Industry Insights - PAYARC

Optimizing Payments for Your Natural Products Ecommerce Store
Natural Products. Can anyone define the term with certainty? Merriam Webster doesn’t even try. Oh, you can find “natural food,” “natural price,” and “naturalist” in their dictionary. You’ll also find the word “product.”

But you won’t find the compound term natural product — though if you continue searching on the Internet, hundreds of results appear. You’ll even find journals and conferences touting the natural products industry.

Search results show many pages of links including how to: sell natural products from home — sell health products — sell herbal products — and start a health food store online. Then there’s nutraceuticals, a word that regularly appears in listings for natural products ecommerce shops.

In this instance, our friends at Merriam Webster deliver: Nutraceutical, “a foodstuff (such as a fortified food or dietary supplement) that provides health benefits in addition to its basic nutritional value.”

So, dietary supplements, multivitamin supplements, organic foods, and healthy snacks… along with allergy-free, dairy-free, and gluten-free foods… and any number of items that don’t affect your stomach (like natural beauty products) fall into the natural products ecommerce domain.

The popularity of natural products reflects ever-increasing consumer interests in self-care, personal wellness journeys, and a return to real-food based natural products.

As a merchant targeting the expanding consumer base focused on living a healthy life, know that optimizing online payments processing can make or break your eCommerce success… A truism for new merchants as well as existing shop owners adding eCommerce sales.

Let’s take a look at what to know about optimizing payments for your natural products eCommerce store.

Natural Products Ecommerce Market

Merchants pursuing dreams in the natural products eCommerce sector joined a high-growth worldwide industry. Yet broad consumer perspectives about “what’s natural” make reporting of actual market size tricky.

Nonetheless, Statista reported that sales of just one category in the natural products ecommerce market — vitamins and nutritional supplements — were expected to top $36 Billion in 2017. In addition, sales of natural and organic food and beverages were $40.5 Billion in the U.S. alone.

Savvy natural products ecommerce marketers know that consumers gravitate toward (and purchase!) products labeled “all natural.” The Euromonitor Global Consumer Trends survey (2016) proved not only that, but also consumer willingness to pay more for products carrying such labels.

Explosive Market Growth and Payments Challenges

Along with celebrating the natural products market explosion, there’s one potential down side to the sector that savvy merchants need to recognize: Banks and some processors attach a high risk label to the sector.

Consider the product lines offered by natural products eCommerce shops. Some include merchandise subject to FDA approval and government regulation, such as food labeling and dietary supplements. Some service providers steer clear of regulated industries, while others don’t.

Also, natural products eCommerce business models include sales and marketing strategies like trial offers and subscription services (with recurring billing) — payment types that can lead to high chargeback rates. And they can be costly for everyone involved: banks, processors, and merchants alike.

Counter the risk by taking steps with your website content, business processes, and data handling so that you can accept payments online to turn a profit. Step one is to arrange a natural product merchant account.

Consider it a “must have” to build and grow your natural products eCommerce business.

Land an Individual Merchant Account

The best way to land a merchant account for your natural products eCommerce business is to demonstrate that you’re a serious, stable, organized, and responsible merchant. Once your merchant account is set, you’re ready to get payment processing up and running.

Look for these payments capabilities to help your natural product eCommerce business thrive:
- A secure online payment gateway offering risk management solutions to prevent CNP fraud and stop damage to your natural products eCommerce sales. Be sure the gateway is Level 1 PCI-DSS compliant.
- Multi-currency payment options that allow you to explore international markets. That alone enhances your market reach efficiently.
- Robust reporting capabilities that include high level, easy to read reports and granular data mining capabilities.
- If your business plan includes wholesaling your products to other retailers, be sure to seek a merchant account that allows sufficient monthly volume for the wholesale trade.
- To grow even more, consider Independent Sales Organization (ISO) status, if your payment processor supports it. You may find more pricing flexibility by referring their products to other merchants.
Optimize Payments with PayArc

When you need a scalable eCommerce payment solution that both saves your money and gives you peace of mind, look no further than PayArc.

Our mission is to bridge the gap between online merchants and payment solutions — for all types and sizes of merchants. Natural products ecommerce merchants included.

PayArc’s industry leading payment processing solution gives you all the tools you need to start accepting payments online, while lowering your risk to fraud and giving you some of the lowest rates in the industry. (To us, great pricing means no monthly fees and no cancellation fees.)

We leverage strong industry relationships… developed over decades in the payments industry… to help you land an individual merchant account so you can start processing payments quickly and securely.

Along with quick turnarounds, we offer great customer service.

Because PayArc wants to act as your payments advisor and consultant, not only your processor. You have a business to run… Our business is to help you run it better. Why not start processing with PayArc today?
Payarc

November 15, 2021

Industry Insights

payment-processing
PAYARC Integration With Planet Payment

In a dynamic, increasingly connected world, consumers abroad may want to buy your products or services. This can sometimes prove to be a problem, because not all payment processors provide the ability to accept foreign currency. If you sell online, there is no doubt that foreign consumers will stumble upon your website. Luckily, with PayArc’s integration with Planet Payment,our merchants can do just that, and grow their business by competing in the global market.

