It's hard enough to make a profit when you're running an online business. The last thing you need is high credit card processing fees eating into your bottom line. Luckily, some things can be done to keep those costs down, so they don't eat away at your profits. This blog post will cover five tips for reducing the amount of money lost on credit card processing fees and making more money with every sale!

Why Should You Know How To Offset Credit Card Processing Fees?

Offsetting credit card processing fees is something that every online business owner should know how to do. Not only will it help you make more money with each sale, but it can also save your business if you ever go under and need to sell off any leftover inventory or equipment. If you know the right strategies and techniques for offsetting your credit card processing fees, then more money can stay in your pocket where it belongs. Here are a few ideas for lowering credit card processing charges and increasing profits with each transaction.

Make Sure To Calculate All the Fees for Your Credit Card Processing Plan

The best way to offset credit card processing fees is by simply knowing what they are. Most people just sign up for a plan without taking the time to find out exactly what it includes and how much it costs them per month or year. Before signing on the dotted line, take some time out of your day to sit down with the company's sales representative and go over everything in detail.

Most business owners can save hundreds, if not thousands, of dollars per year by performing this simple act alone compared to other companies that do not perform this step properly when setting up their plans. It may seem like a time-waster at first, but it can save you in the long run.

Consider Using a Business Debit Card Instead of a Credit Card if You Don’t Need the Cash

Not everyone requires credit card processing right away, especially if you are not selling high-ticket items that require a down payment from the customer. In those cases, it's better to use a debit card rather than a credit or merchant account because they have fewer fees and generally process faster than credit cards. This is especially true if you sell online and want your customers to pay with a debit card linked directly to their checking account rather than a credit or debit card. This can be great for smaller transactions, but it isn't recommended if you need the cash immediately. Suppose you have a low-ticket item that takes a week or two to sell. In that case, it's best to use credit card processing because there will be no money returned if the transaction is declined. Most companies won't process them as quickly as debit cards anyway.

Apply for Merchant Account Services With Lower Rates and No Annual Fees, but Make Sure They Are Reputable

There are a lot of merchant account providers out there that don't have any hidden fees or scams. They just happen to charge lower rates, and some even give new clients their first month for free as an incentive to sign up with them instead of another company. This is great news because it gives you the chance to save thousands per year without sacrificing much in customer service or equipment. However, even though these types of providers do exist, it's still important to make sure that they're reputable before signing up with them. A good place to start is looking for reviews about their company online and checking out what other business owners are saying about their services. This may take a little bit of time on your part, but it's well worth it in the long run because you'll be able to save a lot of money and still stay afloat as an ongoing concern.

Contact Your Bank About Getting a Low-rate Business Loan To Cover Any Capital Expenses or Equipment Purchases

If you're in a bind and need a loan to make a capital purchase or cover business expenses, consider approaching your bank for assistance. While borrowing money from your account may seem like the last thing you want to do when trying to keep costs low, it can be one of the best ways to save money when you're in a pinch. The reason for this is because banks typically offer lower rates than merchant account providers do. They also charge less interest overall on any business loans or lines of credit that you apply for with them.

The only downside to doing it this way is that most bank applications will take longer to process. If your business can't afford any more expenses without making some kind of capital purchase, consider using your funds before turning to anyone else for help. As you can see, your sales and marketing efforts can offset credit card processing fees. Other advantages of using a bank over a retail provider include the ability to pay back debts at any time during the year as long as terms are met. This means no interest will accrue during that time, and you don't have to worry about any kind of prepayment penalty if the money is paid back early. You can also get your funds quickly because banks typically process loans much faster than merchant account providers do, so there's no waiting on anything in this case. Overall, it may not be ideal for your business to go through a bank for help, but it can be one of the best ways to save some money when you're in need.

Look Into Mobile Payment Solutions Like Apple Pay or Google Wallet That Can Help Eliminate Swipe Fees

While there are numerous ways to reduce credit card processing fees, mobile payment solutions like Apple Pay are gaining popularity.  These services allow customers with certain smartphones or tablets to pay for items without swiping their cards at any kind of machine. So long as your business accepts these forms of payment from day one, no merchant fees will apply.  Also, if you run an online store, this type of solution may help increase sales because it is commonly used by people who do not carry wallets. This means you can get more purchases at some point down the line if your business starts taking advantage of this type of solution. Still, it's important to keep in mind that there are some drawbacks associated with them, such as waiting for approval from Apple or Google first before setting up an account. This is something where it's important to weigh the pros and cons because there are some benefits associated with mobile payment solutions like Apple Pay or Google Wallet. However, you'll have to pay a monthly fee for using these services as well, so it's important that your business can afford them before making this kind of investment in any way.

Conclusion

As you can see, there are several ways for your company's sales and marketing efforts to offset credit card processing fees. If this sounds like something that would fit into your budget but you're not sure how to go about it, we recommend speaking with an expert in the field who can help you along the way. And once the offset is in place, you can begin saving money right away.

Contact BNG Payments to learn more.

We live in a world where everything is negotiable. Whether it be the price of an item at your local grocery store or the cost of your monthly mortgage, there are always opportunities for negotiation.So why should you have to pay exorbitant credit card processing fees? Read below to find out more about this topic.

