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  • Maria’s Tacos: A Case Study on Growth and Success with Curv Payment Solutions 

    Maria’s Tacos: A Case Study on Growth and Success with Curv Payment Solutions 

    Overview:  

    Maria’s Taco Truck began as a small operation with a single truck, and with the help of Curv’s tailored payment solutions, it has now grown into a thriving multi-location franchise. This transformation showcases how choosing the right tools can drive success, boost efficiency, and unlock potential. 

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    Explore Curv

    Introduction to the Business & The Initial Challenge: 

    Maria started with a passion for serving delicious tacos to her growing base of loyal customers. As her business flourished, so did her needs—especially for a payment system that could handle increasing customer demand and keep transactions smooth and efficient. Maria needed a payment solution that was quick, portable, and error-free to match the high pace of her food truck’s environment. With growing popularity, managing these transactions efficiently was crucial to her success. 

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    Explore Curv

    Solution Implementation 

    1st: Curv Lite and Curv Mini: 
    Maria started her business with a food truck that focused on delivering quick, delicious meals to her growing number of customers. The compact size of her truck meant space was limited, and she needed a solution that was just as agile as her operation. The Curv Lite and Curv Mini systems were ideal for this setup, offering portable, easy-to-use devices that ensured rapid transactions. This efficiency helped maintain a smooth flow of customers, reducing wait times—a crucial aspect for a food truck in a bustling city. 

    2nd: Curv Quick Service Restaurant Bundle: 
    As Maria’s popularity grew, she noticed a consistent line of customers eager to enjoy her offerings, even during non-peak hours. Realizing the need to provide a more stable, permanent location for her customers, she decided to open her first storefront. With this expansion, her transaction volume increased, and the types of payments became more complex, involving more detailed customer management and inventory tracking. The Curv Quick Service Restaurant Bundle provided her with the robust features required to handle these changes, such as faster processing capabilities and more advanced transaction management tools, allowing her to maintain a high level of service despite the growing customer base. 

    3rd: Curv Restaurant Bundle: 
    Maria’s business continued to thrive, and soon, she faced new challenges that came with running a busier restaurant. The need for a more advanced system became apparent as she expanded her team and her menu, increasing both the volume and variety of transactions. Upgrading to the Curv Restaurant Bundle gave Maria access to additional features tailored for high-volume transactions and enhanced integration capabilities. This allowed her to manage multiple customer touchpoints efficiently, maintaining smooth operations across the board. 

    4th: Curv Restaurant Plus Bundle: 
    Maria’s entrepreneurial spirit didn’t stop there. As her business scaled further and she opened multiple locations, her focus shifted to maintaining consistency in quality and customer experience across all outlets. The Curv Restaurant Plus Bundle provided her with centralized control over multiple locations, ensuring uniformity in service and operational standards. This solution allowed Maria to oversee her growing empire efficiently, keeping her brand promise intact and customers happy across all locations. 

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    Explore Curv

    Results:   

    Thanks to Curv’s adaptable and powerful payment solutions, Maria’s business achieved remarkable growth and efficiency at every stage: 

    Increased Efficiency: Each system upgrade brought new features that optimized transaction times, enhancing customer satisfaction and loyalty. 

    Scalability: Curv’s scalable solutions enabled Maria to grow her business seamlessly, transitioning between systems without disruption. 

    Consistency Across Locations: With the final upgrade, Maria was able to maintain consistent service quality and operational standards across all her locations, enhancing brand reputation. 

    Download E-book
    Explore Curv

    Conclusion:   

    Maria’s journey from a single food truck to a multi-location franchise is a testament to the power of choosing the right tools for growth. Curv’s versatile and reliable payment systems were instrumental in her success, enabling her to meet the evolving demands of her expanding business. This case study underscores the importance of adaptable and efficient payment solutions in achieving long-term growth and success in a competitive market. 

    Download E-book
    Explore Curv

    Payarc

    October 10, 2024
    Uncategorized
    CURV, payment-processing, point of sale, restaurant payments
  • Unlock the Power of AI with Payarc 

    Unlock the Power of AI with Payarc 

    In today’s rapidly evolving financial landscape, the integration of artificial intelligence (AI) is no longer a luxury but a necessity. The FinTech industry has undergone significant changes, driven by digitalization and the impact of the COVID-19 pandemic. At Payarc, we understand the critical role AI plays in transforming payment processing, enhancing security, and driving growth. Let’s explore how AI can elevate your business and why Payarc is your ideal partner in this journey. 

    The Impact of AI in Payment Processing  

    AI’s ability to analyze vast data sets allows for real-time decision-making, identifying potential fraud, approving or denying transactions, and ensuring compliance. According to a study by Publicis Sapient, 87% of consumers who have used Generative AI believe it can significantly improve their overall experience. Moreover, the Economist Intelligence Unit found that 86% of financial services executives plan to increase their AI investments through 2025, and Deloitte reports that 70% of financial firms already use machine learning. 