According to thebalance.com, in 2018 the U.S. exported $2.5 trillion worth of goods and services overseas. There are plenty of opportunities to sell to consumers abroad, and that can only be good for your business—particularly if your business is a service (which comprises one-third of U.S. exports), and you don’t have to pay shipping costs for the performance of that service. U.S. services that were exported the most were travel, computer, business, and financial. All of these services are supported by PayArc and backed by our experienced team. Widening the net to include global consumers can only help your bottom line.

Planet Payment is an international payment processing platform that allows consumers to browse and pay in their own currency. They currently serve 47 different countries, support 150 currencies, and process over 10 billion Euros in transactions. They offer risk management solutions like security audit reporting of individual users and IP blocking to limit remote access for the peace of mind merchants who process with PayArc need,while also supporting new technologies and keeping up with changing industry standards and market nuances.

Planet Payment “provides the flexibility to deliver solutions tailored to meet the specific needs of Acquirers and Merchants in both established and dynamic emerging markets around the world.” With this integration, PayArc expects our merchants will have amuch easier time reaching and selling to foreign consumers so that their foreign payments will be processed as they should be: Simply.

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Payarc

November 15, 2021

Industry Insights

international-payments; payment-processing
Pricing out Payment Processors? Don’t.

It’s not uncommon for both novice and seasoned business owners to get caught up in payment processing rates. Fees associated with payment processing can add up to an undeniably substantial amount.

That said, there is far more to consider when it comes to accepting payments than payment processing rates alone. Sure, merchants should aim to get the best rate possible, but not in foregoing other important factors that can make or break their business.

As ecommerce develops, so does payment processing. In this era, there are specialized payment processors that help merchants of all types and sizes – and that cater their rates accordingly. It’s also important to note that cheaper isn’t always better. Some processors offer unbelievably low rates, only to ding merchants with hidden fees or penalties.

While finding a processor with reasonable fees makes sense, it’s also important to look holistically at the services and support provided. Merchants should engage with payment processors that can cater to their needs on multiple levels.

Beyond Pricing: Finding Your Advocate for Success

Finding a true payment processing partner means finding someone that will advocate on your behalf – with acquiring banks, issuing banks, and card networks – for your success. This may come in many different shapes and forms, which we’ll explore below.

Chargeback and Fraud Prevention Tools

Regardless of your industry and business model, chargebacks and truefraud will always be imminent risks if you accept CNP payments.

The card networks originally introduced chargeback protections to help consumers guard against unscrupulous sellers. Unfortunately, the convenience of initiating chargebacks has led many consumers to do so fraudulently and unnecessarily.

Misuse of chargeback protections paired with real instances of true fraud can be damaging to merchants. As many as 86% of all chargebacks are cases of friendly fraud, resulting in losses that will surpass $31 billion by 2020. It can be a headache to untangle true and friendly fraud, which is why working with a processing partner can streamline the process and save merchants millions.

Most payment processors leave merchants to fend for themselves when it comes to chargebacks, only participating by passing through fines and fees incurred from acquiring banks and the card brands. However, some reputable payment processors will provide expert chargeback management, helping you reign in chargeback ratios and avoid costly fines and fees.

These processors help merchants mitigate such risks by implementing adequate chargeback and fraud prevention tools and by acting as an intermediary should any chargeback issues arise.

Committed Customer Support

Technical hitches are pretty standard in the world of computers and software. Even a stable ecommerce site paired with a seemingly solid payment processing solution can run into issues from time to time.

Online merchants, in particular, have no room for failure when it comes to payments acceptance. Any downtime at all can mean the difference between tens to hundreds of thousands of dollars. Working with a payment processor that offers 24/7 customer support can save merchants millions in the long run.

This is especially true during peak seasons. The holiday selling season and other product-specific peak periods can be especially damaging times for payment gateways to go down. With sales volume highly dependent on reaction time, such a crisis requires immediate mitigation. Your payment processor should have always-on availability, whether through email, chat, phone, or video chat.

Cross-Channel Flexibility

Your website is only a fraction of your business empire. If you intend to fully leverage the web for optimal growth, you need to be able to sell across other platforms. Social media sites, for instance, are promising hunting grounds for new prospects and customers.

Additionally, with overall global payment preferences spread among eight different online payment options, your processing partner should be able to provide multiple payment methods across the omnichannel.

Be sure your processing partner supports multi-channel integration along with a wide spread of payment options. This may include mobile app payments, which are becoming increasingly popular both in addition to and as an alternative to mobile web payments.

Conclusion

In the end, as they say, cheap is expensive and expensive is cheap. Only businesses willing to invest in the right payment resources will have the best tools for protection and increased growth.