Why Do Credit Card Processing Fees Exist?

To understand why you might want to negotiate your credit card processing fees, it's helpful to know what these fees are and how they work.When a consumer uses their credit or debit card to purchase a merchant, the business is charged an interchange fee toward paying for all of this payment infrastructure (including fraud prevention).This fee is typically around three percent of the total transaction amount. In turn, this interchange fee results in a higher consumer purchase price.

Why Would Anyone Want To Negotiate Their Credit Card Processing Fees?

Because these fees are so high and they ultimately get passed down from businesses to consumers through increased prices for goods and services, it makes sense that consumers would want to do everything they can to lower them.While it is nearly impossible for specific individuals or businesses to negotiate the interchange fees directly, other options often succeed when trying to reduce credit card processing costs.

How Is It Possible That Credit Card Processing Companies Are Willing To Give Discounts?

Credit card processors might seem like an unhelpful corporation. Still, many of them will offer some concessions if the customer has enough volume or a large number of transactions per month.This system works out for both parties involved because their relationship continues, and more money flows through these businesses.Additionally, while there may not always be room for negotiation with Visa/MasterCard's rates, interchange plus pricing allows more flexibility to reach fair terms between two business parties.This type of agreement only exists due to competition, so try finding another processor who offers better prices.

How To Negotiate Your Credit Card Processing Fees?

If you've done your research and feel like it's time to negotiate, there are a few options that can be taken. Before anything else, though, let the credit card processing company know that you're serious about finding better terms.This means sending them an email (and following up with one if they don't answer) or calling their office directly.Next, ask them what they can do for your business. This might not be easy to answer, so you should have some average pricing from other vendors to estimate how much it will cost.

Lastly, if the rates are reasonable and there's room for negotiation on both sides, this is where the real work begins. Be prepared to send over information about your business and prove that you're a reliable customer, once they see this, there's room for the company to lower its fees to satisfy both parties.While it may seem intimidating at first, negotiating with credit card processors is possible.

What Are the Benefits of Negotiating Your Credit Card Processing Fees?

There are numerous benefits to negotiating your credit card processing fees. Here are the most important ones:

• You can save a significant amount of money each month: reducing your processing fees can save you thousands of dollars every year. You're showing the credit card company that you're serious about doing business with them. By being proactive and willing to negotiate, they'll be more likely to give you better rates in future transactions. They also recognize how much volume is essential for their business so that this relationship can be mutually beneficial.
• Negotiating can help you advance in a competitive industry: it might take time, but the savings that come from doing so will be well worth it. You can save a significant amount of money each month by negotiating your credit card processing fees. Being proactive shows companies how serious you are about business. This relationship can be mutually beneficial because they recognize how much volume is important for their business.
• Negotiating saves your company time for other purposes: time is the most important asset to maintain in any business. It can help them save money and build better relationships with other businesses, which are invaluable aspects that every entrepreneur should strive for.
• Negotiating builds customer trust: people often think of credit card processing as a huge corporation that doesn't care about small businesses. However, when you show them that it's possible to be taken seriously and reduce your rates at the same time, they'll see how their assumptions were wrong.

Common Questions About Negotiating Your Credit Card Processing Fees

Below are common questions about negotiating credit card processing fees for a business.

How much does it cost to negotiate your credit card processing fees?

There is no cost to negotiate your credit card processing fees, but how much you are currently paying will affect the amount saved.

What is the average percentage that banks charge for processing a transaction?

The average percentage that banks charge for processing a transaction is between three and five percent.

Is it worth negotiating my credit card processing fees?

It may be worth your time to negotiate your credit card processing fees if you pay more than this amount.

Do you have any tips/tricks for negotiating my credit card processing fees? 

It is essential to know how much your credit card processing fees are before you begin negotiating. You will also want to understand the current market rate for these services, as this can help you deal more effectively.

Is it better to negotiate my credit card processing fees or switch banks? 

It may be better to negotiate your credit card processing fees before switching banks. However, if you are paying more than the market rate for these services (three-five percent), it may be time to switch providers.

Is there a limit on how much I can save by negotiating my credit card processing fees? 

There is no limit on how much you can save by negotiating your credit card processing fees, but the amount saved will depend on your current payment rate.

Does getting approved for more credit cards help me with negotiating rates? 

Getting approved for more credit cards may help you negotiate rates with your current bank. Still, it will not necessarily change the rate regardless.

What are the best practices when negotiating rates with processors? 

The best practice for negotiating rates with processors is to provide a compelling case and show how you can bring in more revenue. You should also have proper documentation showing your current payment rate so that the new bank knows what they are working with.

What if banks don't want my business, but I need lower credit card processing fees? 

If banks do not want your business, it may be time to find a new bank that can offer you lower credit card processing fees. Be prepared with proper documentation showing the current rate you are paying and the market rates to negotiate more effectively.

What should I expect from negotiations on my credit card processing fees? 

It is important to know what you should expect from negotiations on your credit card processing fees. Most banks will lower rates, especially if they want your business or are currently losing money with their current rate. However, it may be possible that the bank offers little time for making changes and does not offer any special incentives as other providers do.

