It’s a fact many businesses believe payment processing isn’t viable for them, but nothing could be less accurate. With digital payments becoming the norm at every level of commerce, companies without the ability to accept them will lose out big-time. These commonly-held ideas are myths that deserved to be debunked, and we’re going to do that.
#1: Accepting Payments Eats at the Merchant's Bottom Line.
Fact: It’s true accepting card payments incurs a fee for the merchant, which means the cost of sales is slightly higher. Given that the average customer spends up to 18% more when they pay with plastic, however, the increase in revenue easily outstrips the extra payment processing fees.
#2: Payment Security is Only for Large Retailers, Not SMBs.
Fact: Payment security is vital to protecting consumers’ information, but it can be difficult to implement. In many respects, SMBs have advantages over large corporations because their requirements are less complex. With a careful understanding of their customers, SMBs can identify payment capabilities they truly need. A simple payment processing platform might be enough for businesses that get few chargebacks, for example.
#3: Most Payment Processors Offer Pretty Much the Same Service.
Fact: Payment processing comes in different shapes and sizes. Some companies offer terminal leasing and setup, some allow cash advances when you use their terminals, and others support gift card programs. They also have different pricing brackets and pay scales, which depend on factors such as your level of risk as a client.
#4: Aggregator Accounts are the Same as Traditional Merchant Accounts
Fact: Aggregators like Square and PayPal, Payfacs and merchant account providers all provide payment processing services, but they do it in different ways. Aggregator companies actually play the role of the merchant account holder and process payments through their account on the merchant’s behalf. Traditional accounts require merchants to set up their own accounts with processing companies.
#5: Setting up a New Merchant Account is Long and Complex
Fact: We live in a plug-and-play world, and payment processing is no exception. Most point-of-sale systems come with built-in card processing capabilities, so all merchants need to do is hook it up and arrange for processing services. This can usually be done in a couple of days, and training staff to use the hardware takes an hour at most.
With the exponential increase in online purchasing and the decrease in the use of cash, companies that don’t have payment processing facilities are destined to lose out.
Consumers want to be able to pay using their preferred method and account, and they’ll go where they can do so. Improve your chances of retaining your customer base and enhance client satisfaction by accepting the card and digital payments today.