So feel free to get in touch with us today, and let’s help you set up an effective payment solution at some of the best rates in the industry.

Payarc

November 15, 2021

Fraud Prevention, Industry Insights, Uncategorized

payment-processing
Replacing Your Terminal In 2020

The Verifone VX520, VX805, and Ingenico iCT220 have been a staple for brick-and-mortar merchants for some time now. Businesses like the design and the familiarity of these terminals, and people tend to go with what they know. Unfortunately, due to the PCI-DSS standards changing this year, these terminals are no longer considered compliant and the companies are discontinuing them instead of updating them. This means that support for these devices will be discontinued as well.

If you have one of these soon-to-be-obsolete terminals, this is the time to look into alternatives. At PAYARC, we offer a variety of terminal solutions to suit every merchant’s needs. Our picks for replacing the previously-mentioned devices are the Dejavoo Z11, the PAX A80,and the Ingenico Lane 5000.

Dejavoo Z11

This sturdy countertop POS device is ideal for an active business that needs reliability above all.The Dejavoo Z11 has a 2.4” color LCD display with a backlight and PCT touchscreen for signature to make transactions quick and simple. This device can also accept all forms of payment, including contactless, so your customers can pay in any way they want. It can also be programmed for cash discount! It can be programmed for dial-up, ethernet, or Wi-Fi, and can even scroll multiple images on the screen in idle mode for branding purposes.

PAX S80

Payment should be seamless and only take a few moments—you want your customer to remember how convenient your business was, and a simple payment transaction is certainly part of that. Luckily, the PAX S80 is here for just that purpose! The ARM 11 processor gives the PAX S80 a large memory capacity and the capability to support multiple payment applications, including the ability to process contactless transactions. The flexible platform makes performing transactions a breeze and is capable of being programmed for cash discount.

Ingenico Lane 5000

This terminal was designed with bustling retailers in mind. It is user-friendly with a 3.5” color touchscreen capable of signature capture and accepts all types of payment methods. It is held to the highest security standards without sacrificing transaction speed and integrates easily with most POS systems.

We understand that changing a terminal can be inconvenient to businesses. However, PAYARC is here to ensure that the transition from the old terminals to the new ones is as painless as possible.Call or email us today to make the switch!

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Payarc

November 15, 2021

Industry Insights, Technology

Terminals
Secure Processing Solutions: Payments Data Security Best Practices
Retail ecommerce grew to a healthy $409.208 billion in 2017, but that growth came at a price: 16.7 million reported victims of fraud in 2017 (6.64 percent of the US population). Unfortunately, this doesn’t come as much of a surprise. With both increased rates of ecommerce transactions and consumer data on the web, fraud is becoming easier and more accessible for criminals.

This is all the more reason for merchants to buckle down and get serious about payments data security. Merchants want customers to trust that their payments data is safe, otherwise these consumers may well take their business elsewhere. Investing in a secure payment processing solution is just the first step towards cultivating a reputation as a safe and trustworthy merchant. And as anyone who has experienced identity theft knows, getting your good name back is a tough uphill battle once it’s been compromised.

The Danger of Data Breaches

Data breaches are one of the top dangers for both customers and ecommerce merchants. These aren’t just limited to big businesses: approximately 90 percent of these data breaches will impact small merchants, according to a study by Trustwave.

And this comes at a big cost, especially for smaller merchants. PCI standards indicate that the average cost of a breach is $4 million for larger websites, and the average cost for a small business can be over $36,000 — a hefty sum to bear if you aren’t a large corporation. This doesn’t even take into account the non-monetary costs that might be involved to rectify the breach, like time spent and resource allocation.

This also doesn’t take into account the damage such a data breach can have on a small business’s reputation. The Ponemon Institute has a study that indicates that a data breach can have a grave effect on any organization: 57 percent of people said they lost trust in confidence after a data breach, 31 percent terminated their relationship, and 75 percent said it had an impact on the business’s reputation. This kind of loss is difficult to quantify, since it can vary by organization size. Still, these statistics make the danger of data breaches very clear.

