Contributed by: Chris Damron
Read This to Change How Your Company Processes Credit Cards
5 Serious Mistakes Business Owners Make With Credit Cards Processing
As with any industry, certain landmines can drastically affect a business’s bottom line. Merchant services are one of those very crucial parts of any business because it can greatly impact the businesses revenue stream. Unfortunately, most business owners don’t have the time to research the best methods or tools to improve your credit card processing. We’ve put together 5 worst possible techniques that can truly affect any businesses receivables and expenses relative to credit card processing.
#1 Keyed Transactions vs Swiped Transactions
The most important thing you can do for better rates and fraud perspective is to swipe every transaction possible. I know this seems simple enough, but unfortunately, not all customer-facing representatives know to swipe as much as possible. Swiped or chip cards have a much lower risk point and therefore come with the lowest rates available. Chip cards take a longer time to process, but to obtain the lowest rate, it’s worth the extra time.
#2 Enter as Little Data as Possible
There are many business types where swiping just isn’t an option. For this model of business, there may be a virtual terminal either online or on a cell phone device. The customer cannot be in person but is willing to provide you with their credit card number.
Where business owners fail in this scenario is that they only get the card number, expiration date, and maybe the CVV code. While this information is good, it’s always better to obtain even more information. Obtaining items such as the cards billing address and zip code will decrease your risk as well as provide you with a lower rate for credit card processing.
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If the business sells the majority of their goods and services to other businesses, then they’ll want to take advantage of whats called Level III data. Level III was created specifically for business to business transactions because they are typically higher dollar amounts where a 3% to 4% fee is very costly. There are a lot of attributes to Level III so if you think you may qualify, feel free to reach out to us for questions.
#3 Do Not Do These Things When Getting a Chargeback
A chargeback in the merchant service arena means that someone is disputing a transaction on their credit card. The reasons can range from being fraudulent to the customer just not happy with your product or service. When getting notified of a chargeback, the worst thing a business owner can do is ignore it and not respond.
Receiving a chargeback notification is the businesses opportunity to provide details of the transaction. Items such as the cardholder’s signature, emails authorizing the charge, or signatures accepting the quote with details, can make a world of difference in winning the dispute.
Not responding to the chargeback means the business will lose out on the money for that transaction as well as any corresponding chargeback fees. Chargebacks can be devastating to businesses as well as cause a lot of frustration so make sure you have proper documentation for your charges. It could also affect the businesses overall chargeback rating which can greatly affect the rates and fees associated with credit card processing overall or possibly result in a substantial fine.
#4 Staffing Procedures Are a Crucial Element for Any Business
Accepting payments from customers can be such a trivial thing. However, having procedures can greatly help new staff members. We get calls all the time where a staff member has exited, and the new member doesn’t know who to call, how to enter payments, or worse yet, how to enter the information correctly. As stated earlier in this post, entering as much data as possible can truly save a business in processing fees. Not having procedures outlined can affect the bottom line if the new staff member doesn’t understand all the particulars of the system or how credit card processing works.
#5 Having a Trusted Agent or Resource for Support
Credit card processing systems are not what they used to be. With the evolution of technology, merchant service systems are more complex and the pricing associated can be just as complex. When things go wrong, business owners need more than just an 800 number to call for support.
Representatives at help desks are there to help walk you through a simple function or inform you of whether a transaction processed or not. They’re not familiar or even trained on all the different software’s or functions of your business. Having a personal representative that you can call their cell phone or perhaps even send a quick text message to, can be big timesavers and make all the difference in the world.
The basic function of accepting payments is simple. However, it can become very frustrating and cumbersome quickly if you aren’t able to retrieve the funds of a customer who’s looking for your services.
For good methods for processing credit cards, feel free to reach out to us with questions. An honest, straightforward representative can save you hours of frustration and headaches and will help you streamline your business. To learn more about how Digital Financial Group can help you and your business, feel free to reach out to us at email@example.com or call 623-764-7471.Let’s Talk