payment-processing - PAYARC

8 Credit Card Processing Tips for Success

Finding the right payment processing provider is a bit like preparing for a Black Friday sale. It takes due diligence and the right knowledge to look past flashy offers. A great provider doesn’t just provide services; they help determine the best ways to streamline payments and grow your business. It’s important for any business to stay on top of the latest credit card processing tips.

Why is credit card processing important?

Credit card processing is a crucial aspect of running a successful business. It’s essential to understand the best practices and strategies for processing payments efficiently, securely, and cost-effectively. Whether you’re a seasoned entrepreneur or just starting out, it’s important to know how to streamline your payment processing. Knowing how to streamline your payment processing will ensure a smooth experience for both you and your customers.

8 Credit card processing tips to change the future of your business

To help you create the best payment process for your business, we’ve identified eight credit card tips that are sure to help you make more sales.

Weigh convenience against cost

The first of the many credit card processing tips to write home about is weighing convenience against cost. For example, all-in-one services like Quickbooks seem great, but they come with a price tag. Quickbooks is designed to work only with other Inuit software, and Intuit’s merchant services charge premium rates.

Inuit also expects users to pay tiered rates for their services and doesn’t offer interchange plus pricing. Many card processors offer integrated plugins for Quickbooks but have a varied success rate and may require extra steps. If you’re considering using Intuit/Quickbooks software to process payments, ask yourself if convenience is worth the cost. You wouldn’t be alone, as 18% of small businesses don’t use accounting software.

Look for competitive interchange rates

It used to be hard to get competitive interchange pass-through processing rates unless they had a high sales volume. Luckily, times have changed.

Look around carefully for competitive interchange rates as you shop for a processor. You can even get free, instant credit card processing quotes to determine your own eligibility. If your business makes physical payments where you accept cards in-person, the average interchange rate is around 1.71%. If you’re an eCommerce business, your average interchange rate will be about 1.91%.

Follow PCI DSS guidelines

PCI DSS (Payment Card Industry Data Security Standard) are guidelines set by credit card companies. Because businesses are liable for losses of cardholder data, PCI DSS guidelines help merchants safeguard customers’ banking information. Lack of PCI compliance can result in huge fines if the information is leaked or stolen.

Know your PCI standards and make sure both you and your processor remain compliant. Following PCI DSS guidelines isn’t just one of the credit card processing tips to follow, it’s necessary for all merchants. Typically, PCI DSS compliance costs small businesses $300 per year, while large businesses may spend up to $70,000 or more.

Don’t confuse “low rate” With “best deal”

A low rate doesn’t always mean the best deal for your business. Low rates and interchange pass-through prices are great, but that’s only part of the best processing solution. Get a credit card processor that can help your business get and keep low interchange charges with interchange optimization. The feature alone will save you in the long-term and is well worth a small markup.

Use knowledgeable sales representatives

A good sales representative should be able to help set up your merchant account with everything needed. That includes the right sales volume, ticket declarations, and lowest interchange rates. Many credit card processors only teach sales representatives the bare minimum about merchant accounts, which results in serious errors. Look for Independent Sales Organizations (ISO) with knowledgeable sales teams and avoid working with ignorant sales representatives.

Be prepared for chargebacks

Every business should have a thorough chargeback prevention plan in place to maintain an acceptable level of chargeback ratio. Having a high chargeback ratio (1% or more) can get a merchant account canceled and funds withheld. Chargebacks can be issued for up to six months, so it’s important to keep previous order information handy as evidence.

Keep up with interchange updates

Visa, MasterCard, and Discover have interchange updates twice each calendar year. These updates can include adjustments to rates, fees, and guidelines. It’s important not to assume that interchange “updates” means higher fees and tightened guidelines. Instead, keep up with any changes in case they offer better options for your business.

Understand your statements

Statements can be confusing, but it’s important to understand them so you can evaluate your processor’s rates and fees. Processors also often post important changes on the first page of your processing statement. If you’re not sure how to read your statements, contact your sales representative for assistance.

Stay up-to-date with credit card processing tips

PAYARC provides payment processing solutions to all types and sizes of merchants. We understand the challenges of managing a business and give our merchants the latest technology and payment options. This helps them so they can focus on what’s important — growing their businesses. Our payment processing solution offers the tools needed to accept payments online and lower the risk of fraud.

Contact us today to get started on growing your business!

