The Benefits of a Virtual Card Terminal

If you're a business owner, then the chances are that you need to accept credit cards. Not only does it make your customers happier and more likely to keep coming back, but it also saves you time and money when they pay with plastic instead of cash. But what if the majority of your customers prefer paying in person? The benefits of using a virtual card terminal can't be denied! In this blog post, we'll explore how these machines benefit businesses like yours.

What Is a Virtual Card Terminal, and How Does It Work?

A virtual card terminal is a small piece of software installed on any computer or mobile device. Once it's been activated, you'll need to sync the machine up with your existing merchant account.

This allows customers to swipe their credit cards through the attached reader and process transactions as if they were in-person payments at your store counter! Less time wasted processing orders means more money for your business, who wouldn't want that?

Why Use a Virtual Card Terminal?

In addition to being much easier for everyone involved, a virtual card terminal also benefits merchants in the following ways:

Virtual card terminals are a cost-effective alternative to traditional credit card processing. They use the same hardware as traditional card terminals, but they don't require the merchant to pay monthly fees for software and support. Also, virtual card terminals are an affordable option for businesses that only process a few transactions per day. In addition, they work well with mobile devices, making them ideal for small businesses that want to accept online payments.

How To Set Up Your Virtual Card Terminal?

Virtual card terminals are usually set up in a few easy steps. Merchants need to create an account with the payment processor before they can get started. 

After that, they will be given access to their virtual terminal where all transactions take place online instead of on-site like traditional credit card machines require. They'll also receive step-by-step instructions for setting everything up and connecting it to their eCommerce platform or website if necessary.

Once these simple tasks have been completed, merchants should test out their system so they won't run into any issues further down the line while accepting payments at checkout! If anything isn't working quite right, there's always someone available 24/seven via phone call or email who can help fix whatever's going wrong.

The Best Way To Use Your Virtual Card Terminal for Maximum Benefits 

The best way to use a virtual card terminal is like any other credit card machine, but it's much easier! When customers swipe their cards along with the screen for payment processing, they'll be given an option to accept or decline the transaction.

If they choose "accept," then all of their information will be typed in manually if only one person is being processed or entered automatically with auto-fill software if multiple people are involved. Once that's done and sent to the processor, merchants can go back into their account and see how many transactions were completed that day.

Virtual card terminals usually come equipped with a feature called Instant Payment Notification (IPN). This allows merchants to offer an additional service in the form of automatic notifications that go directly into their email inbox. So, suppose a customer decides not to accept or decline their transaction and wants to edit it later on when they're at home, for example. In that case, this will allow them to do so without having any issues with time expiration. Another feature virtual card terminals use is called eChecks. This allows customers who don't have credit cards but still prefer online payments over cashier's checks or money orders the chance to use electronic versions instead, which come right out of their bank accounts just like writing a check would work. Since these transactions take place completely online, though, businesses won't need to worry about dealing with lost or stolen paper checks since there weren't any to begin with.

Conclusion

Virtual card terminals are the perfect choice for businesses who want to accept credit cards online without additional costs or hassle. Whether they're looking to save money on fees, offer an alternative payment method in eChecks, test out a system before upgrading later on down the line, or all of the above. Virtual terminal providers have got everyone covered. With step-by-step instructions and support available 24/seven via phone call or email for merchants needing help with anything at any time of day, it's easy as ever to get started accepting payments right away, no matter where you're located!

Contact BNG Payments to learn more.

The Complete Guide to Credit Card Processing Laws for Merchants

Credit card processing laws are notoriously difficult to keep up with. Every year, new legislation is passed that impacts how you process credit cards and the fees involved in doing so. The last thing any business owner needs is to be out of compliance with these complex rules, so it's essential to stay on top of them at all times.

PCI Compliance

The Basics of PCI

The acronym PCI stands for Payment Card Industry. The PCI is in charge of enforcing a strict set of rules known as the PCI DSS (Payments Card Industry Data Security Standards). It's a set of industry-wide guidelines aimed at preventing fraud.

The Data Security Council, which is made up of significant credit card companies such as Mastercard, Visa, American Express, and Discover, created the PCI DSS.

All merchants, financial institutions, payment processors, and merchant services providers are responsible for adhering to the PCI DSS credit card processing laws, which help protect the cardholder's data during a transaction.

PCI compliance will protect your business from data breaches and help you avoid the crippling costs of fraudulent transactions. Furthermore, failure to comply with PCI standards is punishable by large fines, so it's best to learn about them as soon as possible.

Why Is It Important to Know These Laws?

On a fundamental level, understanding these credit card processing laws will help ensure that your business is protected from criminal activity. The fines can be prohibitively high for those who aren't compliant with PCI DSS regulations, so it's vital to make sure you're following the rules as closely as possible.

We see an increasing number of lawsuits being filed against businesses by credit card companies and consumers regarding these laws. We have seen a lot of good information coming out about this topic over the past few years.

