Entries tagged with “Merchants”.


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.

One of the most important things you can do to help your company succeed is find the right payment processor for your small business. You have likely heard some of the horror stories about processors that come up with a shocking number of hidden fees, that put holds on business’ money under unpredictable circumstances, or that simply fail to process any payments for extended periods of time. Some processors do indeed do some or even all of these things, so it’s important to take the time to find ones that are both legitimate and reliable. Here are a few things to look for:

- Straightforward terms. Don’t just read the promotional materials when you choose a payment processor. Make sure to carefully read all of the terms and conditions of the contract. Unlike the EULAs associated with most software downloads, these terms are extremely important. They’re often the only place that hidden fees are mentioned, making the “hidden” part of that name very accurate!

- Watch out for “we accept anyone” hype. Traditional payment processors that advertise this are often like subprime lenders, both in terms of costs and legitimacy. In other words, they cost a lot and are shady. If their ads speak to you as if you must be desperate to even think of dealing with them, that part is usually accurate.

- Look for non-traditional payment processors. These processors often accept anyone, but unlike the shady version, they offer cheap prices compared to their traditional counterparts. They also don’t have the plethora of associated fees, such as monthly statement fees, gateway fees, and other such costs. These processors also don’t advertise specifically to desperate people, but instead, consider all small businesses to be their target market.

- Make sure the prospective processor can handle the types of payments you want to accept. Some processors only work with online stores, some just deal with businesses that have physical locations, and a few can take care of everything. It’s best to find one that can handle all payment channels: Physical, online, and over the phone. That way, you won’t have to find a new payment processor if you expand the number of ways you sell your products or services.

These are some of the most important things to look for when seeking a payment processor for your small business. Contact us to find out more about what makes a processor worth signing up with and to get started on accepting non-cash payments.

Picking a payment processor just got harder. It turns out that cyber criminals are becoming more sophisticated (or more desperate?). Recently, it’s been revealed that they’ve now started targeting parking garages. That’s right, they’re not only trying to steal your information in-store, but now, even before you walk into the store. Over the Black Friday weekend, “hackers got into the systems of a large parking vendor… and were indeed able to steal customer name and payment card information.” What’s more troubling is that “the breach ran [undetected] for almost seven months… [involving parking garages in Chicago], Cleveland, Philadelphia, Seattle, and Evanston….”

Another news article was recently released of an unlicensed, illegal payment processor whose majority of business catered to credit card fraud, identity theft, investment fraud, computer hacking, and other crimes. Basically, it acted almost like a money laundering business, except that it merely facilitated the transfer of funds between criminal clients and criminal suppliers.

Why is this important? Choosing the right payment processor is paramount to a successful business. Not only do you have to worry about choosing the payment processor with the lowest fees and the greatest number of available payment method options – you also have to worry about their cyber security and legitimacy. If their cyber security breach causes your consumers any fraudulent transactions, you will share in the reputation loss. If the payment processor turns out to be doing illegal dealings, you will also take on a negative view for having been associated with them.

ProPay offers payment processing solutions you can trust,  contact us today to learn more.

As a merchant there are many things to be wary including merchant processing fees and percentage rates. The problem? When you see a certain percentage rate, it’s not necessarily the rate you’re actually going to be paying. So what factors are leading to credit card companies charging merchants extreme and varying processing fees?

Base Credit Card Processing Fees- The Types of Merchant Processing Fees

In order to better understand merchant processing fees, it’s important to know the two main components involved: interchange rates and fees, and assessments. So what are these exactly? Let’s dive right in and see for ourselves:

Interchange Rates and Fees

Interchange rates and fees account for the majority of credit card processing fees. Specifically, interchange is the process during a transaction that takes places when money is transferred from the acquiring bank to the issuing bank; these associated fees are established by major credit card companies. How do credit card companies establish these fees and rates? It’s easy—basic stakeholders of major credit card companies like American Express, Visa, MasterCard, and Discover decide how much they want to charge merchants when they accept their credit cards. These credit card companies (or banks) then decide on interchange fees that are associated with things such as processing methods, types of credit cards, and other associated merchant variables.

Assessments

Large credit processing companies like Visa, MasterCard, and Discover card make money by charging assessments on every transaction involving one of their credit cards. Although assessment fees are charged the same for all processors, if bundled, assessments can be charged differently.  Bundled pricing gives processors more control to manipulate pricing and are changed periodically by the card brand and type.

The Solution: ProPay

Typically, merchant processing companies charge different percentage rates for different cards. For example, if a company offers you a rate as low as 1.99%, you won’t necessarily get that rate with all cards— rather just with major credit card providers such as Visa and Mastercard. At ProPay, what you see is what you get–if we offer you a low rate, you will receive that same rate on all transactions. We believe that transparency is the key to running a successful business and we want all or our customers to feel 100% satisfied, 100% of the time.  ProPay makes it simple to decide who to choose for your merchant and credit card processing. To learn more about ProPay and how you can simplify your business, click here.

Running a business is expensive. Gone are the days where overhead charges were composed of mere office supplies and rent. Now you can add high-speed internet, company cellphones, computers and laptops, a well-versed staff, and yep, even those dreaded merchandise swipe charges to the list.

Swipe Charges Defined

What are swipe charges exactly? Broken down into simple terms, swipe charges are the hidden fees that merchants pay credit and debit card companies every time they swipe a card for payment. Swiping allows you to accept mobile payments on your phone, tablet, laptop, or other mobile devices. Depending on the merchandise service company you decide to go with, interest rates for swipe fees typically start around 3% and increase based on additional services added. Resulting in an initially small overhead charge suddenly turning into a seemingly large expense for merchants everywhere. But swipe charges don’t have to turn into another large business expense—with ProPay’s low interest rates, constant accessibility, and multiple options to choose from, both you and your company are going to benefit.

They’re How Low?

No, we are not talking about your limbo skills here but rather, extremely low interest rates. Although some companies are still charging merchandise companies insane swipe rates, ProPay is helping save small and large businesses money every day. With a low swipe rate of… wait for it, 2.6%, you can give your customers the satisfaction of being able to pay conveniently, while saving on massive overhead charges. These low rates are definitely worth bragging about.

Anytime, Anywhere

Ever since we have said goodbye to the screech ridden days of dial-up internet, there is virtually no need for anyone to wait for technology to do its job. With the constant accessibility to cellphones and/or tablets, there’s no reason why you as business owner shouldn’t be able to take payments on the go.

A Variety to Choose From

“I hate having options”, said no one ever. Luckily for merchants everywhere, ProPay has several Swipe options to choose from. Whether you are looking for something simplified or something that can work both on and offline, there’s an option for you and your business.

  • JAK- With the ProPay JAK, you can take payments directly from your Android or Iphone, anywhere, anytime.

  • Card Reader-Regardless of whether you have a stable internet connection or not, ProPay’s Card Reader allows you to take payment both off and online.

Low rates, constant accessibility, and a variety of options to choose from are just a few of the reasons that make ProPay the number one provider to choose from. To learn more about ProPay, click here.