Data Security Best Practices

Clearly, data breaches and identity fraud are things that merchants should strive to avoid for the sake of both for their businesses and their customers. Luckily, there are plenty of tips and suggestions for beefing up your business’s security practices floating around the internet. Here are just a few best practices and requirements for maximum payments data security.
- PCI DSS Compliance: This one is a must. Formed by the major credit card companies, the Payment Card Industry Data Security Standard is a set of policies and procedures that optimizes the security of payment via credit or debit card. These procedures are important because they have methods to protect credit card data, along with ever-evolving standards for encryption, anti-malware software implementation, monitoring and risk analysis. One of the best ways to ensure your ecommerce business is at the correct level of compliance is to find a payment service provider that has already obtained PCI DSS certification and who can assure you they are up to date with the latest security technologies.
- Hypertext Transfer Protocol with Secure Sockets Layers (SSL): You probably know this better as HTTPS. This is an extension of the Hypertext Transfer Protocol for secure communication over a computer network, and is already widely used on the Internet. It’s also mandatory for PCI compliance. This uses encryption to ensure all sensitive information, including payments data, is transferred securely by making the data unreadable to all except the destination server. Implementing HTTPS on webpages with sensitive data will ensure that your payments data security is top notch.
- Two factor authentication: By combining a password and username with a second means of identification (like a code sent to a phone or email), two factor authentication providers an extra layer of security against identity theft and fraud. Allowing customer the choice to opt into two factor authentication will help them feel secure on your site.
- Tokenization: This protects sensitive information by replacing the data with random tokens that are impossible to read if intercepted. This tokenized data can only be read by a third party, like a payment processor.
- DoS and DDoS Protection: You’ve probably heard of a denial of service type of attack, where a website is bombarded by requests that overwhelm the bandwidth and render a site unavailable and vulnerable. A firewall can protect against these kind of attacks. Ecommerce sites in particular can incorporate firewalls like proxy firewalls or application gateways.
Conclusion

Maintaining payments data security is paramount for any ecommerce business. Educating yourself, implementing best practices, and selecting a trustworthy payment services provider with robust security offerings are excellent ways to reduce risk. Using payment data security best practices is essential for protected customers and a successful business.
Payarc

November 15, 2021

Industry Insights, Uncategorized

fraud-prevention
Small Business 101: How to Get an Ecommerce Merchant Account
Maybe you’re a brick and mortar store looking to expand your customer base to people who can’t reach your physical location, or maybe you’re a unique small business that only sells products online. Whatever your situation, having an online business presence is just good sense. Still, whether you’re just getting up and running as a business or are trying to expand your brick-and-mortar sales by offering products online, there are a lot of things to keep track of. There are strategic and operational things to consider when you’re launching a new ecommerce business, and one of the most important considerations is your payments operation.

What is an Ecommerce Merchant Account?

So what exactly is a merchant account? Essentially, it’s what allows you to accept payments online. A merchant account is a special type of business bank account that lets your business accept different types of payment—typically debit and credit card payments — necessary for online purchases. Every time someone pays for something with a credit card, funds are transferred to a merchant account that a merchant holds with a bank. The merchant is responsible for all the transactions on their account, and every bank has its own terms of service.

So you know you need a merchant account — that’s a given. It’s time to go shopping for a provider. You’ll want to have an idea of what kind of services you want your merchant account to provide. What kind of credit cards and currency do you want to accept? How will the payment gateway (a service that authorizes credit card payments, usually set up with the merchant account) be integrated? What sort of authorization process does the provider have? What kind of customer service is available? Finally, you don’t want to skimp on security: make sure the merchant account provider is PCI DSS Compliant, which means they meet certain requirements like protecting cardholder data and regularly updating antivirus software. Depending on the type of business you have, you might also want to look into extra security and fraud monitoring tools. Once you’ve found a merchant account provider that fits your needs, you can begin the application process.

Ecommerce Merchant Account Red Flags

It’s good to have an understanding of what might cause your application to be flagged. These reasons don’t mean you’ll be denied outright, but if you answer “yes” to any of these questions, it’s worth doing a bit of extra research and go the extra mile to ensure your application will be approved. You might also have to pay extra fees or agree to special restrictions.
- Are you a high risk business? Every time a ecommerce merchant account processes a payment on a credit card for you, there’s a risk, and if you’re in an industry with a higher risk than usual, you might have to look for specialized providers. Examples of these “high risk” businesses include those that involve adult material, gambling, or travel packages.
- Are you a start-up? Even if you’re not part of one of the high risk industries, up to 70 percent of startups fold. Again, this doesn’t make it impossible to find and be approved for a merchant account, but it might be worth turning to a processor or agent that specializes in helping startups through the approval process.
- Does your business have a subscription model? These are one of the special, risky industries, because businesses that involve subscriptions have higher than average chargeback and online fraud rates. There’s also a longer rate between when customers pay and receive their product, which can make some merchant account providers skittish. If you show that you have put thought into how to control this so-called fulfillment duration, that’ll go a long way to getting you approved.
Once you decided on an account, you’ll send a cover letter that answers any potential questions or concerns. Elaborate on any steps that you’ve taken to mitigate risk, be straightforward and honest about potential issues, and spotlight any important experience or qualities that make you stand out from your competitors.

Finally, a word of warning: do your homework before applying for an ecommerce merchant account and choose a reputable provider. Be wary of “free” ecommerce merchant accounts or those that offer cash back if you find another deal. Make sure you protect your financial information, read all the fine print, and research everything carefully.
Payarc

November 15, 2021

Industry Insights, Security, Uncategorized

payment-processing
Subscription Friction: How Online Subscription Can Improve Customer Experience
Consumers can now purchase almost anything as part of a subscription: software, digital marketing tools, streaming content, beauty products, alcohol, and clothing.

