Comparing Credit Card Processing Options, From Terminals to Fees

One of the most critical decisions impacting profits for any business that needs to accept credit cards is the company they choose to provide merchant services. And closely tied to it are the supporting sales channels from websites to point-of-sale equipment requiring payment processingservices. This article will explore what it means to accept credit cards through a virtual terminal or via physical terminals and what to expect from fee structures in credit card processing.

Credit Card Processing via Physical Terminals

When you need to process payments from a brick-and-mortar location, credit card processing is typically associated with traditional physical terminals. With this type of account, look for competitive rates, even on debit card transactions completed with a PIN—the ideal in affordability for merchants that need to accept credit cards of all types.

Offering an innovative credit card processing option via physical terminals, Switch Commerce gives merchants the flexibility to use their own equipment or to purchase credit card terminals at a value price. With a physical terminal operated through Switch Commerce, batch transactions each day and receive access to your earnings in as little as 36 to 48 hours. Learn more about a physical terminal from Switch Commerce.

Credit Card Processing via Virtual Terminal

When you need to process payments online and anywhere your sales agents may roam,credit card processing needs to be as simple as entering payment information anywhere you secure internet access. This type of credit card processing is called a “virtual terminal” account; look for the latest technology coupled with the ability to accept credit cards without hardware.

As a fully internet-based debit and credit card processing service, a Switch Commerce virtual terminal gives merchants an efficient way to pass over equipment and software maintenance issues with a solution that supports multiple simultaneous users as well. Process transactions on the web and manage your merchant account from an always-on online dashboard for maximum convenience. Learn more about a virtual terminal from Switch Commerce.

Narrowing the Field of Merchant Account Providers

There are many online merchant account providers that provide secure payment processing services. Because there are so many credit card processing companies available, it is important to understand how merchant services differ. With your reputation as a merchant and your future revenue on the line, choosing a reliable, trustworthy provider is more critical than ever—and when it comes to credit card processing, leading-edge security features can give you an edge while protecting you and your customers on every transaction.

Using payment processing fees as a focal point for comparing credit card processing companies can be daunting—the gulf of difference among fees charged for merchant services can be vast. Often, it’s easier to compare merchant services providers that simplify fees and monthly charges, giving you a solid starting point to estimate your liabilities according to the level of revenue; however, typically, there is a great deal of variation based on the type of credit card accepted. Expect typical credit card processing expenses to include a statement fee, merchant services fee, PCI fee, annual fee and a return fee.

How Credit Card Processing Fees Work

Historically, small and medium-size companies have accessed what’s known as “multi-tier pricing” for credit card processing. This payment processing is usually set up with three levels, including “non-qualified”, “mid-qualified”, and “qualified” transactions, a somewhat antiquated pricing system today. Tiered pricing relays the preset price, based on a percentage of the transaction at the time of credit card processing, back to the merchant. Under this model, the business owner pays a markup calculated each month from the total amount of transactions by card type.

Because the major credit card companies’ interchange categories vary so widely, frequently tiered pricing divvies these categories into one of the three-tier brackets—especially beneficial for merchants that only accept the most common credit cards. With more frequent debit card transactions, or credit card processing from cards attached to incentive programs and corporate cards, merchant services fees increase–a direct result of payment processing that falls squarely into the more expensive “mid” or “non-qualified” transaction brackets.

Evaluating Multi-tier Credit Card Processing

For businesses able to ascertain the volume and types of cards customers commonly use to purchase from you, the right decision in credit card processing becomes clearer. Evaluating a three-tier credit card processing agreement in use often requires active reviewing of the monthly statement, noting the number of mid and unqualified transactions. Increases in these transactions can point to alternative fee structures that help business owners with the means to restructure monthly credit card processing expenses. Talk to a Switch Commerce agent to find out what options exist for your business.

Switch Commerce merchant services provide basic and preferred pricing to clients in the market for world-class debit and credit card processing at a fair price. Add ATM portfolio management and convenient ATM processing that’s safe, secure and reliable to cover all your business’ payment processing needs.

by Switch Commerce

FREE Harbortouch POS System - Frequently Asked Questions

Below we've answered some of the most common questions we receive regarding our Free Placement Harbortouch POS Systems.  If your questions have not been answered here, please contact us for more information.  We look forward to hearing from you!

Is the Harbortouch POS system an “entry level” or “basic” system?

Harbortouch POS systems will compete with all of the big names. However they will cost the merchant nothing to acquire compared to the tens of thousands of dollars that the competition charges for a POS system. Our POS systems offer a full range of features and have the same reporting capabilities, etc. as more expensive systems.

Does this system work with large chain accounts?

It doesn’t matter if it’s a single location mom and pop store or a 1,000 store pizzeria chain. Our POS system is designed for scale.

Who does the installation?

We have a nationwide network of professional installers to handle the installation of these systems.

Who trains the merchant?

Our installers will provide on-site training in conjunction with remote training from our dedicated team of implementation specialists at Harbortouch.

What is the process that takes place from the time a deal is submitted until installation?

