Showing posts with label benefits of merchant services. Show all posts
Showing posts with label benefits of merchant services. Show all posts
Friday, August 26, 2011
What Are The Different Types of Credit Card Processing Companies?
Although there a literally thousands of different companies that offer credit card processing services, there are really only two types of Merchant Service Providers (MSP’s): Acquirers and Resellers.
Acquirers
Acquirers, also known as Processors, are distinguished by their ability to process sales transactions. A Processor has the technical capability and high level security protocols to receive the transaction data, communicate with the appropriate financial institution, approve or decline the specifiic transaction, settle the completed transactions with the financial institution and deposit the funds into the merchants account. In short, they are the ones that actually process the sale, charging a discount rate and/or processing fee
for handling the transactions. Acquirers are registered members of the Visa and MasterCard Associations, soliciting, screening and accepting merchants in their processing programs. Processors acquire their merchant base through direct marketing to merchants, independent sales agents and utilizing resellers. For example, EPS is an Acquirer (Processor) which provides merchant payment processing solutions and value-added programs to merchants directly through a direct sales force in addition to Independent Sales Organization partnerships (resellers).
Resellers
Resellers, also known as Independent Sales Organizations (ISO’s), resell the products and services of one or multiple Processors. They are "Third-Party Processors" in addition to sometimes offering their own value-added products. There are basically two types of ISO’s: banks and non-banks.
Banks – banks of all kinds, local community banks, large regional banks, national banks and credit unions have entered into the merchant service provider business as it seemed like an easy vertical expansion to give them another way to increase revenue of their customers. Most banks are ISO’s although they usually private label their services so that it is difficult to tell whether or not they are the actual the Processor.
Non-banks - this group of ISO’s ranges greatly from top-notch, competent and capable providers to less than honorable people just out to make a quick buck. As there is not any regulatory agency enforcing acceptable and ethical business practices in the industry, the most serious problems merchants encounter are usually from dealing with an unscrupulous, rogue sales agent rather than the Processor. Unfortunately, this has given the industry as a whole a bad reputation.
Both Processors and ISO’s offer payment and processing solutions such as credit/debit/prepaid credit card processing, check verification/ conversion/ guaranty services, online transactions, gift/ loyalty cards, and cash advances with very little, if any, difference in pricing.
Whatever the industry or business size, it is vital that you find a merchant service provider that can focus on your specific area, whether its ecommerce, retail, service, catalog, restaurant, telephone/mail order, wireless, or a home based business. It is equally important to choose a provider that also has the level of infrastructure needed to provide the best system for your needs, from software and terminal plug-in’s to repayment gateways and real time account access. EPS is a full service merchant service provider which means it can handle all of your processing needs and employs a dedicated team for each individual area of merchant accounts including customer service, sales and technical support 24 hours a day, 7 days a
week.
Tuesday, August 23, 2011
Should My Business Accept Credit Cards? The Many Benefits of Merchant Services
Today's fast moving, technological driven world is quickly moving us towards a cashless society making the acceptance of electronic payment options practically a necessity as it is the preferred method for many. Not doing so can hinder your business' growth and may even cause you to lose customers.
Consider this scenario, a customer comes into your business to shop and when they go to check out, they find out that you don't accept credit and debit cards. What happens next?
A) No problem, they have enough cash (don't most people?)
B) They scramble for enough cash and/or may have to put some items back (not completely satisfied)
C) They don't have any cash, you just lost the sale.
This customer has left with a feeling of frustration rather than with a good experience. Now, where is that customer most likely to go the next time they need that product or service? If you had accepted electronic payments, not only would you have had a satisfied customer at the time, but the more likely they are to return in the future rather than going elsewhere. Therefore, the more payment options you offer, the more competitive your business remains.
Following are some of the benefits you should expect with merchant services:
1. Builds Trust and Increases Your Credibility - By displaying acceptance of the familiar brands and logos of Visa, MasterCard, Amex and Discover cards in your window or at your cash register, you are essentially building credibility with your customers since they already trust and use those brands.
2. Boosts Your Sales - Credit and debit cards are the ultimate in shopping convenience for customers. Studies show businesses that accept credit cards see a huge increase in volume... often doubling or even tripling current sales. Not only will you gain more customers through acceptance, but you'll also grab impulse buyers, and have the opportunity to increase the total ticket sale through up-selling as people tend to spend more when using credit cards. The average order size of someone paying via credit card tends to be larger than someone who is paying by cash or check. More customers plus larger orders equals greater profits!
3. Improves Your Cash Flow - Accepting electronic payments has a huge positive effect on businesses cash flow. Even if sales didn't increase (and they almost always do) your business will benefit by having the money from the instantly delivered to your bank account. Unlike accepting paper checks where you have to physically go to the bank to deposit and then wait for it to clear (sometimes a week or more), accepting credit/debit cards improves cash flow by guaranteeing timely and automatic deposits into your business account.
