back. Since this decision is such an important one, we’re going to detail some of the key effects a processor can have, including on customer service: The Wrong Processor Will Hurt Your Bottom Line Of the different ways the wrong processor can negatively impact your business, the most obvious is cutting into your bottom line. If you’re paying a higher than average rate to process credit card transactions or you’re being consistently hit with charges that seem unfair, it’s going to cut into how much your business makes. Regardless of how small or large your margins are, you shouldn’t be hit with the equivalent of a penalty every time a customer pays with a card. An Unreliable Processing Company Can Create Security Risks Payment security is a big deal both online and offline. Not only do you want to protect your customers whenever they make a payment, but you… Read more

When Walmart and other large retailers started rolling out self-checkouts around a decade ago, there were a lot of mixed feelings about them. While some people found them both cool and useful, plenty of others felt like these machines were less convenient than checking out with a cashier. Fast forward to the present, and even though self-checkouts have become a staple of most large retail stores, people’s mixed feelings persist. Regardless of any reservations some shoppers may have, all signs point towards these machines being here to stay. Because most large retailers utilize self-checkouts, many smaller stores wonder if they should invest in this type of technology. Since this is a very valid question and one that comes up quite often, we want to share our thoughts based on our knowledge in this area and interactions with a variety of retailers: 3 Benefits of Self-Checkout Machines In terms of why large retailers have continued to expand their usage of self-checkouts, there are three main benefits of these machines. The first is being able to check out in less time. Although… Read more

PayPal is something we get asked about on a regular basis. That’s why we wrote a comprehensive article on the pros and cons of PayPal a few years ago, and have continued to address it in subsequent articles. As a rule of thumb, our recommendation for PayPal is it can be a convenient option for an individual who wants to accept a few payments for something like a hobby or testing out providing a service. However, as soon as someone actually launches a business or if they are currently using PayPal with an established business, it’s a good idea to switch to a leading credit card processor. Doing so will lower their rates and provide a variety of other useful features. PayPal’s Newest Initiative Although PayPal has been around for over a decade and a half, they continue to push forward in different areas. Since they recently rolled out a new initiative, we want to focus on what it means for retailers. The latest initiative from PayPal is focused on bridging the gap between the online world and physical retail.… Read more

As the holidays continue to get closer and the busiest shopping time of the year heats up, we want to cover some of the best ways for retailers to ensure they have a successful season. Here are seven holiday retail tips to keep in mind: Train Employees on Using EMV Terminals In the short period of time that they’ve been officially rolled out across the United States, EMV terminals have done an effective job of curbing in-person credit card fraud. But what they haven’t been so great at is making checkouts as efficient as possible. Not only is processing via insertion currently slower than swiping, but plenty of people are still confused by the sequence they need to go through instead of simply swiping. Since even a small slowdown can cause a pileup during the holiday rush, be sure to take extra time to train your employees on how to properly use any new EMV terminals. The training should include covering the best ways to assist customers. Create a Marketing Sequence Because this season is so busy, plenty of retailers… Read more

Recently, MasterCard made a quiet but significant announcement. The announcement is the company will begin charging an annual fee to businesses. Known as a merchant location fee, this isn’t something that’s being implemented by payment providers. Instead, it’s coming directly from MasterCard. Although there will inevitably be processors that mark the fee up when they pass it on to their customers, this is a fee that businesses have to deal with. The best way to minimize any negative effects from this fee is to understand exactly what it is. Understanding MasterCard’s Merchant Location Fee While the name of this fee can be a little confusing, it refers to how many locations a specific business has. In terms of pricing, the fee follows the model of assessment fees from other brands by being lower for payment facilitators than traditional acquiring institutions. A facilitator will only be on the hook for $3 annually per merchant location, while the fee for traditional acquirers is $15 per location. The significant difference between those price points is why the final cost for a processor may… Read more