However, it is still very confusing for many merchants. Not knowing what you can or cannot do could end up costing your business thousands in fines if you happen to violate these laws.

How Can You Ensure That Your Business Is PCI Compliant?

The first thing you need to do is educate yourself on these laws. Many resources are available, but one of the best places to start your research will be your credit card processing company or merchant services provider because they should have plenty of information about compliance regulations that apply directly to them and their business model.

If you use a third-party payment processor, ensure that your chosen company has worked hard to become PCI compliant. If they haven't done so yet, you may want to look for another provider.

The best way to ensure compliance with credit card processing laws is by following them carefully and staying on top of any changes made each year. It's a time-consuming process, but it's a crucial one.

The Four Levels of PCI Compliance

Level 1 PCI

Validation requirements

Level 2 of PCI

Validation requirements

Level 3 PCI

Validation requirements

Level 4 PCI

Validation requirements

How Do Credit Card Processing Companies Maintain PCI Compliance?

Companies that process credit card payments must adhere to the standards set by PCI DSS. The Payment Card Industry Data Security Standard is a series of requirements for security protection.

It applies to all companies involved in storing, processing, or transmitting customer credit card data. These laws are necessary because they help protect businesses from breaches due to cyberattacks on their systems.

This standard was created specifically for merchants who store sensitive financial information about customers' payment accounts.

The violation fines can be crippling if your business does not meet these compliance rules as outlined, so staying up-to-date with changes each year will ensure you're never caught off guard by something unexpected happening during an audit.

Conclusion

PCI compliance laws are created to protect both merchants and consumers. Merchants must comply with these rules, or they can face hefty fines for noncompliance, so staying up-to-date on changes each year is critical.

Credit card processing companies have an even greater responsibility for PCI compliance because their business model requires that they store payment account data securely at all times.

They are also held accountable by auditors if there is a breach of security that leads to the loss of customer financial information, so you should only work with providers who maintain high levels of service quality standards within their company culture.

Contact BNG Payments to learn more.

High-Risk Credit Card Processing: What You Need To Know

High-risk credit card processing is not for everyone. If you're looking to take payments on your website, high-risk transactions are a way to get more money in return for the risks of chargebacks and fraud. But how do you know if this type of transaction would be right for you? This blog post will discuss what high-risk credit card processing is and who it's suitable for.

What Is a High-risk Credit Card Processing Account?

A high-risk credit card processing account allows you to accept transactions from customers with a higher risk of chargebacks. This increased risk has to do with the type of clientele these types of accounts usually cater towards: people who have less than ideal credit and payment history.

Organizations in specific industries can benefit significantly from accepting high-risk payments, such as payday loan companies or online gambling sites. These are businesses whose clients may not get approved at traditional banks due to poor financial records or past delinquencies. Thus, they would otherwise be unable to make purchases on your website if they had more stringent checkout processes. 

For example, a business that provides loans to people with low credit scores or no job history may need to solicit customers via the web. 

Why Are These Accounts Considered High Risk?

High-risk accounts are considered high risk because they have a higher chance of chargebacks due to the nature of the business. This means that if you're new, these transactions will be more difficult for your merchant service provider to get approved by their underwriting department.

Who Is It Good For?

If you run an eCommerce website or take payments online in general, high-risk accounts are great for you. Just remember that they can be more difficult to get approved for with your merchant service provider and will likely require a deposit on the account before it's activated (up to $1000). You'll also want to ensure you have an established website history so customers feel confident about using their card online.

Types of Businesses Considered High Risk

When you apply for a merchant account, the payment processor essentially goes through an underwriting process. Although different processors have different standards, there are a few things that could raise red flags and cause your company to be labeled as "high risk."

Purchases at a premium: If your average purchase price is unusually high, you may be considered high-risk. The purchase price is directly proportional to the risk of fraud.

Products or services that are questionable: Illegal or semi-legal products a are obvious examples, but others vary by the payment processor.

Your business' physical location: If you sell to customers in the United States and your business is physically located in another country, you are more vulnerable to fraud.

Years in business: Merchant account providers are wary of customers who have little or no experience processing payments.

History of chargebacks or fraud with another merchant account provider: This will affect your application if you have a history of chargebacks or fraud with another merchant account provider.

Credit score issues on a personal or business level: A low credit score indicates to the payment processor that you are not good with money and are more vulnerable to fraud.

How Does This Affect Me as a Merchant?

High-risk merchant accounts are often more difficult to get approved for but offer businesses the opportunity to take credit cards outside of their business location. Suppose you're an online retailer or regularly process payments through your website. In that case, high-risk transactions could be a good option if you don't have access to other types like PayPal or Stripe.

What Should I Do If My Account Has Been Suspended or Closed Due to Fraud?

Suppose your account has been placed on hold or closed by the processor due to fraud activity. In that case, you mustn't attempt processing transactions. Fraudulent charges will not be covered under a merchant service agreement and could cause more harm than good if they're processed at this point. 