Conclusion:

Get on the phone with potential providers once you've crunched the numbers and determined what your company requires to stay afloat. Negotiating credit card processing fees can save you a lot of money. Many companies will lower their rates if they know another company is interested in taking over. If you're sick of paying expensive credit card processing fees, it's time to take action. Write a letter and negotiate your rates. If the company refuses, shop around for better rates elsewhere. Don't just accept what you've been told. There are always other options available if you look hard enough!

Are you a franchise owner? If so, then you know that running your business is hard enough. So why add the headache of figuring out how to accept credit cards for your company when it can be done with ease? Before we dive in, it is essential to note that many factors should be considered when purchasing credit card processing software for your small business, including cost, customer service, and the overall "ease" of use. Understanding these concerns will help you to save time and money in the long run. Here are some things to consider before buying:

Monthly Revenue

This is, without a doubt, one of the most important questions you should ask yourself at any point in time. You must select a plan within your financial means while also providing adequate coverage for your family (this could mean safeguarding against a high percentage of charge-backs or other losses).

Types of Equipment 

Once you know your monthly revenue, you'll also want to have an idea of how many credit card terminals you'll need. Keep in mind, not all businesses require the same number. A restaurant may require more terminals than a hair salon, for example.

Things to consider:

Hardware:  A hardware system is the physical credit card machine connected to your computer or mobile device. Hardware devices are different for each company, but some might require multiple pieces of equipment for every register.

Mobile vs. Stationary Terminals: Stationary terminals are always connected, meaning that any transactions made on these machines will require an internet connection. Mobile terminals can operate either online or offline and allow you to process transactions without an internet connection. However, not all mobile devices may be supported by your chosen provider.

Software:  This is the software that connects your credit card processing network to your business. This software will be used on all of your store's computers and processes orders through the Internet, phone apps, or POS systems connected wirelessly. Software companies are constantly changing their features and prices, so make sure you are thorough in exploring these changes. Look for deals on software, especially if you are buying for multiple stores.

Customer Service: There will always be glitches in technology, so it's essential to have a reliable customer service team ready to help fix problems. If your software is updated daily, plan accordingly since changes might affect your processing. Make sure the company has phone support, email support, and web-based support.

Flexibility: Downgrade your software to save money if your franchise is growing, or bigger franchises might ask for better pricing. Also, look into PEO's that will handle payroll, insurance, and taxes, so you don't have to worry about managing these chores yourself.

Accessories:  When buying credit card processing equipment, a few accessories might be needed, such as a receipt printer and cash drawer. Make sure you check compatibility with your software.

Mobile Apps: With mobile payments on the rise, it's important to incorporate them into your business. Mobile apps make it easy to manage transactions wherever you are and create new opportunities for repeat customers.

Payment:  Nowadays, there's more than just credit and debit cards. Discover and AMEX are processed through a different network than Visa and Mastercard, so ensure you know who will service your customers best.

Contract: Contracts can be confusing, and it might take a few phone calls to understand the terms fully. When signing up for processing, ask to see the actual contract. Keep in mind that contracts can be changed. Ask if you can get out of your agreement early without paying fees.

Account Access:  Your business will need quick access to funds, so make sure no holds on deposits or other account issues. You should also be able to view your statements online at any time and not have to create new accounts.

Customer Accounts:  If you must set up customer accounts, find out how easily customers can be added and removed from your file. Unless filing bankruptcy, all businesses should have the ability to use credit card processing without setting up an account.

Rates:  Perhaps the most important question to ask when buying credit card processing for your franchise is "what are my rates?" Generally, there are three types of rates you need to know before making a purchase. Interchange fees, discount fees, and assessments are examples of these. Interchange fees are your processor's costs for each transaction, based on the Federal Reserve's set rate. Discount fees are incurred when a customer uses a credit card with an incentive program, such as cashback or rewards points—the company issuing the credit-card sets these rates. Lastly, there is an assessment fee. This is the money your processor charges to use their payment network in which they process credit cards.

Some of the FAQs To Ask When Starting a Credit Card Processing for Your Franchise

1. What is the difference between a merchant account and a payment gateway?

A merchant account is a financial institution that holds the funds from your customer's credit cards for you until you can deposit them back into your bank account. Typically, this is done through electronic payments networks. A gateway easily converts transactions between different computer systems over the Internet to allow easier access and authorization of cardholder information for point-of-sale terminals (POS).

The differences in these two terms live in how they operate and who they serve. Merchant accounts are geared towards larger businesses, while gateways are made with smaller companies because they don't hold funds on sites like PayPal or Square do.

2. How do you know which to choose?

There are a few factors to consider when choosing between a gateway or merchant account. First, who is your company? An e-commerce site will need a different type of service than a restaurant that takes credit card payments in person at the register. Second, what do you plan on selling? What options would you like to allow for customers? Third, how many customers will be using cards? If you want to accept a large number of credit card payments, having a merchant account is typically the best way to go.

3. Is there a cost difference with either option? 

Typically, there is no difference between a gateway and a merchant account. The interchange rates will be the same for both options.

