In retail, using an omnichannel payment strategy is important for staying competitive and providing great customer experiences. Curv POS enables retailers to easily integrate payment processing across all channels, providing a complete solution. Let’s explore the key benefits of omnichannel payment processing and how Curv POS enhances retail capabilities.
Omnichannel payment processing allows retailers to provide a consistent payment experience across different channels, like in-store, online, and mobile. This also enables online ordering and online payments. Curv POS enables retailers to use omnichannel payment processing on various devices. These devices include countertop terminals, mobile point-of-sale systems, tablets, and smartphones. Retailers can adapt to customers’ needs and offer a smooth payment process, improving convenience and customer experience.
Curv POS allows retailers to easily process payments and integrate with the Payarc Gateway for a smooth experience. This integration allows retailers to securely process transactions and accept various payment methods, giving customers more choices. Whether it’s credit cards, mobile wallets, or contactless payments, Curv POS enables retailers to cater to the preferences of their customers.
POS Products Synchronization
Curv’s retail-focused capabilities extend beyond payment processing. It offers seamless synchronization between POS products for onsite and online orders. This means that retailers can manage their inventory, track sales, and process orders in real time, regardless of the channel. The synchronization between onsite and online transactions enables accurate inventory management, reduces the risk of overselling, and enhances efficiency.
Curv POS goes beyond traditional payment processing by providing retailers with a comprehensive suite of retail-focused capabilities. These include advanced inventory management, customer relationship management (CRM) tools, loyalty programs, and robust analytics. Curv helps retailers understand customers, personalize marketing, and create great experiences to build loyalty and repeat business.
Seamless Integration
Curv POS’s integration with Payarc API assists retailers in seamlessly integrating their payment processing with other essential business systems. These systems include accounting software, e-commerce platforms, and inventory management systems. This integration streamlines workflows, eliminates manual data entry, reduces errors, and optimizes overall efficiency. This allows for tailoring of the payment processing experience to meet specific business requirements.
White-Glove Service
At Payarc, we believe in providing white-glove service to our retail partners. Our dedicated support team is available to provide personalized assistance and ensure a smooth experience with Curv. From onboarding and setup to ongoing technical support, we are committed to delivering exceptional service that exceeds your expectations.
In summary, Curv POS’s launch brings a new era of payment processing, giving retailers better abilities, easy integration, and personalized help. Curv POS is a new solution in the Payarc suite, supported by Payarc’s strong reputation as a trusted payment processor. With years of industry experience, Payarc has earned the trust of countless businesses across various industries.
To unlock the full potential of Curv and elevate your retail payment processing, contact us today. Our experts are here to help you, answer questions, and create a solution that fits your business needs. Experience the benefits of Curv and take your retail business to new heights.
The payments landscape has undergone transformative changes, accelerated by the impact of COVID-19. With a surge in online shopping, businesses are adapting to omnichannel payments strategies, navigating challenges and capitalizing on consumer behaviors shaped by the pandemic.
Key trends include the resurgence of in-store shopping, the exponential growth of online commerce, and the rise of mobile and social commerce, particularly on platforms like Facebook, Instagram, and TikTok. Live selling is emerging as a dynamic retail experience, creating opportunities for engagement and sales.
Understanding US consumer preferences is crucial, with expectations centered around seamless delivery, free shipping, and transparent tracking. Businesses that integrate these preferences seamlessly into their online presence tap into significant opportunities.
The adoption of an omnichannel payment strategy is presented as imperative for sustained relevance in the dynamic retail landscape. A payment processor like Payarc offers a reprieve to the adoption of this model, through emphasizing comprehensive solutions, seamless integration, and personalized support. This strategic alliance becomes pivotal for businesses looking to unlock untapped revenue potential and shield themselves from obsolescence.
Introduction
In a world perpetually shaped by change, the payments landscape has been relentless in its evolution. The gears shifted into overdrive in the past 5 years, fueled by the seismic impact of the COVID-19 pandemic.
Governments worldwide responded with protective measures, closing nonessential retail spaces and limiting capacities in essential establishments. The result? A surge in online shopping, with e-commerce escalating from US$382.5billion in 2019 to US$727billion in 2023. (Statista, 2024)
This disruption prompted retailers to reevaluate strategies. While some hesitated to part with traditional face-to-face engagement and their brick-and-mortar establishments, others seized the opportunity, embracing omnichannel strategies that continue to yield dividends post-lockdown.
Surveys indicate a profound impact on consumer behavior – over one-third of Americans have seamlessly incorporated omnichannel features into their shopping routines post-pandemic. The stakes are high, with 92% of consumers fluidly switching between digital and physical interactions within a single transaction – often researching purchases online while shopping in brick-and-mortar stores, underscoring the imperative for brands to adapt. (Team P., 2022)
The journey wasn’t without challenges. Almost 50% of brands foresee the unification of online and in-store operations and data as their primary hurdle in the coming years. (Drenik, G.. 2022) However, those who successfully navigate this path are poised for favorable results.
In the wake of the pandemic, in-store shopping, synonymous with the quintessential brick-and-mortar retail experience, has staged a remarkable comeback with a forecast of 72% of US retail sales occurring in these physical stores, reclaiming its role as a formidable player in the industry. (Reda, 2022)
This mode of shopping entails a customer physically visiting a retail establishment to scrutinize, choose, and acquire goods or services. What sets in-store shopping apart is the immersive experience it offers, where patrons invest an average of 54 minutes perusing a physical store —
significantly more than the 38 minutes typically spent on a single website.(ICSC, n.d.) This stark contrast underscores the enduring importance of prioritizing and enhancing in-store experiences, even amidst the pervasive influence of the digital realm.
