Taking Credit Card Payments
Overview: Accepting Credit / Debit Cards Taking credit card payments, rather it be in person, over the phone or online; is one of the most important points in the circle of commerce. This is typically the entry point for most businesses and an area commonly overlooked when it comes to understanding the basics. With new and emerging technologies today, taking payments with mobile phones (iPhone / Android) is now a feasible possibility for all businesses. In addition, setting up an internet storefront or ecommerce solution is easier than it has ever been. Behind the scenes, technology and fraud prevention algorithms are developing at a rapid pace, allowing the payment ecosystem to stay in balance. With all of these new and exciting changes, there are still three basics that are very important to understand, track and document when it comes to taking payments. These three critical areas impact many areas of your business but most importantly impact three important money areas listed below. Three Money “Hows” Impacted By 3 Critical Areas How Fast You Get Your Money (Funding) How Much Money You Pay In Fees How Safe Your Money Is (Security) These three important areas that must be understood in order to maximize your businesses cash flow, minimize costs and protect your money are listed below. Three Important Areas – Taking Credit Cards How You Take Payments (Merchant Type) Merchant Agreement / Contract Technology (Device) Used To Take Payments How You Take Payments (Merchant Type) The type of merchant you are classified as, or more specifically, how your business accepts payments impacts all three important money areas. Unfortunately, the details are commonly glossed over. Most businesses primarily take payments via the following methods. Retail (Face-to-Face) Mail Order / Phone Order (MOTO) Internet / eCommerce Some business accept payments through only one method however, most merchants take credit cards through a combination of the three areas above. For detailed information on this be sure to check out our Acceptance Methods post. Merchant Agreement / Contract One of the key areas of payment processing that can potentially have a large impact on funding (cash flow) and processing fees, is the merchant agreement. This contract between the sales organization and the merchant serves as an application, fee schedule and terms of credit card processing. Most agreements are fairly similar with a few stipulations to look out for. The major items to be aware of when it comes to fees are as follows. For further explanation see our Merchant Agreements page. Interchange Fees Discount Rate / Transaction Fees Monthly / Support Fees Technology (Device) Used To Take Payments Commonly the focus with taking credit cards is the device, hardware, software, etc. that will be used to accept payments. While this area has the smallest impact on fees (other than outlay for device / technology) it has a large impact on the security of both the merchant funds and the personal information of its customers. It also can play a role on how quickly funding takes place. For a discussion about the most common types of devices today, view our Payment Technology...
Read MoreMobile Credit Card Processing
What is the Best Mobile Payment Solution? With the rapid development and wide spread use of smartphones over the last 5 years, mobile payment processing has found a new platform for expansion. Previously if you wanted to take payments on the go or if you were a full time mobile business such as a contractor, plumber, painter or trade show merchant; you were pretty much limited to an expensive and bulky wireless terminal along with additional wireless transaction fees. Enter the smartphones, mobile payment apps and card reader/printer peripherals. iPhone and Android phones coupled with a solid payment app have pretty much made the traditional wireless terminal extinct. Here are a few reasons why mobile phones are better. No need for an additional piece of equipment No need for separate merchant account No additional wireless processing fees Hardware does not go out of date Connectivity through existing phone ports or Bluetooth Interface is sleek and becoming more recognizable to customers Now that we understand the benefits of utilizing your mobile phone over a traditional wireless terminal, the next questions should be, “What is the best mobile credit card processing solution?” A better way to phrase it, is, “What is the best platform that will give me the most options for processing and hardware integration?” While Square and Intuit mobile processing solutions have become widely popular in the last few years, they are not the best fit for every business. This is especially true for companies that process more than $3,000 per month in debt/credit cards. For those looking for solutions that not only give the business owner merchant account options but also hardware compatibility check out our review of the three (3) best solutions at the link below. Check out our review of the Best Mobile Credit Card Processing...