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Payarc

February 23, 2023

Payment Processing

payment-processing
Hot Topic: What’s the Importance of Payment Processing?
In the era of omnichannel commerce, merchants need to streamline their payment capabilities across every touchpoint. Brick-and-mortar, webpages, apps, and mobile pay — no matter what the touchpoint is, integration is key. Today’s customers will not tolerate delays, and in competitive marketplaces, there are hundreds of retailers waiting to scoop them up.

What’s the importance of payment processing?

If you’re wondering, “what’s the importance of payment processing?” let’s look at an example. No retailer wants to inform their customers that it’s “taking longer than usual to process payments.” This happened on Black Friday and it’s possible for any merchant that isn’t staying on top of payment processing operations.

Not only can you not afford to make payments an afterthought, but it should be your competitive edge. Merchants who prioritize payments and provide excellent customer experience will snag a bigger piece of the pie.

5 tips to master payment processing

We’ve outlined some tips to provide insight into the importance of a payment processing provider and how it can help accommodate growing customer expectations and payment technologies.

Market your security

According to IBM security, data breaches cost businesses an average of $3.86 million globally. It’s no surprise that hearing “data breach” is scary to customers — they threaten their sense of security and their identity. The bottom line? No one wants to shop with a retailer perceived to have relaxed (or no) security measures in place. This is especially true for online merchants that have the added risk of card-not-present transactions. Using multi-factor authentication and other prescribed security measures can help show consumers that you’re secure and that they’re protected.

Get ahead of cart abandonment

Online shoppers can start to get anxious about a purchase long before they pull their card out of their wallet. According to Baymard Institute, the average cart abandonment rate is 69.57%, resulting in approximately $18 billion in sales lost yearly. Long checkout processes and forms make online shoppers more likely to abandon their carts.

Shorten the path to purchase with:
- Eliminating unnecessary form fields
- Offering explanations of why certain fields are required (question marks that pop up into info boxes would suffice)
- Not requiring registration for purchases
- Having a progress bar on the screen so shoppers can see how far they are in the checkout process
Speed up transactions

In a post-EMV world, many brick-and-mortar retailers are concerned with the transaction time for new chip card readers. The goal is to have faster card-terminal speeds, allowing the cardholder to insert their card for only a short time. This’ll make the experience like the “swipe” method and decrease the possibility of someone forgetting to remove their card. Merchants should speak to their POS application software vendors as there are several ways to achieve faster transactions.

Offer convenience for customers

Mobile order and pay has gained momentum, particularly in the food and beverage industry. Allowing customers to order, pay ahead, and pick-up in-store makes the experience faster, easier, and more enjoyable. Having a seamless mobile experience built with the end-user in mind is key when it comes to this capability.

Optimize your online gateway

Online gateway optimization is important for payment processing for several reasons:
- Improved customer experience: Retailers can ensure a quick and seamless checkout process, reduce frustration, and increase customer loyalty.
- Increased sales: Provide a fast and convenient checkout experience to increase the number of completed transactions and revenue.
- Improved payment flexibility: Offer a range of payment options and accept multiple currencies to increase payment flexibility and accommodate the diverse needs of your customers. Optimizing online gateways can help ensure customers that they can pay using their preferred method with ease.
- Increased mobile commerce: Optimizing online gateways for mobile commerce has become increasingly important. A mobile-friendly checkout process can help increase the likelihood of a successful transaction and improve customer satisfaction.
So, what role does PAYARC play in all of this?

PAYARC plays a crucial role by offering a payment processing solution that meets the needs of businesses of all sizes. With 24/7 customer support, advanced security features, and all-in-one integrations, PAYARC provides seamless experiences for both merchants and customers. Whether starting out or looking to upgrade your existing system, PAYARC has the tools you need to succeed.

Are you ready to become a master of your payment processing? Talk to one of our experts to get started today!
Payarc

February 22, 2023

Payment Processing

payment-processing
PayArc rebranding helps strengthen their image as a payment gateway

To successfully embody fintech’s growth as an organization, the rebrand includes a new look, logo, and website across all platforms.

“PAYARC has evolved from a traditional payment processor to a technology-focused payment solution provider and our new branding reflects this”

— Zachary Martinez

GREENWICH, CT , UNITED STATES, January 12, 2022 /EINPresswire.com/ — PAYARC, a leading provider of integrated payment technology, announces today it is changing its image to reflect the organization’s growth and transformation from an innovative payments company to its position today as a leading technology and solutions provider in the financial space.
Since 2016, the company has established itself as the leading provider of payment solutions.