Payments are no longer confined to the binary of cash or card; the question now extends to a myriad of options such as mobile wallets like PayPal, ApplePay and GooglePay, to bank transfers, Buy Now Pay Later options, credit and debit cards, propelled by the rise of omnichannel payments.
Online shopping, a facet of digital commerce, allows consumers to effortlessly acquire goods or services through the internet using web browsers or mobile apps. It relies on card-not-present (CNP) transactions, where buyers remotely provide payment details, enabling transactions without a physical card presentation. A digital receipt confirms the purchase, and the bought items are then delivered to the buyer’s doorstep or available for convenient pickup at a designated location.
In this digital era, over 263 million Americans, constituting 80% of the population, engage in online shopping. (Statista, 2023) The significance of this trend is further underscored by the considerable purchasing power wielded by millennials (29–43 years old), emphasizing the imperative for businesses to establish and fortify their online presence.
Catalyzed by events like Black Friday—Cyber Monday (BFCM) weekend, online shopping reached unprecedented heights, with Adobe Analytics reporting consumer spend to be at $9.8 billion on this day alone, this is 7.5% up from the year prior. (Delesline III, 2023) This surge is a testament to the widespread appeal of online shopping, where consumers capitalize on enticing deals and the seamless experience of purchasing products through various devices, be it mobile, apps, or computers.
This momentum in online commerce is not confined to individual platforms. According to Forbes, the analytics firm Comscore reported a remarkable figure for US e-commerce sales—$1.09 trillion in 2022, marking a robust growth rate of 10.6% from the previous year. (Koetsier, 2023) The accelerating surge in e-commerce not only highlights its dynamic trajectory but also signifies a profound shift in consumer behavior, reshaping the retail sector at its core.
Mobile shopping, the seamless transaction of goods and services through our smartphones and tablets, has become an integral aspect of modern digital commerce. This innovative approach empowers consumers to navigate online shopping platforms with unprecedented ease, liberating them from the constraints of desktop computers. A Morning Consult poll in December 2022 unveiled that over 60% of US adults recognize mobile shopping as an indispensable convenience in their online shopping endeavors. (Morning Consult, 2023)
Looking forward, the trajectory of mobile commerce is striking. It was predicted in 2023, that an estimated 187.5 million U.S. users will have completed at least one purchase via a web browser or mobile app on their mobile devices—a substantial increase from the 167.8 million mobile buyers recorded in 2020. This trend underscores a significant shift, with mobile buyers consistently constituting at least 60% of the U.S. population since the inception of the decade. (Chevalier, 2022)
In tandem with the rise of mobile shopping, digital payment methods have taken center stage. The prevalence of digital wallets, safeguarding credit, debit, and loyalty card details for online use, has surged. In 2022, mobile wallets commanded roughly half of global e-commerce payment transactions, solidifying their status as the premier online payment method worldwide. This dominance is poised to intensify, with projections indicating a rise to over 54% by 2026. In stark contrast, credit cards, which held a 20% market share in 2021, are anticipated to witness a decline in the years ahead, further accentuating the ascendancy of digital wallets in the digital payment landscape. (de Best, 2023)
Amidst the 2 hours and 24 minutes that an average person invests in social media, a notable shift towards social commerce has emerged. (Nyst, 2023) Social commerce, the practice of selling products and services directly on platforms like Facebook, Instagram, TikTok, and Live Selling, transforms the entire shopping journey—from initial product discovery to the final checkout,
seamlessly occurring within the social media realm. (McLachlan, 2022) In 2022, global sales through social media platforms surged to an estimated $992 billion. Projections for 2030 anticipate an extraordinary growth to $8.5 trillion, showcasing the immense potential for business expansion through social commerce. (Global Industry Analysts. 2024)
Enter the realm of live shopping, also dubbed as livestream shopping, live video shopping, or live commerce—a digital gateway where retailers can showcase their products through captivating videos and directly engage with online consumers. This innovative approach allows consumers to participate actively, posing questions and interacting through live chat channels, fostering a dynamic connection. Enthusiasts can even add products to their basket in real-time while engaging with their favorite influencers. (Emplifi, 2022)
The inclination toward live shopping is reinforced by the staggering statistic that 73% of consumers prefer watching videos over reading product information. (Mosby, 2024) While this trend has been more prominent in China, the United States boasts a thriving market with livestream sales reaching an impressive $31.7 billion. (Chevalier, 2024)
Notably, services like CommentSold demonstrate the immense potential by generating up to $300 per minute in a single live sale, illustrating the lucrative nature of this engaging retail experience. (Whitmarsh, 2022)
Live shopping isn’t confined to a single platform; it allows simultaneous streaming across various channels, including your online store, mobile app, Facebook Live, and Facebook Groups. This versatility ensures that retailers can reach their audience through multiple avenues, creating a seamless and immersive shopping experience for consumers.
In a resounding affirmation of the impact of social media on shopping, 87% of social sellers declared its effectiveness in 2023. (Liang, 2023) This trend underscores the significance of a robust online presence to tap into the combined 85% market share of Gen Z and Millennials. (Walk-Morris, 2023) As the dynamics of social shopping continue to evolve, businesses must stay attuned to these platforms to leverage their full potential.
As a company, you would want to cement your position in being top of mind for your consumers. Unlocking the full potential of online shopping requires businesses to align with the expectations of discerning US adults. According to Morning Consult, these shoppers deem certain attributes indispensable for a truly convenient experience:
Seamless Home Delivery: An overwhelming 81% expect the ease of ordering with the added convenience of home delivery.
