Investing in credit & debit card processing will empower your business to reach out to a wider target market. And with 2.2billion purchases made using a credit or charge card in the UK during 2013, your organisation will be losing ground on its competitors should you fail to do so.
But even though the amount of us making transactions with cards is growing every year, many businesses still harbour doubts about whether card processing is worth the time and investment.
No matter what your fears, here at Chip & PIN solutions we’re eager to put the record straight about many of the urban myths surrounding card processing. So whether you’re a sole market trader or a fledgling B2B-faced SME, we’ve put together our ‘seven top card processing myths’ to help try and ease any concerns you may have!
1. Set-up costs are too expensive to justify this investment
False. With point-of-sale (POS) technology advancing all the time, physical card processing machines are becoming more accessible every year – with units now available to suit budgets of all sizes.
Additionally, monthly charges are not the crippling financial force many people assume they might be. The Minimum Monthly Charge (the amount your merchant bank will take in card processing fees) can often be as little as £5.00 – which when taken into account with a card processing rate of between 1.5-2 per cent, means offering card payments is more affordable than you might think!
2. My merchant account has to be with my business account provider
False. Businesses can mix match their merchant account and businesses accounts with ease – meaning you don’t have to seek merchant services from your existing business account provider.
Offering your business flexibility, this means you can shop around for the best merchant rates and not stay constricted to those offered by your business account provider – giving you the best of both worlds.
3. All merchant account charges are the same
False. Far from being a ‘one rate fits all’ market, different banks charge different amounts and percentage rates for card processing – just like any other market.
Debit card processing fees are usually always considerably less than credit card fees, however.
4. If your POS machine looses connection, you lose a sale
False. From time to time, it is possible that your card processing machine may lose connection or signal for some reason. But even if the worst does happen, card machines have a number of processes in place to ensure your business doesn’t lose any money.
Most modern card machines are able to store a number of transactions irrespective of whether you have connection or not. As soon as you have regained signal/connection, your card machine will immediately send them to your acquirer for processing. As a final backup, manual vouchers are also available to complete with your customer and return to your merchant bank.
5. Card processing opens up my business to fraud
False. Although no system can deliver cast iron anti-fraud guarantees, today’s card processing systems are safer than ever before – with European card fraud continuing to decline thanks to chip-and-pin security.
As a merchant, you will also have to comply with the Payment Card Industry Date Security Standard (commonly known as PCI DSS) – a worldwide standard set up to help businesses process card payments securely and reduce card fraud. These 12 high level requirements help maintain good practise and hugely minimise your exposure to costly fraudulent activity.
6. Contactless cards are just a fad
False. Far from just a flash in the pan, contactless cards are continuing to grow in both public awareness and usage – and if you’re looking to add card processing to your service offering, it’s vital that you consider accommodating for contactless technology.
With over 40.7 million cards with contactless functionality now in use in the UK and over 80 per cent of the public familiar with the symbol, contactless payments are growing in popularity – not decreasing.
7. The public still prefer using cash
False. With credit and debit card usage increasing every year, consumer trends in the UK are continuing to change. Far from simply being a welcome convenience, many of us now prefer card to cash.
With a landmark study from Sage Pay finding that 64 per cent of UK consumers now cite cards as their preferred method of payment, cash isn’t the dominant force it once was.
Want to know more about credit card processing? If you’ve got any questions or queries, don’t hesitate to give one of our friendly team a call FREE on 0808 231 4431.
November 27, 2014