In addition, opening new accounts with different processors while there is still fraudulent activity on your current account can impact future application approvals as well because of increased risk exposure. It might also result in additional fees from the initial provider for having multiple open accounts simultaneously (known as multi-terminal billing).

What Should I Do Next?

The best thing to do is file all necessary paperwork with your existing providers, so no further action needs to be taken on their part. Make sure you have any relevant information on hand that may be required to process refunds, such as the number of transactions or total dollar amount for each transaction in question. You'll also need to provide your legal names and contact details for each party involved so they can reach out directly if necessary.

What Are Some Common Examples?

Some examples include international customers making purchases with stolen credit cards, residents using fraudulent checks or wire transfers, business owners trying to avoid paying tax liabilities by filing false returns claiming a loss of income due to theft/fire/disaster, etc., employees who steal from employers through check-kiting schemes, criminals engaging in bribery scams via wire transfer requests disguised as legitimate contracting opportunities involving large corporations & more.

Tips for Preventing Fraudulent Transactions From Happening

The Importance of Having a Strong Security System in Place at All Times 

Businesses should have a written security plan with regular training on their employees.

Security plans include: 

  1. Access control and monitoring of the physical premises, including external access to businesses such as loading docks or back doors.
  2. Identification verification procedures for all new employees & contractors. This is especially important when there are multiple people involved with card-present purchases.
  3. Employee background checks verifying previous employment history and criminal record (employees handling money should always be trusted)
  4. Procedures for internal theft require employees to sign in & out of the workplace at the beginning and end of their shift if they are authorized to enter secured areas where cash is handled or stored.

Establishing a Strong Security System

Conduct an assessment of your business, including the number and type of security threats you may face. This should include all areas where cash is handled or stored (from the front office to the back room) and any information about previous incidents at other businesses in similar industries that can be used as a reference point for determining possible risks.

Remember, Just because something has never happened before does not mean it will always remain that way moving forward; there are no guarantees when it comes to criminals. Having proper signage posted with clear instructions & contact details on how customers/employees can report suspicious activity they encounter while working within the store helps reduce potential losses from internal theft. It also lets them know who they turn to if necessary instead of taking matters into their own hands.

Businesses should also choose to work with a reputable processing company that has an extensive history in helping companies avoid fraudulent transactions and can provide them with strong security services to keep customers' personal information & social security numbers secure at all times.

Conclusion

High-risk credit card processing is not for everyone. If you are unsure, check with your merchant account provider or do some research online to see if it's right for you. It is often helpful to talk with other business owners who use high-risk credit card processing and ask how they like their processors. 

You can also try searching on Google for reviews. If you are seriously considering high-risk credit card processing, make sure that your merchant account provider will be able to provide the level of service that meets your needs.

Contact BNG Payments to learn more.

Can An ACH Payment Be Reversed? The Rules

Can An ACH Payment Be Reversed?

Out of the many forms of payment, the ACH network is a secure and efficient way to make payments. Account-holders can stop or reverse an automated clearing house payment if they encounter any issues, unlike wire transfers which are usually irreversible.   

ACH payments can process both direct deposit of your paycheck and monthly bill payments. These payments are made possible by the Automated Clearing House (ACH): a system that makes it easy for money to move from one entity to another. There is a brief processing time, but payments are generally simple to manage. While most transfers go smoothly, mistakes do happen. It is possible to reverse an ACH payment, and it’s helpful to know if and when you can stop, reverse, or cancel a payment in those situations.  

How Do You Reverse an ACH Payment?  

The modern treasury supports the reversal of ACH Payment Orders, which is beneficial if a payment is sent to the bank in error.  

National Automated Clearing House Association (NACHA) rules cover if and when a simple reversal is allowed. Your bank can only reverse an exact payment from your account if the conditions satisfy NACHA reversal rules. The NACHA rules dictate a payment may be reversed for the following reasons:  

If payment is reversible, it must follow specific NACHA guidelines. After discovering the error, you have five banking days to send the reversal back to the bank/financial institution. A reversal is in progress, and the payment originator must contact the payment recipient to let them know. Finally, the reversal should have a good reason behind it.  

ACH Reversal Requirements  

How Do You Stop an ACH Payment?  

If you’ve authorized ACH payments that you want to stop, you have a legal right to revoke your authorization. To do so, call or write the biller to request that they stop making automatic payments. Let your bank or credit union know, too, by writing a letter.  

If a company continues to charge your bank account, it may be possible to stop payment like you would with a check. To prevent your bank from allowing funds to leave your account, contact the bank at least three business days before the payment date.  

Stopping an ACH payment will cost you a small fee and will not be canceled because of a stop-payment order from your bank. You must still contact the company to have your contract canceled, and billing stopped. Regularly verify that your accounts and notify your bank if any unauthorized transfers occur. 

How do you adjust ACH payments?  

