Merchant Account Services Archives - The Future of Payment Processing is Here!

January 9, 2020December 16, 2019

Which Merchant Account Services Provider is Right for You?

You want your business to do well in the upcoming year, and one area you might be able to improve upon is merchant account services. Confused? Think higher profit margins and lower costs are the only way to change the equation? Think again. Finding the right merchant account services provider can not only make your life a lot easier in the coming year, it can also help your business’ bottom line.

Understanding the Power of Merchant Account Services

Anything that deals with the hardware, software, services, or financial side of things you need to accept and process credit and debit cards and e-checks falls under the heading “merchant account services.” There are thousands of entities that call themselves service providers, but knowing which ones you want to work with and which ones will truly benefit your business is the only way to turn the tables in your favor.

Choosing the Right Provider

With so many different providers out there, it can be easy to get overwhelmed. You may think the easiest route to go is to select the provider with the cheapest fees, right? Think again. There are so many different factors involved in the decision, you’re going to have to roll up your sleeves and do a little research before you make a choice. Start With The Track Record: The first step you may want to take is to look at the history of the business. You want a team that’s been working with companies in your industry for the past several years. A startup’s offerings may sound fantastic, but at the end of the day, they could cost you quite a bit of money.

*Look to Support: Merchant account providers offer varying levels of support. Some have resource libraries packed with videos and articles to guide you through any problem you might have. Others have around the clock support provided over email. Still others have 24/7 support from a live person via phone or chat. Your support needs depend extensively on your level of technical knowledge. Some business owners won’t need a lot of support, and thus they don’t want to pay for an extensive amount of support. Other business owners, though, need a bit of extra help to get through those rough patches.

*Consider Transaction Types: What kinds of business do you do now? If you’re not online yet, and you think you might be in the next few years, you’ll want a merchant account provider who offers to process both on and offline transactions. As your business grows, you’ll want your provider to be able to help you no matter which direction you go.

*Think Safety: Fraud protection is a must, so find out whether the provider you’ve chosen is PCI-Compliant and offers additional fraud protection measures to help protect you and your customers. From tokenization to encryption to the many other technologies out there, you want to be sure your provider is onboard with the latest ways to protect consumers.

*Ask about Processing Time: How soon can you get your money? You need to know how long it takes from the time a customer swipes his or her card to the time the money hits your bank account to understand what your cash flow might look like with that provider. Knowing in advance how long it takes those funds to clear can help you decide how to pay for supplies, handle payroll, and much more. Every provider is different, and there’s not always a right answer, but understanding what to expect is incredibly important.

*Know the Fine Print: What’s the length of the contract you’ll be signing? Will you have to pay a cancellation fee if you need out early? Are there additional fees? Find out what you’ll be paying outside of the transaction fees and rates.

*Research the Costs: Merchant account providers have lots of different cost and fee structures. Learn more about the kinds of fees you’ll be paying every time a customer uses his or her card. Try to think about all of the pieces involved, not just what those overall rates look like.

The right merchant account services provider can mean so much to your business. Make sure you have a perfect match so you can grow well into the coming year. Contact Y2Payments at 888-693-1850 to learn more about our merchant account services for your company.

November 29, 2019November 21, 2019

Tips for Business Owners That Need a Payment Processor

y2payments business owners payment processor

According to a recent study, two in five Americans use plastic to pay for the purchases they make every day. Whether it’s a debit card or a credit card, many people prefer to use plastic and that translates to a serious loss in sales for your store if you don’t accept that method of payment. Before you can even begin to consider taking plastic as a form of payment though, you’ll have to select the right payment processor and that can be difficult. Wondering why?

Blog after blog is willing to tell you more about the differences between payment processing solutions, but few are willing to help you sort out which are the best payment processors to help meet your needs. These tips can help you do just that.

Tip #1 – Decide How You Use Your Payment Processor

Online companies need to ensure their choices offer eCommerce solutions like shopping cart integration. Businesses that often appear at off-site events like trade shows need mobile payment solutions. Brick and mortar companies need something a bit more traditional. Understanding exactly what kind of business you do most often will help you find the solution that best meets your needs. Don’t just think about what’s happening in your company right now, though. You’ll also want to think about your company’s long term needs to best know what might work now and well into the future.