    Download E-book
    Payarc.AI

    Business Drivers of AI Technologies 

    Personalized Services

    AI enables businesses to enhance revenues by offering personalized services to customers and employees, significantly contributing to a positive customer experience. AI helps understand consumer behavior, enabling tailored decision-making. 

    Cost Reduction

    AI streamlines operations, reduces errors, and optimizes resource allocation. Enhanced efficiency not only cuts costs but also improves customer-centricity, which is crucial in a standardized financial product market. 

    Uncovering New Opportunities

    AI processes vast amounts of data to uncover insights and opportunities previously overlooked, guiding strategic growth initiatives. 

    Driving Growth by Reducing Risk

    AI minimizes risk and optimizes processes, particularly in high-volume, time-sensitive domains like payment processing and compliance. This leads to cost reduction and ensures regulatory compliance. 

    Faster Computing Power

    Advancements in alternative processors exponentially increase computing power, enabling AI to drive innovation and efficiency in various applications. 

    Download E-book
    Payarc.AI

    How AI Can Help Grow Payments 

    Document Management

    AI automates processes and decision-making in document management, enhancing compliance and streamlining audits. Unlike traditional OCR, AI comprehends document context, making it essential for diverse document formats. 

    Credit Scoring

    AI uses real-time data and personalized analysis for credit scoring, providing more accurate and forward-looking credit scores. This approach supports financial inclusion and reduces credit risk exposure. 

    Fraud Detection

    AI identifies suspicious patterns and activities in payments, reducing false positives and enhancing accuracy and efficiency. This is crucial in the surge of digital payments and Card Not Present transactions. 

    Compliance

    AI applies specific regulations and policies to business operations, ensuring accurate implementation and regulatory compliance. The AI market for compliance and governance is projected to grow significantly. 

    Know Your Customer (KYC) and Anti-Money Laundering (AML)

    AI automates KYC and AML tasks, freeing compliance specialists to focus on thorough risk assessments. AI systems quickly analyze vast amounts of data, uncovering risks that might be missed by humans. 

    Robos and Chatbots

    AI-driven chatbots and Robos offer tailored customer support, enhancing the customer service experience and providing quick, accurate responses. 

    Download E-book
    Payarc.AI

    Payarc: Harnessing the Power of AI 

    • Fraud/Risk/Underwriting: Real-time fraud prevention, risk assessment, and merchant underwriting powered by AI to fortify your business against threats. 
    • Customer Service: Enhanced customer service with AI chatbots and voice recognition systems that efficiently connect users to the right support 
    • Business Intelligence & Predictive Analysis: AI-driven predictive analytics forecast payment trends and merchant behaviors, empowering informed decision-making. 
    • Operational Monitoring Services: Automated compliance checks and dynamic pricing ensure regulatory alignment and competitive advantage. 
    • Sales Advisory: AI-enhanced lead scoring and automated recommendations translate data into lucrative opportunities and robust sales pipelines. 
    Download E-book
    Payarc.AI

    Payarc x Amazon Web Services 

    Payarc is collaborating with Amazon Web Services (AWS) to enhance business intelligence for its clientele. Leveraging AWS machine learning, generative AI, analytics, security, and business intelligence technologies, Payarc aims to redefine financial data analysis in the payment industry. 

    Zachary Martinez, CEO Payarc: “Our work with AWS signifies Payarc’s dedication to providing cutting-edge technology solutions. AWS’s cloud infrastructure and leading generative AI services embedded in

    Payarc’s proprietary business management platform will empower our clients with real-time insights and predictive analytics, setting new standards in the payment processing landscape.” 

    Greg Pearson, VP AWS Global Sales: “AWS is helping Payarc use advanced technologies like generative AI and analytics to enhance payment processing for customers, providing them with the visibility to make more informed financial decisions and optimize operations. We look forward to collaborating with Payarc to help them innovate more personalized and secure payment experiences that will support the company’s growth for years to come.” 

    Engage with Payarc.ai 

    Ready to unlock the full potential of AI for your business? Reach out to Payarc today to discover how Payarc.ai can elevate your business to new heights of intelligence and efficiency. Embrace a new era of payment processing with Payarc.ai. 

    Download E-book
    Payarc.AI

    Janine Aboy

    July 12, 2024
    Uncategorized
    ai, artificial intelligence, payment-processing
  • Traditional Merchant Services vs. Payment Facilitation  

    Traditional Merchant Services vs. Payment Facilitation  

    In today’s electronic ecosystem, software companies have an array of options to create unique payment experiences for consumers. Among these options, two stand out: traditional merchant processing and payment facilitation.  

