differences between payment processing solutions Archives - The Future of Payment Processing is Here!

November 29, 2019November 21, 2019

Tips for Business Owners That Need a Payment Processor

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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.

April 15, 2019April 18, 2019

Common Payment Processing Mistakes

Online payment processing is a must in today’s business world. It means your business can accept credit card payments without a hassle, but it’s not always as simple as you might imagine. In fact, many companies make some critical mistakes when it comes to payment processing, and those mistakes can be costly in today’s business world. Understanding exactly what those mistakes might be is key to helping prevent issues in your company. Take a look at a few mistakes you might be making right now.

Five Key Mistakes

Mistake #1 – Poor Examination of Available Options

The differences between payment processing solutions is vast and knowing exactly what you need at the outset is a good way to avoid any potential mistakes. There are multiple payment processing solutions available today and comparing each one on level ground is a must. While many businesses simply examine the overall cost involved, the reality is that if you look closer at the services and benefits each offers, you’re going to find far more to that bottom line cost than you might imagine, and if you get stuck in a contract with one that doesn’t work for your business, you’re going to create more problems for your company in the future.

Mistake #2 – Lacking A Signed Contract In Place Before Auto Billing

Many companies offer services or products on an auto billing plan. It’s a great way to offer your customers a convenient service they don’t have to renew and keep customers with your brand for longer than you ever thought possible. However, often auto billing can create a headache, particularly if you don’t have your customers sign a contract at the outset. Create a straightforward terms of service agreement before that first bill arrives. If you don’t, you may experience a chargeback that you can’t reverse, which may mean you have trouble working with your payment processor in the future.

Mistake #3 – Failure to Watch for Hidden Fees

The last thing your business needs is additional fees, and in the world of payment processing, they can add up quickly. More often than not, you find hidden fees with payment processors who offer lower rates than you’ve ever seen, but it happens with others too. Cancellations, withdrawals, and batch processing all often trigger additional fees. The volume of business, though, may also impact your fees.

More than that, though, how you process a customer’s credit card can affect your fees. Lower fees are available for swiped transactions, something you may not have realized when you initially signed up for that service. Knowing exactly what you might pay with each payment processor you consider can help you avoid any surprises at the end of the month when you’re working on your books.

Mistake #4 – Avoiding the Right Fraud Solution

In 2018 alone, private companies experienced a fraud rate of nearly 28%, according to 2018 ACFE’s Report To The Nations. If your company is in that 28%, finding the right solution to fraud is an absolute must, and often that begins at the point of online payment processing. Take the time to implement a robust fraud reduction program. Encrypt your data, and keep customer contact information up to date. Only give access to private financial information to those employees who truly need it and see if your payment processor can help offer you additional fraud protection that will keep your business (and your customers) safe.

Mistake #5 – Settling for a Payment Processor That Doesn’t Work For You

Imagine you’re going out for dinner tonight. Would you settle for a restaurant you don’t like? The chances are good that you wouldn’t, so why would you select a payment processor for your company that doesn’t seem to be a good fit? Because there are so many choices available, settling because you simply want what’s easy now could cost you more down the road. Instead, choose a certified payment processing company that seems like it would work well for every transaction you’ll have this year.

To learn more about common mistakes businesses make when it comes to payment processing, reach out to us today. We can help you decide if we’re the right choice to meet your needs. Call us at 888-693-1850.

January 24, 2019March 21, 2019

Advice to a Business Owners Looking for a Payment Processor

You have to find a way to accept customers’ electronic payments today. Whether you run a brick and mortar business or one online, to become profitable, you’ll need to deal with electronic payments like credit and debit cards and e-checks. While the number of payment processors wasn’t an obstacle just a few decades ago, for companies looking for the right processor today, the choice can be nothing short of overwhelming.

Who are the best payment processors and what are the differences between payment processing solutions out there? This guide might help you sort things out and find a processor that works for your company.