4. Enlarges Your Customer Base - Many merchant service providers have a variety of value-added programs they offer such as rewards programs and gift/loyalty cards. We've even created an alternate payment option which helps merchants bring in new customers and increase the sales of their existing customers. It's EPS90 No Credit Check EZ Payment Plan, which offers consumers up to $5k over a 90 day period without a credit check.
5. Enables Globalization - Processing payments electronically extends the companies geographic reach far beyond its brick-and-mortar storefront to anywhere in the world. And credit card acceptance makes expanding your business to remote venues or online easy as well.
6. Provides Customer Support - If a customer's credit card fails to process correctly, your business cannot only lose a sale but will most likely lose that customer as well. Providers usually offer customer services that deal with issues in a timely and efficient manner. As there are many third-party providers in the industry, it's important to use one that has 24/7 customer service and technical support departments to ensure prompt resolution of any problems that may arise.
7. Minimizes Fraud - With today's stringent PCI DSS (Payment Card Industry Data Security Standards) compliance requirements, exposure to security breaches and fraud can be minimized. Most merchant service providers have security protocols in place to keep data safe and secure including the best technology for encrypting and transferring sensitive information. Make sure the provider is PCI Compliant before contracting with them for merchant services.
8. Helps Manage Records - Having a merchant account increases a business' record keeping capabilities, enabling an easy way to track financial transactions and cash flow. As you can see, utilizing merchant services not only helps your business remain competitve, but can also provide options to help your business grow.
As you can see, providing electronic payment options to your customers not only enables your business to remain competitve, but can also actually help your business grow.
Consider this scenario, a customer comes into your business to shop and when they go to check out, they find out that you don't accept credit and debit cards. What happens next?
A) No problem, they have enough cash (don't most people?)
B) They scramble for enough cash and/or may have to put some items back (not completely satisfied)
C) They don't have any cash, you just lost the sale.
This customer has left with a feeling of frustration rather than with a good experience. Now, where is that customer most likely to go the next time they need that product or service? If you had accepted electronic payments, not only would you have had a satisfied customer at the time, but the more likely they are to return in the future rather than going elsewhere. Therefore, the more payment options you offer, the more competitive your business remains.
Following are some of the benefits you should expect with merchant services:
1. Builds Trust and Increases Your Credibility - By displaying acceptance of the familiar brands and logos of Visa, MasterCard, Amex and Discover cards in your window or at your cash register, you are essentially building credibility with your customers since they already trust and use those brands.
2. Boosts Your Sales - Credit and debit cards are the ultimate in shopping convenience for customers. Studies show businesses that accept credit cards see a huge increase in volume... often doubling or even tripling current sales. Not only will you gain more customers through acceptance, but you'll also grab impulse buyers, and have the opportunity to increase the total ticket sale through up-selling as people tend to spend more when using credit cards. The average order size of someone paying via credit card tends to be larger than someone who is paying by cash or check. More customers plus larger orders equals greater profits!
3. Improves Your Cash Flow - Accepting electronic payments has a huge positive effect on businesses cash flow. Even if sales didn't increase (and they almost always do) your business will benefit by having the money from the instantly delivered to your bank account. Unlike accepting paper checks where you have to physically go to the bank to deposit and then wait for it to clear (sometimes a week or more), accepting credit/debit cards improves cash flow by guaranteeing timely and automatic deposits into your business account.
4. Enlarges Your Customer Base - Many merchant service providers have a variety of value-added programs they offer such as rewards programs and gift/loyalty cards. We've even created an alternate payment option which helps merchants bring in new customers and increase the sales of their existing customers. It's EPS90 No Credit Check EZ Payment Plan, which offers consumers up to $5k over a 90 day period without a credit check.
5. Enables Globalization - Processing payments electronically extends the companies geographic reach far beyond its brick-and-mortar storefront to anywhere in the world. And credit card acceptance makes expanding your business to remote venues or online easy as well.
6. Provides Customer Support - If a customer's credit card fails to process correctly, your business cannot only lose a sale but will most likely lose that customer as well. Providers usually offer customer services that deal with issues in a timely and efficient manner. As there are many third-party providers in the industry, it's important to use one that has 24/7 customer service and technical support departments to ensure prompt resolution of any problems that may arise.
7. Minimizes Fraud - With today's stringent PCI DSS (Payment Card Industry Data Security Standards) compliance requirements, exposure to security breaches and fraud can be minimized. Most merchant service providers have security protocols in place to keep data safe and secure including the best technology for encrypting and transferring sensitive information. Make sure the provider is PCI Compliant before contracting with them for merchant services.
8. Helps Manage Records - Having a merchant account increases a business' record keeping capabilities, enabling an easy way to track financial transactions and cash flow. As you can see, utilizing merchant services not only helps your business remain competitve, but can also provide options to help your business grow.
As you can see, providing electronic payment options to your customers not only enables your business to remain competitve, but can also actually help your business grow.
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