Tip #2 – Understand How Your Customers Pay

Not every customer prefers to pay the same way. Some wish to use a debit card from a local bank. Others might want to use their American Express card. Still, in certain situations, you may need to be able to accept EBT cards or electronic checks. What type of business you run will help you know more about the kinds of payments your customers may have on hand, which will further determine the best processor to meet your needs.

Tip #3 – Know The Set-Up Timeline

How soon do you need to be up and running with regard to your new payment processor? Often you initially have to apply for an account, then equipment installation can take some time as well, so know who can get you there according to your timeline and which payment processors may take you some additional time to set up. Along with that, you may want to check to see how much set up support you will receive during the process. If you’re not very tech-savvy, you may want a processor that offers added support to help you get things off the ground.

Tip #4 – Identify the Fee Structure

Nothing is free in this world, and that’s as true for payment processing as it is for anything else. Every single processor will offer you a different fee structure, and the ability to identify exactly what you’ll be paying is absolutely key to moving forward. There are a number of terms with which you should be familiar. Interchange fee is maybe the biggest term you should understand. This is a fee that is charged for every transaction you process through the payment processor. It typically runs from two to three percent per transaction, but that can vary. The type of card makes it change, the type of transaction (online, over the phone, or a physical sale), and even the size of the transaction can make that fee vary somewhat. Beyond that, know that there are often application and set up fees involved, monthly minimums, and even a gateway access fee.

Not all credit card processors work on the same system, though. Some use a subscription method that allows you to pay a single monthly fee. Others offer you a flat rate per transaction. What you decide on, however, is going to depend on how you do business, the average size of the transaction, and how much you have to spend on the entire process.

Tip #5 – Recognize Compliance and Security Guidelines

Almost every processor you see will be PCI compliant, and that’s not negotiable. If you’re going to accept credit and debit cards, you have to ensure the safety of your customers’ accounts, and PCI compliance is the best (and required) way to do just that. Security, though, goes further than PCI compliance. You’ll also want a processor who takes things a step further when it comes to data security. From tokenization to point-to-point encryption, there are many different ways to help prevent fraud in your business, and you want a processor who takes that seriously.

Payment processors abound today, but that doesn’t mean it’s easy to make a decision about which one might be right for your business and your customers. Do a bit of research with these tips handy, and you’ll find one that will meet your needs.

To learn more about how Y2Payments can help, contact us today at 888-693-1850.

July 2, 2019July 11, 2019

What is a Merchant Account?

The ability to accept multiple forms of payment, including credit and debit cards, is a must for any business owner today, particularly if your company has an online component. Sure, society isn’t quite cashless yet, but many people rely on their current cards to make day to day purchases, and they’re essential in the world of online purchasing. You can’t simply put out a sign suggesting you take credit cards, though. Instead, to make that happen, you have to have a merchant account.

Toward a Definition

Basically, a merchant account is a kind of bank account where you place your funds from a customer’s credit or debit card purchases. You can’t have direct access to that account, though. Instead, you tie your company’s bank account to that merchant account, and when the funds are deposited, they’re then routed to your current business bank account.

Wondering who needs a merchant account? Anyone who wants to do business using credit or debit cards requires access to a merchant account.

Merchant accounts are initially made through merchant services providers. They’re the intermediary between banks, your customers’ cards, and your business. They typically have a range of services available to businesses. They allow you to accept all forms of electronic payment. They also usually offer you the PCI compliance necessary to accept credit and debit cards. Often they include the technology you need to track those payments, too.

Selecting the Right Provider

Not all vendor relationships are right for your business, and that’s as true with a merchant services provider as it is anywhere else. For many people, the focus is solely on the fees. There are four main fee structures you need to consider. The first is an interchange-plus model. This type itemizes the fees and markups for you, then lists exactly what you’re paying on a monthly statement.

A Subscription model is the second type. Here, you don’t pay percentage markup on transactions. You pay a per-transaction fee and one flat monthly subscription fee. Tiered pricing is also available. In this model, all of your transactions are classified into qualified, mid-qualified, and non-qualified categories. If you have a qualified transaction, you’ll pay the lowest possible rate. As you move down the scale, though, those rates go up.

Flat rate is the final type to consider. In this setting, every single transaction means you pay the same percentage and transaction fee, no matter what the cost. One of these isn’t necessarily better than the other. The key is to know what kind of volume you process along with the type of transactions you deal with so you can decide which model might save you the most money.