The sky’s the limit for subscription merchants. Many startups have opted to go the subscription route, aiming for the elusive and much-desired recurring revenue that comes from subscription purchases. Some sources claim that the demand for subscription boxes alone (think Stitch Fix or Trunk Club), has grown by 3,000 percent.

As the subscription market becomes more saturated, online merchants need to find new opportunities to strengthen relationships with existing and prospective customers. A major part of this is providing a seamless online shopping and checkout experience. Eliminating friction is paramount and can be achieved by following some best practices.

E-Commerce Best Practices for Online Subscription Merchants

There are several things online merchants can do to improve the customer experience, streamline the path to purchase, and optimize checkout for consumers:
- Include a wide variety of accurate, detailed product photos if you’re selling physical product subscriptions
- Include product or service reviews by past purchasers
- Include a “products/services you may also be interested in” section on your website that makes intelligent recommendations based on prior purchases.
- Offer a free trial where possible and remind customers via email when their trial is about to expire with a prompt to upgrade to a paid subscription
- Pre-fill forms where possible. If a user already signed up for a free trial, use intelligent form fills to make it easy for them to upgrade
- Include a checkout progress bar that notifies the user where they are in the process (customer information > shipping information > payment information > confirmation)
- Offer competitive shipping rates and delivery windows
- Send confirmation emails that include shipping or activation information
These are only a fraction of the things online subscription merchants should be implementing to improve customer experience and optimize the path to purchase. They also don’t begin to cover the payment processing best practices that subscription merchants should consider to retain customers.

Online Subscription Payment Processing Tips

Subscription merchants face different challenges than regular online merchants. The ongoing nature of the business relationship requires special treatment when it comes to payment processing.

Gateway Considerations

Some gateways provide recurring payments features that can be activated for subscription merchants. There are also some third-party solution providers that offer recurring payments functionality as an add-on to your existing gateway. These tools simplify recurring transactions by enabling the merchant to enter the charge amount information and frequency only once, triggering automation of payments moving forward. The customer’s payment card is billed at the appropriate time and a receipt can be automatically emailed.

Compliance Considerations

Merchants should be sure that their gateway or recurring payment solution provider offers a PCI-compliant solution that facilitates secure online access and payment card data management. Some solution providers offer two-factor or multi-factor authentication options. Others enable the merchant to provide different levels of access to the gateway or app, limiting access only to users who need it. Some providers also store data using several layers of encryption in a segmented network with new encryption keys being generated daily.

Churn Considerations

Churn can be an uphill battle for online subscription merchants. One of the most common causes for unnecessary churn is when a payment card has insufficient funds. This is especially an issue with debit cards and can be resolved by updating billing and retrying strategies. For example, updating monthly billing dates to coincide with regional payday cycles is one option. Updating retry time from one hour to a space of three to four days can also be helpful in optimizing billing.

Another common occurrence is expired card declines. If a merchant does not have the most up-to-date information about a payment card, the transaction will decline. Utilizing an account updater tool to automate the process of updating card information can streamline operations and ensure that a transaction will not be lost due to a card expiration. It’s the same scenario in the case of a lost or stolen (or hacked) card. When a card is reissued to a cardholder, they often forget to update the payment details for their numerous online subscriptions. Account updater tools can handle these types of updates automatically, ensuring a seamless transition and minimal churn.

As the online subscription-based service and product offerings continue to evolve, merchants will have to evolve their internal processes – from digital marketing to payment processing – to keep up. Managing customer happiness while catering to prospective customers can be a balancing act. Employing automated recurring billing can streamline the process for existing customers while freeing up merchants to focus on new revenue. Working with a digital payments advisor to identify tools that can aid your subscription billing operation can save you money in the long-run and improve your recurring revenue stream.

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Payarc

November 15, 2021

Industry Insights

payment-processing
How to Position Your Subscription Box Business for Success
According to Tim Ray, the founder of Carnivore Club, a subscription box is the most flexible, efficient and easy-to-run business model in ecommerce. He was particularly attracted by its entire ease combined with the benefit of low-risk recurring revenue.

It’s essentially built on the fundamental principle of periodically supplying a consumer with a pre-selected set of items at a fee. Pretty simple and straightforward.

And the best thing about all of this is the fact that customers have not disappointed at all. Currently, 15% of online consumers have signed up to one or more services to periodically acquire products through monthly boxes. This has seen established retailers make more than $2.6 billion in 2016 alone.

Sadly, just like any other business model, it’s not that rosy for all retailers. While the whole industry has recorded exponential growth in recent years, the subscription box business space is also volatile.

According to My Subscription Addiction, about 13% of subscription-based businesses it has been tracking have failed, and many more are experiencing drastic losses.

To avoid this, you need to run your business on a solid strategy that not only focuses on the logistical framework but also payment management. Here are critical pointers on how to do this and consequently position your subscription box business for success.

