Is Your Business Ready?

 

4th Quarter Merchant Services Checkup As we in the final quarter of the year, business owners are focused on finishing strong, preparing for the holiday rush, and planning for the year ahead. One area that often gets overlooked is merchant services and payment processing. Taking a little time now to review your payment systems could help you save money, improve efficiency, and avoid costly disruptions. Here are five things every business owner should be looking at during the 4th quarter: 1. Review Your Processing Fees Are you paying more than you should to accept credit cards? Review your recent merchant statements for rate increases, unnecessary fees, or opportunities to reduce costs. Even small savings per transaction can add up over time. 2. Evaluate Your Equipment and Technology Is your payment equipment reliable, secure, and keeping up with your business needs? Outdated terminals, slow processing, or limited payment options can frustrate customers and cost you sales. 3. Prepare for Increased Holiday Transactions For many businesses, the 4th quarter brings increased sales volume. Make sure your payment systems can handle the demand, your staff is trained, and you have a plan if something goes wrong during your busiest hours. 4. Review Fraud Prevention and Security The holiday season can also bring increased fraud attempts. Review your payment security practices, keep systems updated, and make sure your team knows how to recognize suspicious transactions and potential scams. 5. Make Sure You Have the Support You Need When payment problems happen, how quickly can you get help? Having a knowledgeable, accessible merchant services representative can make all the difference, especially during your busiest season. The Bottom Line Your merchant services should be helping your business grow, not creating unnecessary expenses or headaches. A simple 4th quarter review can uncover savings, identify potential problems, and position your business for a successful new year. At Bankcard Processors, we believe in combining great payment technology with personal, local service. Contact us for a complimentary review of your current merchant services and let's make sure your business is ready for what's ahead!

Big Names. Local Service.

 

The Best of Both Worlds! Bankcard Processors is expanding our payment processing options! We're excited to announce that we've added Square and Shopify to our lineup of solutions, giving our customers even more choices to meet their business needs. Whether you're using Square for your everyday transactions or Shopify for your online store, you can now enjoy the benefits of these well-known platforms with something that makes a real difference—local representation and personalized service! No more feeling lost in a sea of customer support options or wondering who to call when you need help. With Bankcard Processors, you have a local professional who understands your business and is here when you need assistance. National Technology. Local Relationships. Personal Service. Contact John Haire at Bankcard Processors today to learn more about these exciting new options and how we can help your business!

5 Reasons to Choose Vivid For Credit Card Processing Over Square

 

Switching from Square to Vivid's Credit Card Processing can be a significant decision for your business, and it should be based on a careful evaluation of the advantages and disadvantages of each option. Here are five potential reasons why you might consider choosing Vivid for Processing:

Lower Transaction Fees: Vivid offers more competitive transaction fees compared to Square. Lower fees can directly impact your bottom line by increasing your profit margins on each sale.

Customizable Payment Solutions: Vivid provides more flexibility in tailoring payment solutions to your specific business needs. Whether you need customized pricing structures, specialized reporting, or other features, Vivid's offerings may be more adaptable.

Enhanced Security: Vivid offers advanced security features to protect your transactions and customer data. Improved security can help you gain your customers' trust and reduce the risk of data breaches and fraud.

Customer Support: Vivid offers a higher level of customer support and assistance than Square. Better support can help resolve issues quickly and ensure that your payment processing runs smoothly, reducing downtime and potential revenue loss.

Integration and Compatibility: If your business relies on specific software, hardware, or integration needs, Vivid's credit card processing system offers better compatibility or integration options that align with your existing tools and systems.

Remember that the decision to switch credit card processors should be made after careful consideration of your unique business needs and a thorough evaluation of the costs and benefits. It's essential to compare the specific offerings of both Square and Vivid to determine which is the better fit for your business. Additionally, you should factor in any contract terms, early termination fees, and potential challenges associated with making the switch - all of which Vivid does not implement.

The Evolution of Payment Cards

 

From hybrid cards to digital wallets, the future of payments is innovative and diverse. With the ongoing digitization of payments, it’s easy to get caught up in the narrative that the traditional payment card could become obsolete. However, this couldn’t be further from the truth. In fact, card payments are thriving, adapting to the new age of fintech and smartphones.  

Having worked in the payments space for many years, I have travelled across global markets, and I've observed firsthand the evolving landscape of financial transactions. My conclusion is that one size does not fit all. Different markets have different payment requirements.  

In mature markets, I've witnessed the swift adoption of instant payment solutions, revolutionizing the way transactions occur. Meanwhile, in developing markets, the focus shifts towards the proliferation of card-based systems, both physical and virtual, along with the rapid expansion of instant networks. In these diverse environments, traditional notions of card usage are undergoing profound transformations.  

While some regions are still familiarizing themselves with physical card formats, the true innovation lies in the integration of cards with cutting-edge technologies. This entails the emergence of virtual cards, digital wallets, and tokenization mechanisms, heralding a new era of convenience and security in financial transactions. 