4. Do you need to purchase any software or hardware upfront for either type of solution?

Gateways are online payment options that require no upfront costs. On the other hand, Merchant accounts may require you to purchase credit card processing hardware or software.

5. What is the difference between swiped and keyed transactions?

Swiped transactions allow customers to use their cards as they normally would by running their cards through a card reader attached to a computer or mobile device. Keyed transactions are made manually by entering the card information into a website or mobile application form.

6. Would this company process international credit cards and domestic ones, if that's something we want to allow?

Most companies in the industry will be able to process both domestic and international cards. However, it's a good idea to check with your provider to ensure that they have experience working abroad. With the currencies and payment methods, you'll need to work within.

7. Who can sign up for these services, and what are the eligibility requirements?

Merchant accounts are typically only available to businesses that will be processing a large number of credit card transactions. It is also required by law for you to have a physical presence in the U.S., which means you must have a brick-and-mortar location or storefront.

8. What other charges might I incur once I've signed up for one of these solutions, such as transaction fees or monthly fees beyond setup costs?

Processors charge a small percentage of each transaction as well as monthly fees. Each company has different rates and different costs, so it's important to do your research before committing to one solution or another.

9. Can I try them out before I decide, and if so, what's the process to sign up?

Most credit card processing companies will allow you to sign up for a trial period. This allows you to test out the service yourself before committing long-term.

10, What are potential alternatives if I decide this isn't the right solution for my company?

If your company is best suited for a gateway, many other online payment options can meet your needs. If you aren't looking to make many online transactions, Square is a great option.

11. Will they be able to provide an example contract for me to review before signing on? 

Typically, credit card processing providers do not offer contracts for their merchant accounts. This is because it's a month-to-month service and the fees are very small. However, some providers will give you an idea of what to expect during your free trial period so that you can decide if this solution is right for you.

Conclusion

These are just some of the questions one should ask when shopping around for credit card processing. Many questions will vary from business to business, but don't get overwhelmed. You should treat this as a learning experience, take notes of what you need to ask, know your worth, and make sure there are no hidden fees or costs associated with operating your credit card processing for your franchise. There is no one-size-fits-all credit card processing solution, so make sure you know what your business needs and how it will be affected by each solution presented.

Contact BNG Payments to learn more.

Credit card processing for law firms is a complex and confusing process. There are many different credit card processors to choose from, and each one has its own set of requirements and fees. A lawyer could spend hours researching the best card processor for their business before they even get started. This means that card processors need to have strong security measures, which can be difficult for small law firms. However, there are some simple steps that law firms can take to make card processing easier for themselves while still ensuring cardholder protection. This post will go over how you can optimize credit card processing for your law firm.

What Is a Credit Card Processing Service and How Does It Work?

A card processing service is a company that facilitates transactions between merchants and cardholders, either online or in-person. The card processor sets the rate for each transaction, including fees to use their system and costs passed on from banks and payment networks like Visa or Mastercard. This means that business owners have little control over what card processors charge them.

The card processing service will start the transaction by authorizing it with the cardholder's bank and then sending this authorization request to payment networks like Visa or Mastercard. Once these networks respond, either denying or approving the cardholders' request, they pass that information to card processors who relay it back to merchants through an online gateway.

Additionally, card processors will often provide cardholders with tools to track their card transactions. These are examples of online reporting, mobile apps for card balances and transaction history, e-receipts that go directly to email inboxes, or text message updates when a card payment is made.

What are the Benefits of Accepting Credit Card Payments?

Acceptance of card payments can help law firms grow their client base by making it easier for more people to pay invoices online or on the go using a smartphone, tablet, or another device. This convenience will help law firms attract new clients who want a seamless experience for paying invoices.

Furthermore, card payments can shorten the time it takes to get paid by allowing cardholders to transfer funds instantly from their bank account to yours, rather than having to wait several days or weeks. This makes cash flow more predictable and reduces late invoice fees assessed for late or missed payments.

Below are the benefits of optimizing card processing arrangements:

• Lower fees associated with transactions
• Increased card processing services for law firms
• Streamlined card payments across multiple locations
• More payment options available to clients and attorneys
• With greater card processing security, card processors help keep cardholder and attorney information safe.
• Faster transaction speeds and more accurate data retrieval.
• It increased business revenue due to card rewards programs offered by card processors.

What Can a Law Firm Do to Make Card Process Easier?

Card processing for law firms is a complex task that must be completed daily. Several things can be done to simplify the process and make card processing more accessible and efficient. The following sections will go over some of these methods for making card processing work better for lawyers:

• Use card processing software to optimize card transactions: card processing software can help simplify card transactions and make card processing easier for lawyers.
• Using an online merchant account: Many law firms use an online merchant account instead of going through a card processing company to have a better card processing system. This is beneficial because it allows for better flexibility and more simple card transactions, saving time and money for lawyers.
• Have a card processor on retainer: Many law firms will place the card processor on retainer when using card processing software. Hence, they have their services whenever needed instead of having to use an outside card processor. This card processing on retainer is also beneficial because it saves money and time for lawyers, which can increase profits.
• Get card processing equipment: To have a successful card processing system that works well for law firms, many businesses will need card reader terminals and mobile card readers to accept credit cards anywhere at any time. These card reader terminals are beneficial because they allow lawyers to accept credit card payments at any time, which is better for business and can increase profits in the long run.
• Use card processing equipment leasing: Law firms do not have to worry about buying card reader terminals or other types of card processing equipment because many leases these devices instead. This card processing equipment leasing is beneficial because it allows lawyers to acquire card reader terminals and other card processing devices without purchasing them.
• Use rewards cards: Many law firms use rewards credit cards instead of traditional credit card options, which can help increase profits in the long run due to card reward points that will accumulate over time.