What to Look For

The first trick to landing the right payment processor is to watch for the signposts of a good processor as you read about each company. Good payment processors:

Are upfront about their fees – Fees vary from company to company. Make certain you find a company that is willing to discuss those fees and not hide them from you. Understand what the cancellation, withdrawal, and batch processing fees might be. Good payment processors will offer you a full schedule of fees before you ever sign up.
Offer fast access to funds – If your processor constantly needs to investigate suspicious activity, you could be without a paycheck for weeks. Find a company that, even in potential fraud cases, have a simple process that means access to your cash as fast as possible.
Care about data security and fraud protection – Protecting your customers’ data is a must, and it shouldn’t fall on your shoulders. After all, that can be an expensive process that may suck time away from your company. Choose a payment processor that offers secure, reliability with anti-fraud technology built right into the services. Make certain they reduce your PCI compliance workload so you don’t have to have an additional, costly system.
Have dedicated set-up support and assistance – You need help. It’s the bottom line in accepting electronic payments today. Ensure you have a processor dedicated to customer service so you get the assistance you need when you need it the most.

Are There Really Differences between Payment Processing Solutions?

The answer to that question is a solid “yes.” A Nilson study found there are 14.4 billion credit cards in the world as a whole, and with numbers like those, the industry will only continue to grow. Make certain you find a processor you can partner with to better run your business.

Contact Y2Payments today to learn more about our Payment Processing solution and our Conduit 3.0.

November 9, 2018October 25, 2018

Interchange Plus Pricing is Great for Profitable Businesses

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It’s time for a bit of truth. You can’t own a business now without being able to accept debit and credit cards. The average consumer often doesn’t even carry any cash, which means that you need to accept credit or debit cards in order to be able to run a profitable business.

Many business owners, however, get frustrated with this because they realize that in order to process debit or credit card payments, you need to take on an additional expense. To process credit or debit card payments you’ll have to pay a processing fee, and the amount you’ll pay depends on which company you go through to process those payments.

It’s important to not only know what there are differences between payment processing solutions, but also to determine what the best payment processors are for your business. It can also be confusing to try to figure out who gets a take of the processing fee and to understand why it’s so high. There are a many other companies that get a piece of the credit card pie, from the merchant bank to the associations (like MasterCard and Visa), and whatever company that processes the card.

One thing you should understand as a business owner is what interchange plus pricing processors are. To begin with, interchange plus pricing helps you to understand who you’re paying when you pay a fee for a credit or debit card charge. It makes the transaction much more transparent so that you know exactly what rates are being charged.

It’s also important to note that interchange plus pricing processor rates are generally much lower than flat or tiered rates. While it’s important to understand what interchange plus pricing processors are, it’s also essential to make sure that you find a company that you trust to help you to figure out the best payment processors for your unique situation and business.

At Y2Payments, we pride ourselves on helping to ensure that our customers get the right processing for their business. To learn more about how we can help, contact us today.

October 15, 2018October 15, 2018

What is a Payment Processor?

A payment processor is a company that handles transactions for a merchant. Obviously, the merchant themselves can handle cash transactions. The payment processor handles payments involving credit cards, debit cards, and more recently, cryptocurrencies. Are there differences between payment processing solutions?

We’ll examine these. The best payment processors provide more than just the basic service. They can help you implement payment processing solutions, solve problems that arise, provide solutions to better handle chargebacks, as well as produce reporting that helps you analyze how your customers spend their money.

ETA Certified Payment Processing

Certified payment processing exists to act as a trusted and accountable mediator between your business and various financial institutions. The payment processing industry holds certain standards and requirements that enable financial institutions to feel comfortable entrusting many businesses with more extensive payment processing solutions.

Certified payment processing means that a processing company has been certified by the Electronic Transactions Association (ETA). This ensures you that a payment processor meets and maintains certain standards that are important to client businesses. And, yes, Y2Payments is a long-time member of ETA.

High Risk Payment Processing

There are differences between payment processing solutions. To start with, many businesses are classified as high risk. Not all payment processors will provide their services to high risk businesses. If they do, their terms won’t be very favorable because this type of client falls outside their specialty.

A payment processor that handles high risk clients will often be able to provide better terms in your payment processing rates. Not only this, they’ll also be able to provide you more complete service. The best payment processors will help you implement all your payment processing tools, give you training so that you know how to use them, will respond to inquiries, can explain things, and will produce valuable reporting you can use to analyze customer habits and needs.

Payment processing deals with technology is first and foremost, but it excels when personal communication allows for the kind of flexibility that businesses need to operate within high risk industries.

For more information on Y2Payments payment processing, contact us today.