    The choice between traditional merchant processing and payment facilitation significantly impacts multiple things. This includes how merchants sign up, payment timelines, splitting payments, billing choices, merchant statements, and more. Let’s dissect these differences and their implications for software developers and agents.  

      Traditional Merchant Processing  

    Merchants first accepted credit cards electronically in 1973, marking the inception of traditional merchant processing. In this model, businesses apply for a Merchant ID (MID) assigned by a sponsoring bank. Each MID is unique to a physical merchant location or corporate entity. Traditional processing involves an application process for underwriting, usually taking 2–3 days for approval.  

    Traditional processing offers various point-of-sale and e-commerce solutions. Hardware manufacturers or payment processing partners can integrate with these solutions. Billing options include flat rate, tiered, dual pricing, and interchange plus pricing models, with additional fixed fees.  

       

    Payment Facilitation  

    Payment facilitation simplifies the merchant boarding experience and expands optionality with settlement. In this model, software companies can become payment facilitators by applying with a payment processor and sponsor bank. They get a master MID to onboard sub-merchants quickly and easily. Once approved, sub-merchants can begin processing within minutes.  

      Payment facilitation enables split payments among multiple recipients before settlement, supporting split payment functionality. It also enables a marketplace processing model, facilitating resale underneath the master merchant. 

    However, this does have some limitations. This model offers limited billing options, including flat rate or tiered pricing with authorization fees. The point-of-sale options are also expanding beyond the original e-commerce setup.  

       

    Explore Payarc’s Payment Facilitator Platform:  

    • Split Payments: Gain unprecedented control over funding instructions with Payarc’s Split Payments API or Virtual Terminal. Flexibility rules as users can divide transactions into smaller accounts or hold them without processing.  
    • Payment Integration Options: Elevate automation with Payarc’s APIs, enhancing every stage of the customer lifecycle. Our onboarding process is easier and funding happens faster. Plus, we can split payments among multiple parties in one transaction.  
    • Dashboard Experience: Each ISV sub-merchant receives a unique ID, granting access to a fully customized dashboard. Manage daily tasks effortlessly, from reconciling transactions to handling chargebacks, all within an intuitive and efficient interface.  
    • ID Provisioning/Onboarding: Payarc’s PayFac Program offers flexible onboarding options powered by advanced technology for real-time automated checks. Choose between a hosted UI or API integration for a quick, digital onboarding experience tailored to your needs.  
    • Electronic Payment Acceptance Options: We have various electronic payment options available through our PayFac program. These options include cards and ACH transactions. We can customize these options to meet your specific needs and preferences.  
    • Payment methods: Payarc partners with ISV developers to create custom payment interfaces using APIs and iFrames. This allows for easy integration into current systems with a focus on flexibility and customization.  

    Discover the Payarc Difference 

    We directly partner with software companies and developers, fostering collaboration to craft unique payment experiences. Offering tailored options from APIs to iFrames, we seamlessly integrate into existing or developing workflows, ensuring optimized software experiences through customization. Fuel your growth with Payarc’s Innovative Financial Technology Platform, empowering merchants and technology providers with versatile solutions to meet consumers wherever they transact. Whether through traditional merchant integration or payment facilitator services, Payarc drives business growth with cutting-edge technology.   

    Experience the Payarc Difference yourself

    Janine Aboy

    May 21, 2024
    Agent Insights, ISV
    payfac, payment-processing
  • Choosing the Right Payment Partner

    Choosing the Right Payment Partner

    When it comes to online and embedded payments, choosing the right payment processing partner is crucial for your business. Efficiency and reliability are important, and this decision can either help or hurt your business. At PAYARC, we understand how important smooth transactions are for your company’s success. We are dedicated to providing a payment processing experience that surpasses the competition.  

    What Sets PAYARC Apart as a Payment Partner:  

    1. Tailored Solutions  

    PAYARC: PAYARC provides a solution for businesses of all sizes, so even regular merchants can benefit.  

    Competitors: Many payment processors offer reliable products, but they might skew their suitability towards larger businesses, international merchants, or those with a developer background.  

    2. Monthly Fees

    PAYARC: Have access to a full merchant account with no monthly fees.  

    Competitors: Square and Staxx charge monthly subscriptions. While Stripe’s starter plan is free, its add-ons (invoicing, fraud prevention, customer service) can become expensive. 

    3. Processing Fees

    PAYARC: Flexible pricing options for businesses of all sizes. Dual Pricing and Interexchange plus pricing are available from the start.  

    Competitors: Standard pricing for all payment types can be costly for both high-volume and small businesses.  

    4. Other Fees

    PAYARC: Committed to transparency, we charge flat rates with no additional costs for each feature used. No hidden charges. 

    Rivals: Beware of hidden costs and extra charges; Stripe imposes a fee for chargebacks and additional transaction fees. 

