Merchant Service Processing Accounts

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Increasing Sales When Accepting Credit Card Payments

Today, millions of people have one or more credit cards. For most, using a credit card has become a convenient and easy way to pay for items. .In fact, about 90% of all internet sales are paid for using a credit card. If your business does not currently accept credit card payments, you are missing out on an opportunity to increase your sales.

The following lists the reasons why accepting credit card payments will increase sales:

1. Many research surveys have revealed that customers buy more products if a business has their preferred method of payment. By providing more payment options such as credit card payments, you will likely see an increase in sales and acquire repeat customers.

2. Consumers report that using credit cards is more convenient, flexible, gives more buying power, and security. Businesses must stay competitive by making sure they are meeting the payment option demands of consumers. Accepting credit cards boosts a businesses’ credibility and sales. Credit card and ATM card users tend to seek out businesses that accept credit card and ATM card payments over those that do not.

3. Accepting credit cards will increase consumer impulse buying. Credit cards allow consumers to make spontaneous purchases. Credit card customers purchase between 50% and 75% more products than cash and check customers.

4. Accepting credit cards allows a business to expand their market. Most businesses are no longer only local. Because of the internet, businesses have access to a global market. Credit cards payments allow businesses to acquire sales from all over the world.

5. Credit cards allow businesses to maintain and increase sales in between paydays. Credit cards allow people to make purchases anytime, especially when cash is short.

6. The cost of accepting credit cards will save businesses money because it is much cheaper to keep an account of sales which will reduce overhead and time.

7. Instant payment authorization is a great benefit to accepting credit card payments. You will know immediately if the transaction is valid. It is much more safe and convenient than waiting for a check to clear. This real time payment drastically reduces payment defaults.

8. Credit card processing can be an added revenue generator if a business is involved with internet sales.

During these troubled economic times, businesses want to use all available options to increase their sales. Accepting credit cards is one way of maintaining and increasing sales. There are many high tech point-of-sale systems that make credit card processing safe, fast, and convenient. For instance, you may want to consider using a wireless terminal to process credit card payments.

There are many options to picking a credit card payment process. It is important to do your research in order to pick the best point-of-sale equipment or online merchant account to meet your business needs. It is important investigate the various fees involved when implementing a credit card processing equipment. No matter how you look at it, accepting credit card payments will increase sales and help a business increase profits

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How to Accept Credit Card Payments Via the Internet

So you’ve finally decided to explore the revenue channel offered by the Internet. Accepting credit cards via the Internet has paved the way for merchants to increase their income. With more consumers shopping online, it’s a profitable decision for businesses to provide credit card payment processing on their websites. The question would then be, where do you begin?

Here are the 3 major components of credit card processing:

Payment Gateway

A payment gateway manages the secure transfer of credit card funds of your customers from your website to your merchant account. This is done with a software interface provided by the payment gateway company that collects vital credit card data from the customer, and also informs the customer in real time if their credit card was approved or not. Payment gateway companies normally charge a transaction fee and a discount rate for this kind of service. Fees will vary from one processor to another, as well as features.

The three “ty’s” of payment gateways:

scalability (can they handle varying transaction volumes)

reliability (do their servers provide 99.9% uptime)

security (fraud prevention tools, Address Verification Service, 128-bit Secure Sockets Layer (SSL) technology, PCI compliance)

Without the proper security tools you are vulnerable to pilferers, and credit card scammers, and you don’t want that happening on your site.

Merchant Account

A merchant account is an account with a bank that allows you to accept credit card payments. The payment gateway wires the billing information to the merchant account provider, and subsequently collects the funds from the customer’s account.

Two kinds of merchant accounts:

‘card present’ – retail and Point of Sale(POS) merchants

‘card not present’ – Mail Order/Telephone Order (MOTO), and Internet Merchants.

An Internet Merchant Account enables credit card payments via the Internet. You can gain an Internet merchant account in three ways:

Through a reputable bank

Broker or intermediary

Third party

Most banks are not too keen in accepting start up businesses, and their ecommerce services are still at the developing stage. Getting a merchant account through a bank not only depends on how large your business is, but also on what kind of business you’re doing. Businesses in the field of pharmacy, gambling, adult entertainment, and travel usually won’t even dare knock on the doors of these banks for it’s just a waste of time.

Brokers, on the other hand, can help you obtain a merchant account by acting as your representative to the bank. They make your business more appealing, and improve your chances of getting your own merchant account. However, like banks, they steer clear of high risk merchants, and you might have to produce documents (business plans, personal net worth, mortgage and credit card bills) to prove your business worth.

Still unsuccessful with the first two options, most merchants are more than willing to get a free merchant account via third party processor. Application is simple and most third party processors will waive application/set up fees, and provide value-added services for free. Most processors have a “sell nothing, pay nothing” policy, and caters to most high risk merchants turned down by banks and brokers. Account approval is quick, and you can start selling in less than 24 hours. However, third party processors can charge slightly higher on transactions unlike having your own Internet merchant account.

Website

Without a functional website, you won’t be able to sell your products and services on the Internet. Merchant account providers sometimes offer site templates to choose from, and payment gateways offer shopping carts that are seamlessly incorporated on your site. The key words here are: easily integrated. If you can’t integrate, you can’t sell.

In general, these three are the main factors when accepting credit card payments over the Internet. Having these three won’t guarantee a successful online business, but are imperative if you plan on engaging in ecommerce. Search the web for the best solution you feel can help your business succeed. Merchants have long tapped the revenue potential of the ecommerce market, its about time you do.

Choosing the Right Credit Card Payment Processing Provider

Many small business owners are hesitant to accept credit cards because they are afraid all of the fees and equipment costs, but fees are not the only thing to consider when you are looking for a payment processor.

First, think about the kind of company you want to do business with. There are banks that provide services that allow you to accept credit cards, as well as independent sales organizations and, sometimes, the credit card company itself.

The advantage of working with the same bank that has your other business accounts is that it is easier for you to deal with, and there may be someone local who you can call when you have problems.

On the other hand, independent sales organizations have more experience and are sometimes more flexible in the kinds of businesses they will work with.

When you’re shopping around and learning about the different packages that payment processing companies provide, here are some things you should pay attention to:

*Reliability: Does the network have a lot of downtime? What happens when the network goes down? What kind of customer support structure do they have in place? Is there someone you can call 24/7?

*Products: What different kinds of payment processing products are available? Can they help you choose what’s right for you?

*Extras: Does this system also process electronic gift cards, electronic checks or other methods of payment?

The biggest factor that most people use to choose the merchant account company they want to go with, however, is the price. There are many different fees associated with accepting credit cards, including an application fee, the discount rate (a percentage of each sale), transaction fees and fees for sales made over the Internet or the phone.

There are also fees for statements, for not meeting a minimum amount of sales and for any returns or refunds you process.

Look carefully at all the different kinds of fees each company collects and what the rate is. If you’re expecting people to make a lot of small purchases with credit cards at your business, you might look for the company with the lowest transaction fee. If on the other hand your credit card payments will be high, you might be more interested in a lower discount rate. It all depends on what your priorities are.

A final thing you’ll want to consider when choosing a payment processing system is what if any costs you will incur from renting or buying equipment. Some companies offer free equipment for credit card processing, which can be a big positive that cuts down on your up-front costs

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