Credit Card Processing Fee 

The card processor will charge a percentage of your total sales for the service provided to accept credit card payments on behalf of your firm. This is called "card processing fee" or swipe fee, and it can be anywhere.

The card processing fee for law firms depends on some factors, including:

1. Card type, e.g., MasterCard or Visa Credit Card vs. Debit card vs. Amex card: card type is a vital card processing fee factor because it determines the card processor's cost for providing card services.
2. Amount of card transactions: The amount of card transactions can also determine how much credit card processing service will be charged to your law firm, which may increase or decrease depending on other factors involved in each transaction that is beyond your control.
3. Customer card information: The card processor will also charge more for credit card processing if customer card information is required to be entered into their systems, which can increase your costs depending on the type of card used by customers when making purchases.
4. Merchant category code: A merchant category code (or MCC) is an important card processing fee factor because it determines the card processor's cost for providing card services. Different card types have different MCCs. The card processing fee will change depending on which card type is used by customers when making purchases.
5. Industry: The card processor's cost for providing services to your business varies depending on what industry you are involved in.

Card processing fees will vary based on business location and industry type too! It is essential to know that some service providers may have different pricing for the same kind of card depending on where your law firm operates.

How Can Law Firms Optimize Their Credit Card Processing for Increase?

Optimizing card processing means that the firm can take advantage of their merchant services provider's card payment tools and features. Firms must first ensure that they work within the "best practices" guidelines for credit card security. Doing so will not only reduce exposure to potential fraud, but card processing will be quicker and easier for cardholders. When working with card payments, it is vital that law firms can quickly access their funds following each transaction. The law firm must look towards providers who offer the lowest possible rates, combined with outstanding customer service.

Determine Your Credit Card Processing Needs on Your Law Firms

You must know what card processing services are offered so that you can choose the best card processor for your legal business. In terms of credit card processors, there are two main types: those who have a merchant account directly with a financial institution and traditional aggregators (middlemen).

The first type is advantageous because they do not require monthly fees, but the downside is that they can often only offer card readers. The second type will require monthly payments and be more flexible in what card processing services you need. Still, it may also mean needing a merchant account with your financial institution.

This option gives you better control over card processing features like interchange rates for different types of cards, real-time reporting, and chargeback protection. Whichever card processing service you choose to go with, remember that card processing costs will be high for your law firm if you are not properly assessing your needs beforehand.

Conclusion

Today's law firms are more than just a place to go when you're in legal trouble. They've become an extension of our daily lives, handling everything from business contracts to divorces and everything in between. To ensure your firm's success in this new world, it's critical to understand how the law works and what happens behind the scenes at your office every day with credit card processing for lawyers.

Contact BNG Payments to learn more.

How to Accept Credit Cards as a Small Business: Follow These 4 Steps

As a new business owner, you will make countless decisions to more effectively run and grow your new business. Thankfully, one decision is simple. Offering credit card payments in your business model greatly increases the number of sales and the size of each sale you make. These benefits are especially important when first starting your business.

There are multiple steps to set-up credit card transactions, and you’ll face some important considerations along the way. To make the process easier, this article provides a step-by-step guide to credit card payment processing.

How To Accept Credit Card Payments for Your Small Business

Accepting credit card payments is an excellent way for entrepreneurs to increase their revenue. With this informative guide, you'll learn how any small business can start accepting credit card payments. 

To start, let's look at how credit cards boost your revenue and discuss other important advantages of this form of payment.   

Why Should Businesses Accept Credit Card Payments? 

Is it necessary to accept credit cards for my small business? 

It is not mandatory, but these transaction benefits are so wide-ranging that it probably should be required. Here's why: 

Credit Cards are the Leading Payment Method

According to the 2019 Federal Reserve Payments Study , three out of four transactions are paid without cash, and 34% of these transactions are from credit cards. You will experience significantly more business than you would through other payment methods, which is a massive advantage for a new company.

Honoring a Credit Card Increases Cash Flow

Credit card payments increase the buying power of customers and lead to higher dollar payments. Nerd Wallet states, on average, customers spend between 12% and 18% more with credit cards than from paying with other methods.

The Checkout Process is Faster and Easier for You and Your Customers

The conversion rate of credit cards is faster than checks. Checks can take as long as ten business days to clear, whereas credit cards only take a few days.

Additionally, the actual process of taking payment is simpler and faster for customers and you. When a customer swipes their card, an order is instantly placed. A check must be deposited using an app or physically deposited at a bank, both of which take longer.

In today's world, convenience in purchasing is becoming increasingly important for customers, and this is where a credit card excels. This ultra-convenient payment method leads to fewer disappointed customers.