You may want to adjust, change, or delay an ACH payment that would otherwise go through on its own if you pay bills through ACH. If this occurs, get in touch with the business that initiated the electronic payments:  

How do you change direct deposit?  

If you receive a direct deposit payment each month and need to switch account information, contact the business and provide your new bank account details, including the bank routing number, as soon as possible.  

Guarding against errors and fraud  

The federal law protects you from most errors. But you might need to act quickly for total protection and correction of payment errors. Notifying your bank as soon as you discover a problem—within two days is ideal. If you wait more than 60 days after your bank creates a statement, you might be responsible for any losses. Instead of having the payment reversed, you’ll have to get those funds back some other way.  

BNG Payments is payment processing made easy. Whatever your processing needs, we make it easy for merchants to accept credit and debit cards, mobile payments, e-commerce, and more. Contact us to find out more about what BNG Payments can do for your business.

The ABCs of Understanding Credit Card Processing Fees

Understanding credit card processing fees is as essential as understanding the law of gravity. Knowing what you charge and why is key to running a successful business that can grow without too much risk. In this post, we'll give you the ABCs of how your credit card processor works with you and your customers and which things they will be charging for so that you can make informed decisions about how to manage them to minimize costs.

What Is a Credit Card Processing Fee, and Who Pays It?

A credit card processing fee is the payment you make to your merchant service provider, often called a "credit card processor" or simply "processor," for facilitating the transfer of money from your customers' credit cards to yourself. You pay this fee in addition to what you charge them as an additional cost of doing business.

What Are These Fees? 

Here are the most common types of transaction fees and how they work.

There are over 200 different types of fees that credit card processors use to make money. We'll focus on the most common ones, but be sure you ask your provider about any other fee structure they may have in place.

The first set of fees is when customers pay with their cards either online or offline (in person). There are three fees for offline payments.

Discount Rate: the flat fee you pay per transaction regardless of whether your customer pays in full or overtime at 0% interest (a common practice with stores like furniture retailers). This is often about a percentage point higher than what they offer customers using credit cards. However, it's still much better than paying the entire amount upfront.

Per-Transaction Fee: this is typically around $0.25 to $0.50 each time someone swipes their card when purchasing from you.

Account Maintenance/Monthly Fees: these are either monthly fees paid directly by the merchant or deducted from revenues generated in addition to any other costs associated with maintaining an account, such as equipment and gateway fees which we'll get into below.

Then there are fees associated with online payments:

The final type of fee will depend entirely on what kind of business you run and what your merchant service provider offers. This can include things like monthly reports, manual or automatic reconciliation of transactions to ensure they're accurate (for businesses with lots of sales/expenses), tax support for filing quarterly taxes in all 50 states, and more.

How Do You Calculate the Cost of Accepting Credit Cards?

In short, you can't. It is different for every business, and it depends on a lot of things. For example, if you have a specific type of merchant account or have the right equipment to process credit cards offline.

It would help to consider how many transactions your average customer makes per month since that will determine which fees are most relevant to your unique situation.

Your payment gateway provider might offer discounts if you pay annually instead of monthly. Your monthly service costs will be waived if you do not have enough sales each month.

Why Are There So Many Different Fees Associated With Credit Card Processing?

That's an excellent question, and it has to do with the fact that there are so many different types of merchant accounts available today, each offering its own set of services in addition to processing fees.

For example, some merchants only need basic credit card processing. In contrast, others require more advanced features like a batch settlement. Your payment gateway supports transactions from multiple customers/businesses instead. Others might charge per transaction (similar to what you'd find at the cash register) or offer monthly service costs.

When using a machine, you are paying for something with money. But when you use software connected to another company's network, this is called electronic funds transfers. Finally, costs vary greatly depending on whether you're looking at online or offline transaction fees.

What Can You Do To Reduce Your Costs When Accepting Credit Cards?

The best thing you can do is shop around and compare rates from various providers. Some offer services for free, while others might charge a flat fee per month or require an upfront investment in equipment purchases or software licenses/subscriptions.

You should also consider whether your needs are basic enough to support only one type of transaction (offline) or if you need something more advanced like online payments.

Conclusion

Understanding credit card processing fees is an essential topic for merchants, especially those who are just starting. As you can see, there is a lot to consider regarding credit card processing and how your business will be affected by different rates and fees.

The best way to avoid being surprised or frustrated with unexpected charges later on down the line is simply by educating yourself as much as possible about this process before going ahead with anything significant, like opening up a shop online.

Contact BNG Payments to learn more.

What Card Processors Do: Credit Card Processing 101

Credit card processing is a complicated and confusing process. It can be hard to know where to start or what the best solution is for your business. This blog post will give you an overview of credit cards, how they work and are processed so that you can make an informed decision on what to use for your company's financial needs.

What Is a Credit Card Processor and How Does It Work?