    5. Revenue Sharing

    PAYARC: Partners can customize their merchant’s pricing programs, enhancing revenue-sharing options.  

    Competitors: Partners typically have static flat rates unless the company is large enough to negotiate a better deal.  

    6. Customer Support

    PAYARC: Access to world-class support with dedicated partner support available 24/7. Get someone on the phone in 10 seconds.  

    Competitors: Bigger processors like Stripe may lack an inbound phone number for customer assistance.  

    Why PAYARC is Your Best Choice:  

    PAYARC seamlessly integrates multiple payment options into a consistent experience for your customers.  

    Tailored solutions, personalized pricing, advanced cybersecurity, and 24/7 premium support ensure a level of service unmatched by most competitors. 

    Partners benefit from flexible business solutions, including hardware, sales support, lower fees, invoices, inventory management, and detailed reports.  

    Whether starting a business or dealing with many transactions, PAYARC is a great option for your payment processing needs. Choose PAYARC and experience a level of service that most players simply can’t match.  

    Book a Demo Today 

    Payarc

    February 29, 2024
    Agent Insights, Merchant Services
    payment-processing
  • Empower Your Business with the PAYARC Partner Hub

    Empower Your Business with the PAYARC Partner Hub

    Welcome to a transformative experience designed exclusively for agents – the PAYARC Partner Hub. Making payment processing for agents, easier. This comprehensive solution is crafted to unlock the full potential of your business. Let’s delve into the features that make this hub a true game-changer: 

    Download E-book
    Partner Hub Webinars

    Access to Exclusive Webinars and Training

    Stay ahead in the dynamic payment industry landscape. The Partner Hub opens doors to a diverse array of exclusive webinars and training sessions. Take part in our monthly live webinars that equip you with the ins and outs of PAYARC products and industry sessions set to improve your skills at any experience level. Elevate your understanding of PAYARC’s offerings and stay abreast of industry trends, ensuring you’re not just a participant but a leader in the payment space.

    Robust Marketing Materials Library

    Empower your merchants with the right resources. Dive into our extensive library of marketing materials and collaterals, meticulously tailored to enhance their experience with our user-friendly systems and state-of-the-art POS devices. Explore APIs, quick reference guides, online ordering capabilities, equipment details, and a wealth of other resources. 

    Partner Hub Marketing Materials Library

    Real-Time Tracking Dashboard

    Gain unparalleled insights into your business with our intuitive dashboard. Monitor live merchant applications, review underwriting progress, access your residuals, and glean instant insights into your overall business performance. With this, you can have up-to-date merchant processing reports so you can take immediate action with any changes in your portfolio. Stay in control, make informed decisions, and drive success with the real-time pulse of your operations at your fingertips.

    MyPAYARC

    Custom CRM for Agents: Under the My PAYARC section, check out merchant activations, bonuses to be earned, bonus activities, commissions, deposits, batch reporting, and more. Be fully equipped with our centralized and feature-rich platform.

    Download E-book

    In Detail

    • My PAYARC: Direct access to the My PAYARC Dashboard. 
    • New Application: Navigates to the Apply Wizard for new applications. 

    Dashboard Widgets: 

    • Live Merchants: Categorizes merchants into Active, Dormant, and Inactive categories. 
    • Applications Status: Tracks applications from waiting on the signature to approve or decline. 
    • Residuals: Displays partner residuals from the previous month. 
    • Upcoming Training: Highlights the latest Demio webinars. 
    • Latest News: Updates and newsletters from the last three months. 
    • Upcoming Releases: Stay informed about forthcoming events and updates. 

    My PAYARC Overview: 

    • Merchant Activation: Displays recently activated merchants. 
    • Bonus to be Earned: Shows pending bonus amounts and terms. 
    • Bonus Activity, Residuals, Partner Income: Charts detailing bonuses, residuals, and partner income. 
    • Top 10 Merchant Activities: Insights into volume, transactions, chargebacks, and refunds. 

    Apply Wizard

    • Seamless access to view, create, and submit applications. 

    My Commission: 

    • Bonus Summary: Detailed bonus information. 
    • My Residuals: Monthly residuals details. 

    My Merchants:

    • Merchant Details: Comprehensive view with performance metrics. 
    • Deposits & Batch Report: Summary of transactions and batch transactions. 
    • Deposits & Batch Transactions: Detailed transaction records. 
    • Chargebacks, ACH Returns: Comprehensive list with detailed merchant information. 
    • API Keys: Access to unique API keys for added security. 
    • Upcoming Training, Marketing Materials: Stay updated on webinars, marketing materials, and new product releases. 
    • FAQs: Answers to common questions about partner accounts and merchant activities. 

    The PAYARC Partner Hub transcends the conventional notion of a tool; it’s a gateway to the future of agent partnerships. It makes payment processing for agents easier. Crafted to provide you with essential tools and resources for unparalleled success, it’s time to unlock the full potential of your merchant services business. Take the next step in your journey toward a brighter, more prosperous future by contacting us today.  

