Retail Credit Card Processing 2

RETAIL CREDIT CARD PROCESSING

Setting up the right retail credit card processor makes sales as simple as the swipe (or tap, or dip) of a card.

In the retail industry, you have to accept multiple forms of payment. But in order to do that, you need the right services.

Easy Pay Direct offers payment processing services for many businesses in the retail space.

WHAT IS RETAIL CREDIT CARD PROCESSING?

Retail credit card processing allows customers to transfer payments to the business, and businesses to reissue payments in the case of a return or refund.

This differs from online credit card processing and debit card processing, which both accomplish the same purpose but through different systems.

WHAT IS A MERCHANT ACCOUNT? HOW DOES IT WORK?

A merchant account allows business owners to accept major credit cards as payment.

Your merchant account will act as a placeholder for all payments until they are safely transferred to your business account.

WHAT DO I NEED TO PROCESS PAYMENTS?

Your payment process will be incessantly simplified by setting up the right system for credit card processing services.

BANK ACCOUNTS

First, two bank accounts are needed—your business bank account, and a traditional merchant account.

Merchant accounts act as a safety net by holding your payments temporarily until they reach your business account.

SERVICE PROVIDER

You’ll also need a service provider. Your options are a payment service provider (PSP), or a merchant service provider (MSP).

Regardless of which provider you choose, their job is to ensure your funds arrive safely in your business bank account.

An MSP will often set up your merchant account for you, unlike its competition. MSPs also provide a greater level of one on one assistance and usually charge a monthly fee for the added help.

PCPs are faster to set up and generally cost less than MSPs. They provide service plans with no monthly fees. They are more cost-effective with less one on one assistance.

But they’re problematic too because if something goes wrong (such as getting too many chargebacks), your account could be closed and you could lose access to your funds.

EQUIPMENT

There are several equipment options based on how you wish to accept payments. There are two popular in-person payment options that many retail stores have. Both perform the necessary payment processing functions.

A terminal device will read the customer’s card information to complete a sale. Its functions are minimal and the price reflects the simple design.

In addition to a basic transaction, a point of sale system (POS) can perform functions such as payroll and inventory management. POS systems can also issue refunds, discounts, and process recurring payments.

WHAT’S THE COST OF RETAIL PROCESSING?

In addition to equipment, retail credit card processors charge various fees.

FEES

• Interchange fee – imposed by major card companies to the bank after a sale, then the bank will charge the business owner for that fee.
• Service Fee – also called an assessment or network fee, this is paid directly to the credit card company for the use of the service.
• Mark up Fee – used to help offset the risks of managing a business owner’s account, and is charged by the payment processor.

PAYMENT PLANS

The MSP you select as your service provider will usually give you 4 payment plans to choose from.

• Monthly subscription fee – a flat monthly fee, plus a small transaction fee for each sale using the service.
• Flat-rate pricing – the processing fees are the same for all purchases.
• Tiered rates – fees vary determined by A) type of credit card used, and B) how payment is presented (mobile credit card reader, online store, apple pay, etc).
• Interchange-plus pricing – the service provider receives a certain percentage of the sale, plus a small fee for each sale using the service.

HOW TO SELECT THE TOP PAYMENT PROCESSING COMPANY

With so many processing companies available, it is crucial to find one that best fits your business. Evaluate these 4 categories before making a decision.

• Usability – How easy to use is the equipment? Is it simple enough for employees to be easily trained?
• Cost and fees – High risk business owners want to make sure they choose the most cost-effective method. Be aware of a potential early termination fee, hidden cancellation fees, transaction fees, etc.
• Customer support – There may be a learning curve to your new payment processor. Choose a company with help hotlines, live chats, instructional websites, and video tutorials.
• Features – Your processor can be as simple as assisting with in-person purchases, or as advanced as contactless payments. Choose a service with the features you need, but avoid paying more for features that won’t be of use to your business.

WHY IS A RETAIL PAYMENT PROCESSING COMPANY NECESSARY?

Technology has evolved the way commerce operates. Cash payments are becoming rare and for some, inconvenient.

Consumers are taking their business from stores that do not offer credit card processing to stores that do.

WHAT QUALITIES SHOULD I LOOK FOR IN A RETAIL PAYMENT SYSTEM?

• Security – Ensure the safety of your customers’ payment information first. Check to see what sort of fraud risk management solutions are available in case of emergency.
• Reliability – Do your research on any potential system crashes and what could cause them.
• Convenience – Your processor should be simple to use and customer-friendly, with a brief transaction time.
• Payment types offered – Not all payment systems service every payment method. Some offer credit card payment processing. Some accept credit cards, debit cards, e-wallet payments, google pay, and even bank transfers.
• Transparency – Transparent pricing is important, especially for high risk businesses. Be aware of separate monthly fees
• Pricing – If you don’t assess the needs of your business, you could be paying for features you don’t need. If you have plans to grow your business, it may be worth it to invest more on the front end for added features.

IN CONCLUSION

Setting up a retail credit card processor will cause your small or high risk business to grow exponentially.

Easy Pay Direct is here to help with merchant accounts and payment processing services to support you and your retail business.

We are confident you’ll select the best credit card processor for your merchant services and enjoy the ability to accept card payments.

To learn more about how we can help you get started with our services, contact us or give us a call today at 800.805.4949.