What to Expect When Moving to a Card Payment Solution
Card payment processing solutions have become an extremely common part of life in nearly every business in the world. Adopting them is often a rite of passage for a business as it solidifies its position as a legitimate ongoing enterprise.
You may want to know, however, what to expect when you move to a card payment solution. Here are four things all adopters should be aware of.
The entire business model of the payment industry is based on fees. In exchange for the convenience you can offer to your customers, the processing company takes a small fee. Usually, this is below three percent, and it might go below two percent if you can produce enough sales to justify a low fee structure.
Volume is a big deal when it comes to negotiating fees. Keep detailed records of your transactions and bank records prior to exploring card payment process solutions. This information may help you negotiate a better fee structure.
Direct Transfers to Your Bank
A major benefit to businesses is that payments go directly to their banking accounts. This significantly reduces the basic risks of dealing with cash, such as physically losing track of some of the money. It also ensures that payments will be on account sooner, speeding up other processes, such as acquiring new inventory.
The payment card industry compliance standards, often referred to as PCI compliance, apply to all card payment solutions. You will be expected to make regular efforts in good faith to keep your part of the process secure. If you add payment processing for an e-commerce website, for example, financial institutions you do business with will have the right demand occasional audits. These audits will confirm that your system is secure, and they will also uncover potential problems.
You then have a certain amount of time to rectify any issues. Failure to bring a system into compliance may result in the termination of services, so expect to keep up with all notices and get the work done ASAP when requested.
While it's certainly possible to acquire a merchant terminal and punch all of the data into the system yourself, most folks don't do it that way. Fortunately, there are numerous combinations of hardware and software that allow you to integrate everything. Depending on your desire for a seamless experience, you can integrate cash registers, your website, inventory, and even your accounting software so everything will be on the same page. Some systems even integrate label printing and shipping.