Complimentary Shipping:76% prioritize the allure of free shipping, an offering that sweetens the deal for online transactions.
Product Availability: Ensuring products are consistently in stock resonates with 71% of users, offering assurance and reliability.
Transparent Package Tracking: A substantial 68% value the ability to track their packages in real-time, providing peace of mind and anticipation.
Swift Shipping: 66% appreciate the swiftness of fast shipping, ensuring their purchases reach them promptly.
Hassle-Free Returns: 63% seek the flexibility of free returns, adding a layer of convenience and risk mitigation.
Intuitive Website Tools: 62% find value in effective website filtering and search tools, streamlining the shopping process.
Mobile Shopping Convenience: 61% prioritize a seamless mobile shopping experience, recognizing the prevalence of on-the-go transactions.
Efficient Cart Management: 60% appreciate the ability to save products in their carts for a streamlined and organized shopping journey.
Accessible Discounts: 56% seek ease in finding discounts, enhancing the affordability and attractiveness of their purchases.
Cross-Site Price Comparisons: 54% value the capability to compare prices across different sites, ensuring they secure the best deal.
Convenient Mail-In Returns: 51% prefer the simplicity of mail-in returns, providing an additional layer of flexibility.
Product Comparison Features: 49% find value in tools that allow them to compare products across different sites, aiding in informed decision-making.
User-Friendly Checkout: 47% appreciate the ability to save checkout details in a user profile, expediting future transactions.
Extended Return Windows: 43% see the benefit of generous return windows, allowing them the flexibility to return items within a reasonable timeframe.
In recognizing these preferences, businesses not only tap into a substantial opportunity within the online shopping realm but also demonstrate an understanding of the nuanced requirements that define a truly convenient and customer-centric experience. By seamlessly integrating these attributes, businesses position themselves to thrive in the dynamic landscape of online retail. (Morning Consult, 2023)
Benefits of Omnichannel Payment Processing for Businesses:
In the dynamic landscape of retail, the adoption of an omnichannel payment strategy is imperative for sustained relevance. The heart of mastering omnichannel strategies resides in the embrace of an omnichannel payments ecosystem. This pivotal step not only unlocks untapped revenue potential but also acts as a shield against obsolescence in the face of a constantly evolving market. A strategic alliance with a payment processor adept at
facilitating seamless integration across all channels becomes not just a choice but a forward-thinking move.
Omnichannel: Access Anywhere, Anytime
Providing a consistent payment experience across in-store, online, and mobile channels is pivotal. Omnichannel payment processing, adaptable to various devices, ensures a smooth payment process, enhancing convenience and customer experience.
POS Products Connectivity and Synchronization
Beyond payment processing, seamless synchronization between POS products for onsite and online orders is critical. This synchronization allows real-time management of inventory, tracking of sales, and processing of orders, minimizing overselling risks and enhancing operational efficiency.
Retail Capabilities
A distinguished payment processor extends beyond conventional transactions, offering a comprehensive suite of retail-focused capabilities. This includes advanced inventory management, CRM tools, loyalty programs, and robust analytics. Understanding customers, personalizing marketing, and fostering loyalty become integral aspects of the retailer’s toolkit.
Seamless Integration
Efficiency begins with seamless integration. A proficient payment processor assists in seamlessly integrating payment processing with essential business systems, from accounting software to e-commerce platforms. These integrations streamline workflows, reduce errors, and optimize overall efficiency, tailoring the payment processing experience to specific business requirements.
In a world where everything is interconnected, understanding consumer behavior across diverse touchpoints is paramount. Retailers must leverage data to personalize the shopping experience, acknowledging that consumers research online before purchasing and traverse multiple touchpoints, from in-store to mobile, social, and live selling.
Collaborating with reputable payment processors like Payarc is crucial. The upcoming launch of Curv for retail signifies a commitment to empowering businesses with comprehensive solutions, seamless integration, and personalized support. While Curv is a recent addition, it inherits the solidity of Payarc’s reputation as a trusted payment processor.
To unlock the full potential of Curv and propel your retail business to new heights, contact us today. Our team of experts stands ready to guide you through the process, answer queries, and tailor solutions to your business needs. Experience the transformative benefits of Curv and position your business for sustained success.
Cash discount and dual pricing regulations updated in 2023. As the payment processing industry continues to evolve, the need to find ways to cut costs and improve profits increases. Thin margins like a small percentual fee per transaction can add up for business owners. These are especially hard on small or new businesses. Businesses are now seeking to streamline payment processes and reduce costs, making dual pricing a popular solution.
For merchants, dual pricing applies as a cash discount — a price reduction offered to customers paying with cash. Dual pricing and cash discounts are also sometimes referred to as zero-cost processing. The discount amount is then subtracted from the total, reducing the amount that the customer owes.
Cash discounts are popular because they offer a lower-cost option for the customer. This also offers businesses a way to cut down credit card processing costs. On the downside of cash discounts, there is the potential for merchants to abuse the system. They may also need to spend the money to invest in a new POS system as some POS systems don’t have that option to do so. It can also cause confusion and dissatisfaction in customers who don’t want to pay more for using a credit card.
There are also federal and state laws in place regarding dual pricing. Therefore, compliance is necessary for any business using these payment strategies. Failure to comply can result in legal issues and financial penalties. There are a handful of benefits for businesses that follow transparent business practices in regulation with federal and state laws. Businesses can enjoy this pricing model by working with payment processing companies, such as PAYARC, to ensure they’re offering compliant payment strategies.