A credit card processor is a company that provides the hardware and software necessary to process payments with a credit card. Credit cards are essentially small, thin pieces of plastic (or metal in some cases) that have magnetic strips encoded on them. When you make a purchase with your credit card in a store, electronic communication is transmitted from the card to the merchant's terminal (the device that you swipe your credit card through). After that, it is returned to the processor.

Why Do I Need a Credit Card Processor?

There are a few different reasons to use credit card processing services. The first is that it allows people who do not have checking accounts, or maybe don't want to use them, to pay you with their money instead of using cash or checks. This makes accepting payments much easier for your business and can let you reach more potential customers. Additionally, credit cards offer a level of consumer protection that cash and checks don't have. If you accept a check from a customer and they bounce it later on down the line, then your business is out whatever money you gave them for their services or goods.

To process payments with a credit card, there are specific hardware requirements. In most cases, you will need at least two pieces of equipment: a terminal and an internet connection. The terminal is where the transaction occurs; it connects to the processor through either wifi or cellular data (which must be paid for by your business). It processes all of the transactions that take place within its range.

How to Choose the Right One for Your Business?

Many online processors offer credit card processing services. While most of them will provide you with very similar hardware and software options, there are some things to consider when choosing the right processor for your business needs. One primary consideration is which mobile payment apps they support. There are a lot of great mobile wallet systems out there like Android Pay, Apple Pay, and Samsung Pay that are becoming more popular every day. Most credit cards often support these systems, so if you want to accept them as a form of payment, it's important to choose a processor who supports them.

Another factor to think about is the prices they charge for their services. You should expect a distinction between their standard rates and those offered to larger companies like yours. It's critical that you're comfortable with the services and hardware that your processor provides, so take some time out of your day to compare them all before deciding which one is best for you.

Types of Processors 

There are a few different processors that you can choose from depending on what your business needs.

Standard Merchant Account: This type of processor allows businesses to accept credit cards as payment and have them processed right away. Usually, this happens overnight, so merchants don't even need to worry about their transactions until the next day when they receive a statement in the mail.

Point-Of-Sale (POS): This is similar to your standard merchant account, but it's designed specifically for retail businesses and allows merchants to accept credit card payments directly at their business location through an iPad or other tablet device.

These systems are beneficial for small businesses that don't need to accept payments anywhere outside their business location.

Mobile Point-of-Sale (mPOS) solutions: Square's newest entry into the mobile point of sale space with its new product called "Square Register," which replaces the credit card reader with an iPad. And while Square is the latest entrant into this space, it's worth mentioning that there are many other players in this area, including Intuit (maker of QuickBooks) and Vend, who offer their solutions for small businesses.

The Importance of Finding the Right One for Your Business Needs  

Each of these processors has its advantages and disadvantages that should be considered when choosing the right one for your business. The important thing to keep in mind is that you need a processor who can support all of the hardware, software, and apps that will help make your life easier as an entrepreneur. It's also worth mentioning that it's a good idea to find one who offers 24/365 support and is available via phone or chat during business hours.

This will make sure that you have the help you need whenever you might need it most! You never know when something might go wrong with your equipment, app, or software, so having access to knowledgeable customer service reps can be extremely helpful in such situations.

Another thing to consider is how easy their website is going to be for navigating.

For many businesses, this payment method has become second nature. However, some people out there still don't use credit cards regularly and would prefer an alternate form of payment like cash or check instead. These options may not always be available through certain types of processors, so it's important to consider all of your options before deciding on one.

The best thing you can do for yourself and your business is to take the time out of your day to shop around. Just because a credit card processor offers their services at an extremely low price doesn't necessarily mean that they provide quality service. Some processors who charge a high fee may be worth considering due to the superior equipment and support. So don't jump into things too quickly without doing some research first- find the right fit for you by calling them or sending in an application today. This way, you'll get exactly what you need from your provider, which will make running your business much easier over time.

Contact BNG Payments to learn more.

The Comprehensive Guide to Understanding Credit Card Processing Error Codes 

Credit card processing is a complicated process that can be difficult to understand, especially when dealing with error codes. This blog post will provide an overview of what each code means and how it affects your business to help you navigate the world of credit card processing errors. We'll also go over how to identify these errors independently without calling customer service for assistance. 

List of the Most Common Credit Card Decline Codes 

If you work with credit cards, you know that they can be tricky to process due to the many error codes associated with transactions. It's important to understand these errors so that you can help your customer resolve any issue quickly and efficiently. The following are some of the most commonly used codes: 

05 / Do not honor: This code is not an actual decline but instead means that the credit card company does not want to process this transaction. 

14 / Invalid card number: This means that the credit card number you entered was incorrect or did not exist with this specific bank. 

41 / Lost card, pick Up: This indicates that the credit card was lost or stolen. 

43 / Stolen card, pick up: This indicates that the customer reported the credit card as stolen. 

51 / Insufficient funds: This means that there are not enough funds in the cardholder's account to complete this transaction. 

R0 or R1 / Customer requested stop of specific recurring payment: This indicates that your customer requested no more extended use of this card for recurring payments. 

