As a business owner, it’s the latest form of payment acceptance to offer your patients. So even if cryptocurrency isn’t on your radar otherwise, it’s important to consider it in terms of your practice.You want to make it easy for your patients to pay for services and supplies however it’s convenient for them. If they start asking about cryptocurrency as an option, you want to be prepared.
The process is similar to how you accept credit cards. Whether you use a credit card terminal, payment form, invoice or shopping cart, it’s a realistic, no-hassle option for your patients. Plus, there are no chargebacks!
NetCents
You can work with NetCents to easily integrate cryptocurrency payments into your practice. It’s basically like a virtual terminal or payment gateway. As long as you have internet access, you’re able to use it.
NetCents allows your patients to choose from popular cryptocurrencies, including Bitcoin, Litecoin, Ethereum, Bitcoin Cash and more. One important thing to note is you don’t have to receive the payment as cryptocurrency. You can choose to accept it as US dollars that go right into your account. You just may be surprised how easy it is for both in person and online transactions.
In-Person Transactions
As long as your patient has a crypto wallet set up on their smartphone, it’s a painless process.
Online Transactions
Your patients don’t have to be in your practice to pay with cryptocurrency. They can pay their bill or buy vitamins from you online by using one of these techniques;
Your three-digit credit score — typically between 300 and 850 — lets lenders know whether or not you’re likely to repay your debts on time. Based on information found in your Experian, TransUnion or Equifax credit report, your credit score is calculated using your payment history, total credit usage and balance, credit mix, loan payments, open accounts, bankruptcies and collections, and the length of your credit history, among other factors. This Q/A blog post will give you some answers on things regarding credit score and hopefully help you better understand the reason behind having a credit score.
Credit Score Ranges
What Do The Ranges Mean?
A higher score (“excellent”, “very good” and “good”) means you’ve demonstrated responsible borrowing and repayment and you’re likely to qualify for better interest rates and credit terms as a result.
A lower score (“fair” and “poor”) means you likely have multiple negative factors on your credit report, making you a high credit risk to lenders. A lower credit score can make it more difficult for you to obtain a loan or other line of credit, and you could pay higher interest rates if you do.
Who Determines My Credit Score?
There is no one company or organization that determines your credit score, meaning you might actually have several different ones. FICO(opens in a new window) and VantageScore(opens in a new window) are the two most common, with FICO being the one most used by lenders.
How Do I Check My Credit Score?
There are a few ways to check your score; some are even free...
Your Credit Card or Loan Company
The easiest — and cheapest — is by checking your credit card or other loan statement. Many credit card and auto loan companies now provide credit scores for customers on a monthly basis. Start by logging in to your account online or checking your monthly statement.
A Credit Score Service
There are scores (no pun intended) of websites advertising free credit scores. Websites like Credit Karma(opens in a new window) offer free credit scores, as does Credit Sesame(opens in a new window). Many sites that advertise “free credit scores” often require that you sign up for credit monitoring or even pay a subscription fee just to see it. Make sure you know what you’re paying for before you choose this option.
Buy It
One of the most secure ways to find your credit score is to pay for it. FICO offers three different options for checking your credit score, ranging in price from $19.95 to $39.95.
How Often Should I Check My Credit Score?
Checking your credit score on an annual basis is sufficient, though many people prefer to do it quarterly or monthly. It’s entirely up to you. Remember, it’s not what changes month-to-month, but rather your score over time that makes the most difference, especially if you’re looking to make a big purchase in the near future.
How Can I Improve My Credit Score?
Your credit score is not static and changes whenever new information is added. When you pay off a credit card or take out a loan, your credit score will reflect the changes.
Here are a few tips for simple ways to improve your credit score:
What are merchant services?
Merchant services are a collection of services developed by merchant service providers designed to facilitate business transactions. Often, these providers offer a suite of solutions depending on your needs. They might include in-store credit card processing services, fraud prevention tools, and point of sale (POS) devices.