“Jared Ronski and I started PAYARC because we saw an opportunity to help merchants with best-in-class support and provide clear and transparent pricing” said Zachary Martinez, co-founder, and CEO of PAYARC. “While we continue to do this, PAYARC has evolved from a traditional payment processor to a technology-focused payment solution provider and our new branding reflects this”

In the last year, they have experienced tremendous growth in technology, products, partners, and human resources. PAYARC is not only a payment processing provider, it’s a one-stop solution for merchants and businesses of all sizes. Among their offerings, you can find business tools, insights, and real-time data to improve the future of your business. Solutions to manage every aspect of your organization – payments, invoicing, subscriptions, sales, customer insights, and more.

The rebranding includes a new website, logo, and user experience. The new easy-to-navigate and attractive website has extensive information about their products, services, and offerings. Overall, it provides a simpler, more effective experience to promote consistency across all audiences, and shows a full collection of adaptable business tools and features to build the right solution at any scale.

For more information about PAYARC, please visit: payarc.com

About PAYARC

PAYARC provides payment processing solutions to all types and sizes of merchants. With the latest technology, best practices, and transparent pricing models, we allow businesses to streamline their payment processes and focus on what really matters.

Their platform provides access to everything customers need to make seamless payments. This one-stop tool allows companies to move faster, work smarter, and make better decisions, one payment at a time. PAYARC powers more than $2 billion in transactions annually and operates with the support of more than 300 trusted partners.

PAYARC is unique in that it crafts custom solution models for each client. Their team works directly with clients to understand their business, goals, objectives, and needs, to cater personalized solutions so they can enjoy having a simple and efficient payment process.

Payarc

January 14, 2022

Industry Insights

payment-processing
Top Tips for Evaluating Merchant Account Providers

There are plenty of merchant account providers out there to choose from, making it a difficult task deciding which one is right for you. Different business models require different considerations to ensure that payments are optimized and payment processing costs remain low.

Working with a trusted merchant account provider can help a business streamline payments for customers without breaking the bank. The key is finding the right fit, not only in price, but in an advisory capacity as well.

Here’s what you should consider when evaluating merchant account providers.

Consider Fee Structure

There are several different types of payment processing rates offered by merchant account providers. Interchange plus pricing represents the interchange rate that payment processors pay for each transaction plus a markup. In this way, payment processors pass along the fees they pay plus an additional markup to the merchant. The markup will vary among merchant account providers, so it’s important to look for a rate that is reasonable for your business.

Other pricing structures include tiered pricing and blended pricing. Each type of pricing has different considerations so it’s important for merchants to do their homework, ask questions, and consider any other fees that may be insured before signing on with a merchant account provider.

Additional fees to consider include application fees, per-transaction fees, monthly minimums that affect your fees, voice verification charges, address verification fees, statement fees and more. Most merchant account providers will be flexible in terms of how they present your proposal, which could result in a lower discount rate with a higher per-transaction fee if your average ticket price is on the low side but your transaction volume is high.

Consider the Equipment

You should also pay heed to how much your merchant account provider is charging you for the equipment and the software to process your transactions. The price of equipment can vary in cost among multiple processors by hundreds of dollars, even for the same piece of equipment.

Some merchant account providers may offer the option to purchase equipment outright or to purchase term-contract with the equipment. Each options has different benefits and drawbacks, depending on the needs of your business, so be sure to get clarity around the pricing and features of each before signing a contract. Make sure you research the equipment and software you’re using as well; a good merchant account provider will be able to answer your questions and make recommendations in terms of the best equipment fit for your business.

Choose a Dedicated Your Merchant Account Provider

Take note of how hands-on a merchant account provider is during the application process. Some merchant account providers simply offer merchant accounts, pending a successful application. Other merchant account providers provide additional benefits and act as a trusted advisor in dealing with everything from chargeback management to fraud prevention and more.

The response time of your merchant account provider matters a lot too as it can affect your business’ customer service levels. Consider whether or not the merchant account provider is available 24/7 or if there will be long wait times to get a hold of someone who can help. Is the merchant account provider knowledgeable in all areas of payment processing or can they only help answer questions about certain things?You know your business better than anyone else, but it can be helpful to retain a merchant account provider that is invested in learning your business and helping to optimize payments.

Reputation and Communication Matter, Too

When choosing a provider, listen to what they have to say and focus on the level of detail they’re providing you with from the start.

Your merchant account provider should keep you informed of any changes in their policies, new laws that affect credit card practices and promotions that can help you save money. Ask about their communication with you and how these would work, as well as what features and services they offer.

