Having to shell out your hard-earned revenue on processing fees can be a scary thought for most businesses. For business owners, it can be challenging to figure out the right solution to deal with this situation.
According to a report by the US Bureau of Labor and Statistics, over 50% of Small and Medium Businesses (SMEs) fail to sustain their business for four years.
To prevent the odds of business failure, it is essential for businesses to optimize their cashflows and minimize the percentage of revenues going towards credit card processing. The credit card payment industry is expected to grow at monumental rates, with an increase of 33% expected by 2024. Across the other end of the spectrum, cash payments are expected to decrease significantly to reach less than 27% of transactions. This shift means that the survival of your business could depend on offering credit card payments through an effective payment gateway.
Getting Affordable Credit Card Processing for Your Business
There are a number of ways you can go about getting affordable credit card processing for your business. The key element of the process is to look beyond the conventional procedures to explore payment providers and payment gateways that cater to your specific needs.
Here are the best ways to get the best solution for your needs.
Using a Merchant Services Provider
It can be a great idea to look beyond the conventional banking system and explore merchant service providers. These companies can cater to your business needs with merchant accounts to help you safely manage credit card processing.
Conventional banks don’t usually manage their own payments but instead contract services from 3rd party vendors to cater to client requirements. This often results in extra fees being charged to your business since the bank adds in its handling commission in the total amount. Merchant service providers streamline your process by simplifying your payment handling without redirecting you to 3rd party websites. Additionally, you also get to benefit from integrated fraud monitoring tools to ensure safe transaction management.
Merchant services also help businesses improve their cash flow management with a much faster approach to accounts receivable. Efficient merchant services help your business with automated invoice and account management. In addition, merchant payment providers can help you get the lowest credit card processing charges, thanks to their iterative business models.
To make the best impact, it is essential to categorize the credit card acceptance process into three core categories.
- Online card processing – Online credit card processing often comes with higher fees due to the complexity of the acceptance process. To get started with online card payment acceptance, you need to work with a payment gateway to receive payments on your website and company applications.
- In–person payments – In-person payments are a commonly used way for businesses to accept payments. Due to the streamlined nature of payments, this payment acceptance method is simple and helps small businesses with an additional method of payment management. However, to effectively manage in-person payments, you will require a built-in POS system and card reader.
- Wallet Payments – Wallet-based payments are similar to online payments and require users to approve the payments using their smartphone wallet applications. These payment acceptance methods are commonly used by companies that integrate modern fintech solutions into their business.
Embedding a Compliant Payment Gateway
A payment gateway is a credit card processing software that allows businesses to receive credit card payments online. Payment gateways connect payments between the credit card network and the issuing authority to authenticate the payment. These gateways facilitate the transfer of funds from the customer’s card to your merchant account balance.
Due to the sensitive nature of the collected data, it is essential to handle the data based on the regulatory guidelines established by the Payment Card Industry (PCI). These guidelines include tokenization and state-of-the-art encryption protocols to protect customer credit card information throughout the payment process.
Non-PCI compliant gateways can result in extensive losses stemming from data breaches and hacking attempts. These attempts can cause significant financial and reputation losses for businesses because of credit card fraud. PCI compliance prevents security risks and protects your business infrastructure against potential fines.
Select A Payment Provider with a Clear Pricing Strategy
Before you decide on your preferred payment provider, it is essential to have a clear idea of their pricing strategy. Whether you’re looking for flat-rate pricing or tiered pricing, having clarity on your operational priorities can help you avoid excessive fees and adopt the most streamlined process suitable for your business.
Flat rate pricing helps your business get the same monthly rates regardless of credit card types and locations. This pricing structure also helps you have a clear insight into financial projections by allowing you to have a clear calculation of how much you can expect to pay in fees. The price charged is a fixed percentage of the transaction volume based on the company you’re working with.
Interchange plus pricing option is another way to simplify your credit card processing costs by adding more transparency to the process. This pricing model structures the payments into a breakdown of the interchange and markup costs to offer you a transparent pricing approach.
Reviewing Hidden Fees and Terms
Hidden fees are the biggest additional expense that results from a lack of careful review. Without paying attention, you can suffer from an array of additional fees and charges.
Some of the most common hidden fees include:
- Support Fee
- Installation Fee
- Monthly Minimums
- Mandatory Contracts
- Setup Fee
The best solution is to go with a payment provider that gives you a transparent pricing structure along with minimum handling and setup fees. By carefully evaluating the terms and conditions, you can prevent these hidden charges and partner with a reliable payment provider.
If you’re interested in knowing more about Payment gateways, check out Online Credit Card Payment Gateway Providers.
Streamlined Payment Processing with Oceanpayment
Oceanpayment helps you avoid unnecessary fees by offering you transparent credit card processing solutions. As the leading fintech company in the region, we offer cutting-edge products to help you minimize unnecessary fees and seamlessly receive payments.
To learn more about Oceanpayment and our payment processing solutions, check out more at https://www.oceanpayment.com/.