You can think of merchant services as being holistic support for accepting payments. They go beyond merely facilitating transactions to helping you integrate solutions with accounting software and linking them to your bank accounts. Merchant service providers can get you up and running in multiple areas, including accepting mobile wallet payments, Tap to Pay on iPhone, and other payment forms, without you having to build these systems yourself.
What is a merchant account?
Merchant accounts are a type of bank account that lets you take customer card payments. It acts as an intermediary account where funds from card transactions are temporarily held before being transferred to the business's primary bank account. Similar to that of an “escrow account” if you were buying a home. Merchant accounts are essential for businesses that want to accept non-cash payments, whether in-person, online, or over the phone.
Customers pay using their credit or debit cards via a POS terminal or online, and the account provider holds the money for a set period. Then, if there are no problems, the funds are transferred to the business bank account. While there is a slight delay, most businesses prefer this method because it allows them to accept more customers’ money. Opening a merchant account is usually the first step to receiving more holistic and comprehensive merchant services.
How to open a merchant account.
To open a merchant account, the first step is to submit an application to a merchant service provider. Gather the necessary documentation, including your business license, tax identification number (EIN), financial statements, and a voided business check. Submit the application, detailing your business type, expected transaction volume, and average transaction size.
Most businesses will be approved right away, but there are some business categories that are often denied. High risk businesses have a much harder time qualifying for a merchant account if they are not working with a dedicated high-risk provider.
How merchant services and merchant accounts work together.
Merchant services are essentially add-on services that layer on top of merchant accounts provided by banks and other financial institutions. The latter provides the ability to accept payments, while the former improves security and makes incoming funds more manageable. The best solutions work together, enhancing your experience of your merchant account. By providing these additional services, you can provide your customers with more value. Source
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.
Virtual Terminal for MO/TO
Customers who may have preferred shopping in store pre-COVID may now appreciate the option to be able to pay online or over the phone. A payment gateway can double as both a customer-facing checkout form on your website and a virtual terminal you key customer card data into when the card and cardholder aren’t present, if you want both capabilities through through a single solution and provider.
Keying into a virtual terminal versus a credit card machine gives you more options such as invoicing, recurring billing, and reducing your PCI compliance scope by outsourcing credit card data storage. Source
Here is a brief description of the difference between a credit card and a debt card;
Credit cards offer you a line of credit that can be used to make purchases, balance transfers and/or cash advances and requiring that you pay back the loan amount in the future. When using a credit card, you will need to make at least the minimum payment every month by the due date on the balance. If the full balance for purchases is not paid off, interest charges will be applied. Interest charges will be applied from the date of the transaction for balance transfers and/or cash advances.
Debit cards offer you a convenient way to withdraw money directly from your checking account. This money is not a loan, and no interest is charged. You will not have to make any minimum monthly payments. However, you must be careful not to charge more money than you have available in your checking account.
Businesses that accept electronic payments through multiple channels—in-person, online, and mobile—need to work through various complexities. This includes selecting a suitable payment processor, an important decision that can affect long-term success and impact multiple parts of the business.
As more businesses expand globally, there is a growing need for multi-currency and localized payment options. To address these evolving demands, business owners and entrepreneurs should be well-informed about the key factors to consider when choosing a payment processor.
What is a payment processor?
A payment processor is a company or service that facilitates electronic transactions—such as payments made with credit cards, debit cards, or digital wallets—between businesses and their customers. Payment processors enable businesses to accept various forms of payment securely and quickly and facilitate the transfer of funds from the customer's account to the business's account.
What do payment processors do?
Payment processors play an important role in the electronic payment ecosystem, enabling businesses to accept and process various forms of payment from customers. Here's an overview of the primary functions of a payment processor:
Transaction facilitation
When a customer makes a purchase, the payment processor receives the transaction details and securely transmits this information to the appropriate parties, including the issuing bank (customer's bank) and acquiring bank (business's bank), via the card network.
Authorization and authentication
The payment processor requests authorization from the issuing bank to ensure the customer has sufficient funds or credit available. It also verifies the customer's identity and the validity of the payment method to minimize fraud and unauthorized transactions.
