Payment processing provides your business with authorized credit and debit card transactions, giving shoppers greater convenience when making a purchase. According to the Federal Reserve, more than 80% of Americans have at least one credit card. Therefore, partnering with a credit card processor could lead to safer and more convenient purchases.
You can add significant value to your business operations through payment processing solutions, regardless of your business type, whether it is for F&B, a boutique, or running a bookshop. However, choosing the right payment processing solution can significantly impact your business profits and requires careful research and planning to quantify the costs.
Reach out to National Merchants Association, a leading advocate in merchant services, for a guided approach to selecting the most suitable payment processing for your business needs.
The Basics of Payment Processing
Payment processing allows your business to manage frictionless merchant transactions with customers across multiple channels. For example, you may partner with an aggregator (large-scale payment processor) or work directly with individual (and often specialized) payment processors.
Your payment processor may help you set up a merchant account before proceeding with their services. The merchant account is an intermediary that connects your business account with your customer’s bank account, enabling secure electronic transactions.
Payment processors charge a recurring bill for their services, including monthly statement fees, flat per-transaction fees, or annual PCI (payment card industry) fees. Therefore, confirming the details with each vendor is essential to avoid unwanted surprises in your payment processing bills.
While aggregators/third-party payment processors such as Stripe, Paypal, Dwolla, and Square may conveniently handle large volumes of transactions, they come with several considerations. For example, payment aggregators may charge high processing fees and have more extended fund holding periods that may affect your business cash flow.
Alternatively, payment processors provide your business with more freedom in transaction management. However, you should assess and compare the cost, security, customer service support, and each processor’s available credit card options to determine the most suitable fit for your business operations.
Benefits of Payment Processing for Your Business
Payment processors generally help your business to process a sale quickly and securely. As a result, your customers will have the option of making purchases while avoiding the fuss of conventional manual transactions.
Accept Debit and Credit Card Payments
PYMNTS’s survey titled “Digital Economy Payments: How Mobile Is Changing US Consumers’ Shopping And Payment Habits” reports that 37% of consumers use debit cards for their purchases while 32% use credit cards. According to the same report, only 13% of customers prefer cash transactions.
Therefore, payment processing can help your business attract a wider pool of customers who turn to card-based transactions. Payment processing benefits e-commerce and brick-and-mortar stores where you may provide customers with attractive zero-fee credit card processing.
Offer Multiple Payment Options
Aside from accepting credit and debit card transactions, your payment processor empowers customers to pay via their preferred method. Mercator Advisory Group’s Buyer PaymentsInsights: Payment Methods-Consistency and Flexibility report showed that 10.3% of consumers prioritize multiple payment options when shopping.
Facilitate Payment Scalability
Your business will require new payment solutions as it develops and expands, accommodating increased customer demands and transaction volume. A reliable payment processor offers a complete payments solution that scales with each stage of your business, so you will face minimal downtime when managing your payments.
Additionally, top payment processing companies may offer long-term strategic packages to help your business minimize processing fees while optimizing transactions.
Acquire Valuable Accounting Insights
Modern payment processing solutions enable your business to gain valuable customer purchase trends and insights from various sales channels. In addition, your payment processor can help integrate the process into your accounting systems, giving you real-time data on customer payment preferences and the most popular type of discounts.
Additionally, an automated accounting integration prevents any human error from manual data entry, which might affect the accuracy of your metrics and reports. Finally, the detailed information captured and compiled by your payment processor can help you refine future business processes by creating winning customer strategies.
Security should always remain a priority with the convenience of modern payment transactions. Collaborating with a trusted payment processor like National Merchants Association will equip your business with flexible security add-ons that will gain the trust and loyalty of your customers.
For example, your payment processing plan includes advanced PCI DSS guidance to protect your most valuable customer payment data. Alternatively, your processor might remotely upgrade the firmware in your card-reading devices to maintain maximum security.
Coping with the Larger Fraud Issue
Malicious fraudsters may often target smaller businesses due to their simple operational structures and limited security resources. Partnering with an established payment processor provides your company with the tools and features to safeguard your customers and transactions from opportunistic parties.
Payment processors can help you closely watch transactions across multiple channels, including ACH transfers, POS activity, and mobile purchases. In addition, your vendor will assess cardholder data to eliminate the risks of fraudulent activity in the complex business environment.
Ultimately, partnering with a reliable vendor provides your business with a comprehensive payment solution that lets you focus more time and effort on other aspects of running your business. From transparent customer data to many payment options, you can significantly expedite transactions and improve your customer’s experiences to keep up with the demands of the modern business landscape.
National Merchants Association – Your Guide to Optimized Payment Processing
At National Merchants Association, We Work For You®. Partnering with National Merchants Association equips your business with the industry leader in payments and the industry experience to help you create the most effective integrated payment systems.
About National Merchants Association
National Merchants Association is a merchant advocacy group dedicated to reducing the unnecessary fees associated with accepting credit card payments. Since 2004, they have delivered tailored payment processing solutions and best-in-class merchant service and support for all levels of risk. Whether it’s high-risk or low-risk, brick-and-mortar or e-commerce, National Merchants Association will create the best processing experience for your business. For more information, visit National Merchants Association or call (866) 509-7199.