Diversifying Customer Payment Method Options

Offering customers multiple ways to interact with your business is a heavy priority this year. Does your business support social distancing and flexible payment options?

Economic effects of the coronavirus pandemic have challenged the way we do business. Businesses and consumers are extra avoidant of handling cash and credit cards. Those who accept credit cards are taking extra precautions to make sure their credit card terminals are disinfected between checkouts and their customers have the option to bypass contact altogether when they buy something in person.

Already, contactless payments were experiencing a surge in popularity, but since the virus started impacting the U.S. banks have issued more contactless credit cads than ever before. According to a study in March conducted by RTi Research, about 30% of consumers in the U.S. have started using contactless payments since the virus started raising widespread concern, and of those new users, 70% expect to continue using contactless payments method when pandemic risks have lessened. Contactless payments include transactions made via contactless credit card, wearable NFC devices like smart watches, and smart phones.

Most EMV chip-enabled terminals are also capable of contactless transactions. Examples range from standalone terminals like the Verifone VX520 to full-featured POS systems like the Clover Station.

Also according to RTi Research, approximately 30% of consumers worry about catching the virus from cash, heavily under fire as a virus transmitter. If your credit card terminal does not already accept contactless payments, it may be time for an upgrade through your merchant services provider. Don’t miss payments just because you don’t offer your customer’s preferred payment method.  

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Point Of Sale for Retail

Bankcard Processors has everything you need to run your retail business. It’s quick, efficient and intuitive to use. Sell products by the pound, inch, yard, ounce, etc., and designate the price accordingly at the register. Integrates with all of the peripherals you’ll need including scanners, scales, and printers.

Generate & Track Unique SKUs

Managing your inventory can be a challenge. That’s why our POS for Retail allows you to generate and track unique SKUs on your products.

Sell Online

With Online Ordering through Bankcard eCommerce, customers can place their orders online and for easy shipping or in-store pick up. Expanding your sales to the web will allow you to expand your customer base and increase sales.

Employee Sales Summary

If at the end of a shift you want to see a sales report from your associates our Backend Portal includes a comprehensive Employee Sales Summary Report. Compare employee sales to labor overhead and reward or promote your top earners with concrete data that reflects their merit.

Point Of Sale for Restaurants

Our feature-rich platform is a leading cloud-based POS system restaurants designed to make managing your business easier, so you can focus on why you opened your restaurant in the first place.

All Restaurants Created Equal

Our solution can adapt to any restaurant and hospitality use. The custom features and settings easily accommodate cafes, pizzerias, fine dining, bars, nightclubs, and more!

Streamline Operations

Increase the speed and accuracy of your restaurant. Our lightning quick and intuitive platform allows your staff to turn tables faster while operating error free.

Customer Experience

Provide a consistently great customer experience with smooth and efficient service. Never get the order wrong or keep your guests waiting again.

Who is Involved in Credit Card Processing?

The key participants involved in credit card processing include:

• Cardholder: The individual who receives a card from an issuing bank and uses the card to make payments. This individual can be either the card owner or an authorized user of the card.
• Issuing bank: The entity, also known as a card issuer, that underwrites and issues cards to individual and business cardholders who meet certain credit standards. The issuing bank maintains card accounts, bills and collects payments from cardholders and monitors the performance of credit card receivable portfolios.
• Merchant: A business that accepts cards as a method of payment. These payments can be made in person, online, or by mail order or telephone.
• Merchant bank: The entity, also known as an acquiring bank, that maintains the merchant’s account where deposits from credit card payments are accepted. Some merchant banks also provide merchants with credit card terminals, which may be purchased or leased.
• Payment processor: The entity that helps many merchants and merchant banks manage the daily settlement and information flows related to credit card activities.
• Issuer processor: The entity that provides a system for issuing banks to board accounts, provides authorizations and offers risk management tools to issuers to manage their card portfolios effectively.
• Card network: The organization, also known as a card association, that maintains infrastructure to support card transaction activities such as authorization, clearing and settlement. Examples of card networks include Visa, Mastercard, Discover and American Express.
• Payment gateway: The technology that provides the link between the point at which the credit card data is received by the merchant and the merchant bank. The payment gateway encrypts the data before sending it to the merchant bank and transmits both the authorization request to the issuing bank and the issuing bank’s response back to the merchant.