When evaluating merchant account providers, look at each option holistically. While rates are important, they should not be the only measuring stick when it comes to finding a trusted partner. Look at quality and speed of their services, rates and fees, and level of customer service. You want to strike that perfect balance between experience, quality and affordability that very few providers can actually offer. The best merchant account providers will understand nuanced business models and be able to offer sound advice on the best way to streamline payments.

Payarc

November 15, 2021

Fraud Prevention, Industry Insights

payment-processing
Understanding the Application Process for Domestic Merchant Accounts
Ecommerce has grown precipitously over the last couple of years, with entrepreneurs establishing different business models targeting varying markets. Regardless of your industry or business type and the corresponding business model, you will need a domestic merchant account to accept payment card payments online.

As an online business considering domestic merchant accounts, you’ve likely done some research on your target customer base, which is based largely in your business’ country of origin. Accepting payment cards online will be the lifeblood of your ecommerce business, so you need to be prepared for the steps needed to obtain a domestic merchant account.

What are Domestic Merchant Accounts?

Domestic merchant accounts are built for card payments within the US. International merchant accounts, on the other hand, are developed to handle the complexities that come with foreign currency payments.

Although they both deal with card payments, the application process is quite different. Most US-based ecommerce businesses start out with domestic merchant accounts then apply for international accounts as they expand to foreign markets.

Let’s look at the steps required to apply for domestic merchant accounts.

How To Apply For Domestic Merchant Accounts

There are several steps when applying for domestic merchant accounts. Being prepared for the process can give you an edge and ensure that your business is best positioned for success. Making sure you have all the necessary paperwork is a significant part of applying for a domestic merchant account. There are also other pieces of information about your business that you’ll need to supply to the bank or your payment services provider. We explore these below.

Prepare Identification Documents

Banks that offer merchant accounts need a full financial picture of the business, including identifying information about the business owners. Additionally, the bank will want to view your business’ historical data and proclivity to fraud. This helps the bank to create a risk profile, which may ultimately determine whether a merchant is able to obtain a merchant account. Merchant banks, just as most other financial institutions, are risk-averse, so a high chargeback ratio or a large number of customer complaints could be a red flag to the institution that your business is “high risk.” Ideally, you want to quality for a low-risk domestic merchant account, which offers more competitive processing rates.

There are several essential documents that are typically requested by all account providers;
- Photo ID: As proof of the owners’ identities
- SS-4 Form: To ascertain your specific tax ID
- Voided Check: As proof that you own a bank account based in the US. Plus provide account details for deposit of payments
- Bank Statement: To assess the financial stability of your business
- Social Security Number: To further verify your identity and run credit checks
Have a Professional Business Plan

The bank or your PSP may also ask you to submit a business plan, which helps establish credibility. If you already have a business plan, ensure it is up-to-date. Include information on your industry, business/revenue modeling, sales and marketing plans, competitive analysis, and business processes.

Financial Data & Processing History

If you are moving to a domestic merchant account from another type of merchant account, you’ll want to show that you have a healthy processing history. Presenting strong financials can build your case for a domestic merchant account and make you more palatable as a merchant for banks. Try to show at least six months of processing history, which can highlight your record keeping as well as financial health.

Operating Controls

Present your internal processes and operating controls relating to inventory management, financials, security (including PCI compliance), and management reporting. The more information you can provide paints a positive picture of your business for the bank. You want to appear stable, viable, and in control of the internal and external processes of your business.

Consider Working With a Payment Processor

An alternative to approaching the bank directly is to work with a trusted, reputable payment processor that has experience with your business model. PayArc is a leading online payment processor trusted by both small and large enterprises in provision and management of domestic merchant accounts.

We’ve helped merchants big and small to obtain merchant accounts and grow their payments operations. Whether you’re a new ecommerce merchants or seasoned online business owner, we can help you managed payments from end to end.

We assist with everyday management and big picture payments issues, including chargeback management, fraud prevention, risk mitigation, PCI compliance, reporting, and more. We partner with you to provide expert guidance and consulting so you can keep your focus where it needs to be – on your business.
Payarc

November 15, 2021

Uncategorized

payment-processing
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
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
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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1. How AI and Machine Learning Are Transforming the Payments Landscape | Online Sales Guide Tips – […] can halt customer loss before it happens. Finally, machine learning can help automate many customer service interactions. This technology,…
Payarc

November 15, 2021

Industry Insights

payment-processing
The Benefits of Cash Discount Programs for Merchants
When you combine merchant fees with dynamic interchange fees issued by credit card companies, accepting credit cards can be costly and confusing for a small, growing business.