Honoring Credit Cards Helps Establish Credibility for Your Business

Regardless of the type of business, honoring credit cards shows you are a legitimate business—even when you are a brand-new business. 

Credit Cards are Safer than Checks and Cash

Checks and cash can be lost, stolen and forged, and the more sales you take in these ways, the higher the risk. Although credit cards are also susceptible to fraud, this mode of payment comes with enhanced security features.  

Clear Transaction Reporting

With payments traveling through an electronic system, you benefit from accurate accounting with your invoicing software. You also get clean reads on all payments and added business management tools to spot trends for added sales and learn which cards are most popular to help with budgeting credit card costs. Accounting software providers can aid with installing and syncing your software, and payment processors may also help.  

Customers Enjoy Improved Service

In addition to ease of payment, you benefit from other backend services, such as customer relationship management software for improved sales and service. The better you meet your customers’ needs, the more they come back. Repeat business is integral for growth.  

Credit Cards are Best for Online Businesses that Want to Scale

As your business grows and orders increase, you can negotiate lower rates for credit card fees, boosting your profits even further.   

Varying Processing Fees for Types of Payments

Credit card transactions take place in different ways. In turn, they offer flexibility in how you do business and help you process orders in the ways you do most.

Credit card processors have different credit card processing fees depending on the credit card payment methods. Let's take a look at each method.

3 Ways Small Businesses Accept Credit Cards

In Person 

In brick-and-mortar businesses, you can take customer payments in person using stationary credit card terminals or portable handheld devices with credit card readers. If you have a mobile business, such as a food truck or booth at a Farmers Market, you can place orders on mobile payment devices and credit card readers designed for mobile businesses. In-person transactions have less risk of fraud, which means it charges the lowest processing rate for credit card transactions and is the cheapest way for small businesses to accept credit card payments. 

Online

Customers can complete online transactions directly through your website or on a third-party e-commerce website. Examples of businesses with online payment capability include ecommerce businesses like your favorite retail stores, restaurants, and service companies.

Online payments are convenient for customers, allowing them to pay on their schedule. Offering credit card payments online requires a payment gateway for added security and more favorable rates. To avoid the potential of a bogus gateway, your merchant services provider can assist with setup.

Over the Phone

Also called card-not-present transactions, phone payments are an alternative to online orders. The customer relays credit card information over the phone that is then manually inputted by the representative on the other line.  

Of all the credit card processing options, over-the-phone purchases have the highest risk of fraud and, therefore, the highest credit card transaction fees.  

List of Steps for Accepting Credit Card Payments

Step 1: Understand Credit Card Payment Processing Fees

There are fees for credit card payments. To better understand the costs behind credit card usage, it helps to understand how payments work.

When a customer pays, your terminal or online payment software receives the card information. The data then moves to a payment processor.

The fund request runs from the processor to the credit card network (Visa, Mastercard, or American Express), which then goes to the card-issuing bank. The bank checks to see if the customer's account is in good standing and sends the funds to the merchant account, which transfers the funds to your business bank account. The processor informs you when funds are approved and received, completing a card payment.

The processor and credit card network charge processing fees to provide safe and reliable payment. Typically, processors and credit card networks charge per transaction. The fees range based on card types (Visa and Mastercard are on the lower end while American Express tends to be higher). Merchants pay a rate between 1% and 3% per transaction.

You have options of different price models from your processor. Let's review those here.

Interchange-Plus Pricing Model

This model consists of:

• interchange fees, also known as transaction fees, from the merchant bank account corresponding to the type of card and method of payment
• flat-fees to the networks
• markup fees from the payment processor

Flat-Rate Pricing for Credit Card Transactions: 

In some instances, a payment processor may only charge a flat percentage fee that includes all fees associated with a purchase. Though this is good for clarifying costs, you lose the ability to saving money through lower interchange fees, which is especially important when placing high-ticket purchases. 

Tiered Pricing

Some processors offer special rates for different cards or types of transactions. For example, debit cards may cost less than credit cards. In exchange for this benefit, they may increase the price for options on the other side of the scale. Your payment processor determines the tiers and the pricing, but credit cards often sit at the higher end of the scale, so this option isn't recommended—especially for any long-term contract.  

Subscriptions 

This is a more recent option for payment and includes additional services by the processor. Some services are even free if you pay more for your monthly subscription, though you will miss out on some low-cost benefits. Like with tiered pricing, pay particular attention to lengthy contracts.  

All-In-One Credit Card Processing: Benefits of Integrated Payments Platforms

A strong option for businesses with multiple payment systems, such as terminals, mobile devices, and online payment systems, is to use a cloud-based accounting solution to consolidate all data and read it in real-time. This allows for data analysis and cuts down on management time without manually inputting data from various sources, which can also lead to errors. Even if you have a business with only one payment system, real-time data reports can do wonders for your business. 

These cloud systems have become very popular. Nearly all providers offer this option in their rates.   

Find a Credit Card Processing Provider 

What is the best payment service provider for small businesses? 

