Accepting credit cards offers an array of advantages
to companies: Reduced administrative cost, improved
cash flow, quicker access to funds, the image
of a modern, innovative company, etc. Consumers
also like using credit cards as a form of payment
because it is a simpler and safer method, no hassles
with cash or delayed payments as with billing.
Accepting credit cards can be a big decision for
some businesses. For others, accepting credit
cards can be their most widely used form of payment,
including cash!
The following guide will assist you with moving
your business into the world of electronic payments.
Accepting credit cards should be an easy decision
once all the facts have been clearly defined.
Is Accepting Credit Cards Worth It?
Not every business needs to accept credit cards.
Many companies function perfectly fine with cash
or billing and other payment terms. However, in
order to sell your products or services successfully,
most businesses should definitely consider looking
into accepting credit cards. Accepting credit
cards can make it easy for your customers to buy
products and pay for services. The more difficult
it is for customers to conduct business because
credit cards are not accepted, the greater the
chance of losing that customer forever!
Although the cost of accepting credit cards should
be considered; conversely, so should the cost
of not accepting credit cards. Will you be losing
customers? Will you be inconveniencing your customers
by not accepting credit cards? Do your competitors
accept credit cards? Remember, today's consumers
demand conveniences. If you are inconveniencing
your customers by not accepting credit cards,
you might consider that an obvious sign that accepting
credit cards will be a smart business decision.
Whether you decide to accept credit cards or not,
be sure to consider all of the factors involved.
Making an educated decision in the beginning will
prevent a lot of headaches down the line.
What do I need to accept credit cards?
In order to accept credit cards you will first
have to establish a merchant account. The merchant
account is an account established with a payment
processor for the settlement of credit card transactions.
The funds derived from the merchant account will
need to be deposited into a checking account belonging
to any bank of your choice. As for the checking account requirements,
if your business operates as a corporation, a
business checking account in the businesses name
is required. If your business is a sole proprietorship
or partnership, the only requirement is the individual
or partners' name(s) must be on the check. Meaning,
in this circumstance, a personal checking account
can be used in place of a business checking account
but only for sole proprietorships or partnerships.
The next step in accepting credit cards is to
choose a payment processing solution best suited
for your business type; these include Real-Time
Internet processing, retail swipe terminals, and
computer-based processing such as software or
our Virtual Terminal. Please feel free to contact
us for detailed information on each available
solution to help you determine which is best for
your businesses needs.
Your credit card processing options:
Real-Time credit card Processing
- This is our most popular solution for Internet
businesses that accept credit cards. Real-Time
credit card processing allows your customer to
automatically and securely pay on your site using
their credit card. Real-Time processing normally
works in conjunction with a secured online order
form or a shopping cart. Because the payment gateway
encrypts the information prior to sending it out
for authorization, secure certificates are not
required for Real-Time processing.
Virtual
Terminal - This solution is perfect
for Mail/Phone Order businesses as well as web
sites that process sales using a non Real-Time
processing solution. Our Virtual Terminal is a
secure solution that allows you to accept credit
cards using any computer connected to the Internet,
anywhere in the world, with no software to install!
You simply access the Virtual Terminal and manually
enter the credit card information. Our Virtual
Terminal also includes access to Real-Time reports.
Retail
Virtual Terminal - This includes all
the features referenced above with the addition
of an electronic card reader. Our Retail Virtual
Terminal is ideal for any retail business where
credit card payments are accepted. Used with the
Magtec card reader, your credit card transactions
are securely processed in seconds! Paynet Systems
Retail Virtual Terminal supports a wide variety
of powerful features, including comprehensive
transaction management and reporting features
to help you better manage your business.
Retail
Swipe Terminal/Credit Card Machine
- This solution is most desirable for retail/storefront
merchants who see their customers face-to-face.
A credit card machine is an electronic device
used by retail businesses to process credit card
transactions. If the customer is present, they
swipe or slide their credit card through the machine.
Point-of-Sale
Software - With PcCharge software you
can accept credit cards for retail/storefront
business with the addition of a card reader. Or,
without the card reader it is also a popular solution
for After determining what payment solution best
fits your needs, an application must be completed.