The advent of hybrid cards 

One of the most exciting developments in this area is the emergence of hybrid cards. These are not your typical single-function payment cards. Instead, hybrid cards flip between debit and credit functions, switch currencies, and even enable the conversion of digital assets. This opens up a wide variety of possibilities for consumers, allowing them to navigate through an increasingly digital financial landscape with ease. 

Such changes are not only increasing the use cases that cards can support but are embedding ‘payment by card’ into a wide range of user journeys. This enables faster and hyper-personalized customer experiences where the payment is invisible and can drive increased customer satisfaction, loyalty and engagement. It demonstrates that whether for in-person transactions, online payments, international transfers, or navigating blockchain technologies such as Web 3.0, the physical card remains fundamental. 

A new payments landscape 

Another important point to consider is that the landscape of payment methods is as diverse as it is innovative. Digital wallets, wearable technology, and biometric authentication are becoming increasingly popular – as well as contactless payments. The contactless payment market is set to grow at an 18% compound annual growth rate to reach more than $12 billion globally by 2032. The physical card is not diminished with this recent innovation but embedded throughout the next generation of payment technology. It now enables a wide range of unique customer journeys, transforming its role to a source of truth in the sprawling payments ecosystem.   

However, it’s important to remember that attitudes towards these new payment methods vary significantly across different demographics, geographical regions, and between consumers and businesses. For example, in Kenya, the mobile money pioneer M-Pesa reigns supreme offering a range of P2P payments, virtual wallets and credit cards – and mobile money transactions make up more than half of Kenya’s $110 billion GDP. Meanwhile, in North America, credit cards are practically extensions of self, with 82% of U.S. adults having a credit card in 2022. Rewards programs and ingrained financial habits keep plastic firmly in wallets. 

Understanding these geographical nuances is key to appreciating the broader context of payment evolution. 

Tokenization and connectivity 

At the heart of these new payment innovations is tokenization and the connection to payment rails - be it local networks or global giants like Mastercard, Visa, and Union Pay. This connectivity is not just a technical feat; it is what enables a smooth, embedded payment experience, whether through mobiles, wearable tech, or even more futuristic avenues. 

The ultimate aim of these developments is to make payments as seamless and unobtrusive as possible. The idea is to embed the ‘payment by card’ process into various user journeys, making it faster, more convenient, and almost invisible. This seamless experience is key to driving customer satisfaction, loyalty, and engagement. 

The future of cards 

Looking to the future, the question is not about which technology will replace the card. It is about understanding how the fundamentals of card technology will continue to influence and shape new payment methods. The physical card's widespread adoption enables interoperability, ensuring seamless transactions across continents and platforms. 

The world of payments is witnessing a transformation, with cards playing a central role. The challenge and opportunity lie in anticipating which payment methods will evolve from this technology and dominate the market and which will fade away. One thing is certain: the journey of the payment card is far from over. Ultimately, we are not the ones to decide where the journey will go – it is about users, and our role is to give them the choice.  

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What Is An Online Merchant?

 

An online merchant is a business that sells goods and processes payments over the Internet. This ecommerce store transacts through a virtual terminal and payment gateway. These merchants are similar to physical store merchants except that the point-of-sale and all business is conducted online.

What Does An Online Merchant Do?

The role of an online merchant is to sell products on their website. It is most common for new business owners to start off as online sellers. This is different than an online merchant because the merchant has more responsibilities such as managing inventory and organizing payment services. These merchants can choose to charge a flat rate or monthly fee aka recurring billing.

For an online merchant to be successful, they must maintain the product or service quality, set pricing, manage payment services, and execute strategic marketing. Advertising online is essential for business growth and sustainability. It is important for the merchant to be knowledgable of new media trends in order to properly maintain the company brand and successfully sell products.

Online Merchant Transaction Process

The process of a transaction from the card holder’s bank account to the online merchant account is intricate, but broken down becomes quite simple and clear. Below is a flow of online payment processing from point-of-sale to the online merchant bank account.

What Are The Different Kinds Of Online Merchants?

01. Ecommerce Merchant

An Ecommerce merchant sells products or services exclusively over the Internet. An online merchant account is different than an online seller. The online seller only buys products and sells them for profit. The online merchant has additional responsibilities. The major responsibility is that the online merchant is in charge of payment processing. They also need to manage inventory, develop the company brand, and promote the products or services.

02. Wholesale Merchant

A wholesale merchant, also known as a wholesaler, purchases goods in bulk. After the products are purchased, the merchant redistributes them to retailers in smaller volumes. In the past, it was more common for wholesale merchants to operate out of large warehouses, but lately, the trend has swayed towards the merchant acting as a broker of the transaction. This method of business is called drop shipping.