Understanding Subscription Box Business

The subscription box business falls under the trial & continuity merchant category. These merchants operate under a recurring billing business model, which can present some challenges. For one, customers are signing up to be on a recurring payment plan. This can present opportunities for misunderstanding, where customers do not realize that their card will be charged every month. This is especially true for merchants that offer free or $1 trial options to onboard more customers. In some cases customers may not recognize the recurring charge on their billing statement, leading them to dispute the charge with their issuing bank. In other cases, the customer may simply have buyer’s remorse and opt to dispute the charge rather than canceling through the merchant. In either event, the merchant is at risk for increased chargebacks, which can be an expensive problem.

Despite this drawback, there are many benefits to subscription box businesses. These include:
- Increased customer lifetime value: For merchants that offer a great introductory offer and have a solid marketing plan in place, the subscription box business can be lucrative as it offers long-term revenue from loyal customers. The key is to entice customers to try the product at a discounted rate, allowing them a no-risk option for sampling your service. If the product quality and customer service is solid, these customers will likely stick around for the long-term and potentially share their great find with friends. The end result is increased customer lifetime value.
- Predictable Revenue: One of the biggest draws of the subscription box business model is recurring revenue. Recurring revenue equals predictable revenue, which has benefits that branch out to every aspect of the business. Predictable cash flow makes it easier for startups to thrive and grow the business.
- Opportunities for Upsell/Cross-sell: Customers that sample your products or service at your introductory rate are primed to upgrade. Offering tiered product and pricing options tailored to the different segments of your core base can promote increased upsells. Add-on products and services are also ideal with subscription box businesses, as they offer your customers the opportunity to improve their experience with additional complementary items.
Managing Recurring Payments Requires Solid Infrastructure

These benefits are well worth the investment of setting up a subscription box business; however, they can also be negated if you do not have the proper payments infrastructure in place. Some considerations you need to take into account include;
- Streamlined Recurring Billing Services – Merchants need to be able to simplify the transaction process while still protecting the business. Recurring billing has unique considerations which often requires a specialized billing system that allows the customization of billing schedules, the ability to email receipts, and secure online account access for customers.
- Dashboard & Analytics – It can be beneficial to work with a payment processor that offers an intuitive dashboard that allows you to track and monitor subscriptions and easily identify upsell and cross-sell opportunities.
- Payment Gateway – You’ll need a payment gateway that easily accepts digital payments. Your gateway should easily integrate with your sales system and offer a breadth of payment options to consumers, including the major credit card brands, PayPal, and multi-currency options.
- Fraud Prevention – Since recurring billing can often come with increased chargeback ratios, you’ll want to have a solid fraud prevention strategy in place. This includes a tailored suite of fraud prevention tools for true fraud and chargeback notifications for friendly fraud.
- Auto Updater – Subscription box businesses need to protect their customer relationships and guard against unnecessary churn. Employing an auto updater that automatically updates customers records can save you time and money by easily updating payment account information when it expires or changes due to lost, stolen, or expired cards.
These are just some of the considerations that subscription box business merchants need to address upfront. It can be overwhelming to tackle everything alone, so it’s recommended that merchants work with a trusted payment processing partner that has experience working with subscription box businesses.

These specialized payment processors can partner with you to achieve your business goals and act as an advocate on your behalf. They can also help you manage and streamline omnichannel payments across mobile web, desktop and mobile apps.

The subscription box industry will only grow in popularity, so merchants in the business should find their footing with an experienced payment processor that understands the quirks and nuances of the subscription box business. PayArc specializes in working with subscription box businesses of all types. Reach out today for a customized quote on how we can help you achieve your business goals.
Payarc

November 15, 2021

Industry Insights

free-trial
Turning holiday returns to customers and avoid chargebacks
Merchants everywhere prepare this time of year for shops abuzz with gift givers and gift recipients bringing stuff back to a store — more elegantly called “returning goods.”

At the same time, folks who shopped online (or whose relatives and friends did) try to figure out how to return items: Clothing that doesn’t fit, goods damaged in shipping, or the book they’ve already read.

Dealing with holiday returns requires a lot of merchant focus and energy too. But what else fills merchant minds this time of year?

While celebrating a successful 2017 holiday season, merchants want to avoid chargebacks when they can — and experience a successful start to this retail year by attracting new and return customers.

There’s a way to accomplish it all in one go. Let’s take a look.

Holiday Season — Return Season — Chargeback Season

One follows the other, meaning there’s no rest for the weary eCommerce merchant. The months following annual winter holidays, dubbed “chargeback season” or “Returnuary” by clever merchants can indeed cost them dearly.

Yes, chargebacks may be a cost of doing business. But every merchant’s goal should be to avoid chargebacks and associated fees whenever possible.

Which is why helpful and clear return policies and well-trained staffs make a huge difference to your success. When returns are too difficult or time consuming, customers become frustrated. Inevitably, some will opt to file chargebacks so they can get their money back…

…And that means taking the money from you. Ouch.

