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Category: Credit Card Processing for Small Business

INTERCHANGE AND WHY IT’S IMPORTANT

Posted on by tushar

Some business owners are passionate about accounting and they enjoy getting into the nitty-gritty of policy. Other business owners need to hire accountants to make sure their businesses stay on the straight and narrow. Wherever you fall in the continuum between these two approaches, if you own a business, you need to understand exactly how money processing happens. This will help you avoid unpleasant surprises.

WHAT IS INTERCHANGE?

When a customer makes a purchase with you using a card, the bank who gave the customer the card (the issuer) pays you the amount owed. After that, the issuer collects the same amount from the customer’s funds and the transaction is complete. As the merchant, you end up paying the issuer an interchange fee for this service. It doesn’t matter what system you use; you’ll be paying interchange fees if you want to accept card payments.

WHY IS INTERCHANGE IMPORTANT?

  • When a charge is converted into a cash deposit into your merchant account, your back will assess fees for billing services, fraud risk, credit risk, and float. Interchange fees cover all of this at once, which minimizes hassle for you as a merchant.
  • Interchange stimulates growth of card issuers by giving them financial motivation and protecting them risk.
  • Interchange opens up the field for a wide range of merchants by making tailored interchange programs available. By this, we mean small transactions get a lower interchange fee, which makes it possible for merchants to accept small card payments.

At Impact Pay System, we are dedicated to making it easy to run your business. We understand the challenges of being a merchant, and we are passionate about being a close, dependable ally for you. Check out our next blog to learn more about interchange and our credit card processing for small business.

PAYMENT PROCESSOR RED FLAGS

Posted on by tushar

When you run a business, there’s lots of things to keep track of. Payments are close to the top of the list! It’s important to have a payment ally you can trust. Your payment processor is an important member of your team, and you can’t have success without it. The issue is, there are so many companies to choose from. Finding a company that will give you what you need, allow you to grow, and put your interests first can be a formidable challenge. The good news is, there are distinct signs of processing companies that are only looking out for themselves.

In our last blog, we pointed out a few red flags, including short service agreements, low volume penalties, cancellation fees, and flat transactions. In today’s blog, we want to point out a few more signs of processors that may not be the best choice for your operation.

YOU HAVE TO PAY RENTAL FEES FOR EQUIPMENT

If you rent equipment, you’ll likely end up paying more for it in the long run than you would just purchasing it yourself. When you buy your own equipment, you won’t be limited by your processor’s choice of equipment. You will be free to find the exact equipment that will work best for your company and your budget.

THE COMPANY WON’T DISCLOSE THEIR INTERCHANGE MANAGEMENT PROGRAM

If they won’t share this information with you or try to get by without offering to share, pick a different company. If they do share their program, it’s generally fair for you to be paying a firm interchange fee plus a service charge that consists of a constant market up. If you have questions about interchange management, we will write about it in future blogs!

THEY CHARGE “BUSINESS POINTS”

Processors that charge “business points” for interchange or transactions that have been downgrade are stealing from their clients. Don’t bother using a processor like this.

THE COMPANY WON’T SHARE THEIR DISCOUNT RATE IN DETAIL WITH YOU

Good processors will be happy to share their discount rates. Generally, it should be around 0.02 to 0,07 percent. If your business processes less than 100k a year, the discount rate can be as high as 0.1 percent.

Make sure that your business has an ally that will cover its six. When you have merchant payment services you can trust, it’s much easier to take your business to the next level. Let Impact Payment Systems bring you the comprehensive support you need!

SIGNS IT’S TIME TO USE IMPACT PAY SYSTEM

Posted on by tushar

Running a business is a hefty task, but you don’t have to do it alone. Making sure you have a solid payment processing company is one of the best ways to give yourself peace of mind. Knowing that you don’t have to worry about transactions and security can empower you to take your business to the next level. The key is to find a company that will treat you fairly and be honest. You need to be able to trust them.
The good news is, Impact Payment System is here to provide dependable, excellent payment processing for many different industries. Depending on where your business is in its lifespan, you may not have a payment processing system yet. If that’s the case, read on for some signs that it’s time to contact us.

YOU CAN’T ACCEPT ALL CREDIT CARDS

Keeping customers’ payment information safe is paramount to any business’s success. Services like fraud protection, automated billing, and information vaulting should be included in your standard rate. If you’re working with a provider who charges extra for these services, we recommend you look around for a new option. Give your business every advantage possible!

IT TAKES TWO PAYMENT GATEWAYS TO FILL YOUR COMPANY’S NEEDS

We wanted to hit this one immediately, because it is the most obvious sign that you need our help. You should never find yourself unable to accept certain credit cards. If this happens, you’re missing out on a lot of profit. The loss can be up to five percent of your monthly income, which adds up incredibly quickly. It’s important to ensure that you’re not experiencing staggering loss of profit. Your company needs all the help it can get, so make sure you have a payment processing system that supports every type of credit card.

YOUR CLIENTS PREFER A TYPE OF PAYMENT YOU CAN’T CURRENTLY PROVIDE

When you don’t allow your customers to pay the way they want to, you’re sending a quiet message that their preferences aren’t a priority to you. This is a fast way to alienate your customers. Do what you can to cater to your customers’ preferences, and you’ll enjoy their business much longer.

YOU CAN’T ACCEPT PAYMENT FORMS STANDARD TO YOUR INDUSTRY

Maybe your industry only accepts automated payments. Other industries can only take e-checks, Apple Pay, and beyond. Do your research and invest in a payment processing system that will allow you to participate fully in your industry. We are proud to offer a diverse array of options!

PEOPLE CALL YOUR PAYMENT METHODS OLD-FASHIONED

The way you handle payments can deeply affect how people perceive your company. Even if you find solace in older business ethics, the majority of modern consumers want convenience and automation. They see modern methods as more secure – as a sign that your company is dependable. Using dated payment methods can make possible customers turn to other companies. Use payment methods you customers like in order to avoid alienating them. There will always be a competitor ready to take your customers – don’t give your customers a reason to leave.

Impact Payment System is dedicated to providing credit card processing for small business – and that’s not all. Check out our services to find out what else we can do for you!