Entries tagged with “Merchant Account”.


Payment processors set up through your merchant services account are meant to help your small business make money. However, accumulating fees simply for processing payments will cause you to lose more money in the long run. Small businesses can’t afford to lose even a percentage on a payment without raising prices. Instead, a little research can go a long way toward protecting yourself from hidden fees.

Here are 6 tips to help you keep the money you make:

1. Be highly selective when choosing a payment processing company. Even companies who advertise “no fees” may have some caveat such as no fees for certain credit cards, additional fees for debit cards, etc.

2. One of the most common “hidden fees” is charging extra, as much as 20 cents per transaction, for credit cards that are entered manually versus “swiped”. When setting up a merchant account, remember part of the overall cost involves investing in hardware that can “swipe” a card. Mobile card readers may be a good investment if this fee can’t be avoided.

3. Most payment processing companies require a “monthly minimum”, usually hidden way down at the bottom of your contract in the very fine print. How much business do you expect? Can you reliably meet the minimum requirement? Remember, the minimum is counting credit/debit card transactions only – not cash or check sales.

4. Payment gateway fees refer to how sales are made, typically online or at a brick-and-mortar location. E-commerce sales may have more hidden fees for providing connection services.

5. Almost all processors will have an extra fee for paper statements as opposed to receiving your statement via e-mail. On that same token, they may offer small discounts for setting up “auto-pay” options.

6. Some credit cards have higher fees than others. Weigh the risks and benefits of accepting all major credit cards or deciding not to accept one or two in order to avoid those fees.

Ultimately, your decision affects not just your bottom line but your customer experience as well. Some small businesses are forced to pass on fees for credit cards or require a minimum purchase in order to use a credit card. With credit and debit transactions becoming the norm, small businesses have a tough choice to make. The moral of the story here is to do your research, ask questions, and examine the contracts closely.

Contact us to learn more about global payment solutions that are simple, secure and affordable.

Starting a business can be hectic. There’s a tsunami of administrative tasks to do, such as getting licenses and any needed office space. You also need to set up contracts with suppliers, figure out how you’ll ship everything, and of course, find a way to accept payments. With all of this going on, it’s easy to make financial mistakes that can cost a surprising amount of money. Keep these small business financial success tips in mind to prevent surprise losses before and after you open your doors:

- Don’t buy a huge amount of stock on speculation. While some wholesale deals require you to buy in large quantities, you don’t have to pick one of the largest quantities. It’s better to start by purchasing a minimal amount of stock so that you can see which options actually sell. When you’ve found out which items are the clear winners in your market, you can go ahead and up the amount you buy from your suppliers.

- Avoid high-cost merchant accounts. Not long ago, there was only one real way to accept credit card payments at a business. You would have to get a merchant account with a payment processor. This typically involves a variety of fees that can easily destroy a start-up’s profit. These setups typically have statement fees, transaction fees, set-up fees, gateway fees, and a grab bag of other fees that add up to substantial amounts each month. Now, accepting payments for your business has never been easier or more affordable. With some of the most modern processors, you can accept credit cards and checks, set up subscription payments and more – all for one low annual fee and a reasonable per-transaction charge. Even better, these solutions aren’t just for e-commerce sites. They work through a variety of physical methods, as well.

- Get professional tax advice. There is a huge amount of misinformation about what can be deducted, how much tax has to be paid, how to handle taxation on employee wages, and other things concerning how taxes affect small businesses. To get the real facts about how your taxes need to be handled, hire a tax accountant and have him or her explain everything. Of course, the accountant can prepare your return as well.

For more ways to save money and avoid financial mistakes with your new business, just contact us. We’ll be glad to help you avoid high merchant account fees and other pitfalls.

A recent security breach of one of the largest American banks was not the result of sophisticated software or malware. Instead, the data breach that exposed the information of 76 million households and 8 million small businesses came down to an overlooked server and insufficient security controls.

Details of an investigation into the hack traced the breach to a neglected server as the hackers’ entry point.

That breach could have been avoided with a relatively simple fix – two-factor authentication. Double authentication requires users to enter a second, one-time password in order to gain access to the system. That second password can be provided by a text message to a phone or another device, such as a key fob.

While breaches of retailers have made headlines and are immediately recognizable to consumers, the latest bank breach should be even more disconcerting. That’s because banks retain more sensitive financial information for their customers and banks are supposed to have more robust security compared to retailers.

To learn how to avoid similar vulnerabilities in your business we invite you to contact us here at ProPay. Our team of experts stays up-to-date on industry news and how to support your business in having the most robust payment processing security system available.

Accepting transactions is a major part of any business, regardless of whether these transactions generally take place in person, on the phone, or online. In order for your business to succeed, you need to make it easy for customers to make payments, which you can do by following small Business financial success tips.

While getting transactions to go through properly is an important part of the process, there are other details of payment processing that cannot be forgotten because of their importance.

Pay Fair and Known Fees

It is essential to find a payment processor that does not try to charge hidden fees or surprise you with transaction percentages that are higher than you originally planned for. In this situation, you need to make sure that any information regarding fees can be found online and is true, which can be accomplished by verifying online data either through a live chat online, on the phone, or in person.

Have Plenty of Payment Options

In order to reach the widest number of customers, you should look into payment processors that give you numerous options to receive payments from. For instance, payment processors that allow payments to be made through card readers and smart phones are important and expected, but the addition of payments through stored cards, shopping carts, and mobile applications really maximizes the potential.

No Toll Customer Service

Handling all of these payment methods and receiving a lot of transactions means that running into a problem here and there is almost inevitable. In this situation, you deserve toll-free and high quality customer service that is able to provide a quick and efficient solution to any issue you experience.

Business success comes from many pieces falling into the right places. Following the suggestions above will help your business succeed. Contact us to learn more about the payment processing we offer.

Finding the right payment processor for your small business is all about looking for features that match up well with what your business does. Here are some examples of features you should look for depending on your business.

Mobile Card Readers for Local Businesses

One useful feature you can get from a payment processing company is a mobile card reader. This is a device that sits right on top of your phone which can process credit cards securely in-person.

Many of the better ones give you a free app to go with it, and let you plug them right into a convenient area like the audio port. This feature is ideal for local businesses that do a lot of commerce in person and not at a stationary POS system within a store. A mobile card reader will be useful for brick and mortar stores that don’t want to pay extra for the more extensive credit card devices, and also for small businesses that carry product from within their own home and want to be able to process credit cards for local customers.

Multiple Payment Storage Options for Online Businesses

One excellent way to encourage repeat customers for your online business is to make it really easy for them to store payment options. Trivial inconvenience is the great killer of e-Commerce. If customers can store different credit cards and payment options with your site using a payment processing service that allows for this, then they can come back and make additional purchases with much less hassle.

Having to enter payment information over and over again is going to deter repeat business. That’s why the multiple storage feature can be useful for encouraging growth in small businesses that focus on internet transactions.

Regardless of how your small business operates, it can benefit from the right payment processing features. For more information about these features and others, please contact us at ProPay today.