Credit card merchant tools

Square With Square, you can accept credit card payments anytime, anywhere, including from your mobile device or tablet.

Helcim Helcim is a payment processing tool with interchange-plus pricing and transparent fees and rates listed on its website. Flagship Merchant Services Flagship Merchant Services doesn't charge early termination, setup, and gateway fees, making it more affordable for small businesses than other options. Netverify Jumio Jumio's fraud-scrubbing tool helps you verify that your customers are who they say they are. BAM Checkout Jumio Paying online is convenient for customers, but keying in unwieldy credit card numbers is a pain.

The system is compatible with any iOS or Android mobile device and computers with a webcam. PayPal Here Mobile credit card processing services like PayPal Here make it easy to accept credit cards in person using a smartphone or tablet. Stripe Stripe's easy setup empowers your online store to immediately accept credit card payments.

Business News Daily Contributing Writer. Max Freedman is a content writer who has written hundreds of articles about small business strategy and operations, with a focus on finance and HR topics. He's also published articles on payroll, small business funding, and content marketing.

In addition to covering these business fundamentals, Max also writes about improving company culture, optimizing business social media pages, and choosing appropriate organizational structures for small businesses. Grow Your Business. Updated Looking for a credit card machine? Here are answers to some common Here are the pros and cons of 27 different mobile payment services How to Accept Credit Cards.

As consumers switch to credit cards over cash, your business must Thinking of using PayPal to accept payments from your clients? Nevertheless, the best credit card processors charge very few fees and no additional fees for processing mobile payments. The usual credit card recurring fees include a PCI compliance fee, a monthly fee, and a gateway fee for those who accept online payments.

The fraud-prevention tool is used when processing credit card payments online. Voice authorization fee: Another fraud-prevention approach that charges a fee when the terminal requires voice authorization for a transaction to be successful.

It is rare, but it charges you for each voice authorization. Retrieval fee: The fee applies whenever a customer suspects a payment. It varies from one credit card processor to another. Chargeback fee: Whenever a customer is unsatisfied with their purchase, they can cancel the order and request a return of their funds. For this, a chargeback fee is necessary to cater for the processing costs when crediting the account of the cardholder.

A chargeback is common in e-commerce compared to traditional in-store businesses that accept credit cards. Non-sufficient Funds NSF fee: If your business bank account has insufficient funds to pay credit card processing fees, the processor will place the NSF fee. All credit card processing networks place non-negotiable fees that, in return, get passed to you by your credit card processor. Some even overcharge you through a markup. Cross-border fees: U. Also, some credit card processors charge you miscellaneous fees.

Try as much as possible to avoid these extra fees. The best processors do not charge you these fees. Usually, you can negotiate with the credit card processor to get rid of these nonstandard fees. The process of choosing the right credit card processor for your business is not easy. Like many other decisions, comparing your options is always wise. First, you should decide the kind of processor you need.

Once you understand where the business stands as well as its needs, take into account other general attributes. Often, merchant service providers are suitable for growing or large businesses. These credit card processors are customizable and offer a stable solution for processing transactions in your network. Some merchant service providers in credit card processing include Fattmerchant , Helcim , and Dharma Merchant Services.

Merchant account providers offer cheaper costs per-transaction and give your business access to in-house customer support. For some businesses, the underwriting process for approving your merchant account is a hindrance. Besides considering the type of credit card processor, take into account your business goals. Also, consider the different types of transactions your business accepts cash, mobile, or online since the design of most credit card processors fit a certain format.

They are also known as payment aggregators and help merchants avoid signing up for merchant accounts. If you run a small business, then a third-party processor like Square or PayPal provides a simple and affordable way of processing payments.

Usually, you only pay third-party processors after making a sale. These credit card processors eliminate the need to comply with PCI-DSS because transactions take place outside your platform. The main drawback is that third-party processors can hold your funds or terminate the business account for failure to comply with their terms.

Poor customer service, coupled with technical issues, can negatively affect your business. So, selecting a credit card processor that provides you ample support is essential. So, consider credit card processors that provide in-house customer service. As well, check if the credit card processor offers a comprehensive online knowledge base that can help you resolve issues on your own.