Fees, though, aren’t the only aspect you’ll want to consider. You may also want to consider processing time. Every merchant services provider holds the money for a different amount of time. Some offer immediate access to funds while others could make you wait for up to a week. Decide what’s going to work best in terms of cash flow for your company in this area carefully.

Protecting your business has to be at the forefront of your concerns as well. Every merchant account provider you consider should have extensive PCI compliance protocols to help prevent any fees on your end. Fraud protection should also be built in. Remember, data theft is a multi-billion dollar industry today, and ensuring that you’re not subjecting your customers to data theft is key. A provider should have multiple fraud management filters to help reduce the risk of compromised customer information.

Customer support should be your last area of consideration. Technical support likely isn’t at the front of your radar, but it absolutely should be. Payment processing issues can crop up almost any time, so you need to ensure the processor you choose offers live support as well as a number of other support options so you can reach out to get help when you need it the most.

A merchant account is nothing short of required to do any kind of business today, but with so many different providers out there, it’s worth it to take your time and evaluate each before you select a provider that’s perfect for your business. In most cases, you’ll be asked to sign a fairly lengthy contract with a given provider, so make sure you know what’s right for your company before you sign on the dotted line.For information on how Y2Payments Merchant Accounts work, give us a call today at 888-693-1850.

May 24, 2019May 31, 2019

What Are Credit Card Merchant Fees?

It’s tough to do business today and not accept credit cards. Credit Cards offer your customers an added level of convenience, and accepting them means the potential for more sales. It also means paying credit card merchant fees, though, which could cut into your profits considerably.

Understanding Merchant Fees

Credit card merchant fees are what you pay every time you process a credit or debit card sale. The fees you pay are determined by the company with which you work to process these transactions. They typically involve three different costs – the interchange cost, the service cost, then the markup your payment processor applies to each transaction. There are many differences between payment processors, which means there are many different potential fees you could be paying. More than that, though, your processor’s costs are only one piece of the equation. They’re really the last step – the financial institution that securely pushes your transaction through to your bank account. Card issuers like Capital One and Citi are involved, as are the credit card networks with which they work – like Visa and Mastercard.

Rates vary by a number of different factors. There are typically PCI-compliance costs, annual fees on every account, and fees for chargebacks. You may also find hardware and software leases built into your account, and impact the rate for each transaction you process.

You may also hear the term “interchange” fees as you consider which payment processor is right for you. Every time a customer uses a card with your business (whether online or in person), there’s a fee paid from your merchant account to the customer’s credit card company. That’s the interchange fees, and they’re set by the network involved like Visa and Mastercard. Those fees are allowed to change twice each year: October and April. The reason behind these fees is to help the bank that issued the card cover its costs. After all, there’s some risk with credit cards like the potential for fraud. There are also some actual costs, like handling the sale, building the software, and that sort of thing.

Interchange fees vary just like the overall rates you’re paying, thanks to many different pieces of the processing equation. The type of card the customer uses is one of those. Debit cards with a PIN tend to be a much lower risk type of transaction, so the interchange rate is lower. Business cards, though, usually have a higher interchange rate. How the sale occurs also affects the rate. In person card transactions (also called card present transactions) have lower rates than those sales where the card isn’t present (as it happens with an online sale).

The total amount being sold affects rates, too, as the more business you do, the lower your rate. The type of business you own can also affect your rate. Some companies are simply a higher risk to credit card companies. Companies that deal with gambling and even hospitality companies deal with higher risk clientele, and thus they pay higher interchange fees.

Dumping the Interchange Fees?

Many companies looking to lower their overall payment processing costs look to interchange passthrough pricing to help with that. In this type of processing, the interchange fees and assessments are passed directly to your business. Sometimes called interchange plus, it means a little more transparency for some companies, though it’s not right for everyone. Instead, it’s just one more option to consider as you shop for the payment processor that might be right for you.

Lowering Your Credit Card Fees

There are four different kinds of pricing models among processors today. Interchange Plus pricing is probably the most common. You pay a percentage of the transaction, then a fixed fee. Flat rate pricing is becoming more common among small businesses. This is where you pay one single percentage on every single transaction you process. Subscription pricing is where you pay a smaller fee on each transaction, then a subscription cost to the service itself. Tiered pricing is the final type. There, the amount you pay depends on the type of card you charge. There are usually other add-on fees involved in this setting.