A Comprehensive List of Credit Card Decline Codes 

Call/Decline Codes 

Suppose you receive one of the following "CALL" or "DECLINE" codes. In that case, it typically indicates that the customer's bank refuses to process the transaction due to several factors, ranging from insufficient funds to an expired card. Request that the customer contacts their bank to resolve the issue or provide an alternate payment method. 

Hold-Call Codes 

A hold-call code could indicate a fraudulent credit card. Resist the temptation to honor the transaction and refrain from providing services to this customer. If the transaction takes place in person, you should take the customer's card, call to confirm receipt of the code, and retain the card. 

Error Codes 

If you encounter one of these error codes, the cause could be anything from a typographical error to a system error. Typically, you can resolve error codes by double-checking your account information and attempting again. 

There are many different types of credit card errors that can happen for any number of reasons. If you receive one, the best thing to do is contact your bank or customer service and ask them what type of error it was so you can take appropriate action. In the meantime, double-check your information to avoid simple typing errors. To help prevent these from happening again in the future, consider using a secure platform where all payment processing takes place rather than with sensitive data entered into an online form by hand. 

One More Tip: Always verify that customers enter their CVV code when prompted before completing a purchase. Doing so will significantly reduce problems related to potential fraud! 

Contact BNG Payments to learn more. 

A Beginners Guide to Credit Card Gateway

Do you know what a credit card gateway is? If not, don't worry. The article will provide an overview of this essential and often-overlooked component of the eCommerce process.

What Is a Credit Card Gateway? 

A credit card gateway is an online service that allows your customers to pay you via their credit cards. Gateways connect businesses to payment processors, major credit and debit card networks, and the issuing banks of your customers. It's frequently an unnoticed connection point working behind the scenes. 

Merchants of all sizes and industries use credit card processing gateways to process online, in-store, or both. Gateways offer simple integration and setup options, as well as access to powerful payment processing platforms. 

Benefits of Using a Payment Gateway 

Minimize Risk: Credit card gateways protect both you and your customer by reducing the risk of fraud. They are also PCI compliant for security purposes, making them a great choice if you're worried about stolen or misused credit card information. 

No Chargebacks: Customers can't contest payments made through credit cards because they have already been charged! This means fewer disputes with clients, less wasted time, and more revenue. 

Easy Integration: With the right payment gateway, you'll be set up in minutes! All of your credit card information will be stored securely so that it won't need to be re-entered every time a customer makes a purchase. This means fewer lost customers because they can check out faster than ever before. 

Variety of Payment Methods: Credit card gateways allow you to accept cashless transactions and payments in person with debit cards. This is beneficial if your business depends on face-to-face interactions. Still, it's also useful for online companies that have clients all over the world. 

Disadvantages of Using Credit Card Gateways 

Credit card gateways can't be used everywhere. Some payment processors don't accept them, so you'll have to check with your preferred option before getting started. Suppose they do support credit card processing through a gateway. In that case, it may take longer or cost more than using another method of collecting payments. 

The best choice for a merchant depends on the size and needs of their business. For some companies, cashless transactions are essential, while others rely on face-to-face interactions. No matter what you're selling online or in-person, though, there is likely a solution that meets your requirements. 

What Else Do I Need? 

In addition to choosing a credit card gateway, you'll also need: 

A merchant account: This is the actual bank account that processes your transactions, and your credit card gateway provides it. You'll typically need to have a registered business, an EIN, and a sales history before being accepted for one of these accounts. A shopping cart or website platform - You can't process payments without having some way for customers to buy from you, so make sure you select a helpful eCommerce service, whether it's Shopify, Woocommerce, Magento, etc. 

Marketing channels: Customers won't purchase anything if they don't know about your store! Spend time creating compelling product descriptions with engaging copywriting techniques to attract new leads. Use social media marketing or search engine optimization (SEO) to get your business ahead of more buyers. 

Credit card gateways are the best way to accept credit cards online. They're a fantastic option if you don't want to deal with high fees, chargebacks, and other problems that come with accepting cash. If you've never used one before, then start researching your options today. 

Contact BNG Payments to learn more.
 

 

A Complete Guide to B2b Credit Card Processing

B2B Credit Card Processing / How Honoring B2B Payments with Clients Boosts B2B Sales 

As a small business owner, one way to increase sales potential is to offer multiple purchasing options for buyers. Standard payment methods include cash, checks, ACH, e-wallets, debit cards, and credit cards. But one sales category worth looking at more closely is B2B sales. More transactions are done between businesses than between businesses to customers – especially with recurring payments. You can benefit significantly by finding better ways to serve your business clients.  

Businesses are increasing their use of B2B credit cards during business sales. Though it is wise to honor B2B credit card transactions to keep a client happy, there are benefits for you too. These cards are a powerful ally to improve margins for faster growth. 

This article reviews the world of B2B credit card processing and why it's crucial.  

