10 Things I Know About... Electronic payments
10. Credit cards aren't going away.
They still represent a relatively easy source of credit to consumers and businesses and a safe form of payment to merchants.
9. Cash only?
While many merchants will still do the “cash only” thing, it tells potential criminals that there's a lot of cash on your premises. What does that lead to?
8. It's only 2.22%.
According to a 2012 survey by The Strawhecker Group, the average fee paid by U.S. merchants to process credit and debit transactions is 2.22 percent. Face-to-face retailers that accept a lot of low-cost debit card transactions can pay even less.
7. EMV is really here.
“EMV,” or European Model Visa, is here. You can go to a large retailer like Wal- Mart and use your RFID (radio frequency identification) card and pay for goods. EMV/RFID technology has been in use more than 15 years. U.S. banks have been dragging their collective heels but a more secure system is taking hold.
6. It can help small merchants.
Virtually all new credit card terminals have up-to-date chip card readers. The software downloads required to update the terminals are coming out rapidly as the card associations want EMV compliance by August 2015.
5. Merchants: Play or pay?
The card associations will penalize merchants who accept EMV cards that they don't process through an EMV card reader after August 2015.
4. Call on a “hands on” company.
Accepting electronic payments is vital. Purchase your payment systems and services from a company that offers hands-on support and service for the payment tools you need.
3. Gift cards will help.
If you don't want to grow your business or make your customers happy, don't install an electronic gift card system.
2. Local is better.
Most small businesses will find that a locally owned and operated merchant service provider will be in a position to provide the best customer service.
1. Follow the golden rule.
If everyone treats each other with respect and genuine concern for each other's business goals and payment systems knowledge, good things will happen.
Michael W. Young is president of On-Line Credit Card Services Inc. of Sturbridge, a registered merchant services provider since 1987.
WBJ Web Partners
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