Explanation of Cash Discount and Dual Pricing
Customers can receive a cash discount when they pay with cash instead of using a credit or debit card. The main purpose of a cash discount is to cover the payment processing fees by passing them onto the customer. This discount typically applies as a percentage of the total purchase price and covers the transaction fees for the merchant. Although 80% of consumers prefer to pay with card over cash, 88% still use cash, making it increasingly important to offer this option. The payments industry no longer uses the term “cash discount,” and now favors the more descriptive term of “dual pricing.”
For example, a restaurant might offer a 4% cash discount to customers who pay with cash. Meaning, if one of their tables run up a $100 bill and pay with cash, they’ll receive $4 off their total check. Dual pricing has been happening at gas stations for some time now. It is also in different iterations such as online vs brick and mortar.
Since up to 183 million Americans have credit cards, it’s important for businesses to cut down on their transaction fees to save money as much as possible. Implementing a cash discount program is wise for businesses as credit card companies continue to increase their rates. In 2022, Visa and Mastercard raised their credit card fees even more for merchants. The cash discount pricing strategy is not only ideal for businesses, but for customers too. As inflation hits a record high, 70% of households are cutting back on unnecessary purchases to cover the high costs of basics.
PAYARC – Navigating Cash Discount and Dual Pricing
The Difference Between Cash Discount and Surcharges
PAYARC – Navigating Cash Discount and Dual Pricing
It’s easy to confuse cash discount and dual pricing with surcharges, but they are different pricing models. A surcharge, compared to a cash discount, is an additional fee that businesses charge customers who use credit cards to pay for their purchases. This fee is meant to offset the transaction fees that the business pays in processing the card payment.
For example, if a business has to pay a 3% transaction fee, they might add 3% surcharge to the total purchase price for customers who use credit cards.
It’s important to note that cash discounts are legal in all 50 states, while surcharges are only legal in some. Currently, credit card surcharges are illegal in Connecticut and Massachusetts.
Understanding and Complying with Cash Discount Regulations
Businesses that offer cash discounts or surcharges must understand and comply with the policies related to these pricing strategies. Otherwise, they can be penalized. For example, businesses that offer surcharges must abide by the Dodd-Frank Wall Street Reform and Consumer Protection Act. This act requires that any surcharges be disclosed to customers in advance. The surcharge amount must also be reasonable and not exceed the cost of the transaction fee.
PAYARC – Navigating Cash Discount and Dual Pricing
Rules and Regulations
Federal Regulations
Dodd-Frank Act
The Dodd-Frank Wall Street Reform and Consumer Protection Act requires businesses that offer surcharges to comply with certain disclosure requirements. Businesses must disclose any surcharge to customers in advance. They also must limit the surcharge to the amount that the business pays in transaction fees. Businesses that offer cash discounts must ensure that the discount is clear to customers and does not discriminate against customers who choose to pay with credit.
Electronic Funds Transfer Act
The Electronic Funds Transfer Act (EFTA) – a federal law that establishes the rights and liabilities of consumers and financial institutions when there are electronic fund transfers. The EFTA allows businesses to offer discounts to customers who pay with cash, or other non-electronic methods of payment. However, the EFTA also prohibits businesses from charging customers extra fees for using electronic payment methods.
Truth in Lending Act
The Truth in Lending Act (TILA) is a federal law that requires lenders to disclose the terms and conditions of credit to borrowers. When businesses offer discounts for cash payments, they must ensure that the terms and conditions of the discount are clear to customers in compliance with TILA.
State Regulations
Specific State Laws
Some states have specific laws related to cash discounts. For example, in California, a business must provide customers with written notice of any cash discount program. The notice must include the amount of the discount and the price charged to customers who don’t pay with cash. Additionally, California law prohibits businesses from charging a higher price for goods or services to customers who pay
with a credit card compared to those who pay with cash.
In Texas, businesses are need to provide customers with written notice of any cash discount program. It must also prominently display signs indicating that a cash discount is being offered. The notice must specify the amount of the discount and the price charged to customers who aren’t paying with cash. Other states, such as Florida,
Indiana, and Oklahoma, have similar requirements for cash discount programs.
It’s important for businesses to be aware of state-specific regulations regarding cash discounts. This is especially important if they operate in multiple states or have an online presence that serves customers across state lines.
Licensing Requirements
Other states require businesses that offer cash discounts to obtain a special license or permit. For example, in California, businesses must register with the state’s Department of Business Oversight if they want to offer a cash discount program. The registration process involves completing an application, paying a fee, and providing certain information about the business and its cash discount program.
Similarly, in Texas, businesses that want to offer a cash discount program must obtain a permit from the state’s Office of Consumer Credit Commissioner. The permit application requires the business to provide information about its cash discount program, including the amount of the discount and the price charged to customers who don’t pay with cash.
Other states may have similar licensing or registration requirements for cash discount programs. Therefore, it’s important for businesses to research the requirements in their specific state(s). They must also ensure that they’re properly licensed or registered before offering a cash discount program.
Compliance Requirements
Compliance requirements remain simple to follow and it’s important that businesses do so as card companies (especially Visa) often deploy secret shoppers to make sure merchants are complying with regulations. Merchants found not complying will get penalties and fines. Two important compliance regulations they might be looking are disclosures and transparency:
Disclosures
Businesses that offer cash discounts must disclose the terms and conditions of the discount to customers in a clear and conspicuous manner. This includes disclosing the percentage of the discount, any limitations on the discount, and any fees or charges that may apply. Additionally, businesses that offer surcharges must disclose the surcharge amount to customers in advance as well.