Negative chargeback consequences include:
- Lost revenue;
- Lost operating costs (making sales and shipping products);
- Fines, fees, and penalties added by banks and card brands;
- Lost merchandise when either true or friendly fraudsters strike;
- Management challenges associated with lag time between purchases and refunds that skews revenue reporting.
Of course the worst penalty for an eCommerce merchant would be termination by the acquiring bank of a merchant account, needed to accept payment cards in the first place.

Cancellation occurs if a merchant’s chargeback rate is too high (greater than 3%). Card sales finished — the end of many an online business. So eCommerce merchants try to avoid chargebacks all the time, not least during holiday return seasons.

Procrastination Pushes Chargeback Season to Mid-Year

Online merchants can be forgiven for believing their 2017 holiday shopping season is done and dusted. But believe it or not, 5% of U.S. gift givers are still shopping, taking advantage of sales and gift cards they received.

Said Matthew Shay, NRF President and CEO, “Even though many consumers got a head start with holiday shopping early in the season, millions more are leaving their gift buying to the last minute and beyond.” The good news? Procrastinators represent more customers.

So it’s not too late to avoid chargebacks from first quarter sales — even if you need to replace the return policies in place prior to year-end. Just get to it! Update your website following best practices below.

For ideas, check out the U.S. News & World Report guide to standard and extended holiday return deadlines (and other details) for top retailers during the 2016-2017 holiday season. Benefit from seeing how the big guys do it. Who knows? Good ideas from others may help you avoid chargebacks too.

And be sure to continue monitoring new sales for potential fraud. Just because the holidays are over, bad guys haven’t stopped being bad.

Savvy Merchants Know Returns Present Opportunities — Delight Your Customers and Avoid Chargebacks

Be Prepared — good advice that isn’t just for Boy Scouts. Local retail stores and eCommerce businesses do best when they’re poised to process returns in ways that delight customers.

Be sure to have adequate numbers of trained staff on hand, specifically assigned to handle returns.

Publish a clear return policy. If certain items are excluded (like sale items), say so. Publish the policy and place it prominently throughout a store and near cash register(s). Print information on store receipts.

Publish the policy on your website. Include a page in the main navigation, repeated on product pages and throughout the checkout process. Consider requiring customer acknowledgement via a pop up checkbox before a transaction completes.

Include in the policy:
- Items that can (and cannot) be returned or exchanged
- Deadline for returns or exchanges (after purchase)
- The required condition, including original packaging (or not)
- How and when customers can make returns or exchanges
- Whether a receipt is required (or not)
- Who pays for return shipping (if applicable)
- How refunds will be issued (cash, payment card credit, store credit, and the like)
Creating a special holiday return policy helps customers who buy gifts several weeks before a holiday. By allowing returns for an extended period, everyone is covered — including gift recipients.

For example, allow returns up to 90 days from date of purchase, or by January 31st — whichever comes first. Be flexible, but clear; include information about what customers can expect.

If you wait to receive returned items, refunds may take some time. Say so up front. Above all, make returns easy for customers. Good advice at all times, it helps merchants avoid chargebacks year round.

Generate printable packing slips with return instructions, and anything else you believe will streamline the process for customers. Have them fill out a special form including email address. Promise to tell them when you receive their return, and when it will be processed.

Customers appreciate the courtesy — and you can piggyback new sales or discount opportunities in the email message you’ll send when their return arrives. Then stay in touch unless they opt out.

Wouldn’t it be great to convert every return into a new sale, and every gift recipient into a new customer?

Conclusion

When you’re in search of the eCommerce solution that both saves your money and gives you peace of mind, look no further than PayArc.

PayArc’s industry leading payment processing solution gives you all the tools you need to accept payments online, while lowering your risk to fraud and giving you some of the lowest rates in the industry.

We provide all-in-one eCommerce solutions including dozens of shopping cart integrations to choose from — fraud and risk tools — robust reporting tools — and PCI-DSS Level 1 protection.

PayArc helps take the headache out of credit card processing — so you can process with confidence. We want to act as your payments advisor and consultant, not only your processor.

You have a business to run. Our business is to help you run it better. Give us a shout today.

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Payarc

November 15, 2021

Fraud Prevention, Industry Insights

chargebacks
Using payment solutions to grow your meal prep business

Ecommerce merchants choose their industry sectors for many reasons. That’s half the fun of coming up with, and executing on, a business idea.

Sometimes your choice furthers a life-long passion, while other times it’s as simple as recognizing and filling a market need. Being first off-the-block is often a winning strategy for a sprint, but not so much in a marathon.

Of course, meeting market needs in the long-term isn’t really a simple affair. Long-term business viability falls more into the marathon category. What’s required are several layers of expertise — Some related to the chosen product or service, along with know-how in managing your business.