Your ability to accept plastic is almost essential in today’s business world. As you consider what might be right for your business, think about how you process credit cards. Card-present transactions mean far lower rates. Think, too, about the size of your overall transaction. If you’re processing more $5 transactions than you are $50, you need to factor that into the equation. Finally, think about your industry. If you work in a risky business, you’re going to want to do a little more shopping so you can pay less to help your customers.

To learn more about Y2Payments and our merchant services, contact us today at 888-693-1850.

February 13, 2019March 21, 2019

Common E-Check Payment Myths

Accepting payments in today’s world gets more complicated all the time. Among the newest forms of payment available are e-checks. Understanding this form of payment and the myths around it is absolutely key to helping your business run well.

What is an E-Check?

First, it might be important to understand exactly what this form of payment is. An e-check is an electronic check. The money paid to you for your goods or services is withdrawn from the checking account of the individual paying. It’s transferred using the ACH network, so for e-check processing, you’ll need an ACH merchant account. Overall, this method of payment is a great way to offer your customers one more alternative.

Electronic Check Processing Myths

Despite the fact that e-check processing could mean connecting with many more customers than you do right now, there are still many myths floating around, some of which may be holding you back from accepting this form of payment. Let’s take a look at a few.

None of My Customers Use Checks: The number of people using checks has been on the decline since 2000, giving rise to electronic payments like debit and credit. One Federal Reserve study found that from 2000- 2012, the number of checks written declined by more than 50%. That doesn’t, however, mean that no one is using checks. In fact, many still prefer checks because it leaves a written record of transactions that is easy to account for at any given time. Moreover, the older generation continues to write checks at a fairly high rate.
Checks Lead to Fraud: You may be concerned about checks bouncing because of insufficient funds, and when that happens, everyone loses. While that is a real fear, the rate of check fraud is no higher than that of other types of fraud, and electronic processing has greatly changed the potential for check fraud. It minimizes the possibilities, helping give you peace of mind.
Checks are Too Expensive to Process: E-checks are subject to merchant processing fees, just like a credit or debit fee, and those fees do vary by processing company. It is, however, often cheaper to use this technology than it is to use paper checks, as it completely eliminates the need to manually inspect each check, handle the reconciliation, and make it to the bank to deposit the check.

E-check processing may be the perfect way for your consumers to buy your goods or use your services. Take a closer look at this payment method when you contact Y2Payments today.

December 3, 2018March 6, 2019

The Benefits to E-Commerce Business Models

Almost every blog you read will tell you that the e-commerce market is growing fast with few signs of slowing down in the near future. In fact, a 2014 RJMetrics study found there were more than a hundred thousand ecommerce websites generating meaningful revenue online. If you’re considering the world of retail, it seems ecommerce might be the way to go. Why be an ecommerce business? There really are benefits to this model over the traditional brick and mortar choice. Take a look.

Fewer Startup Costs: If you decide to move forward with a more traditional commerce model, you can expect to spend quite a bit of money at startup. You’ll have to pay for the storefront, the utilities, and any building maintenance. You will also have to have all of your products in stock when shoppers walk through your door. That’s not the case with e-commerce. You’ll have the initial cost of the website and shopping cart platform, which varies depending on the model you choose, but often those are the only costs involved to get started. What’s more is that you don’t have to have a warehouse full of products waiting. Instead, they can move from the manufacturer to your customer without making any stops in between, which means saving shipping costs and can help make the product cost lower overall.

More Potential Business Areas: Companies are always looking to expand. It’s what helps them survive as the market changes. In the world of e-commerce, this is far more possible. You can add to another product line, new services, or a variety of other options for your customers. In a brick and mortar company, expansion can be more difficult.

Better Scheduling: Ecommerce means you don’t actually have to be there when people buy from you. Instead, you’ll utilize your website to handle the work for you. Your customers can shop whenever they want, then your site will handle most of the work. Any tasks that are left for you can be handled on your own time from anywhere in the world.

Less Expensive Marketing: Marketing offline can be expensive. Often you need the help of an advertising agency to make it happen. Online marketing, though, is far easier. You control how and where your product is represented, and you decide exactly how much you want to spend and when you’d like to spend it.

