The Real Pros & Cons of Merchant Accounts

download (26)Like any other business, there are advantages and disadvantages to accepting credit cards. We have included both so you can make an informed decision on if your business should sign up for merchant services. Regardless of the cost you incur, you will see that the benefits outweigh the negatives.

The various pros merchants services offer

1. Increased sales: Yes, this is right, as credit card orders are these days are larger in number than check & cash orders.

2. Faster checkout: It speeds up the checkout line because accepting credit card payment is instant and easy.

3. Cheaper than cash: It is cheaper to accept cards due to the huge order amounts.

4. Security: Dealing with cash needs more security, as the risk involved is high. Dealing with heavy amount can lead to troubles and there is also the possibility of employees giving out the wrong change amount.

5. More choices: The more payment options you offer to the customers, the more you decrease the probability of losing the sale.

The limited cons

1. Cost: Accepting credit cards involves cost similar to every other cost the business incurs. A good approach is taking it as a cost of doing business.

2. Fraud: Degree of internet fraud or risk is possible to some extent. However, such possibilities are extremely rare.

3. Charge backs: It is important to abide by the rules of credit card company’s rule. In this way, consumers are more safe when paying with card and win against the merchants while disputing a charge.

Which businesses are classified as high risk?

When the credit card industry realizes that a particular business is high risk, they conclude that the business model poses higher level of risk as compared to the traditional business. It is important to ensure that the payment processing account is well established and doing business will bring profits to the business as well as the merchant service providing company.

Here, the processing company has to manage the risk and reward, the merchant needs to be fully equipped to do business without going through over inflated charges. As understood, with any service, few companies charge unfair fees and provide incompatible services; hence, it is important to go for the best business company. High risk is involved in companies that are:

1. Involved in morally ambiguous industries
2. Process card-not present transactions
3. Sell products and services to international countries
4. Use risky sales methods
5. Transacts high average dollar amount

Keep this fruitful discussion in mind and plan carefully is your business worth these services or not.

Paycron has been recognized for leveraging top-notch merchant services for customers. Different payment solutions are provided ensuring that the business, whatever the size, remains well connected.

 

Chip Cards Are Here

download (25)As of October 1, 2015 consumers were to have their chip cards and retailers would have the machines that read them. Well, everybody is working towards this goal, but they are not quite there yet. Just this week I received a notice from one of our card companies saying they would start to issue the new cards starting in January of next year when your they renew.

The only consequence seems to be that if retailers are not capable of accepting them by October 1 they could be responsible for fraud. It seems like the United States is way behind all other countries in using the this technology.

So what is the big deal about chip cards. When using a chip card your credit card number is not transmitted instead a random number combination is used. The theory is that if your credit card information is intercepted your actual credit card number will not be obtained by the thief.

When using your chip card you do not swipe it like the old way. Instead you insert the card into a reader and leave it there until the transaction is complete. You might be also required to sign like before depending on the requirements and rules of your credit card company. There is no doubt that a chip card is more secure than the magnetic strip card. However, for a period of time credit cards in the United States will have both the chip and magnetic strip. The real security should start to come when we can eliminate the magnetic strips from all credit cards.

So does your new chip card provide any additional security for online purchases? The answer is currently no. However, I believe that credit card online purchases are going to change for the better. It could come in the way of card readers attached to our laptops or desktops. Or maybe payment companies such as PayPal® have the answer.

For mobile devices Apple® Pay and Android® Pay are two new options to pay for items using your smart phone. This is like your smart phone taking the place of your credit card. They are both used with pin numbers and fingerprints. Which offers protection in case your phone is lost or stolen. Time will tell if these two new technologies are successful or not.

I think it would add another needed level of security if we had to use a pin number with chip cards.

George Uliano is a security professional with years of law enforcement and security experience. He earned a Bachelors Degree in Criminal Justice and Business graduating with honors. George holds three U.S. patents on different locking principles. This combination gives George and His Company Locking Systems International Inc the unique ability to provide its customers with the correct security at an affordable price.