For example, a passion for healthy eating and good cooking may lead you to open a meal prep business. You’ll love the first stage, when serving delicious and nutritious food made with your own hands proves super-rewarding.

But for how long will that “hands-on” approach serve the business well, given your ambitions and the blossoming market in your chosen niche?

As your business grows, reaching out to others who possess the knowledge and skills — the expertise — you need isn’t always easy. But it might be the best option to support the growth ambitions you harbor.

Using the meal prep sector as a proxy for all ecommerce shops, let’s take a look at an example of tough decisions one merchant made while managing business growth. The business lessons demonstrated in the story remain universal, proving useful to all ambitious ecommerce merchants.

Another lesson to consider while in the growth phase of your business: Leveraging expert payment solutions helps online shops grow.

True Rapid Growth Story Shares Lessons for All

Business principles remain true for all merchants, regardless of the chosen sector. eCommerce may be relatively new, but the quest to launch and grow a business persists in all industries. Like the story of a couple whose meal prep business growth lessons will resonate with all small business owners.

Danielle Hrzic told the story to HuffPost. The Hrzics built a meal prep business to improve the quality of school lunches available in Chicago. Gourmet Gorilla began by producing meals and snacks for three area schools. Now they serve schools throughout Northern Illinois and Wisconsin.

As more schools and parents joined the service, the business outgrew their initial kitchen space, and also the ability for the Hrzics to remain “hands-on” with meal production. As Hrzic says, “Small business owners often feel the need to be a part of every aspect of the business.” Letting go can be hard.

But Danielle learned that she had to pull herself away from the business, “…to work on it instead of in it” — and the business expanded rapidly.

Merchants keen to launch their own payment prep businesses will find useful information on the sector here, including info on the types of expert payment solutions needed in the sector.

Become Expert on Business Growth

It’s one thing to work in a business, and quite another to own and manage one. Launching and running an ecommerce business, regardless of sector, takes a lot of energy and passion for what you do.

Some online merchants open up shop following business careers, but many don’t have the first clue about doing the books, ordering and managing inventory, or supervising employees. And without stellar funding and steady cash flow, hiring the expertise just isn’t possible.

Do you know about the standard business growth curve? From start-up to survival to success at various levels, and all the way up to mega-successful large corporations — five growth stages get you there.

Start-ups challenge even the best and brightest new merchants. Passion for your business only takes you so far, when cash flow makes or breaks the business. It’s financial survival that moves the company up the curve. And expert payment solutions help ensure financial success.

Reaching out to experts to help your company grow — and letting go when necessary — reflect mature resolve as an owner. Our featured story didn’t highlight payments, but it’s clear that selling to schools requires B2B payments expertise, and directly to parents means B2C payments.

Do other eCommerce merchants know enough about payments, to get past start-up and survival, then on to success? Like why a landing a merchant account reflects your best interests, and how to protect your payments from fraud? If not, payments may be an area in need of expert assistance.

Expert Payment Solutions Help eCommerce Shops Grow

No matter where your business falls on the growth curve, you need expert payment solutions to help you grow. To find payment solutions that will both save your money and give you peace of mind, look no further than PayArc.

Our mission is to bridge the gap between online merchants and payment solutions — for all types and sizes of merchants.

PayArc’s industry leading payment processing solution gives you all the tools you need to start accepting payments online, while lowering your risk to fraud and giving you some of the lowest rates in the industry.

We leverage strong industry relationships — developed over decades in the payments industry — to help you land an individual merchant account so you can start processing payments quickly and securely.

Take the headache out of credit card processing, so you can process with confidence. PayArc wants to act as your payments advisor and consultant, not only your processor.

You have a business to run. Our business is to help you run it better.

Give us a shout today.

Payarc

November 15, 2021

Industry Insights

payment-processing

Natural Products Ecommerce Market

Explosive Market Growth and Payments Challenges

Land an Individual Merchant Account

Optimize Payments with PayArc

Beyond Pricing: Finding Your Advocate for Success

Chargeback and Fraud Prevention Tools

Committed Customer Support

Cross-Channel Flexibility

Conclusion

Dejavoo Z11

PAX S80

Ingenico Lane 5000

The Danger of Data Breaches

Data Security Best Practices

Conclusion

What is an Ecommerce Merchant Account?

Ecommerce Merchant Account Red Flags

E-Commerce Best Practices for Online Subscription Merchants

Online Subscription Payment Processing Tips

Gateway Considerations

Compliance Considerations

Churn Considerations

Trackbacks/Pingbacks

Understanding Subscription Box Business

Managing Recurring Payments Requires Solid Infrastructure

Holiday Season — Return Season — Chargeback Season

Procrastination Pushes Chargeback Season to Mid-Year

Savvy Merchants Know Returns Present Opportunities — Delight Your Customers and Avoid Chargebacks

Conclusion

True Rapid Growth Story Shares Lessons for All

Become Expert on Business Growth

Expert Payment Solutions Help eCommerce Shops Grow