A dedicated support service helps you reduce any downtime you may face in case of any issues. Partner with a credit card processor with transparent pricing. Knowing the pricing plans is just the beginning. You also need to figure out the right pricing model for your business.

Each tier in a pricing plan offers different features and performance for various processors. So, take into account product bundles. Besides reviewing the price list, compile questions you need the credit card processor to answer. So, take the time to speak with a representative of the credit card processor. This will let you know if the credit card processor provides you honest and transparent pricing. With rapid development in payment processing services, you need to be up-to-date with the latest PCI DSS requirements as a business owner.

Some statements from marketing or sales departments about PCI compliance may not paint the true picture. For instance, the processor could be PCI compliant, which protects the processing of payments on its channels but excludes your business channels. So, establish how a credit card processor aims to protect your credit card payment data. If your business relies on a third-party credit card processor, you will have less burden to comply with PCI regulation.

However, you still need some form of verification to remain compliant. Inquire how the credit card processor will protect credit card payment data.

Let the processor clarify if they do annual assessments. Should you decide to sign up for a merchant account, inquire if the credit card processor helps with yearly PCI assessment for your business. In addition, establish if your preferred POS terminals and card readers support point-to-point encryption. High-end encryption in the retail sector allows merchants to comply with most PCI requirements when they send encrypted credit card data.

A quick glimpse at the website for the PCI Security Standards Council gives you free resources you can use for your business. It allows you to verify if the credit card processor has been tested independently for the protection of credit card payment details.

Also, the website can help you come up with questions you may want your preferred credit card process to answer. Some credit card processors do more than just processing credit cards. They allow merchants to access details such as customer insights, manage inventory check out the best inventory software , and send invoices. Today, there are credit card payment processors that are more suitable for POS, e-commerce, or mobile, while providers offer omnichannel solutions. Choosing one processor with multiple integrations and features is an excellent decision for cost implications and consistency.

If you need a card processor that integrates with other platforms, you should establish if the processing system allows this for your business. In case you rely on other vendors for the POS system, the credit card processor should integrate transaction data from your vendors.

Lastly, establish the reliability of the credit card processor. Sometimes, unsophisticated gateways are slow, which can result in frustrations. Make sure the processor has a solid uptime and impeccable connectivity speed for the smooth processing of credit cards in your business.

For a business owner, understanding the contractual terms and conditions in credit card processing is essential. Here are some common contractual terms. As you sign up with a credit card processor, request detailed information regarding the duration of the contract. The normal contractual period is 3 years or 36 months that correspond to your monthly billing.

However, it is not uncommon to find contracts that last at least a year and others that go up to four or five years. If the contract has an automatic renewal clause, your credit card processor may extend the contract by 12 months. However, the renewal clauses vary from one provider to another but vary from 6 months to 2 years. Canada is one of the countries that limit automatic contract extensions to a maximum of six months.

Long-term contracts limit your chances of leaving the contract as a merchant in case you wish to change the credit card processor. The trend today in credit card processing is subscribing to monthly, flexible billing.

Businesses are committed to monthly contracts from credit card processors. Scrutinize the contractual Terms and establish if the initial contract is 30 days with a similar renewal period. Provided there are no early termination fees ; monthly contracts provide businesses with the freedom to terminate their contracts without financial consequences.

Most likely, you will only pay a recurring fee for one more billing cycle. Few contractual aspects in credit card processing are worse than an expensive penalty.

Some credit card processors impose an early termination fee if you terminate your merchant account before the contract expires. Other credit card processors use proration to calculate the fee depending on the time left before the contract expires. Proration decreases the penalty provided you have been with the credit processor for a while.

In some cases, credit card processors have liquidated damages clauses instead of a fixed fee termination fee. These can be expensive for a business with a high monthly volume if it terminates the contract very early. While reviewing the early termination policies in a contract, you will notice the intensely biased way the policies apply. For instance, as a merchant, the contractual obligation requires you to keep your merchant account active as you pay fees. However, the credit card processor can terminate your merchant account for any reason.