    Your dedicated Relationship Manager is not just a contact point; they are your guide through this exciting venture, ready to provide more information and insights to propel your business forward. 

    Gain access to the PAYARC Partner Hub today!

    Become an Agent Partner
    Download E-book

    Payarc

    January 18, 2024
    Agent Insights, News, Payment Processing, Technology
    independent sales agents, payment-processing
  • Complying with Cash Discount and Dual Pricing Regulations

    Complying with Cash Discount and Dual Pricing Regulations

    In our previous blog post, “Navigating Cash Discount and Dual Pricing Regulations,” we explored the concept of dual pricing and cash discount as a solution for businesses to streamline payment processes and reduce costs. Today, we delve deeper into the benefits of complying along with best practices to ensure compliance. By understanding and implementing these best practices, businesses can enhance profitability, build customer trust, and avoid potential legal issues or financial penalties. Let’s dive into the benefits of embracing compliant payment strategies and the key guidelines for achieving success.

    Benefits of Compliance with Cash Discount and Dual Pricing

    Avoiding Penalties

    Compliance with regulations related to cash discounts is crucial for businesses to avoid legal issues and penalties. For example, violations of the Electronic Funds Transfer Act (EFTA) can result in fines of up to $1,000 per violation for individuals. For organizations, the fine is up to $500,000 per violation. Violations of the Truth in Lending Act (TILA) can result in fines of up to $5,000 per day for each violation. Additionally, businesses may be required to refund any overcharges to customers. Moreover, they would need to pay legal fees associated with a lawsuit or enforcement action. 

    Violation Fines

    PAYARC - Complying with Cash Discount and Dual Pricing Regulations
    PAYARC – Complying with Cash Discount and Dual Pricing Regulations
    PAYARC - Complying with Cash Discount and Dual Pricing Regulations
    PAYARC – Complying with Cash Discount and Dual Pricing Regulations

    Building Trust with Customers

    Compliance with regulations helps businesses build trust with their customers. Customers are becoming increasingly aware of pricing practices. They are more likely to do business with companies that are transparent and fair in their pricing. When businesses demonstrate their commitment to clarity and honest pricing practices, it increases customer satisfaction and loyalty. This leads to repeat business and positive word-of-mouth referrals. In addition, by providing clear and honest information about cash discounts, businesses can avoid misunderstandings and disputes with customers.  

    PAYARC - Complying with Cash Discount and Dual Pricing Regulations
    PAYARC – Complying with Cash Discount and Dual Pricing Regulations
    PAYARC - Complying with Cash Discount and Dual Pricing Regulations
    PAYARC – Complying with Cash Discount and Dual Pricing Regulations

    Maintaining a Good Reputation

    Another benefit of compliance is it helps businesses maintain a good reputation, an important way for businesses to attract and retain customers. By complying with regulations related to cash discounts, businesses can also avoid negative publicity and word of mouth about their business. 

    Overall, compliance with regulations related to cash discounts is crucial for businesses to avoid legal issues, build trust, and maintain a good name. Compliance also helps businesses ensure that they’re treating customers equally, which leads to increased customer satisfaction and loyalty. 

    Best Practices for Cash Discount and Dual Pricing

    1. Provide clear and conspicuous disclosures

    It’s crucial that businesses clearly disclose the terms and conditions of the cash discount to customers in a way that’s easy to understand. This includes disclosing the amount of the discount, any fees associated with the payment method, and any other relevant information. A common way to do this is by having a dual pricing sign near the cash register, explaining the discount.

    2. Ensure non-discriminatory pricing

    Cash discounts and dual pricing should be applied equally to all customers, regardless of the payment method they choose. Businesses must avoid practices that discriminate against customers who make the choice to pay with credit. 

    3. Keep accurate records

    Businesses should maintain accurate records of all cash discount transactions, including the amount of the discount, the payment method, and any associated fees. This can help businesses demonstrate compliance with regulations if they’re audited or face any legal challenges.

    4. Train employees

    Employees should be trained on the rules and regulations related to cash discounts. This can help ensure that they understand how to apply discounts correctly and how to communicate with customers about the program.

    5. Partner with a payment processor

    Working with a payment processing partner can help businesses ensure compliance with regulations related to cash discounts. Payment processors can provide guidance on regulatory requirements and best practices for cash discount programs, as well as handle the technical aspects of implementing the program. 

    By following these best practices, businesses can ensure that their cash discount programs are transparent, fair, and compliant with regulations. This will help them avoid legal issues and penalties, build trust, and maintain a positive reputation. 

    Conclusion

    In conclusion, compliance with cash discount and dual pricing regulations are crucial for businesses that offer this pricing strategy. Clear and conspicuous disclosures, non-discriminatory pricing, and accurate record-keeping are some of the best practices that businesses should follow to ensure compliance.  