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How to Choose a Credit Card Processing Provider

When choosing a credit card processing provider, businesses should consider several factors to ensure they select the right partner for their needs:

Assess your business needs

Understand your transaction volume, average transaction size, and whether you require in-person, online, or mobile payment processing. Consider every market, audience segment, and channel where you currently do business or plan to expand. You’ll want a payment provider that accepts all the preferred payment methods and currencies in these areas.

Compare pricing and fees

Processing providers may charge various fees, including transaction fees, monthly fees, setup fees, and hardware fees. Compare different providers’ pricing structures to determine which one offers the best value for your business. 

Evaluate the provider’s customer support

Issues with your processing system can directly impact your sales and customer experience. Look for reviews from other businesses to gauge the provider’s reputation and reliability and consider asking for recommendations from your industry peers. Make sure you choose a provider that offers reliable customer support. 

Consider the provider’s security and compliance measures

Ensure that the provider complies with the Payment Card Industry Data Security Standard (PCI DSS) and other relevant security standards to protect your customers’ sensitive data and minimize the risk of fraud.

Review integration compatibility

Check if the provider’s payment-processing solution is compatible with your existing POS system, e-commerce platform, and accounting software, to ensure that integration is as seamless as possible and future operations run smoothly.

Analyze additional features and services

Some providers may offer value-added services, such as advanced reporting, recurring billing, or multi-currency processing. Determine which features are necessary for your business and which features would be a nice addition.

Carefully evaluating these factors and comparing different credit card processing providers is the best way for businesses to make an informed decision that suits their requirements, budget, and long-term goals.

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How Credit Card Processing Works

Credit card processing includes a series of steps that give businesses the ability to accept credit card payments and process those payments. Here’s an overview of the process:

1. Transaction initiation

The customer provides their credit card information to the business, either by swiping, inserting, or tapping their card at a POS terminal or by entering their card details on an e-commerce website or mobile app.

2. Authorization request

The payment gateway securely transmits the payment information, encrypting the data before sending it to the business’s acquiring bank. The acquiring bank forwards the transaction details to the appropriate payment network to start the authorization process.

3. Transaction authorization

The payment network routes the transaction to the issuing bank, which verifies the cardholder’s account, checks for available credit or funds, and assesses the risk associated with the transaction. Based on these factors, the issuing bank either approves or declines the transaction.

4. Authorization response

The issuing bank sends the authorization response—either an approval or a decline code—to the payment network, which forwards it to the acquiring bank. The acquiring bank relays the response to the payment gateway, which ultimately passes it on to the business’s POS system. At this point, the business receives the approval or decline message.

5. Transaction completion

If the transaction is approved, the business provides the goods or services to the customer. The approved transaction is added to a batch of other transactions awaiting settlement.

6. Settlement

At the end of each day or at another predefined period, the business submits the batch of approved transactions to the acquiring bank. The acquiring bank requests funds from the issuing bank through the payment network. The issuing bank transfers the required funds to the acquiring bank, which deposits the money into the business’s account, minus any fees associated with credit card processing.

Typically, authorization takes a few seconds and settlement takes a couple of days. International credit card transactions

Many modern businesses also conduct cross-border commerce. Although the customer-facing process might look similar, the backend typically requires international credit card processing solutions that are more in-depth than domestic payments.

Along with the need for an international payment gateway, cross-border transactions can carry more fees, such as foreign exchange (FX) markups, fees for cross-border use of card network infrastructure, and fees paid to intermediary banks.

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Happy Independence Day!

 

Happy Independence Day from us at Bankcard Processors LLC to all of you!
Hope you have a blessed and safe holiday weekend.

Bankcard Processors, LLC

850-228-5571

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