A Complete Guide To B2B Credit Card Payment Processing 

Credit cards are increasingly being used by companies to charge expenses. If you run a B2B company, it might be worth exploring the ins and outs of processing credit card payments for your transactions with other businesses. Here are the reasons why, but first, what do we mean by B2B credit cards?   

What is a B2B Credit Card, Exactly? 

B2B credit cards, also known as commercial credit cards or corporate cards, are much like a customer credit card but have added benefits worth discussing with your clients and even for your use. 

When you allow for B2B credit card payments as a business owner:  

Benefits Over Paper Checks 

Historically, the most popular way businesses pay for products and services is with checks, but the work of cutting, sending, and processing checks makes this B2B payments process more labor-intensive and time-consuming than paying with a credit card. In the business world, time is money, both for your client and you. In addition, you must wait longer for payment due to the mail and longer billing cycles for businesses, such as 30 days.  

Checks can also be lost, stolen, frauded, and inputted incorrectly, further bumping out the timeline. Then you will also have to contend with clearance of checks with your bank, which can take longer than a week for more comprehensive reviews. 

The total aggregate cost for check processing ranges between $4 to $20 per check transaction, and these costs include all labor time, shipping, and bank charges. 

With credit cards, business orders can be placed by you or your client instantly online from anywhere using your payment gateway. In addition, you can still take payments over the phone and in person. The entire process is much faster no matter how it is done and at a lower cost ranging from 1.8 to 2.9% plus a 10-cent transaction fee.  

 Invoice Benefits of B2B Payments 

You also enjoy advanced accounting tools such as digital invoice creation, reoccurring payments capability, custom software integration, and accounting integration. These benefits keep you organized and are so advanced and easy that they could do the job of manually generating an invoice redundant. You won't have to contend with processing a backlog of invoices so that you, your sales teams, and your accounting staff can pursue other critical business initiatives. Additionally, you can create recurring reminders to ensure clients pay on time.  

More Savings through Lower Interchange Fees 

What are interchange fees, and how do they affect how I accept B2B payments? 

As with customer credit card purchases, you are charged interchange fees by the credit card issuer and your processor, but B2B interchange rates are lower than B2C processing costs. You can keep interchange costs even loser by shopping other processors for lower merchant processing fees. You will need specialized software and must meet several requirements to gain the correct status for this added discount for B2B transactions. 

If you run many transactions, these savings on interchange fees result in significant discounts that benefit any business. For example, if you run a nonprofit, savings can significantly increase the good you can do. 

How Merchant Category Codes Bring Added Cost Savings 

Merchant Category Code (MCC code) is a unique code that credit card companies use to classify your business based on the services and products you offer. Each card has its methods of classification and coding. 

The correct MCC code must be attached to your account through your merchant account provider to benefit from this interchange savings. Keep in mind each credit card provider has its codes.  

Levels of Credit Card Purchases 

What Kinds of Savings Can I Expect from Data Levels? 

Business credit card transactions fall into one of three levels: Level 1, Level 2, and Level 3. Customer credit cards remain at Level 1. Though the names and requirements of each level depend are different for each credit card company, the more information (data) you have on an invoice, the higher the level you climb and the lower the price you pay as a B2B merchant. Inversely, any gap in data can affect your level and, therefore, your discount.  

Some common examples of information you need to provide at each level are:

Level 1:
Level 2:
Level 3:

Interchange fees may fall from a Level 1 cost of 2.81 percent to 1.8 percent at Level 3. Note that not all merchant accounts honor levels 2 and 3, so be sure to check with your merchant account and, if needed, pay upgrade fees.

B2B Gift and Loyalty Card Processing 

These options are excellent for maintaining reoccurring sales and are available in affordable options, letting you provide the same high level of service as national companies. They also help you stand out from your direct competition, maintain customer recognition and frequency, and boost your company identity with your customers.  

B2B Mobile Processing 

Mobile processing options have extended far beyond a single countertop credit card terminal. You can now take orders on computers, mobile devices, and proprietary handheld devices for payment processing anywhere you and your sales teams are. Accept payments and track individual sales performance across multiple devices on the same merchant account. This system works with both cellular and wifi-enabled devices such as iPhones, Android phones, and tablets. 

B2B Online Payments 

Take payments over the phone or online without the need to have credit cards physically present. Customers can pay at a day and time that's most convenient for them. You can enjoy e-commerce solutions such as shopping cart capability, mail order, and telephone order capabilities, all at affordable prices to benefit any size business. 

Security of B2B Credit Card Processing 

There can be some apprehension about running credit cards due to perceived issues with data security. Still, full protections in place aren't only beneficial and even required for added peace of mind.  

BNG Payments: Offering B2B Merchant Services and Payment Processing 

BNG Payments have positioned itself as both a merchant payment processor and merchant services provider, making us a one-stop source for secure processing and quality back-end merchant services and support for business of any size. Our expertise in B2B and B2C payments results in faster, more reliable processing with the full ability to read each transaction on any device. And with full digital e-commerce capability, phone order capability, and advanced fraud protection through collaborations with top-tier financial institutions, you can accept payments in more ways as your business evolves. 