    It’s important for businesses to work with a reputable payment processing company, such as PAYARC, to ensure that they’re offering compliant cash discounts. PAYARC’s Dual Pricing program is designed to help businesses offer cash discounts in a compliant manner, while also ensuring that customers are treated fairly and transparently. By working with PAYARC, businesses can enjoy the benefits of offering cash discounts while avoiding legal issues and penalties. 

    For general inquiries, including partnership opportunities, please email: support@payarc.com


    Download our e-book here

    Payarc

    June 22, 2023
    Uncategorized
    cash discount, dual pricing, mobile-commerce, payment-processing
  • Navigating Cash Discount and Dual Pricing Regulations 

    Navigating Cash Discount and Dual Pricing Regulations 

    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
    PAYARC – Navigating Cash Discount and Dual Pricing

    The Difference Between Cash Discount and Surcharges 

    PAYARC - Navigating Cash Discount and Dual Pricing
    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
    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.

    Download our e-book here

    Payarc

    June 15, 2023
    Industry Insights
    cash discount, dual pricing, mobile-commerce, payment-processing
  • How to Accept Credit Card Payments Online in 2023 

    How to Accept Credit Card Payments Online in 2023 

    Today, consumers in the US are 40% more likely to use a credit card when making a purchase. This is an important statistic to know since, in 2022, there were 268 million online shoppers in the US. That number also is projected to reach almost 285 million in 2025, making e-commerce more important than ever to consider. If you’re interested in setting up an e-commerce shop, you’ll need to know how to accept credit card payments online.  

    If you haven’t done your research, it can seem overwhelming, but there’s no need to overcomplicate things. Most importantly, you’ll need a payment processor. They should be able to minimize fraud, provide a secure experience, and have the flexibility to grow with your business. The global payment processing market size was valued at USD 47.61 billion in 2022 and continues to grow every year.  

    How to set up online credit card payments 

    Merchants can accept online payments with a merchant account and a payment gateway. A merchant account is a bank account that’s designated for businesses to accept credit card payments. Once a sale is completed, the profits land in your merchant account before being transferred to your business account. The money is usually held in the merchant account for a certain period before it’s transferred out. Merchant accounts are essential in knowing how to accept credit card payments online; otherwise, the money has nowhere to go. 

    The merchant account links to a payment gateway, where your customers input the information needed to pay you. The payment gateway is the online equivalent of a card processing terminal you can find in almost any physical store. It connects the different parties in the transaction and facilitates the delivery of funds. Using a payment gateway means you’ll have more personalized customer service since these providers are typically associated with larger companies. Meaning if you have any issues, you can likely get a real person on the phone to help you out.  

    With merchant accounts and payment gateways, you should expect fees, though some providers will be more competitive than others. Depending on who you choose, your transaction fees might be lower than average, or you might not have to pay setup fees.  

    Fees and Application Process  

    To get a merchant account or payment gateway for accepting payments online, you’ll need to apply for both. This is another crucial aspect of knowing how to accept credit card payments online. You’ll be asked for financial and business information, and once you submit everything, it takes just a few days for processing. Once you’re approved, you’ll set everything up by connecting the account to the gateway and the gateway to your store. Once you’ve completed the setup process, you’ll be ready to begin processing payments. 

    All-in-One Solutions 

    Some providers offer a merchant account and payment gateway as an all-in-one solution. Many of these solutions don’t charge monthly or setup fees, but you might have to pay more if you want extra features. Because this combo streamlines the transaction process, all-in-one solutions are quicker to set up, making it faster to accept payments online. Though these services are becoming increasingly popular, you should use at least one other payment processor. Doing this will allow customers to use their preferred method of payment. This makes another important factor of knowing how to accept credit card payments online. 

    Simplified Payment Processors 

    A simplified payment processor is a type of payment processor that offers a streamlined and user-friendly payment processing experience. Some simplified payment processors don’t need a merchant service account or payment gateway, typically meaning fewer fees for merchants. Their rates are competitive, and many don’t have setup or monthly fees. These payment processors integrate with your checkout pages, so your customers never have to leave the shop. Like all-in-one solutions, they’re easy to set up. Knowing the difference between types of payment processors is important in understanding how to accept credit card payments online.  