Encryption and security
To protect sensitive financial data, payment processors use encryption and tokenization to securely transmit transaction data between the customer, business, and banks. They also need to comply with the Payment Card Industry Data Security Standard (PCI DSS) to maintain a secure environment for handling cardholder information.
Settlement and funding
Once a transaction is authorized, the payment processor coordinates the transfer of funds from the issuing bank to the acquiring bank. The merchant account is then credited with the transaction amount, minus any applicable fees.
Data for reporting and analytics
Payment processors produce data about customer payments that can be used to generate transaction reports, analytics, and insights to help businesses track sales, identify trends, and manage their businesses more effectively.
Fraud detection and chargeback management
Payment processors use advanced algorithms and tools to monitor transactions for fraudulent activity, helping businesses minimize their exposure to fraud. They may also provide support and assistance in handling chargebacks and disputes.
Support for multiple currencies and payment methods
To help businesses expand globally, many payment processors offer support for multiple currencies and popular local payment methods. For example, Stripe supports more than 135 currencies, allowing businesses to do business globally and receive payouts in local currencies.
How do payment processors work?
Payment processors facilitate electronic transactions between customers and businesses—but businesses may not be aware of the details of this process. To understand how payment processors work, let's describe a typical payment processing flow in detail:
Customer initiates payment
When a customer makes a purchase, they provide their payment information—such as a credit card or digital wallet—to the business. This can occur in-person at a point-of-sale (POS) terminal, online through an e-commerce website, via a mobile app, or through payment links.
Transaction data encryption
The business's payment system encrypts the transaction data, ensuring it is securely transmitted to the payment processor. This encryption helps prevent fraudulent actors from intercepting and misusing sensitive customer information.
Transaction data transmission
The encrypted transaction data is sent from the business to the payment processor, which then forwards the information to the acquiring bank.
Acquiring bank to issuing bank
The acquiring bank forwards the transaction details to the issuing bank through the appropriate card network (e.g., Visa, Mastercard, or American Express) for authorization.
Authorization request
The issuing bank reviews the transaction details and checks if the customer has sufficient funds or credit available. It also confirms the authenticity of the payment method and the customer's identity, to mitigate the risk of fraud.
Authorization response
If the issuing bank approves the transaction, it sends an authorization code back to the acquiring bank through the card network. If the transaction is declined, the issuing bank sends a decline message with a decline code that explains why the translation was not approved.
Processor receives response
The payment processor receives the response from the acquiring bank and forwards it to the business. If the transaction is authorized, the business can proceed with the sale. If it's declined, the business must request an alternative payment method from the customer.
Transaction completion
Once the transaction is authorized, the business delivers the goods or services to the customer. At this point, the transaction is considered complete, although the actual transfer of funds is still yet to occur.
Capture and settlement
“Capture” refers to the transferring of funds from a customer's account to a merchant account for a particular transaction. Typically, at the end of the day, the business sends a batch of authorized transactions to the payment processor for settlement. The payment processor then submits this batch to the acquiring bank, which initiates the process of transferring funds from the issuing bank to the merchant account. This transfer usually takes 1–3 business days, depending on the specific processor and bank involved. Source
These payments can be set up via recurring billing for any frequency that’s agreed upon between the customer and the business. It could be weekly, biweekly, monthly, quarterly, or on an annual basis.
How Do Recurring Payments Work?
Simply put, recurring payments work as an agreement between the customer and the business, where the customer agrees to make payments on regular intervals, and the business agrees to provide the product or service for as long as the payments are being made. Once the contract ends, the customer can choose to continue or terminate the subscription.
Here’s a detailed step-by-step process to understand the recurring payments workflow:
1.) Once the customer has subscribed to your product or service, they can choose the payment method (Credit Card, Direct debit, ACH or SEPA).
2.) The customer can then enter their payment details for the first payment. These details are saved in a payment gateway for processing the subsequent payments securely.
3.) Then the payment intermediaries, the acquiring bank, credit card network and the issuing bank approve the transaction and the payment is transferred to the merchant account.
4.) The payment is debited according to a predetermined billing schedule until an active subscription. This removes the need to manually type in the payment details for every payment cycle.
