Credit Card Processing Blog

The past year has been anything but easy for Facebook. Not only have they been in the middle of the fight over online privacy, but their recent earnings report showed that fewer people are using the site. While it’s easy for some pundits to point to the rise and fall of MySpace, the reality is that Facebook is in a much different position.

Not only is the platform still far larger than any network that came before it, but the company also owns Instagram and WhatsApp, which are both thriving. So even though the Facebook brand is going through an identity crisis, the company itself still has an incredible amount of resources.

Those resources aren’t sitting idly. Instead, it appears that Facebook is aggressively exploring a number of different opportunities that could unlock their future growth. One of those opportunities is the blockchain. Although we’ve discussed how this technology can be used for a variety of applications, it appears that Facebook is specifically interested in payments.

Facebook’s Recent Blockchain Moves

The first sign that Facebook has plans to roll out some form of payments involving the blockchain is one of their senior employees left Coinbase’s board to avoid any type of conflict of interest. This same employee previously worked at PayPal.

Another move that signals the company’s interest in this type of payment solution is their meeting with Stellar. Although they ultimately passed on creating any type of partnership, it’s obvious this is something they’re exploring.

Facebook Isn’t the Only Company Still Moving Ahead with the Blockchain

After the huge spike and decline of the main cryptocurrencies leading into 2018, certain trends like ICOs cooled off considerably. But as prices have reached a more stable point (at least for the time being), it has actually given a lot of companies like Facebook the room to focus on interesting projects related to the blockchain.

One company that’s taken this type of step is UPS. They recently filed a blockchain patent that utilizes this technology as part of a distributed system for sending packages worldwide. The patent focuses on storing numerous types of data within a distributed ledger network, including information about a package’s destination, its movement, and transportation plans for shipment units.

Capital One is another major player that has shown recent interest in this space. The patent they filed is actually a continuation of a previous one, and it’s focused on a proposed system that’s designed to receive, store, record, and retrieve authentication information for a user in multiple blockchain-based member platforms.

We will continue to keep you updated with any blockchain news that may be relevant to your business. And if you want to be confident that you’re always able to take advantage of the latest technology, working with a leading payment processor will ensure you’re never left behind.

With the exception of mortgages, debt is generally viewed as something negative for consumers. But for businesses, the issue is a little more complicated. While businesses can definitely take on bad debt, strategic debt in the form of a business loan can be very beneficial. In fact, a study conducted by researchers at several different universities found that a loan of just $11,000 can increase a small business’s three-to-five-year survival rate by more than 50%.

Given that very significant finding, it shouldn’t come as a surprise that more than 10% of all small business entrepreneurs are expected to apply for a business loan during the course of 2018. If you’re one of the entrepreneurs planning to go down this path, it’s completely normal to feel at least a little overwhelmed. Not only does the application process itself require a lot of effort, but you may still have some reservations about the burden of taking on a loan.

Because there is so much to manage during this process, we want to share several helpful insights about what to expect as you go through the different steps of applying:

There are Different Types of Business Loans

Not all business loans are created equal. There are actually several different types of loans that you should look into for your business, including a bank, SBA, and alternative lender loan. Each type comes with its own list of pros and cons, which is why it’s important to evaluate them in relation to the specific needs of your business.

Know Your Cash Flow and Expenses

Cash flow and expenses are both metrics that you’ll want to take into account as you’re looking into which type of loan makes the most sense for your business. For example, if you typically get paid in 90 to 120-day cycles, the loan terms that work for your business may be very different from a business that operates on 30 to 60-day payment terms.

Not All Banks are the Same

Just as there are different types of loans, keep in mind that if you decide to apply for a bank loan, these institutions can be very different as well. Banks often have specific types of businesses that they prefer to loan money to, so finding one or more banks that fit the profile of your business can save you a lot of frustration and potentially wasted time.

5 Factors Loan Providers Evaluate

Although every lender will have factors that matter to them the most, you can count on almost any lender looking at a handful of specific factors. Those factors include your collateral, capacity for handling debt, existing capital, macro conditions and the reputation of your business.

Only you can ultimately decide if applying for a loan this year makes sense for your business. If it does, the above information will help you throughout the process. And if you’re tackling other financial aspects of your business as well, be sure to take a look at our credit card processing 101 guide.

Even though the e-commerce landscape is quite competitive, it still offers an amazing way to sell to customers across the United States and even the globe. If your business already has an e-commerce site online but it’s not driving the level of results you want, there are a number of ways to improve it. To help you out, here are solutions to five of the most common challenges merchants face with e-commerce:

  1. Slow Load Times

Consumers expect websites to load quickly. And if a site doesn’t load, people are going to leave. That’s why when Amazon did an internal case study about speed, they found that over the course of a year, a single second of lag time would cost them over a billion dollars in sales! What makes this situation more challenging is e-commerce platforms often have complex features that can slow them down. You can avoid this problem by running a speed test, identifying any sources of slowness and then changing or eliminating them.

  1. Poor Mobile Performance

A big part of why people are buying more online than ever before is they no longer need to be in front of a computer to make purchases. Instead, they can just pull out their phones. However, you will only benefit from this consumer behavior if your site performs great on smaller screens. If this is currently a problem area, a great way to start remedying it is by switching to a responsive web design.