03. Retail Merchant

A retail merchant, also known as a retailer, purchases goods from wholesale merchants in smaller quantities. The retailer sells products directly to consumers. Usually these types of merchants are much better at marketing and advertising then wholesalers.

Retail prices are always higher than wholesale. One major contributor to the price difference is that retail spends more on promotion, PR, advertisements, and marketing. The retailer is also more responsible for their public image and customer service since they are customer-facing.

Retail merchants are essentially resellers. This allows them to change labels and repackage products using a different brand. Not all companies allow the packaging to be changed. Trademark rights and other agreements can affect the freedom a retailer has for re-branding. This selling strategy is effective, however there is much more involved in product promotion. Reselling seems to be the most popular form of product distribution among business owners. In the wake of the Covid-19 pandemic, it is apparent that retail merchants will be taking their business online more and more as social distancing and shelter-in-place continue.

04. Affiliate Merchant

An affiliate merchant is a business that generates sales of products through a network of affiliates using links and ads. Affiliate merchants advertise merchandise on a website and then earn a percentage of the sale when the buyer makes a purchase. A membership fee is commonly charged for merchants to be a part of the network. An additional commission is taken from every sale in order for the affiliate program to function.

The Status Of Online Merchants

Every year online sales grow as more merchants open online. This trend is likely to continue, especially considering the effects of the Covid-19 pandemic on the public’s decision to not shop at physical locations. Instead, shoppers are being driven to use their debit card, American Express, Visa, Mastercard or Apple Pay to purchase products from online merchants using ecommerce websites and online credit card processing resources.

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How Does Credit Card Processing Work?

 

Credit card processing happens in three phases: authorization, clearing and settlement;

Authorization

The first phase is credit card authorization, which typically only takes a few seconds.

1. A customer pays for a purchase with a card at a point-of-sale (POS) terminal in a store, online or by mail order/telephone order (MOTO).
2. The merchant submits an online authorization request for the charge amount to the merchant bank. This request is usually transmitted through a POS terminal or payment gateway.
3. The authorization request is routed through the appropriate card network to the issuing bank.
4. The issuing bank reviews the cardholder’s account and approves or declines the transaction. If the transaction is approved, the issuing bank places a hold on the cardholder’s credit limit for the amount of the charge.
5. The issuing bank sends the approval or denial back through the card network to the merchant.

Clearing

The second phase is the clearing process, which is how payment information is communicated through the card network.

1. The merchant electronically sends batches of authorized card transaction data to the merchant bank, typically at the end of the business day.
2. The merchant bank forwards the transaction data through the card network to the issuing bank.
3. The issuing bank receives the transaction data and converts the hold on the cardholder’s account to a charge that will appear on the cardholder’s monthly billing statement.

Settlement

The final phase is the settlement process, which typically occurs the day after the clearing transaction is submitted to the card network.

1. The card network establishes the net positions of all settlement participants (i.e., issuers and acquirers), collects funds from the issuing bank and transfers the funds to the merchant bank.
2. For cross-border transactions involving more than one currency — such as when a card issued in one country is used for purchases in another country — foreign currency exchange is handled as part of the settlement process.
3. The merchant receives either a gross settlement or a net settlement. In the case of a net settlement, the merchant receives the transaction value minus fees. In the case of a gross settlement, the merchant receives the full transaction value and is periodically invoiced for the fees due to the various parties.

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Payment Links: What They Are and How To Use Them

 

Payment links are a simple way to accept payments however you do business, whether that’s in person, on social media, or through email and text communication with customers.

What is a payment link?

A payment link — also referred to as a checkout link — is a clickable link or scannable code that allows a customer to complete a purchase. Payment links are offered in the form of digital links, by buttons, or QR codes, and are used across websites, social media platforms, apps, messaging tools, and in person.

When a customer uses a payment link, they’re typically taken to the merchant’s online checkout page to complete their transaction. Payment links can be used for both a single transaction, such as a customer invoice, and for multiple transactions, such as a buy button on a social media platform.

What are the benefits of using payment links?

Payment links facilitate simple online payments and don’t require additional infrastructure, a website, or any code to set up and use. Any merchant can easily create a payment link that takes customers to a straightforward checkout page to complete a transaction.

Payment links are used to:

Take payments anywhere you sell products or services: Whether you send clients a payment link via text message or direct customers to your online checkout page from multiple social media platforms, payment links allow you to get paid however you do business.

Customize a purchase: Payment links come in different forms, so choose the ones that work best for the platforms you sell on. Direct payment links work well for customer interactions and conversational commerce, while buy buttons and QR codes work well for online, social, or in-person selling.

Offer customers multiple ways to pay: Once customers have accessed your payment link, you can accept credit or debit card payments, or digital payment methods such as Apple Pay, Google Pay, Cash App Pay, or Afterpay.

Keep payments simple: Customers don’t need an account or a special app to use a merchant’s payment link. They can access your payment link from any device for direct payment.

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