The application/merchant agreement is the contractual
agreement between you, the merchant, and our processing
bank. The documents can either be emailed or faxed
for you to review and sign. The business owner(s)
or an officer of the corporation will be required
to sign the documents in order to accept credit
cards.
The following items will be needed.
1. Business checking account (see above
for requirements)
2. A copy of a voided check
3. Articles of incorporation, business license
or reseller license.
4. Have a web site (if you are Internet
based. A web site is not needed for retail storefront
businesses)
5. Provide 2 trade references
6. A photocopy of your driver's license
Paynet Systems will assist you in all stages of
accepting credit cards. Your account representative
will be available for any questions assuring a
seamless setup process.
What are the Rates and Fees for Accepting
Credit Cards with Paynet Systems?
Fees will play a major role when deciding if accepting
credit cards is feasible for your business. There
are many fees to consider and we strongly recommend
you take the time to learn how various fees will
affect your business.
| Discount Rate: |
| Our cost - |
1.59% for Retail
(swiped transactions) |
| |
2.19% for Internet - Mail/Phone Order businesses
(non swipe) |
The amount charged to a merchant for processing
daily credit card transactions.
| Transaction Fee: |
| Our cost - |
0.25 cents for Retail (swiped transactions) |
| |
0.25 cents for Internet - Mail/Phone
Order businesses (non swipe) |
A fee charged by a merchant account provider for
each credit card transaction completed.
| Programming fee: |
| Our cost - |
No Charge |
Many companies will charge a fee for programming
your existing point-of-sale systems when changing
from one company to another.
| Application Fees: |
| Our cost - |
No Charge |
Often times an application fee will be charged when
submitting an application for accepting credit cards.
| Monthly Minimum Fee: |
| Our cost - |
No Charge Programs Available |
This is the amount of Visa/MasterCard fees you must
meet each and every month, usually $25. If a month
worth of fees do not total the monthly minimum,
the merchant account provider will make up the difference
with additional fees.
| Monthly Statement
Fee: |
| Our cost |
$5 with minimum fee
$10 without minimum fee |
This fee includes unlimited 24-hour a day, seven
days a week, customer support. The purpose of
the monthly statement is to give you an itemized
list of your daily Visa/MasterCard totals as well
as your monthly totals of the credit cards accepted.
It will also indicate the total amount of fees
you have incurred for the month.
| Cancellation Fee: |
| Our cost - |
Waived |
Cancellation fees are commonly assessed if you
cancel your service prior to the binding term
found within the merchant agreement. Paynet Systems
is so confident you'll remain a satisfied customer;
you are free to cancel your Credit Card Processing
Agreement, any time, penalty free.
| Chargeback Fee: |
| Our cost - |
$15 |
A credit card transaction that is billed back
to the merchant after the sale has been settled.
Chargebacks are initiated by the card issuer on
behalf of the cardholder. Typical cardholder disputes
involve product delivery failure or product/service
dissatisfaction. Cardholders are urged to try
to obtain satisfaction from the merchant before
disputing the bill with the credit card issuer.
| Annual Fee: |
| Our cost - |
No Charge |
This is a fee charged annually by many processors.
It's often referred to as an annual membership
fee.
| Non-Qualified Surcharge: |
| Our cost - |
0.65% - 1.83% depending on business |
This surcharge applies to business and corporate cards, and other downgrades such as non address verification for key-in sales. Failure to batch out your point-of-sale devise within the allotted 24-hour period can also cause this fee to be accessed. When accepting credit cards, it is important to understand this fee. Please ask your Paynet Systems representative for a thorough explanation.
| Voice Authorization Fee: |
| Our cost - |
$0.50 per call |
This fee is charged only if you call in a credit card sale using our voice automated system. For instance, you need to accept credit cards off-site and do not have access to your point-of-sale devise. You can then call our 800 number to process the credit card transaction.
I'm Ready to Accept Credit Cards!
We at Paynet Systems feel now that all the cards are on the table we have a winning hand. Paynet Systems offers professional advice and will always treat the Customer the way we would want to be treated were the roles reversed. This sometimes means less profit up-front because we don't gouge on equipment or sell a product that is not needed. However, we trust in return we will earn your long-term business. If you should have any question or comments please feel free to contact us. info@paynetsystems.com
As always…Paynet Systems looks forward to exceeding your expectations! |