Additional Payment Processor Options: You’re in the business to make money, whether you’re on or offline. Given that many people today use cards and other forms of electronic payment, you’ll need the help of a payment processor to make that happen. Payment processors create merchant accounts for their businesses to accept credit and debit cards, and offline, there are some, but if you move to an ecommerce model, you have many more options that may spell lower fees for your company.

Both brick and mortar as well as ecommerce opportunities can be successful for your business venture, but ecommerce may be the perfect way to move forward for your company.

September 6, 2018September 5, 2018

How Merchant Accounts Work

What is a merchant account? How does it work? What types of merchant accounts are there, and is there a best kind of merchant account? Let’s start with the basics:

What is a Merchant Account?

Let’s say you make a sale to a customer who uses a credit or debit card. This goes through to a bank account that’s used to hold those funds. Think of it as a waiting room where funds go when they leave a customer’s credit card. Just like people waiting at the doctor’s office get called in for their appointment, at some point the funds will be called upon and move over to the merchant’s standard bank account.

Getting a Merchant Account

Getting a merchant account is fairly easy. Any business can open a merchant account. Make sure the service you choose is safe, and they can walk you through the basics.

There are third-party choices that process payments, but they can charge higher rates – consider how Paypal works, for instance. As a merchant, it’s usually more profitable to open a more standard version.

Types of Merchant Accounts

The best kind is one you have with a “full service” merchant account processor. A merchant account processor should provide you all the things you need, including training and integration with your current technology. They may even provide you customized reporting. These are perks, so let’s return to basics.

A good processor should handle pretty much everything from start to finish. They’ll have an established relationship with a Payment Gateway that checks the customer’s card for funds and authorizes the purchase. They’ll have fraud and chargeback protection to notify you of any chargeback claims.

All of this happens in real-time so that you can reliably provide credit and debit card processing to your customers. This process should be entirely automated so that you can expect the same result every time, and it should be reportable so that you can audit the process yourself and keep it for your own records. A merchant account makes you more powerful and flexible as a business.

Want more information on merchant accounts? Contact Y2Payments today to learn about our services.

May 23, 2018May 10, 2018

How Your Merchant Provider Can Help Grow Your Business

Running a business is seemingly lonely work. More than that, though, it’s enough to keep any person quite busy. There’s so much to do. This is particularly true if you’re working to grow your business and help it expand.

Fortunately, there are lots of place to turn for help: mentors who offer moral support, vendors who can help when you outsource some business processes, and even trade associations who can give you the resources you need. One spot you may not have considered turning for a bit of help growing your business, though, is your merchant provider.

An Unexpected Source of Help
You want your business to grow, but turning to your merchant provider for help may seem like an odd move. How can they actually help you expand your company? Take a look.

– Offer Your Customers More Payment Options: The days of everyone carrying cash are long since gone. Instead, almost everyone has a preferred payment option, and if you don’t offer what they’re looking for, they’re certain to find your competitor that does. The end result is that you don’t simply miss out on that one sale you lose all future business from that consumer—that translates to really big profits lost! The right merchant provider can help you offer a variety of payment options to help you deal with any customer’s preferences.
– Assist with PCI Compliance: Failure to comply can mean big fines for your company, and that’s the last thing you want to face as you’re trying to grow your business. A merchant provider, though, can help keep those fines off the table and keep your customers’ information secure.
– Keep Processing Fees in Check: Often credit card processing fees are crippling for small businesses, but that doesn’t have to be the case. Instead, with the right merchant provider, you’ll get processing fees you can afford. Even if high risk credit card processing is the only way to go, there are many providers who specialize in that area, helping to keep your fees low.
– Contribute to your Knowledge with Reporting: Thanks to real time credit card processing, you’ll get a host of reports that will help you make solid business decisions so you can move forward.
– Fight Chargebacks: There’s nothing quite as disheartening as the impression that you’ve made a sale only to find the money deducted from your account months later thanks to a chargeback. A good merchant provider will give you the tools you need to end the chargeback problem within your company.

It may not seem like these steps are going to help you grow your business, but the simple reality is that they will ensure you stay on your feet as you expand your customer base.

If you have questions about how Y2Payments can help your business, contact us today at 888-693-1850.