• Step 1: Once a complete deal is submitted to underwriting, the service agreement is evaluated to ensure the proper number of systems/hardware have been ordered.
• Step 2: Harbortouch contacts the merchant to ensure we are aware of all the cabling requirements as well as menu/database items.
• Step 3: Harbortouch builds the database/menu to the specifications of the merchant.
• Step 4: The merchant reviews their database/menu in advance to ensure it's to their specifications. This is done “live” with a HT tech on the line.
• Step 5: After the merchant approves the system design, installation is scheduled. At this point the equipment has been programmed and rigorously tested.
• Step 6: Equipment is carefully packaged and then shipped to the merchant for install.
• Step 7: The installation team installs the POS system.
• Step 8: The merchant is trained on the operation of the system.
• Step 9: Harbortouch is available to service the merchant and answer any of their questions.

After submitting an application how long does it take for the system to get installed?

Typically you can expect a three week turnaround from the time we receive a complete deal to the time of installation. Sometimes the turnaround time can be less than three weeks but a lot of it depends on the merchant. This is because we need the merchant to review the system and approve the menu screens and product database prior to installation.

What type of merchants can qualify for with this program?

All retail and hospitality merchants can qualify for this program. Specifically, clothing stores, gift shops, liquor stores, delicatessens, convenience stores, restaurants, fast food, fine dining, bars, night clubs, etc.

What happens if the merchant cancels early during the 5 year service agreement?

The merchant’s penalty would be the remaining number of months on the service agreement multiplied by the $59.00 service fee. UBC is investing thousands of dollars for each POS system we place free at a merchant location. We are making this investment based on an expectation of a long and happy credit card processing relationship with that merchant. If a merchant cancels early, that eliminates any possible return on investment.

Does the merchant have to utilize UBC’s credit card processing services with the free POS program?

Credit card processing services through United Bank Card are mandatory.

Does the POS system work on both dial and IP processing?

POS systems are designed to work only on high-speed IP processing networks and this is the case with Harbortouch.

Will the system stop working entirely if the Internet goes down?

The POS system functions will continue to work. For example, a restaurant can still place food orders, interact with the kitchen and the bar, etc. The receipts will still print and operate normally. However, the credit card processing functionality will not work. All merchants receive dial-pay as a back-up processing method and these days Internet outages are extremely uncommon.

Will the system stop working if just one system goes down?

If a merchant has four systems and one of them breaks down for whatever reason, the other three will work normally without any interruption. We will swap out the broken one and the merchant will be back up and running with all four systems as quickly as possible.

How will UBC handle a defective or broken POS system?

As long as the merchant is up to date on their service agreement payments, we will provide 24/7 support. This includes priority swaps of any broken or defective equipment. We maintain a daily back-up of the merchant’s system, so we can remotely program a new system and send out the swap ASAP. This is the most efficient way to manage the repair and replacement of defective systems. This is essentially a lifetime warranty while the merchant is with us and a level of service unparalleled by the competition.

Do all restaurants need a kitchen video display?

A kitchen video display system is usually only found in fast food restaurants and are not very common in casual or fine dining restaurants. If a merchant would like to quickly relay orders to the kitchen, the remote kitchen printer option will be sufficient for most restaurants.

Does Harbortouch work with gift cards?

Harbortouch POS systems work with our in-house gift card program.

Does Harbortouch work with loyalty cards?

Our loyalty card program should be released in the second or third quarter of 2011.

Will check guarantee or conversion services be available on the free POS system?

This is something that we hope to add at a later date but is not currently available.

Is the system compatible with Quickbooks or other accounting software?

Harbortouch and its online reporting systems allow exporting in a format that can be imported to most accounting systems, including Quickbooks.

Are there any trial programs available where a merchant can see if they like the system?

These systems are very expensive and it’s a large investment to set up a Harbortouch system at a merchant location. We are only making that investment after a merchant commits to the program.

Ask the Foodist: Why Are Some Restaurants Cash Only?

Dear Foodist:

I recently tried to pay a restaurant check with a credit card but was told they only accepted cash. And it was a nice place. What gives?

--Plastic Man

Dear Plastic Man:

It's one thing for a sandwich shop or food truck to accept cash only, but when a place is charging $15 or more for entrees and offering wine by the bottle, not taking credit cards seems downright inhospitable. (And hospitality should be the guiding principle of any restaurant.) So why all the plastic hate? Well, first of all, smaller, independent restaurants--the kind people like me love to support--prefer cash for the same reason we all do: It's money in your pocket. Second, credit cards charge a merchant fee for every transaction, anywhere from 1.5 to 3 percent. And for a small business, every penny counts. If a place decides to take credit cards, the customers will likely pay the fee via higher menu prices. Restaurateurs have to decide whether they want to please themselves or their customers. To make sure you won't have to dine and dash next time, ask the restaurant what its policy is when you reserve.

Read More http://www.bonappetit.com/blogsandforums/blogs/bafoodist/2011/06/the-foodist-addresses-the-cash.html#ixzz1QFhBEsgc