Although it is unlikely for a processor to terminate your account if you pay their fees, impromptu termination of a merchant account can halt your ability to accept credit card payments. Prolonged contracts and automatic renewals are supposed to hook you indefinitely to a credit card processor.

However, it is possible to terminate your card merchant account without paying fees. Most merchant contracts include clauses for closing a merchant account. Although some credit card processors make it difficult, you can still terminate your contract when it expires without paying a termination fee. You can accomplish this by carefully adhering to the account closure instructions in the contract.

Most credit card processors require written notice within a certain period before the expiry of your current contract. Unfortunately, it can be hard to establish the exact renewal date. So, submit your notice long before the necessary minimum notice period.

Normally, credit card processors require a day notice , even though this varies since some contracts have a day notice period before contract termination. Also, some credit card processors require users to submit their termination notices on special written forms that the processors only provide upon request. It is rare to have a legal dispute between merchants and credit card processors.

Pros No long-term contracts Exclusive interchange-plus pricing No monthly fees Excellent customer support. Cons Does not accept high-risk businesses Not suited for very low-volume businesses. Pros Transparent pricing Free gateway and virtual terminal No early termination fees. Cons Only available to US-based merchants Some high-risk industries may not qualify. Pros Predictable flat-rate pricing Excellent developer tools Exceptional subscription tools Advanced reporting tools Multicurrency support.

Cons Account stability issues Not suitable for high-risk industries Needs technical skills to implement. Frank Kehl has been researching and analyzing merchant services, payment gateways, and international money transfer services since View Frank Kehl's professional experience on LinkedIn. Latest posts by Frank Kehl see all. Show more. Show less. Sources How much does Square cost? Hide Sources. Read Next. Leave a comment Comments Responses are not provided or commissioned by the vendor or bank advertiser.

William October 12, at am. This comment refers to an earlier version of this post and may be outdated. Jessica Dinsmore October 13, at pm.

Thanks William! Rich December 5, at am. I am having an issue I was hoping someone here could help me out with. Does anyone know why something like this would have happened? Is this typical?

Jessica Dinsmore December 11, at pm. Hi Rich, What an unfortunate and unusual situation! Mary C Brady December 2, at pm. Jessica Dinsmore December 2, at pm. Hi Mary, Thank you for your feedback! Jhon Pace October 21, at am. Thank you so much for this article, great information! It is helpful for startup small business. Nasir August 28, at pm. Jessica Dinsmore September 22, at am.

Hey Nasir, There are a lot of factors that can impact this decision! Cherrell May 21, at am. David May 5, at am. I own a salon in Texas. Can you help me recommend a trustworthy merchant? Jessica Dinsmore May 8, at pm. EH March 14, at pm. Jessica Dinsmore March 24, at pm. More Comments. Leave a Reply Cancel reply Your email address will not be published.

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This field is for validation purposes and should be left unchanged. Please share your location to continue. Square Read More. Velocity checking looks for multiple transactions with one or more pieces of shared information in a short period of time. While it's not uncommon for a customer to forget something and make a second order soon after the first, three or four orders in sequence will often be fraudulent.

Once technological solutions have been set in place, merchants have only their knowledge, experience, and intuition to help them identify fraud — but these can be powerful resources. However, as you get to know your customers and the flow of your business, you will spot indicators and patterns that signify fraud. There may be certain products in your inventory, for example, that have a high resale value and are frequently purchased by fraudsters. While some merchants may believe they have mastered the art of sniffing out fraud, it never hurts to supplement with some good data science.

When you analyze your known true fraud transactions, the data will show you even more indicators and patterns, and may confirm — or dispel — some of your hunches. You can also use the results of your fraud data analysis to inform your fraud scoring thresholds. True fraud chargebacks are the worst and most costly type. Thanks for following the Chargeback Gurus blog. Feel free to submit topic suggestions, questions or requests for advice to: win chargebackgurus. July 06, Chargeback Prevention.

Written by Chargeback Gurus. How do I prevent them?