When a new business starts, we offer a simple process to set up a new merchant services account. During this time, we provide ways to quickly evaluate the options and weigh the value proposition of various features. These take into consideration payment processing with the customer AND your business in mind.

Some questions for you to think about first:

What POS System are you using?
What are your estimated monthly sales?
Do you have an idea of your average transaction?
How will payments be collected: in person, online, e-mail (link to payment portal) and/or text?
Will you pass on the credit card fee to the customer (and, are you allowed to do so in your state)?
What are the overall fees related to processing?

All of these can create different options and help to reduce the cost of your overall expenses related to payment processing.

POS Systems Matter

Many systems offer a business the option to use any merchant services provider through a variety of gateways. TransAct is approved on a multitude of platforms, and some have an open API that allow integration. Other systems, like Clover, Square and Toast will mandate the processing through their system and there are no other choices. We can walk you through the options and also help you to discover features within the POS Systems that suit your business processes, operations and staffing.

Estimating Gross Sales Is An Important Step

Knowing your monthly average revenues will help you to decide on a few of the subsequent questions on the list. While the sales will ramp up over time, you should have an idea of what your projections are at the early stages. This will allow you to access underwriting for your account and can reduce your costs of processing. We can walk you through the information that will help guide the decisions.

Low or Higher Transaction Values

If you sell a product or service with a low transaction amount, you may want to look at a flat rate or passing on the fee (covered below in more detail.) You may not need a separate card reader depending on the equipment that is included in the POS System. In addition, if you promote that you accept debit cards, it can help you to reduce your fees overall. Note: this is more common on transactions below $500 and may be your sweet spot.

Home services, construction, roofing and other businesses often have higher ticket sales. Those high transactions tend to be processed via e-Check or credit card which can vary in rates by the bank issuing the card as well as whether it is a rewards or travel card. Some businesses offer a payment plan to help the customer commit to a larger purchase and offers predictability in revenue streams. Memberships or recurring auto bills offer the flexibility of monthly payments that help to offset larger one-time investments, repairs or upgrades – while also generating regular, repeatable income.

Collecting Payments In-person or Virtually

At the heart of this question is security and trust. Collecting credit and debit card payments in person is typically the most secure method. With card in hand, a chip and or pin confirmation, these tend to be the best. That said, online and e-commerce is a growing part of business and continues to outpace other types. Thus, security systems are improving to help protect a business from fraud.

Following PCI guidelines and completing regular audits of your business will also be needed as you go. Understanding this is a requirement of your payment processing is the first step and why we make sure to talk about it.

Passing on the Processing Fee

This continues to be a hot topic and there is a lot more to it than deciding to surcharge or pass on the fee.

Here are three things to consider.

State guidelines affect your ability and decision
Whether you are processing a credit or debit card
How you disclose the fee, surcharge or cash discount (and what you call it)

We also offer these resources for your research:

No time for the research? Reach out to us – we discuss your specific business needs and what is the best course of action.

Understanding the Variety of Fees

There is no need to have a lot of fees, and we work to reduce these with our clients. That said, with other providers, there are many unexpected fees that can show up on your account:

Equipment costs
Transaction fees
PCI Compliance Scan Fee
PCI Non-compliance Fees (these tend to be recurring until the account is compliant)
Statement fee
Batch fees

Be aware of them! Ask the important questions to learn why they are in place.

We know the fees are why some business owners turn to a flat rate provider. Keep in mind, if you process less than $10,000 per month, that may be a way to find savings, but still potentially paying more than necessary.

Start Accepting Credit Card Payments Today

We know this isn’t always the most fun part of the business. But, for a new business start-up, we offer a simple process to set up a new merchant services account. A few questions will get you started today and taking the time to carefully choose the best options will have long term benefits for your venture. Entrepreneurship and owning a business does not have to be done in a vacuum. We are here to help guide the way with customized solutions for you and your business.