    Security and Fraud Prevention 

    Another important aspect in understanding how to accept credit card payments online is security and fraud prevention. As e-commerce grows, the fraud associated with it also grows and is expected to exceed $200 billion this year. There are several measures you can take to be secure and prevent fraud when accepting payments online. Here are some best practices: 

    • Use a secure payment gateway: Choose a reliable and secure payment gateway provider that uses encryption to protect sensitive data during online transactions. 
    • Verify customer information: Verify the customer’s name, billing address, and card verification value (CVV) to ensure the transaction is legitimate. 
    • Monitor transactions: Monitor transactions in real-time to identify suspicious activity, such as multiple transactions from the same IP address. 
    • Implement fraud detection tools: Use fraud detection tools to identify potentially fraudulent transactions based on specific patterns. 
    • Educate yourself and your staff: Stay up to date with fraud prevention techniques and educate yourself and your staff on how to prevent fraudulent activity. 
    • Use strong passwords and two-factor authentication: Use strong passwords and two-factor authentication to prevent unauthorized access to your payment system. 
    • Keep your software up to date: Keep your payment software up to date with the latest security updates to protect against fraud. 

    By implementing these best practices, you can minimize the risk of fraud and keep your online payments secure. 

    How can PAYARC help with accepting payments online? 

    PAYARC helps businesses accept payments online by providing merchant accounts and payment gateways that allow customers to securely input their payment information. PAYARC also offers fraud prevention tools, chargeback management, and customer service support.  

     

    Reach out to us today and start accepting credit card payments online! 

    Payarc

    March 29, 2023
    Uncategorized
    payment-processing
  • Understanding E-commerce Credit Card Processing

    Understanding E-commerce Credit Card Processing

    E-commerce credit card processing has opened up a new market sector as online retail sales are expected to total $6.3 trillion this year. Merchants within this growth are seeing benefits, but successfully running an online business requires smart decision-making. 

    One of those decisions is choosing how to accept credit cards online. Accepting credit cards online successfully is an important aspect of building a robust online business and keeping up with the latest payment trends. Now, there are more options for accepting credit cards online than ever before. Researching for the right payment processor will help you choose one that’s right for you. 

    Understanding e-commerce credit card processing 

    Get mobile 

    As smartphones become smarter and more universal, more customers will shop — and buy — online. 76% of U.S. adults say they shop online using a smartphone, while 69% say they make purchases via computers. 

    Accordingly, it’s important for an online merchant’s payment gateway to function on a customer’s mobile phone. The right payment gateway will ensure that you’re able to capture sales from mobile while keeping your customers’ information secure. With the right payment processor, any mobile browser or mobile app can become a secure credit card portal. 

    When a payment gateway is optimized for mobile, it allows customers to make credit card payments using their devices securely. This makes it convenient for customers to purchase from anywhere, at any time, increasing the chances of getting those sales. 

    Getting mobile is important for e-commerce credit card processing because it allows merchants to offer a convenient payment experience to customers. This increases the likelihood of successful transactions and customer satisfaction.  

    Preventing e-commerce fraud 

    It’s essential to protect your customers’ personal and financial information, maintain their trust in your business, and avoid costly chargebacks and losses. Here are some tips to help you prevent e-commerce fraud: 

    1. Use a fraud prevention tool: Consider using a fraud prevention tool, such as a fraud detection system or a payment gateway with built-in fraud protection. These tools can analyze transactions and detect fraudulent activity. 
    1. Verify customer information:Collect and verify your customer’s information, such as their name, address, and contact information. You can use address verification services to ensure that the billing and shipping addresses match and ask for additional identification. 
    1. Implement strong password policies: Require your customers to create strong passwords and encourage them to change their passwords regularly. You can also implement two-factor authentication to add an extra layer of security. 
    1. Monitor transactions: Keep a close eye on your transactions and look for any unusual patterns or activities. 
    1. Educate your customers: Give helpful tips on how customers can protect themselves from fraud. For example, they should check their credit card statements regularly and report any suspicious activity. 
    1. Train your employees: Teach your employees how to verify customer information, detect suspicious transactions, and handle chargebacks and disputes. 

    New kinds of processors 

    There is an increasing number of simplified payment processors available that don’t require a merchant service account or payment gateway. With these processors, the customer enters their card number, and the payment is processed — that’s all.  This streamlined process means there are fewer fees for merchants and more competitive rates.  

    Simplified payment processors integrate with your checkout pages, making it so your customers never have to leave your website. This is essential for a seamless and reassuring checkout experience in e-commerce credit card processing. They’re easy to set up and can help you get up and running and accepting payments quickly. Many simplified processors don’t offer the same level of support as traditional processors, as they’re simple enough to not need it. 

    Learn about cryptocurrencies 

    Another hot topic these days is bitcoin, a digital currency that can be sent from one user to another anywhere in the world. Unlike the U.S. dollar, cryptocurrencies are not backed by any physical tokens. Bitcoin is gaining popularity and is accepted by over 100,000 merchants worldwide. 