Now that you have an idea of how rates work, how do you choose your provider? The best provider is one that serves you in the ways you most need them. Consider factors like: 

• The types of payments you expect (in-person via a stationary terminal or mobile card reader, through your website, or over the phone.) 
• The types of cards you plan to honor and the related transaction fees. 

• The volume of transactions you expect. This is an important factor in determining rates. 
• Any related hardware and software you need from your merchant services provider for the type of transactions you place. 
• Competitive rates or any additional services included in their prices. It's not always advantageous to limit your search to the cheapest credit card processors.  

Step 3: Open a Merchant Account with a Payment Service Provider 

Some payment service providers offer a merchant account. Still, if you prefer not to use an outside provider, you will need to set up a merchant account at your bank to receive credit card payments.

Merchant accounts are separate business bank accounts that receive the funds from the credit card network and transfer the funds to your current business account.

It’s a good idea to shop around, which may include checking with your current bank to make it easier to conduct all needs under one roof. Some banks won't charge fees for this service because the charge may be included in your standard bank account charges.

For account approval with your bank, you will need to provide basic information such as your type of business, your business license, current bank account details, and the volume of transactions you expect per month.

Step 4: Use Affiliate Systems Offered Through Merchant Service Providers

You can obtain special card acceptance technology from your merchant services provider that corresponds to the method of purchasing you expect most. Examples of hardware and software are stationary terminals, portable terminals, online ordering systems, card swipe readers, contactless readers, digital wallet payment systems like Google Pay and Apple Pay, receivers, scanners, and stationary or portable printers. 

Some online systems provide the software for you. Your payment processor may also provide software for you.  

Learn More About Small Business Credit Card Processing 

At BNG Payments, we specialize in all forms of payment processing and have deep experience with credit card processing. Whether you offer online payments, phone orders, or in-person orders through a stationary terminal or mobile device, we offer all the hardware and software you need to accept credit card payments. Some options even include advance invoicing capabilities. 

We offer competitive rates to fit your budget and help you through each stage of the setup process. And after setup is complete, we also offer support for payment issues your business might encounter.  

Contact us to learn how our credit card processing and payment systems can help your business get set-up to accept credit card payments.

 

 

 

 

When starting a new business, it can be challenging to get the finances in order. One of the things that many companies want to do is accept credit card payments on their website. However, they don't know how to go about doing this without having a merchant account. This blog post will discuss some strategies for accepting credit card payments without a merchant account so you can start generating revenue right away!

What Are the Benefits of Accepting Credit Card Payments Without a Merchant Account?

Legitimacy

Allowing credit card transactions will help you gain credibility in your field. Clients will be happier and more satisfied with your business if you give them more options, which will make you happy as well. This will assist your company in growing faster and achieving a stronger market position. It will also help to give your company and your clients a positive image. Accepting credit cards lends legitimacy to your company and can help you build rapport and trust with customers.

Simple Profits

When making purchases, customers dislike wasting time. They want their purchases to be completed as soon as possible when shopping. Having access to a credit card will assist you in this endeavor. Customers who are permitted to use credit cards are likely to be more engaged in their shopping and to view your company favorably. More customers will be drawn to your company's efficient and dependable services due to more convenient payment options.

Conserve Your Time

Accepting credit card payments will save you a significant amount of time if you run an online business. Credit card payments can be authorized quickly, unlike money orders and checks, which can take days or weeks to clear. Accepting credit card payments can help your cash flow tremendously. Even if your sales aren't growing, the convenience of having your credit card sale profit delivered to your bank account immediately will benefit your business.

Sales Growth

If you refuse to accept credit cards, you risk losing hundreds of potential customers who are unwilling or unable to pay in cash. Some people, particularly those who shop online, only use credit cards for specific purchases. People prefer to use credit cards because of the security of the no-fraud guarantee and the rewards points. Customers will be more likely to make more purchases if advanced payment options are available, resulting in higher product sales.

The Disadvantages of Not Having a Merchant Account

Several disadvantages come with not having a merchant account.

• You will not be able to process credit cards
• Your business may have trouble getting loans from banks
• Your company will not be able to take advantage of discounts offered by many companies when they offer special rates for companies with merchant accounts
• You won't be able to provide the best customer service because you are unable to accept payments in person or over the phone
• Your customers may feel uncomfortable paying by cash if they don't know how much their purchase is worth, and it's difficult for them to keep track of what they owe you once they've paid you back 
• Other companies may refuse to do business with your company because, without a merchant account, it's difficult for them to get reimbursed for any transactions made on your behalf

When Should You Get a Merchant Account for Your Business?

If your business is currently dealing with any of the above issues, now might be a good time to consider getting a merchant account. This process will take some time and costs money, but it's essential for making transactions more manageable and more efficient within your company. Additionally, having a merchant account can help grow your customer base because people are always looking for new places that they can use their credit cards at. You'll also have access to special offers from other companies once you open up this line of communication between yourself and them, so it's best to get started as soon as possible!

How Do I Find the Right Merchant Account for My Business Needs

Depending on what they can offer your business, merchant services can and do differ between providers. Others may provide end-to-end payment processing services, while others may only handle merchant accounts. The best merchant services providers should handle all or the majority of a company's needs. Rather than coordinating tasks, you work with a single provider from the beginning to the end of each payment. A provider who can "do it all" can benefit your company now and in the future. They can also help you with some of your day-to-day tasks as a business owner by streamlining and automating them.