We connect you to the full range of B2B credit card processing options and assist with setup. You get all of these services at a competitively low rate and without the need for a contract, saving you further. Along the way, you get the same high-level 24-7 manager support you would expect for a large enterprise client. 

Large corporations and publicly traded companies have used our secure payment processing services to help them conduct large payments at reduced costs. It's time for you to experience these benefits yourself as a small business. Contact us today. 

Can a Business Pass Credit Card Processing Fees to Customers?

Can your business pass the credit card processing fees to customers? When you look at all of the potential solutions for accepting credit cards, one question might come up. Some people think it's possible, but others disagree. Let's take a closer look and see what we can find out about passing these fees down to customers! 

What Is a Credit Card Processing Fee, and Why Does It Exist? 

Credit card processing fees are the costs incurred by a business owner to accept credit card payments. However, transaction fees, flat fees, and incidental fees are all factors determining the overall cost. Credit card processing fees typically range from 1.7 % to 3.5 % per transaction. However, the payment processor you select will ultimately determine the cost of processing credit cards for your business. 

When someone purchases something with a credit card, they're paying with "credit," meaning that the customer is borrowing funds from their financial institution for the amount of the purchase. However, the actual transaction isn't completed until this borrowed money is sent to you. The business's account must first be credited before you can start using it. 

How Do Businesses Pass the Processing Fees to Customers? 

There are several different ways that business owners can pass the cost of processing credit card transactions to their customers: 

Flat fees: Flat fees are an agreed-upon amount that you'll pay your payment gateway or merchant services provider each month. Transaction fees coupled with flat fees add up to the total cost of accepting credit cards. 

Transaction fees: This is when you require your customer to cover all transaction costs by adding them directly to the price of the goods and services they're buying. If this option is chosen, it must be made clear in your contracts and terms and conditions. Hence, there's no confusion about how these extra charges will impact purchase prices. 

Incidental fees: When incidental fees occur, such as a chargeback or insufficient funds, your customer will be responsible for paying them. 

Tips for Passing the Cost of Processing Credit Card Transactions on to Customers 

Make sure that it's clear who is responsible for what: If you choose to pass on the cost of credit card processing to customers by adding transaction fees to prices, ensure that this is clearly stated in written agreements with them. This way, they will not become angry or, worse, file a chargeback with their bank, resulting in additional fees for you. 

Know what your options are: Since there are three possible methods of charging customers for credit card acceptance, make sure you fully understand all three before deciding how best to proceed. There may also be some restrictions on what you can and cannot charge for, so be sure to stay within the law. 

Set your prices according to your payment processing options: If you're planning on including transaction fees in product and service pricing, you'll need to put those prices before knowing the exact amount of those transaction fees. This will ensure no confusion or disagreement about what customers owe when it comes time to make a purchase. 

Billing errors: If you set your credit card prices too low by accident (or on purpose), let your customer know as soon as possible. You could lose significant income if they don't notice the error and pay their final bill without realizing they were undercharged. 

Benefits of Passing on the Cost of Credit Card Transactions to Customers 

Passing on the cost of credit card transactions to customers has the advantage of lowering payment processing fees and increasing cash flow because payment is received quickly. Customers can take their business elsewhere if they don't like the prices you're charging. 

Passing on credit card processing fees to customers has the disadvantage of potentially resulting in lost sales if the price rises. Because not everyone can afford to pay more for a product or service, some of your clients may find it difficult to purchase from you. 

Customers may also try to bargain a better per-transaction price with you, especially if their purchases come with additional fees. This means lost revenue and time spent negotiating over prices. 

The Risks Involved in Not Passing on Costs Associated With Accepting Cards as Payment  

The risks involved with Not Passing on Costs Associated With Accepting Cards as Payment are that the fees associated with the credit card market will keep increasing over time. You can expect transaction fees to rise in line with this trend, which means you'll have to cover these costs by raising your prices. 

It also means that customers could lose interest in shopping at your business if they feel like they're being charged too much for their purchases. This is especially true of customers who pay for goods and services using a form of payment other than credit or debit cards—for example, cash or cheque. The price differential between different payment methods could lead people to use less expensive forms of payment when buying from you, costing you even more money. 

Suppose you're hoping to avoid the risks involved in either method (not passing on credit card processing fees or including transaction fees). In that case, it may be a good idea to choose alternative forms of payment like cash, PayPal, cheque, and debit. This way, you can keep your business running free of the added costs of accepting cards as payment. 

In this article, we have discussed the best methods of raising cash quickly for a small business and the pros and cons that come with each. It's always possible to use a combination of these methods to expand your company's cash flow. Still, you'll need to pick one form and use it consistently to get the most out of any cash infusion. 

Contact BNG Payments to learn more.