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REASONS THAT CHECKS AREN’T GOING ANYWHERE

Checks are one of the oldest forms of payment that can be processed, and while advances in payment options, like credit cards and online payment apps and programs, are coming around, there are a few reasons that checks will never fade as a method of payment. Impact PaySystem offers high-quality check processing services that make it easy to accept these payments in your facility, but very rarely do businesses take advantage of this because they believe it is a payment method that they won’t ever see.

In our blog post today we are going to cover a few of the reasons that checks won’t be going anywhere, anytime soon.

NOT EVERYWHERE ACCEPTS CARDS

While it may seem absolutely insane to think that there are still businesses that aren’t using debit or credit cards to process their payments, these options are extremely expensive to manage. For many small businesses, it is entirely unrealistic to afford these payment options for purchases Checks, however, are a great option to use that can make processing payments much easier. If you think that this is unlikely, then you’ll be surprised to hear that nearly 55% of America’s 27 million small businesses, still don’t use credit card processing when taking payments. While apps like PayPal and Venmo are coming out, this online transferring isn’t something that small business with a brick and mortar can utilize, so checks remain an option.

THEY’RE A RELIABLE FORM OF PAYMENT

Sending money as a gift or to pay at a restaurant or movie is a common task, but it’s unlikely that you’ll ever have your server asking you for your Venmo username or casually sending graduation money to your niece over PayPal. These applications are savvy, and they’re definitely efficient, but the ability to actually pay on the spot with a check is something that only a check can do. Checks are still commonly used when giving money as a gift, and if a restaurant or store accepts checks, they’re the more likely option to use when completing a payment.

AVOID THE FEES

Fees are a part of using credit and debit cards, both for the user of the card and that of the person processing the payment. In some cases, when you use a card to pay, there’s a chance that you might wind up having to pay an additional fee. This isn’t the case when you use checks because it goes straight to your account number. You’ll see this more frequently when you are processing larger payments online or when you visit facilities that don’t have the funds to pay off their card processing fees without a little extra charging. In these cases, using checks for payment methods can reduce the fees that you might have to pay.

mpact PaySystem has effective check processing services that make payment by check as easy as swiping a card. Learn more about this service if you or your establishment often receive check payments from our trusted payment processing company. We would love to provide you with a method that works well for you and your customers. We’ll go over a few more reasons that checks aren’t going out of style in our next blog.

SURCHARGING FAQ – PART 1

If your business accepts card payments, you get to deal with surcharging. Until recently, surcharging caused a bunch of confusion in the payment processing industry. The good news is, we now have standards that allow merchants to implement surcharges correctly. At Impact Payment Systems, we work hard to stay on top of policy, because we understand our services are foundational to your business.

We believe that knowledge is power, and we want to enable you to run your business with confidence. In the next two blogs, we’re going to discuss surcharging and answer the most common questions about it

WHAT IS A SURCHARGE ANYWAY?

You may know it as a checkout fee. It is an extra fee a merchant can add to a customer’s bill when he or she uses a credit card.

CAN SURCHARGES BE USED ON OTHER FORMS OF PAYMENT?

No. Surcharging is limited to credit cards, which means prepaid card and debit transactions are surcharge-free.

ARE THERE DIFFERENT TYPES OF SURCHARGES?

Yes. There are two different types. If you decide to apply surcharges, you will have to choose between “brand level” and “product level.” You can’t have both.

  • Brand level surcharge: This type of surcharge applies an identical surcharge to all transactions for a particular brand of credit card (e.g. Mastercard or Visa).
  • Product level surcharge: This type of surcharge applies an identical surcharge to all transactions for specific types of credit card, (e.g. Visa Signature Preferred, Visa Signature).

As you can see, figuring out which type of surcharge to apply requires careful consideration. In our next blog, we will talk about the rules around brand and product level surcharges. Keeping your i’s dotted and your t’s crossed is easier when you understand what you’re dealing with, so it’s important to have the best of all payment processing companies in your corner. Let Impact Payment Systems be your ally!

 

HOW IS INTERCHANGE DETERMINED FOR A TRANSACTION?

No matter how comprehensively you understand the world of payment processing, chances are good you understand that it’s full of important policies that can be easy to miss if you aren’t an expert. Just understanding the processes completely can be a formidable challenge. The good news is, you can stay in the know by doing your research and putting in the time to understand. If you find yourself too busy to get deeply into the nitty-gritties, you can hire an expert to help you out.

In our last blog, we introduced interchange fees and discussed their benefit to you as a merchant. Interchange covers fees that accrue when a charge is transformed into a cash deposit into your account. We mentioned that interchange is different depending on the size of the charge, but just how does that work?

HOW AN INTERCHANGE FEE IS DETERMINED

Several different factors affect the size of an interchange fee, including the merchant’s industry, the method of accepting card payment, the type of card, and the size of the transaction. To clarify how this works, here are some examples of things that affect interchange:

  • Was the payment entered manually rather than by swipe? The interchange will be higher, because the lack of swipe data increases the risk of fraudulent transactions.
  • Was payment made with a debit card? The interchange will be lower because the transaction isn’t as risky.
  • Was payment made with a rewards card? The interchange will be higher, because it funds the reward program.
  • Was payment made with a commercial card? The interchange will be higher in order to fund rewards programs, reporting, and spending controls.

Now that you have a bit more insight into how interchange fees work, we invite you to contact us and learn more about how we put your interests first. We are proud to stand out among payment processing companies as the best!

SHOULD YOU CHANGE YOUR PAYMENT GATEWAY?

Owning a business in these modern times requires a lot of knowledge, including the best way to accept and process payments. Payments are central to your business’s survival as well as your relationship with your customers, and they must be convenient, dependable, and secure. There are many payment gateways out there, and if you’ve already chosen one, we would ask you to take a minute and read through the following list. Not all payment gateway companies have your best interests in mind, and there are common signs that it’s time for your business to move on.


YOU’RE PAYING EXTRA FOR CERTAIN FEATURES

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

Do you have separate providers for merchant processing and gateway? This might work when you’re small, but if you’re seeing any success, it may be worth consolidating. Not only will you enjoy one point of contact, you’ll leave behind the headaches of keeping track of multiple entities at once. Providers often give great benefits to businesses that use them for both gateways and merchant processing.


YOU CAN’T TO ACCEPT FORMS OF PAYMENT THAT YOUR CUSTOMERS USE

Sometimes it seems the ways to pay for things are endless. From PayPal to bitcoin, there are many different payment forms you may be expected to accept. The good news is, system providers have worked hard to make this easy on you. The key is understanding your customers and how they like to pay. Do they want automated payments? Are they a crowd that prefers Apple Pay? Listen to your customers, and you’ll have no problem identifying the system you need.


YOUR BUSINESS HAS GROWN

It’s absolutely normal for a business to grow out of one business model. It’s a good thing! If your business has grown quickly, there’s a good chance you’re paying too many processing fees. Instead, look into opportunities to get rid of funding reserves. You may even be able to lower your processing fees. We understand that transitions take time and energy, and when you’re running a business, it can seem easier to stay with an old system. Don’t fall into this trap. Stay ahead of the curve with Impact Payment System, and you’ll reap the benefits for years to come.


YOU’RE IN THE GLOBAL MARKET

If you sell internationally, it’s essential to have a payment platform that can scale with your business. The proper service will enable you to handle foreign currencies, boosting your credibility and ability to grow. You may not sell internationally now, but if you want to in the future, it may be worthwhile to find a service that can easily facilitate that expansion.

 

Impact Payment System is proud to provide the best credit card processing and beyond to businesses around the world.

Contact us to learn more today!