    There are a few unique advantages to accepting bitcoin through your payment processor:  

    • Transaction fees are much lower than credit cards 
    • Payments process very quickly because there’s no bank acting as a middleman 
    • There’s less security risk because no customer information is attached to bitcoin payments (meaning there’s no risk of chargeback fraud, as there is with traditional credit card payments) 

    There are also some unique risks associated with accepting bitcoin:  

    • It’s an unstable currency, and its value fluctuates wildly from day to day. Some economists believe bitcoin’s value is largely due to speculation, and its value has dropped significantly since its rise. 

    Many payment processors allow merchants to accept bitcoin as a payment option with just a simple plug-in. If a bitcoin holder doesn’t want to hang onto it, it’s simple to convert it back to their currency of choice.  

    How can PAYARC help? 

    There are plenty of new payment options to choose from, but one thing hasn’t changed: the importance of asking questions. Be sure to inquire about fees, customer service, and security. The new digital world of credit card payments is here to stay, so choosing a processor that gives you the options your business needs is a must. 

    Reach out to us to start your ecommerce credit card processing journey today! 

    Payarc

    March 3, 2023
    Business Tips
    payment-processing
  • What’s the Difference Between a Payment Gateway and a Virtual Terminal?

    What’s the Difference Between a Payment Gateway and a Virtual Terminal?

    In 2021, e-commerce retail sales totaled $5.2 trillion U.S. dollars worldwide. This figure is expected to grow by 56 percent over the next three years, reaching $8.1 trillion by 2026.  If you’re looking to integrate payment solutions into your e-commerce business, the jargon used in payment processing can be confusing.  

    Individuals often find it difficult to differentiate between a payment gateway and a virtual terminal, two of the most common terminologies. You must understand the similarities and differences, what they do, and how they interact before deciding on which to use. To better understand them, let’s delve into the definitions and characteristics of each. 

    The difference between payment gateway vs. virtual terminal 

    What’s a payment gateway? 

    A payment gateway is a solution used by customers to make payments on e-commerce websites. The payment gateway market is valued at $22.8 billion and is expected to reach $52.8 billion over the next five years. They’re integrated into a business’ website and used in conjunction with checkout and shopping cart solutions. 

    Here’s how a payment gateway works:  

    1. The gateway obtains data from a virtual terminal, authenticates it, and routes the information to the payment processor.  
    1. The payment gateway allows customers to input their cardholder data and complete an online purchase or payment transaction. 
    1. Customers add items to their cart, proceed to the checkout, and are prompted to key in their credit card information.  
    1. Once entered, the card information is encrypted and sent through the payment gateway for processing at the merchant bank.  
    1. Lastly, the customer’s bank authorizes the payment/charges, and the payment gets sent to the merchant’s bank account. 

    Payment gateways can function without a virtual terminal, but those transactions are only accepted from the customer end. There are payment gateways that come with additional capabilities, such as real-time notifications, instantaneous payment authorization, and cloud reporting. 

    Most payment gateways support all kinds of transactions, including authorization and capture, authorization only, refunds, and voids. When used with a virtual terminal and POS system, a payment gateway offers secure processing for all business needs. 

    What’s a virtual terminal? 

    A virtual terminal is a facilitator of internet-based electronic payments. It allows individuals to process transactions with computers or devices with an internet connection. Usually, you log in to a secure web page with your credentials and process payments using the built-in merchant dashboard. This dashboard is similar to a card reader or physical swiper. The difference is the card data must be entered manually instead of swiping or reading the card’s chip. 

    Virtual terminals usually come with smart options such as insightful reporting, automatic recollections, real-time validation of transactions, or recurring transactions. Most virtual terminals can process credit card payments, but some have additional capabilities, such as processing electronic checks and using fraud prevention tools. The virtual terminals market is expected to reach $34.71 billion in 2026 at a CAGR of 34.6%. 

    Comparison of payment gateways and virtual terminals 

    Both payment gateways and virtual terminals are internet-based and require individuals to create a merchant account to accept funds. It’s also linked to a normal business account so that business owners can withdraw their funds. The merchant account is also required for the backend processing of transactions and the transfer of funds to your bank account. 

    Before a business or individual can process or receive electronic payments, a payment gateway must be integrated with the website. This allows payment card data to be routed to the processor. The merchant could do this manually, but the stress of continuously keying customer card data can be overwhelming. 

    The benefit of having a virtual terminal is that it enables merchants to enter card data themselves. This feature is helpful in cases where the source of the electronic payment is not a checkout or shopping cart. Merchants can obtain card information from their customers and then use the virtual terminal to take payments. 

    How PAYARC can help streamline your payment processing operations 

    PAYARC can streamline your operations by integrating with multiple payment gateways, automating billing and invoicing, detecting, and preventing fraud, providing robust reporting and reconciliation features, and offering customization and flexibility. This can help reduce costs, improve efficiency, and enhance the customer experience. 

    We want to help you streamline your payment processing operations. Reach out today to get started! 

    Payarc

    March 3, 2023
    Payment Processing
    payment-processing
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