Read MorePOS Evolution: Retail and Hospitality
The Evolution of POS Systems in Retail and Restaurant Industries POS is an acronym that stands for Point of Sale or Point of Service. Basically, it is a structured system that businesses use when there is an exchange of products and service for monetary value. When it comes to retail industries, POS means retail point of sale. Moreover, when it comes to restaurant industries and other hospitality related business, POS means point of service. POS systems are applicable in many business industries such as department stores, restaurants, hotels, stadiums and retail outlets. A POS system is employed at the cashier or checkout counter where the transactions occur. As technology advanced, the trend for POS systems in various businesses has also developed over time. Here are the POS systems used by retail and restaurant industries. POS Systems of Retail Industries A retail industry provides products and services to consumers. Typical examples of retail industries include supermarkets, malls and other retail stores. The retail point of sale for these retail industries is located at the cashier stand where the buyers place their items to a counter for totaling of the cost. Usually, the counters are long and there are moving belts to transport the products near the cashier. Then, the cashier scans the item and obtains the total amount that should be paid for the products bought. The buyer will then have to pay. The early POS systems of retail industries include electronic cash registers. As technology developed, there were already advanced computers that could be used to make the payment processing faster and more efficient. Scanners also contribute to faster transactions in retail stores. The cashier simply needs to pass the item through the scanner and the computer will automatically register the product and the pricing details. Software used for credit card processing gives the customer convenience in paying for the items they bought. Today, touchscreen monitors are also used by many retail stores. POS Systems of Hospitality Industries Unlike retail industries, most restaurants are dedicated towards providing more hands on service to the consumer. Examples of these restaurant industries can be cafes to upscale sit down restaurants. Prior to electronic point of sale, checkout was cumbersome and prone to errors while nightly close was a very long process. Waiters or cashiers would have to list the orders of the customers on paper. Then they would have to go to the kitchen to give the order to the kitchen staff. After that, they will go back to the customer to bring a hand written receipt with the total cost of the order. With the advent of technology, the pace and service of the restaurant industries has also progressed. With the use of computers, the orders of the customer are directly networked to the kitchen. There are also touchscreen POS systems that are used for faster transaction input. The latest advancement for POS of restaurants is the use of smartphones for payment transactions. There are already POS platforms that are available in smartphones which enable the restaurants to process payments through credit card readers. Advancement in technology and awareness has really contributed to the development of POS systems in both restaurant and retail environments. From manual systems, large computers, to touch screens and smartphones, POS systems are more efficient both to store owners and to the...
Read MoreHow to Choose the Right POS Software
It’s clear that Point of Sale software is essential to just about all businesses, large or little. Whatever your financial allowance is, it’s mandatory that you find a reliable POS software program that suits your requirements. In America popular software suites include Micros and Aloha however they can be expensive. More affordable solutions such as Harbortouch or Sage Light may not provide the robust features your business needs. Here are a few pointers to consider while searching for the correct POS software solution. 1. Equipment Compatibility The software program solution package should be compatible with the latest hardware available for sale including touch screen displays, terminals, thermal printers, charge card swipers, paperless personal pads, wireless bar code stock scanners and other standard peripherals. There are many convenient hardware add-ons that accelerate checkout and enhance the overall customer experience. It is important that the software you pick is compatible with a wide range of hardware and devices. 2. Easy User Interface The interface ought to be intuitive as well as user-friendly. It ought to be designed so that brand new users may pick this up and get accustomed to it quick without a lot hassle. Many POS systems and software programs have really counter-intuitive as well as complicated user-interfaces, which can cause problems and slow down customer service time. Easy user interface is especially essential for new employee training. Imagine needing to intensively teach every brand new staff member a complicated and cumbersome system. A simple user interface eliminates the manpower and time wasted on this step. 3. PCI Conformity Compliance with PCI (Payment Card Industry) standard implies that the software program can link seamlessly together with your selected merchant account securely. This means the added security necessary to secure the actual cardholders’ information and data. PCI compliance is also an essential security requirement that each business which processes credit and debit cards are forced to follow. 4. Compatibility With 3rd Party Plugins and Apps Whatever software program bundle you purchase should be suitable for other 3rd party plugins such as online ordering, social media and accounting software programs. It should be able to work effortlessly with software program like Quickbooks and other major developers. Depending on your business type online ordering or eCommerce may be a critical part of your business. Be sure the POS you buy integrates your brick and mortar operations with your online ones. Marketing and social media apps have become very popular in the recent decade. Integration with loyalty program where customers can interact with your business effortlessly is important from a community based marketing approach. On top of these basic concerns you need to ensure that the seller or reseller themselves is versed in the latest point of sale technologies and techniques. Avoid opting for non-local service providers who cannot correctly support the software once installed. Many sellers will offer the service on a purchase or rental basis. Basically you need to ask is the POS package offered as a Software-as-a-Service (SaaS) or will you need to pay the onetime charge? Can you lease the software through the provider? Do they have a trial period in which you can return the product should it not meet your needs? Ask the seller or reseller to supply testimonials associated with customers utilizing their restaurant or retail point of sale systems. Ensure a sufficient product demo or trial period to check if the POS will work with your given application. The couple of points provided above as well as your own company analysis should offer a sufficient insight and help you make a better POS...
