Merchant Service Secrets - What Your Merchant Service Provider Won't Tell You

 Are you an independent small firm struggling with shrinking profits? Do you find your monthly credit card processing bill each month accounting for a greater amount of your profit? At present debit transactions have over credit transactions for a majority of small-scale firms. Perhaps you are among the small, independent companies that have resisted credit card services because of the cost. What I'm about to reveal to you will prompt you to reconsider merchant services.

A trusted credit card processing service could assist businesses to increase sales by allowing the business to accept various forms of payment. But, this service is not without a cost associated with it. To name just some of the charges that are incurred with the full service:

 

• Statement Fees

• Gateway Fees

• Monthly Minimum Fees

• Discount Rate Fees

• Transaction Fees

• Address Verification Fees

• Charge Back Fees

 

There is also the cost of purchasing and leasing the credit terminal for credit cards. Some companies also charge set-up fee expenses. The price of credit card services could be a major cost for small companies. In fact, for small-sized businesses where margins for profit are low and credit card transactions could take up a significant portion of their net profits from the transaction.

 

Many merchants are enticed into signing a merchant service agreement due to a discount price being offered. In the majority of cases, that's all they can remember about the price associated with the contract. But, the list of charges above shows clearly that there are a lot of costs that are included in the monthly cost of merchant service.

 

Of course, all fees that are mentioned above pertain to both debit and credit transactions. There are many small businesses that are paying predominantly debit transactions. Due to the increasing popularity of debit cards, which are substituting cash as the primary option for payment many small businesses are discovering they are receiving credit card transaction statements is more of a debit processing statement.

 

Recent research shows that 90 percent of U.S. households now use debit cards as well as credit cards. In actual fact, the banking industry is declaring that people are spending more money with debit cards than using credit cards. The trend is increasing as more consumers prefer to make payments directly to their bank account via their debit card instead of carrying cash.

 

A different option to traditional credit processing for cards is a service known as "Point of Banking". This allows retailers to accept debit cards of customers who pay without the cost of traditional fees for processing credit cards.

 

"Point of Banking" machines appear to be ATMs for processing credit cards In reality they're the same terminal. They're only equipped for debit card acceptance. Contrary to a credit card machine, which charges the merchant a portion of every sale The "Point of Banking" terminal includes a convenience fee customers pay so that the merchant doesn't have to cover any processing charges. This convenience charge is usually minimal enough so that the client isn't upset about being paid an amount.

 

Thus, in essence" Point of Banking" is"Point of Bank" basically means that "Point of Banking" service is a way to transfer the processing fee for the retailer to the client. It is after all the client who is looking for the convenience of paying with their plastic card. It is the "Point of Banking" service from a merchant's viewpoint that simply provides customers the chance to make payments using your debit or credit card.

 

In many cases, with a credit card that is a standard service small-scale businesses can have a minimum purchase value or charge a fee for smaller transactions. Of course, the issue of this is that major credit card companies have specific rules to which all their merchant customers have to adhere to. One of these regulations is that merchants aren't allowed to set minimum amounts for transactions or charge fees for using their cards.

 

When making purchases that are small in value the seller could be unable to make a profit on the transaction because of the processing fee due by the credit company. "Point of Banking" eliminates this issue for merchants. The processing cost is transferred to the customer. Of course, the cardholder is aware of the cost prior to when the card is processed.

 

Small businesses are often unable to afford the expense of accepting credit card transactions through more expensive prices. They also don't believe that they have to cover the cost of allowing their customers to make use of their debit and credit cards.

 

A "Point of Banking" service could help boost sales due to the recent increase in activity with debit cards. If you're a small business that feels that you are unable to pay for processing credit cards, but you're required to take debit card payments from your clients and customers, you should consider "Point of Banking" may be the answer to your issue.

 

Hope this article is of help.

 

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