Transparency
Transparency is a key requirement for businesses when offering cash discounts. Customers must be able to easily understand how the cash discount works and how it’ll affect their total transaction cost. Businesses must also ensure that their pricing practices are transparent and don’t mislead or deceive customers. For example, a business can do this by having a sign in plain sight by the cash register with all the necessary information about their dual pricing.
Ensuring disclosures and transparency in cash discount programs isn’t only a regulatory requirement but also a way for businesses to build trust with their customers. By providing clear and honest information, businesses can create a positive reputation and increase customer loyalty.
Non-discrimination
Non-discrimination is an important aspect of compliance when offering cash discounts. Businesses must ensure that they don’t discriminate against customers who choose to pay with credit. This means that the cash discount must be offered to all customers who pay with cash, or other non-electronic methods of payment.
For example, if a business offers a 3% cash discount, the discount must be available to all customers who pay with cash. The discount cannot be used as a way to charge credit card customers an additional fee or to discourage customers from using credit cards. Non-discrimination is required by federal regulations, such as EFTA, which prohibits businesses from charging extra fees for using electronic payment methods.
Be sure to check out our next blog about the benefits and best practices of compliance.
Payment gateway providers invest millions of dollars in their tech to make integrations faster and easier. These integrations improve developer’s business models, and the merchant and customer experiences— a win for all! These software industry trends show why (among many other reasons) software companies like you should partner with payment processors like PAYARC and become ISVs.
5 software industry trends every ISV should look out for this year
Omnichannel Experiences
People lead busy lives and seek simplicity so it’s no surprise that consumers want omnichannel experiences. According to Salesforce, 40% of customers say they won’t use companies that don’t offer an omnichannel strategy.
An omnichannel experience is the process of accepting multiple payment methods, integrated into one single experience for customers. Integrated payments allow customers to pay how they want. For example, an invoice could be sent to a customer’s phone, or a card put on file for recurring payments.
As we dive deeper into 2023, integrated payments are one of the software industry trends to watch. Integration not only simplifies the merchant/customer experience, but it also acts as a security measure. When a customer pays using an external, non-integrated payment processor, their financial data becomes at risk of being compromised.
New Methods of Payment
Digital methods of payment have been on the rise in the past few years and aren’t stopping any time soon. By the end of 2022, consumers used digital wallets 10 percent more than the previous year. Software industry trends like this are important in understanding buyers’ spending behaviors and growing with them.
So, what does this mean for software companies? When digital payments are accepted, it speeds up the process, making everyone happier. It also minimizes the security risks that using a physical card poses like card scamming.
Dedicated Customer Support
Having good customer support is vital for any business this year. It’s reported by more than a quarter of Americansthat ineffectiveness is their top customer support complaint. This software industry trend shouldn’t be overlooked as dedicated customer support has become the gold standard.
AI will continue to advance and start to act as a replacement for some human customer support teams. For example, chatbots and voice assistants replicate human agents via automated systems. This’ll allow businesses to provide better support for their customers as the advancements in technology continue. According to another report, 12% of Americans said their top support complaint is slowness, AI will help with that.
Robust Security Measures
Another important software industry trend is how more vigorous security measures are getting. According to the Federal Trade Commission, in 2019, identity theft accounted for 20.33% of the 3.2 million fraud cases. From 2019 to 2020, those numbers more than doubled and have been rising ever since.
Security breaches are unfortunately common in this digital age, but there’s help in preventing them. Partnering with a PCI Level 1 DSS compliance certified payment processor will guarantee customer data is protected.
Advanced Developer Tools
Continuing on the subject of AI, better developer tools are another one of the software industry trends to follow. AI-assisted programming tools (like GitHub and Amazon CodeWhisperer) will grow in popularity as the year progresses. Though they aren’t set to replace humans right now, they will assist coders in generating code.
It’s also predicted that AI and APIs will work hand in hand, but who’s to say how soon that’ll happen. Software companies who partner with a payment processor get to integrate their platforms and streamline their billing experiences. If you want to stay on track for success, finding the right payment processor will help with your API needs.
What does the future of the software industry look like?
Omnichannel experiences, multiple methods of payment, dedicated customer support, robust security, and tech advancements…this is the future of software! Staying on top of these trends is crucial in keeping your software platform up to date and held to the standard. Gone are the days of using multiple software systems, cash only, poor customer support, identity theft risks, and weak APIs.
How PAYARC can help you stay up to date with the software industry trends this year
We here at PAYARC have made it our mission to provide tech that makes integrations fast and easy. These integrations improve developer’s business models, as well as the merchant and customer experiences. Partnering with a payment processor and becoming an ISV is important for software companies — we’re here to be that partner.
Are you ready to expand your software company in 2023? Talk to one of our specialists today!
To successfully embody fintech’s growth as an organization, the rebrand includes a new look, logo, and website across all platforms.
“PAYARC has evolved from a traditional payment processor to a technology-focused payment solution provider and our new branding reflects this”
— Zachary Martinez
GREENWICH, CT , UNITED STATES, January 12, 2022 /EINPresswire.com/ — PAYARC, a leading provider of integrated payment technology, announces today it is changing its image to reflect the organization’s growth and transformation from an innovative payments company to its position today as a leading technology and solutions provider in the financial space.
Since 2016, the company has established itself as the leading provider of payment solutions.