Benefits of Recurring Payments
Business leaders across the globe agree that a subscription-based model can foster sustainable growth for their businesses. According to a research by Gartner, all new software entrants and 80% of historical vendors now offer recurring payments.
From a customer’s standpoint, they are automated making it one less thing to worry about on their to-do list. Additionally, they can make budgeting easier for customers since they know the exact amount they will be charged on a recurring basis. For businesses, subscription payments have a lot of advantages, including:
1. Predictable Cash Flow: With subscription payments, businesses can more easily predict how much revenue they will be generating each month, which can help with budgeting and revenue forecasting.
2. Customer Retention: Subscription models offer deeper customer insights as opposed to one-off purchases. A continued customer relationship provides the opportunity to develop a strong understanding of consumer behaviors and preferences. Businesses can alter their products or services according to their needs and nail the customer experience. In addition to personalized offering, the “set and forget” nature of subscription payments increases customer convenience and helps in customer retention.
3. Minimal Manual Effort: Once you’ve set up recurring billing for your customers, you can put collections on autopilot. A strong billing software eliminates manual collection and errors, thus saving business time and money.
4. Easy to Upsell or Cross-sell: If a customer is already committed to your product/ service and is paying via recurring payments, they may be more likely to consider additional products or services you offer. This can increase revenue and customer lifetime value for the business.
Your credit card’s statement balance determines your next bill, and its current balance is what you owe in total. Your credit card utilization rate is the percentage of the credit limit in use, calculated using your card’s most recent statement balance.
What Is a Credit Card Balance?
Your credit card balance can refer to your card's current balance or its statement balance.
The due date for your credit card bill is often about three weeks after a statement is created, and your current balance might be higher if you've used your card during this time. The amount you owe on your monthly bill is still determined by the statement balance.
If you pay your statement balance in full, you can avoid accruing interest on your purchases. You have the option to pay less—down to the minimum payment—to avoid late payment fees and possibly hurting your credit score. However, the rest of the balance and any new purchase you make will accrue interest.
What Is a Credit Utilization Rate?
A credit card's credit utilization ratio, or rate, is the percentage of the card's credit limit in use. For example, if a credit card has a $1,000 balance and a $5,000 limit, its utilization ratio is 20%. To calculate the utilization ratio on a credit card, divide the balance ($1,000) by the credit limit ($5,000) and multiply the result by 100 to get a percent. In this case, 1,000 / 5,000 = 0.20, which then becomes 20%.
Credit scoring models use the ratio as a factor in determining your credit score, and having a low utilization rate is best for your scores. When calculating your scores, credit scoring models use the credit card balance and credit limit on your credit report.
Credit card companies generally report your account's information to the credit bureaus around the end of each billing cycle—when the statement balance is determined. This is why the balance on your credit report can be different from your current balance, and why your statement balance typically better reflects your credit utilization than your current balance.
Why Your Credit Card Balance and Utilization Are Important
Your card's balance and utilization are important because the balance represents what you owe and the utilization can significantly impact your credit score.
If you're carrying a credit card balance: Paying down the balance offers a double benefit. First, you'll accrue less interest the faster you pay it off. And second, your credit score may increase as your balance drops. If you pay your balance in full each month: You won't accrue interest on your purchases. However, the statement balance is still reported to the credit bureaus and you could have a high utilization rate. To lower your statement balance and the resulting utilization rate, you need to pay down the balance before the end of the billing cycle.
Since a lower statement balance is better for your credit scores, you might consider paying off the balance in full every few weeks—or even more frequently. The best utilization rate is actually a rate in the low single digits, such as 1%. A very low utilization ratio shows that you use and manage your card, but you don't overextend yourself and won't have trouble taking on additional financial responsibilities.
Monitor Your Balances and Utilization
You can monitor your credit card balances during the month to figure out what will be reported to the bureaus. If you're trying to optimize your utilization rate to improve your credit score, you can try to add automatic payments to pay down your balance before the end of each statement. Or, set reminders for yourself to make payments before the end of each billing cycle.