Read MoreGuide to Retail and Restaurant POS
A Guide to Retail and Restaurant Point of Sale Systems Are you having problems managing your company financial statements? Are you tired of manually taking inventory? Do your eyes hurt from trying to read the handwriting of your cashiers, servers or managers? Read this article carefully and understand how to make your business life easier. Leave those labor-intensive, tedious, and time consuming tasks behind because a robust POS system will take care of them for you. What is this System? A POS system utilizes a computer instead of a cash register in goods exchange transactions. Basically, a point of sale system can handle transactions such as inventory, printing receipts and invoices with facts about the transactions, and it can also handle card payments. A point of sale can be utilized by retail stores, restaurants, hospitals, hotels or any establishment that requires payment transactions. Retail Point of Sale System For the retail industry, their POS is rather complex and less standardized compared to that of the Restaurant POS industry. For this system, it usually consists of a monitor, cash drawer, printer for receipts, scanner for barcodes and inventory, debit/credit card scanner, and of course a computer. More advanced systems have all-in-one units with touch screens. A retail POS system is capable of handling sales, returns, gift card transactions, exchanges, layaway and loyalty programs. Most systems also can handle advanced features such as promotional sales and multiple forms of payments. In some retail environments, there are a number of POS units available on the floor in various locations for actual checkout while a back office computer handles the inventory and other financial aspects of the business. The back office “brain” all-encompassing machine is also capable of producing sales reports, trends, and cost analysis. You can see this kind of system in supermarkets and malls where there are multiple cashiers using this system. Restaurant Point of Sale System The restaurant point of sale system is simpler and a more versatile system compared to retail. This is because in the restaurant industry, the point of sale’s main function is to track orders, print checks, receipts, customer orders and financial reports. These systems are usually used by big fast food chains and sit down restaurants and bars / nightclubs; however they are also commonly used in café and quick service environments. For fast food chains, you might have noticed that the cashiers have headphones; this headset system is actually an additional feature for the restaurant point of sale system to allow the employees to communicate easily. Similar devices are also available for the kitchen including, impact printers to deal with heat and customized kitchen display units. The POS Industry Point of Sale does not only provide easier financial transactions but enhances the overall management scheme of a company. It is advisable to choose wisely when selecting a particular POS system especially when picking the software and reseller / servicing company. Most companies provide trial software as well as interactive demos; restaurant POS expert like Dinerware have many online demos and videos that restaurateurs can check out. Other major players in the restaurant POS are Micros, Aloha and Harbortouch. For the retail industry the choices are much more diverse with larger merchants creating their own customized solutions. However, many smaller merchant have had success utilizing Intuit’s POS and Apple’s Checkout. Because there are so many different companies that provide point of sales software and systems, as a buyer, you really can design your own system to suit your own needs. So what are you waiting for? There is a system out there that would help you with all the cumbersome...
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