“Jared Ronski and I started PAYARC because we saw an opportunity to help merchants with best-in-class support and provide clear and transparent pricing” said Zachary Martinez, co-founder, and CEO of PAYARC. “While we continue to do this, PAYARC has evolved from a traditional payment processor to a technology-focused payment solution provider and our new branding reflects this”
In the last year, they have experienced tremendous growth in technology, products, partners, and human resources. PAYARC is not only a payment processing provider, it’s a one-stop solution for merchants and businesses of all sizes. Among their offerings, you can find business tools, insights, and real-time data to improve the future of your business. Solutions to manage every aspect of your organization – payments, invoicing, subscriptions, sales, customer insights, and more.
The rebranding includes a new website, logo, and user experience. The new easy-to-navigate and attractive website has extensive information about their products, services, and offerings. Overall, it provides a simpler, more effective experience to promote consistency across all audiences, and shows a full collection of adaptable business tools and features to build the right solution at any scale.
For more information about PAYARC, please visit: payarc.com
About PAYARC
PAYARC provides payment processing solutions to all types and sizes of merchants. With the latest technology, best practices, and transparent pricing models, we allow businesses to streamline their payment processes and focus on what really matters.
Their platform provides access to everything customers need to make seamless payments. This one-stop tool allows companies to move faster, work smarter, and make better decisions, one payment at a time. PAYARC powers more than $2 billion in transactions annually and operates with the support of more than 300 trusted partners.
PAYARC is unique in that it crafts custom solution models for each client. Their team works directly with clients to understand their business, goals, objectives, and needs, to cater personalized solutions so they can enjoy having a simple and efficient payment process.
By now, holiday online retail trends should be no surprise to merchants: both sales volume and fraud rise dramatically. Last year, fraud attempts were up over 30% during the holiday season, and the trend is sure to continue in the 2017 holiday shopping season.
Merchants should keep tight reigns on fraud prevention and risk mitigation year-round; however, the holiday season often calls for extra measures. While we’re still several months out from the peak period, merchants need to start thinking about fraud prevention measures now to be prepared in time. We’ll break down nine different ways online merchants can prevent fraud this holiday season – and beyond.
MasterCard SecureCode and Verified by Visa – These are both 3D Secure protocols that ensure the person attempting the purchase is the owner of the card prior to authorization. Not only do these tools cut down on fraudulent transactions, but they boost consumer confidence that their information is being verified and protected.
Address Verification Service (AVS) – This is another tool that validates whether the person using the card is the cardholder or not. It works by validating the billing address offered at the time of purchase with the one on file with the issuer during authorization. If the authorization is approved and the AVS response indicates a match, merchants can proceed with the transaction.
Card Verification Value 2 (CVV2) – This protocol requires the purchaser to enter the three-digit security number printed on the back of a Visa card to verify that the customer making the purchase is in possession of the actual payment card.
Tokenization – Payment tokenization eliminates the need for merchants to handle or store payment data. Instead, sensitive payment data is replaced with a unique identifier – called a “token” – while the actual payment data is stored in a third party data center.
Chargeback alerts – Some third party solution providers offer chargeback notifications that alert a merchant when a dispute is filed with an issuing bank in the solution provider’s network. This gives the merchant an opportunity to handle the dispute directly with the customer rather than after the entire chargeback process has already occurred. Since chargebacks result in fines and penalties for merchants, it is optimal to address disputes before they turn into chargebacks.
Device fingerprinting – A device fingerprint is a pattern of online behavior that is identified and attached to a particular device. It can be used to identify devices which have previously been known to commit credit card fraud or online identity theft, making it easy to block purchases and transactions from those devices.
IP geolocation – IP geolocation can be used to identify anomalies in CNP transactions that may signal fraud. For example, if a billing address and zip code associated with Chicago is entered during the purchase authorization, but the IP address is located in Brazil, this could signal possible fraud. Depending on the type of tool, it may block the transaction altogether or route to a manual review team for further research.
Behavioral modeling/profiling – Some third party payment solution providers have created algorithms based on machine learning technology that enable behavioral modeling and profiling. This rules engine can identify and detect potential fraud based on anomalies to established behavioral patterns associated with payment card data. When “out-of-the-ordinary” patterns or behaviors are identified, the engine alerts the merchant to the inconsistency. From there, merchants can decline the order or submit to manual review for further authentication.
Big Data – Merchants can tap into multiple data sources in real-time to identify inconsistent or anomalous transaction behavior. Some tools gather social data to detect inconsistencies in location or other identifying information. Some solution providers offer access to negative information databases and behavioral databases, which merchants can use to sniff out suspicious orders and route them for additional verification or review.
The best bet for merchants looking to curb fraud this holiday season is to employ a tailored combination of some of the tools and protocol listed above depending on their unique needs. There is no silver bullet when it comes to fraud prevention, but having a fine-tuned, layered suite of tools that can be adjusted in real-time proves to be the most effective strategy.
Offering $1 trial offers is a great way to acquire new customers and enable people to try your product or service at a discount. It’s a lucrative business model for subscription and continuity merchants who offer products and services at a recurring fee. While it has several financial benefits, this model also has some drawbacks. Here’s everything you need to know if you’re considering running a $1 trial offer to promote your products or online services at a discount.
The Benefits of $1 Trial Offers
A survey by Vantiv and Socratic Technologies found that 92% of millennials have active subscriptions online, which means that $1 trial offers are still very feasible ways to ramp up your revenue. Plus, millennials are all about investing in experiences rather than things, and a recurring payment subscription model with discounts offers customers an affordable alternative to buying the same product online every month.
Having the $1 trial option alone is a great way to get more consumers interested on your product as it is more likely to push potential customers to click the buy button. In fact, having a $1 trial can draw in more customers than a free trial due; once a customer invests money—even as little as $1—the chances that they will stick around beyond the initial trial increase.