  1. Lack of Engagement

Social media has transformed the Internet from a publishing platform into a two-way communication channel. People want to be able to chat and express their opinions online. So if you don’t feel as connected to your customers as you would like, the good news is there are several ways to change this. The first is to increase your social media activity on both Facebook and Instagram. You can also increase engagement by using your email list to interact with potential and current customers on a regular basis.

  1. Not Enough Traffic

Because there is so much competition online, simply having an e-commerce site up and running is not enough to guarantee that people will visit it. If a lack of traffic is the reason your site isn’t generating the type of revenue you’d like, there are both short and longer-term strategies. In the short-term, paid advertising through Facebook or AdWords can start bringing in targeted visitors right away. Just keep a close eye on your spending. And for long-term traffic, making the right SEO content and link investments can really pay off down the line.

  1. Low Conversion Rate

What happens if people are coming to your site but not buying? One way to start figuring out what’s keeping your conversion rate low is to install a live chat tool. This can help you identify any technical or other obstacles. A less than ideal payment experience is a common culprit. If you find out that people are having trouble when they want to check out, switching to a leading processor can solve this problem for you.

Most of the biggest companies in tech are making major bets on voice. And unlike other technologies such as VR, which had a big push a few years ago but seems to have stalled, many consumers are taking to voice in a big way. That’s evidenced with trends like Amazon’s Echo Dot being the company’s best selling product during the last Christmas season.

Amazon is far from being the only tech giant to put a lot of resources behind voice. Google Assistant is a product that the company has continued to push forward. Given that analysts believe around fifty percent of all searches will be done by voice in just three years, it’s easy to understand why Google is taking this trend so seriously.

Because voice is still an emerging technology, there’s not much for individual merchants to do in terms of optimizing their website or online presence. However, what is worth spending a little time on is looking at how consumers are already using this technology to make payments, as well as what other plans tech companies have for enabling payments through voice.

How Google Assistant Handles Payments

Before we look at exactly how Google is using their Assistant technology for payments, it’s worth clarifying where it can be used. As of now, Assistant comes with Android phones, as well as multiple smart home devices that have Google’s brand. It’s also possible for iPhone users to download a Google Assistant app for iOS.

If someone has any of those devices, they can say “OK Google” or “Hey Google” to engage it. Once someone engages Google Assistant, common requests range from doing an online search to playing a song. And increasingly, requests have to do with making a payment.

One reason that more people are using their voice to make payments is this technology has been present in Google Assistant for a while. Through Google Pay, someone can send money to a friend or family member. What’s compelling about this is instead of needing to open an app and give multiple details, someone can just say the amount they want to send, who it’s going to and for what. The same is true for requesting money.

Making the jump from peer-to-peer payments into e-commerce could be done in a number of ways. For example, when someone runs out of a staple item in their home, they could just tell Google Assistant to order it. Depending on the item, they could also specify the merchant or simply let Google decide, which would likely be a significant new source of ad revenue for the tech giant.

As we mentioned above, there currently aren’t any major changes merchants need to make to take advantage of what’s being done with voice. Just keep in mind that it’s important to have a nimble processing partner that’s always ready to evolve with the times. If you don’t feel that your current processor meets that description, switching to an industry leading processing company is something to strongly consider.

In the months leading up to the required start date for GDPR (General Data Protection Regulation) compliance, there was a lot of talk about all the different steps that businesses had to take. Most consumers also received a flurry of emails from tech companies letting them know that they were following all the measures required for compliance.

While all of this activity made it seem like GDPR was something that businesses of all sizes were embracing, new data related to this topic paints a different picture. Based on an analysis of where things are at three months after the start of GDPR, it appears that the majority aren’t in full compliance with all of the mandates.

More Details About the Lack of GDPR Compliance

According to a global study, only 1 out of every 5 businesses is fully complying with what’s required by GDPR. Although it’s easy to assume that this number only gets skewed by businesses outside of the EU, that doesn’t appear to be the case. Even when the analysis is limited to EU companies, the compliance rate still just clocks in at 27%.

Given this very low adoption rate, it’s worth looking at the root causes. One major issue is the sheer scope of GDPR. Because it requires so much of businesses, it sets too high a barrier for many. This is reflected in a very interesting data point, which is that 90% of businesses are planning to hire at least one staff member over the next year for a role focused solely on compliance.

Expanding on the burden that all of these regulations create, the cost to actually become compliant can be huge. Around 25% of businesses have spent at least half a million dollars to make this happen.

The other issue that can make compliance especially challenging is for any business that has to deal with a supply chain. This is due to the fact that not only does data need to be managed internally, but controls have to be put in place to help protect it as it flows out of the business.

What Should Businesses Do?

All of this news may come as a surprise and appear to paint a bleak picture. Fortunately, that’s not necessarily true. There are two important things to keep in mind. The first is if you look back at the EMV mandate, it followed a similar pattern.

Even after lots of upfront discussion, actual adoption took a good amount of time. And the second thing to keep in mind is this is actually reassuring for smaller businesses that simply aren’t able to be in full compliance at this time. Any business taking steps towards GDPR without fully reaching what’s required is far from being alone.

One element that can help with tasks related to GDPR is having a strong processing partner. So if you’ve been considering a switch, be sure to look at our list of recommended credit card processing companies.