What Else Distinguishes the Top Merchant Services Companies?

• Excellent customer service that prioritizes security is a winning combination
• Offers with a High Return on Investment Flexibility

Selecting the Best Merchant Services Providers

Examine your current and future needs to compare the best merchant services, providers. Make a list of features that are important to you and your company. Your top concerns should be addressed, whether they are communication, reliability, extra features, price, or a variety of other factors. As you look for providers for your company, keep that list handy.

What Is the Best Way To Start Accepting Credit Cards in Store or Office?

The best way to start accepting credit cards in your store or office is by getting a merchant account. This will allow you to accept payments from customers and track them and offer more payment options (credit, debit, etc.) than cash and check only. The right provider can handle all of your needs so that you don't have to worry about processing every transaction on your own!

A merchant services company should be reliable, secure with all required licenses/certifications, transparent with their fees, so there are no surprises later on down the line, experienced in handling business transactions for multiple companies over time since they're not just doing this part-time but full-time like yourself!, able to provide customer service throughout the process which includes educating you on the process and how it works as well as taking care of all your needs, able to handle multiple transactions at once if needed (which is better for high volume businesses), etc.

Conclusion

If your company needs a merchant account, now is the time to start looking for one. Make sure you do your research and find out what each provider can offer. Don't settle for just anyone because you might regret it later on down the line or even sooner, depending on their services/experience with business transactions, etc. With so many options available in this industry, there's no reason why you shouldn't get started right away by finding a reliable and trustworthy provider who can meet all of your current and future business needs today!

Contact BNG Payments to learn more.

If you're in the healthcare industry, credit card processing can be a daily struggle. You have to worry about getting your providers paid and dealing with the hassle of payments from patients who want to use their credit cards. With so much going on, it's easy for things like late fees and high-interest rates to go unnoticed. But they add up!

11 Tips for Healthcare Providers on Credit Card Processing

1. Know all the costs before signing up for a merchant account provider: There is no one-size-fits-all solution for credit card processing, so you need to know what each provider offers before deciding which company is best for your needs or budget.
2. Choose the suitable processor for your needs:  You need to know the differences between a merchant account and processing. A merchant account allows you to accept credit cards from your patients, but it doesn't process those payments. Processing companies are the ones that do this for you.
3. Don't be afraid of using an alternative payment method: While credit cards are the most popular form of payment, you should consider other options as well. Some patients prefer to pay with a check or by phone.
4. Ensure that your provider gives you all the support you need:  You don't want a company that passes along calls from frustrated customers – especially if there's an issue with your account. Instead, you need a company that will work on your behalf to resolve any problems quickly and efficiently.
5. Be proactive about the fees associated with credit card processing:  You should be aware of all the costs involved in accepting credit cards, so nothing catches you off guard. This includes monthly minimums, per-transaction charges, and the fees associated with customer service.
6. Speak to your provider about what you can do for them:  You need to think of credit card processing as a partnership. If you work together, it will be easy for both parties to meet their goals and set expectations along the way.
7. Know your monthly minimums: Make sure you know what the provider expects from you each month and stick with it! If they expect $200 a month, but you only bring in $100 one month, that could lead to fees or other issues.
8. Understand the terms of your merchant account agreement:  While this may seem like a no-brainer, you'd be surprised how many business owners don't read the fine print of their merchant agreements. If you're not familiar with what they say, it will be easy for your provider to charge fees that aren't covered in your contract.
9. Make sure you have all the necessary equipment to process cards:  If you're still using the equipment installed when your practice first opened, it's probably time to upgrade. You need a point-of-sale system that works smoothly with all types of cards and is easy for patients to use.
10. Don't agree to anything without asking lots of questions:  Before signing up for credit card processing services, make sure you ask your provider all the questions that are on your mind. You need to know precisely what they offer, how much it will cost you, and if any hidden fees apply.
11. Don't be afraid of asking for a price match: If another company offers similar services at lower rates, don't hesitate to mention this. You never know what kind of deal they might be willing to give you!

Benefits of Credit Card Processing for Healthcare Providers

Credit card processing is the only way to accept payment from patients and insurance companies. It allows you to provide a convenient service for your customers.

Here are some benefits of accepting credit card payments:

• Credit card processing provides a convenient way to receive payments.
• Payments are accepted 24/7, which is beneficial for healthcare providers who work odd hours.
• Accepting credit cards can help your business build up a positive reputation and attract new customers.
• The cost of accepting credit cards varies depending on the provider you choose and what features they offer.
• By using an online service, you'll be able to accept payments from anywhere and track all transactions in one place.
• If your business accepts credit cards, it will be easier for customers to pay their bills because they won't have to carry cash or write checks.

Conclusion

Credit card processing is a valuable service for healthcare providers. Still, it's essential to understand what you're getting into before signing up. Be sure to ask lots of questions and consider your options carefully. Remember that credit card processing is a partnership between the provider and the company they work with. If you put in some time to find suitable options for your practice, it will be smooth sailing from there!

Contact BNG Payments to learn more.