A $1 trial offer is also a clever way to market products. It eases people into the financial investment with a deep discount and allows them to try a new product or service they may be interested in but may not have otherwise tried. This often results in increased customer loyalty over time, boosting recurring revenue. Recurring revenue is predictable revenue—an enticing benefit for merchants.
The Downside of $1 Trial Offers
Some companies that run $1 trial offers can get into trouble when it comes to chargebacks. The process of accepting and processing recurring card transactions can lead to a higher amount of chargebacks than other models. In some cases, the terms and conditions of the trial are not clearly delineated and consumers get charged for their second month without realizing that they have opted into a recurring service.
When this occurs, friendly fraud swoops in and can take a bite out of profits. When a customer doesn’t recognize a charge on their monthly billing statement, they contact their issuing bank to report a fraudulent charge. If the issuing bank rules in the customer’s favor (they typically do), the merchant is left with a messy chargeback. Not only have they lost the customer, but they’ve lost the money they have to refund, the product or service that the customer received, and they have to pay fines and fees associated with the chargeback.
Getting hit with too many chargebacks can push a merchant to a chargeback monitoring program, which costs even more in terms of money and reputation.If this happens too frequently, a merchant can lose its merchant account. A lost merchant account can be the death of a business.
It’s also important to consider whether your product or service merits a $1 trial offer. A site membership that offers digital content or physical products at a discount with the subscription model is more profitable with the $1 trial offer than the alternatives. As long as consumers know what they’re getting into, $1 trial offers can be very enticing and they can drive up your customer conversion rates, save you unnecessary marketing costs and increase your revenue stream.
Merchants offering $1 trial offers should find a merchant services provider that has the ability to manage and minimize chargebacks, reduce card declines and have a cost-friendly model (charging you every month or quarter, rather than for every transaction). Some questions to consider when looking for a payment processing partner include:
Will I be able to access an intuitive dashboard to track subscriptions (including upsells, downgrades, and cancellations)?
Does the gateway integrate with my current sales system?
Does this provider have experience with true and friendly fraud chargebacks and can they help manage and advise on strategy for both?
Can they help me minimize card declines and help reduce churn?
Do they offer excellent customer support and will they respond promptly to any issues arising out of “$1 trials” including card declines and chargebacks?
Our team at PayArc says “yes” to these and more. We offer payment processing solutions for businesses of all sizes along with top-tier customer support. Contact us today if you’re in need of a top-tier payment processing services provider.
The holiday season is the most important time of the year for online businesses. While an increased number of shoppers are perusing ecommerce sites, an increased number of bad actors are, too. Even though Christmas is behind us, the holiday selling season is not over. Many consumers will take advantage of post-holiday sales and begin redeeming gift cards received during the holiday season (typically spending more than the gift card amount). Without the right ecommerce fraud prevention tricks, merchants are at risk for serious losses. It’s important to have the right tools in place to combat fraud year-round, but merchants are especially at risk during this busy time of year.
ACI Worldwide found that attempts to commit fraud online during the 2017 holiday season increased by 22% year-over-year. Additionally, the company found that overall online transactions were up 19% compared during the 2017 holiday season compared to the 2016 one.
This research helps to paint the picture of how prevalent fraud is in the online retail world nowadays as cybercriminals capitalize on ecommerce sites’ vulnerabilities. Here are the best ecommerce fraud prevention tricks your business should implement for the holidays.
Clearly Defined Rules and Communication
Every person involved in helping your online business run smoothly should be trained to identify potentially fraudulent activity. They should also know how to handle these situations, including working with other departments in separating true fraud attempts from false alarms.
One of the top ecommerce fraud prevention tricks is to create checklists designed to minimize risk. These checklists can be shared with team members and help to identify situations that may throw a “flag”. This may include an unusually high number of orders originating from a certain location, inconsistent patterns in purchasing behavior, or other suspicious activity. Staff should also be aware of processes for approving and declining orders as well as escalation paths for each situation.
Ideally, business owners should train each staff member to understand the fraud-prevention tools that have been implemented. This can streamline operations when orders are rushing in. It is much easier to maximize legitimate sales if each team member knows how to identify potential fraud and react to suspicious activity to prevent chargebacks and loss merchandise from taking a bite out of business.
Similarly, every team needs to be aware of what is going on during the holiday season from a marketing perspective in order to identify whether or not online traffic increased due to holiday promotions and coupons or nefarious activity. Everyone should be aware of new product releases and volume expectations to ensure that legitimate sales are not being declined due to a misunderstanding.
This is one of the most important ecommerce fraud prevention tricks as keeping the lines of communication open across multiple teams can help every staff member identify and flag fraudulent activity in real-time.
Monitor Transactions and Fine-Tune Fraud Controls
The best ecommerce fraud prevention tricks help merchants stop fraud and chargebacks, saving thousands of dollars in losses during the holidays. Monitoring sales during the holidays is integral. Ecommerce businesses should monitor accounts and transactions for any potential red flags, including billing information that differs from the shipping address.
Automated fraud prevention tools run the gamut. Consider implementing tools that identify customer IP addresses. Geolocation tools can identify transactions originating from a country that is known for fraudulent activity. Alternatively, they can also identify “high-risk” IP addresses that have been flagged for fraudulent activity in the past.
Minimize False Declines Without Sacrificing Security
Flagging “unusual” activity can be a slippery-slope for businesses during the holidays and may hamper seasonal earnings potential if fraud controls are too strict. Merchants can research the types and patterns of transactions the business experienced during the previous holiday season to help anticipate what may be expected this year. These learnings can help inform settings for fraud tools to ensure that legitimate transactions are not unnecessarily declined.