Customers often want to use their preferred method of payment, so not offering credit card payments isn’t an option.

First, let’s dig into the different types of fees before determining if a cash discount program is right for you.
- Merchant fees are typically flat rate fees paid by the merchant to the issuer of the point-of-sale (POS) terminal every time you run a transaction.
- Interchange fees, which are levied by the credit card companies, often include a flat rate transactional fee plus a percentage of each transaction.
How do Customers Typically Want to Pay for Goods?

There isn’t a one-size-fits-all answer. It depends on a variety of factors.

A 2016 study of 1,000 consumers indicated that “40 percent chose credit cards, while 35 percent selected debit cards and only 11 percent specified a preference for using cash.”

But as soon as you factor in considerations like transaction value or even store type, those numbers change dramatically.

It’s important to consider your average transaction value and business type when determining whether a cash discount program may be right for your business.

If you’re a business with a low average transaction value, like a nail salon or a coffee shop, merchant and interchange fees can add up to thousands of dollars a month. To combat this monthly expense, some businesses add a surcharge fee when customers pay with a credit card.

Credit card surcharges have somewhat of negative connotation among consumers, and some states even prohibit businesses from charging these fees. The following states don’t allow surcharges:
- Oklahoma
- Maine
- California
- Texas
- Colorado
- Connecticut
- Kansas
- New York
- Massachusetts
- Florida
In some cases, surcharges don’t make business sense. A low average transaction value and high credit card usage among your customer base, it may make sense to implement a cash discount program.

What are the Benefits of a Cash Discount Program?

A cash discount program offers merchants a way to offset tiered fees incurred when running credit card transactions.

A cash discount program allows merchants to implement a service fee (no more than 4% per transaction) to customers that pay via credit card while offering a discount to customer that pay with cash.

Cash discount programs require merchants to provide at least one notification before purchase that service fees are added to purchase, though multiple points of notification are recommended. Information about the service fees must also be included on customer receipts.

A cash discount program often encourages many customers to pay cash, which in turn reduces the transaction volume fees you incur from the credit card companies, your bank, and the terminal leasing fee needed to run credit cards.

In fact, you can use the money you save and your additional cash flow to reinvest in your business—something your customers will likely appreciate. If you’re a coffee shop, for example, you can use your new cash flow to make WiFi free or add a few comfortable couches for your guests to relax in.

If you’re considering a cash discount program, you will need a specialized vendor. Look for a vendor that has a varied fee structure that works with your business and average ticket size. This is rapidly growing subset of payment processing, so there is an abundance of companies to choose from.

How to Select a Cash Discount Program Vendor

Do your due diligence and ask potential vendors how much their customers save on average. You may also ask to view a sample receipt and check out their BBB rating. Your vendor’s technology should allow you to accept all credit card types, mobile wallets and EMV chip cards. Finally, make sure they disclose all fees to you.

Pricing usually comes in two forms; a flat rate, which works great for high transaction volume but low average transaction value, or a percentage of sale, which is ideal for businesses with a high dollar transaction value. Also, your vendor might offer free in-store signage to make your customers aware of the change.

PayArc has recently launched our Cash Discount Program, and we’re looking for motivated merchants to partner with. If you’ve been considering implementing a cash discount program, contact us today so we can show you the incredible savings we can provide.
Payarc

November 15, 2021

Fraud Prevention, Industry Insights, Security

payment-processing

Why is credit card processing important?

8 Credit card processing tips to change the future of your business

Weigh convenience against cost

Look for competitive interchange rates

Follow PCI DSS guidelines

Don’t confuse “low rate” With “best deal”

Use knowledgeable sales representatives

Be prepared for chargebacks

Keep up with interchange updates

Understand your statements

Stay up-to-date with credit card processing tips

What’s the importance of payment processing?

5 tips to master payment processing

Market your security

Get ahead of cart abandonment

Speed up transactions

Offer convenience for customers

Optimize your online gateway

So, what role does PAYARC play in all of this?

Consider Fee Structure

Consider the Equipment

Choose a Dedicated Your Merchant Account Provider

Reputation and Communication Matter, Too

What are Domestic Merchant Accounts?

How To Apply For Domestic Merchant Accounts

Prepare Identification Documents

Have a Professional Business Plan

Financial Data & Processing History

Operating Controls

Consider Working With a Payment Processor

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

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

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How do Customers Typically Want to Pay for Goods?

What are the Benefits of a Cash Discount Program?

How to Select a Cash Discount Program Vendor