 

Does Using Credit As Additional Income Cause Financial Devastation?

download (23)It seems society’s viewpoint on the use of credit has changed from those of generations past. Back then people would obtain a line of credit or overdraft protection for emergency situations only. Credit was used for more big-ticket items like purchasing a home. When it came to buying products it was cash sales in the stores, and occasionally some merchants would accept checks from loyal customers. The world ran on currency, which meant price was king, not what the monthly payment would be. Here is why I believe using credit like additional income causes so many with financial devastation…

I need to mention that in these times salary and hourly wages doesn’t always meet the ability of survival. Credit becomes a catch 22 for those families because they can’t afford the basics. Using a credit card to buy groceries this week means they eat, however continually doing so with minimum payments and interest might not help down the road. The imbalance in the economy between pay and inflation has left the average family in a hundred-thousand dollars of debt. I think the idea of providing these working poor families with credit they can’t afford to payback, instead of jobs with proper wages, is simply the governments way of putting temporary brakes on anther depression. The marketing twist making people feel better about using their credit cards for groceries is air miles, points, and cash-back great justification saving face for the poor! There is another group of people I would like to mention when it comes to this topic of credit…

These are the folks who live totally out their means, having beer budgets with champagne tastes. These individuals who look like their rich, but in reality many of them have or are maxing out their credit. They’re the ones who have trouble even making payments, nothing in the bank just trying to get more credit. Stores love these types of buyers, marketing to them with gimmicks like no money down, don’t pay anything for 36 months, and zero interest. Maybe as an example they can only really afford a $500 television, with credit they can buy a $3000 one, and the payment would only be whatever. People are much more educated than before, so knowing in the case of bankruptcy they won’t lose that $3000 television, and leasing a fancy car is not an asset so the bank can’t touch that either.

The government needs and likes tax dollars from corporations, in order to keep them flowing providing credit to consumers to purchase keeps them coming in. The beauty for the businesses is either credit cards or financing is the modern cash business, they’re paid right away. As far as the finance companies who extend the consumer credit, they’ve already calculated the default percentage, charging the merchant interest accordingly. Providing credit also takes away success from small business, because they can’t compete, more of risk factor without as much volume, and many end-up paying the finance companies higher interest because less volume. A company like Ford will pay lower rates than an independent car dealer.

 

Why You Can’t Avoid The Influence of Merchant Services

download (24)As an entrepreneur, the driving factor behind the success of your business, depends on your funds managerial skills. It is not important whether you handle a small business, a startup or leading a large corporation for years, finance is the catalyst that keeps the business sailing smoothly. So what’s your style of handling the funds? Do you deal with them independently or you have hired expert professionals? Do you have any idea about merchant services? Well, in case you don’t, hold your horses and explore every aspect related to it.

Be it any business, it can benefit tremendously with the help of these special services provided by merchant account providers. If you have a startup, nothing can help you more than this shortcut to instant success. Check out some more ways as how these services can prove stepping stone for your enterprise.

This technical term refers to the wide category of financial services that are used by business organizations. If we talk specifically, it refers to credit card processing besides debit card processing and handling every type of electronic payments. In other words, having access to them allows businesses to accept payments via reliable and secure channels. In addition, it also enables the merchants to receive payments through online banking transactions and mobile pathway.

What all comes under merchant services?

This is something every one of you will definitely think and strive to get answered. Letting you know the various features, here are the useful points explaining everything you want to know. These customized accounts provide:

1. Sales details from the merchant.
2. Guaranteed payment to businesses.
3. Credit/debit card payment processing.
4. Easy access to mobile transactions and online processing.
5. Merchant cash advances.
6. Authorization for financial transactions.
7. Collect money from the bank or financial institution issued to the customer.
8. Check drafting services and check conversions.

You can get direct access to all these services once you have opened the account with the service providing company or bank.

Get started with profits

Imagine a situation where you are selling any product or service to a customer. Everything is going good and the customer is ready to purchase it. Unfortunately, he/she lacks cash but has credit card available. On the other hand, you can take cash but lack access to credit card payment. In this situation, you clearly lose the sale. However, things would have been totally opposite if you had your own merchant account.

This example has clearly shown how you can connect to customers and increase sales & funds obviously with these financial services. Give your business the right boost and usher in eternal benefits.

Paycron has been recognized for leveraging top-notch merchant services for customers. Different payment solutions are provided ensuring that the business, whatever the size, remains well connected.