Also consider additional steps to take rather than declining a suspicious transaction outright. Instead of flagging a transaction or escalating a dispute, merchants can request that the customer authenticate themselves through additional means to confirm their identity. There should be a healthy balance between enabling frictionless transactions and properly authenticating customers. Onerous checkout experiences can impede on the customer experience and damage a brand’s reputation.
Bulking up customer service teams another way to manage customer expectations and reduce fraud. Having a well-staffed team to handle customer questions and concerns can alleviate the stress customers feel, leading to a better brand experience. It can also reduce post-holiday chargebacks from customers who use the dispute process because they were unable to easily contact a business for returns or other issues.
Our team at PayArc can help you enjoy a smooth and profitable holiday season as we implement the top ecommerce fraud prevention tools in the industry. Contact us today to see how we can help your business reduce fraud and boost sales this holiday season.
There are plenty of merchant account providers out there to choose from, making it a difficult task deciding which one is right for you. Different business models require different considerations to ensure that payments are optimized and payment processing costs remain low.
Working with a trusted merchant account provider can help a business streamline payments for customers without breaking the bank. The key is finding the right fit, not only in price, but in an advisory capacity as well.
Here’s what you should consider when evaluating merchant account providers.
Consider Fee Structure
There are several different types of payment processing rates offered by merchant account providers. Interchange plus pricing represents the interchange rate that payment processors pay for each transaction plus a markup. In this way, payment processors pass along the fees they pay plus an additional markup to the merchant. The markup will vary among merchant account providers, so it’s important to look for a rate that is reasonable for your business.
Other pricing structures include tiered pricing and blended pricing. Each type of pricing has different considerations so it’s important for merchants to do their homework, ask questions, and consider any other fees that may be insured before signing on with a merchant account provider.
Additional fees to consider include application fees, per-transaction fees, monthly minimums that affect your fees, voice verification charges, address verification fees, statement fees and more. Most merchant account providers will be flexible in terms of how they present your proposal, which could result in a lower discount rate with a higher per-transaction fee if your average ticket price is on the low side but your transaction volume is high.
Consider the Equipment
You should also pay heed to how much your merchant account provider is charging you for the equipment and the software to process your transactions. The price of equipment can vary in cost among multiple processors by hundreds of dollars, even for the same piece of equipment.
Some merchant account providers may offer the option to purchase equipment outright or to purchase term-contract with the equipment. Each options has different benefits and drawbacks, depending on the needs of your business, so be sure to get clarity around the pricing and features of each before signing a contract. Make sure you research the equipment and software you’re using as well; a good merchant account provider will be able to answer your questions and make recommendations in terms of the best equipment fit for your business.
Choose a Dedicated Your Merchant Account Provider
Take note of how hands-on a merchant account provider is during the application process. Some merchant account providers simply offer merchant accounts, pending a successful application. Other merchant account providers provide additional benefits and act as a trusted advisor in dealing with everything from chargeback management to fraud prevention and more.
The response time of your merchant account provider matters a lot too as it can affect your business’ customer service levels. Consider whether or not the merchant account provider is available 24/7 or if there will be long wait times to get a hold of someone who can help. Is the merchant account provider knowledgeable in all areas of payment processing or can they only help answer questions about certain things?You know your business better than anyone else, but it can be helpful to retain a merchant account provider that is invested in learning your business and helping to optimize payments.
Reputation and Communication Matter, Too
When choosing a provider, listen to what they have to say and focus on the level of detail they’re providing you with from the start.
Your merchant account provider should keep you informed of any changes in their policies, new laws that affect credit card practices and promotions that can help you save money. Ask about their communication with you and how these would work, as well as what features and services they offer.
When evaluating merchant account providers, look at each option holistically. While rates are important, they should not be the only measuring stick when it comes to finding a trusted partner. Look at quality and speed of their services, rates and fees, and level of customer service. You want to strike that perfect balance between experience, quality and affordability that very few providers can actually offer. The best merchant account providers will understand nuanced business models and be able to offer sound advice on the best way to streamline payments.
Visa has specific interchange for transactions that occur using an international card in a card-not-present environment. The term“Card-Not-Present” refers to credit card transactions where the card is either keyed in (as in, the EMV chip is not inserted into the terminal or the magstripe isn’t swiped through the terminal) or the transaction is taking place online (where there is no terminal). These transactions tend to have higher interchange rates because they are more susceptible to fraud.
Visa refers to international card-not-present interchange rates as “international secure ecommerce interchange rates.” The rates change depending upon what type of card is used.
Secure eCommerce refers to online transactions that take precautions in protecting cardholder information by checking AVS or asking for the CVV. If someone uses a Visa Classic (the simplest credit card Visa offers, offers no rewards), Visa Gold (Visa’s mid-level credit card) or Electron (a Visa debit card that cannot be overdrawn – this card is not available in the United States), then the interchange rate for a secure ecommerce transaction is 1.44%.
If a customer uses a Visa Signature or Visa Premium(higher spending limit, cardholder benefits) card, then that interchange rate is 1.80%. For Visa Infinite, a card offered to cardholders with a high net worth that comes with a range of luxury benefits, the rate is 1.97%. Finally,the rate for a commercial Visa card is 2.00%.
It is useful to be aware of these rates, particularly if you run an online business that sells mostly to international consumers.Similarly, it is recommended that you take some precautions to protect cardholders from fraud; e.g., make sure that your transactions are secure according to Visa’s rules and regulations, so that these rates don’t increase even more.
