Credit Card Processing for Small Business

 Merchant Industry is one of the topmost accepted credit card processing company in New York. Merchant industry is popular among the industries because of its easy setup on credit card processing for small business. If you’re a new merchant looking for credit card processors to grow your business popular then join with us immediately.

Why Small Business Needed Credit Card Processing

When you accept payment from the world’s major financial card brands giants such as Visa, Mastercard, and American Express, you can show the world that your business is legalized. When a payment processing method is set up for your business, you have brought your business into the economic mainstream. This increases trust with potential and regular customers and gives them confidence that your business is official.

For merchants who running a small business and looking to save on costs, the best option is Merchant Industry. The company has a great reputation and a large number of praise from customers – something we don’t often see with other merchant account providers. With all the positive advantages this company is regarded as the best and cheapest credit card processing company for small business.

Cheapest Credit card Processing Company

Credit Card Processing is essential for any scale of business. Nearly Eighty-Five percent of consumers use cards for everyday purchases and spend more than cash-paying shoppers. We determined the cheapest card payment processing solutions for small business in terms of below conditions.

• Transaction Fees,
• Contract Terms,
• Ease of Use, And
• Included Point-Of-Sale Features.

How Online Payment Processing for small business works

For small businesses, Merchant Industry using a solution that integrates both the payment gateway and merchant account in one system. Even though tons of providers are there for online credit card payments, but the merchant industry is unique among them.

Best Processing Device for Small Business

We know, how it is hard to choose the best credit card machine for small business. So, to minimize your confusion we provide machines with all features and portable credit card processing machines on the market. Merchant Industry offers you fast, secure and reliable processing device for your business. We offer simplified and affordable pricing plans with our card machines to suit your business needs.

What Makes us Different

Merchant Industry is one of the best merchant services company in the U.S. It provides credit card processing for small business and believes that businesses of all sizes deserve to be successful. Outstanding Customer Service, Latest Technology, and transparency make us the best merchant processing services company across the country.

How to Avoid a High-Risk Merchant Account

 When you are signing up for a merchant account, you need to mention the average transaction and an estimated monthly volume. A High-Risk Merchant Account will completely differ from a traditional account. The numbers which you mentioned is for your actual processing reference.There are two ways to exceed these limits

1. If you do a large transaction at a time.
2. Second is your monthly volume gets exceeded.

It is very important to evaluate the advantages and disadvantages and the risks of your business venture beforehand.

What is a High-Risk merchant account?

Each merchant processing company will calculate risks differently. To consider your business under a high-risk category different criterion will play a significant role.

In general, the risk is calculated in terms of fraud and chargebacks. More chargebacks will tend to be more risk.

High-Risk Credit Card Processing is just like fraud and chargeback on a transaction that a business process. As we already said each merchant processing companies will have a different style in handling high-risk merchants. If you process a large transaction or you exceed your monthly limit, you will be labelled under high-risk merchant account. If any batch out goes higher on a single day than a mentioned amount, it will be manually checked and move that account to High-risk category.

Following factors will have to be kept in mind if you come under the high-risk category

• Monthly Business Banking Balance
• Your Business’ Credit Score
• Your Business’ Processing History
• Recurring Billing- if your business allows recurring billing then you must be subjected to high chargebacks.
• Your Industry and Transaction Method
• Reason for Increase

In most of the cases, merchant holds more chargebacks which will have resulted in them into the high-risk merchant account.

For example, if your business has a minimum sales volume, make it round for higher processing rates in exchange for a minimum account fee. If you have a large sales volume, argue for lower processing rates in exchange for a higher account fee. This way you can confirm that your business is set up for success from the beginning, as it’s much harder to re-settle further down the road.

Another way to mitigate your processing costs is to ask for an interchange-plus pricing plan. Interchange-plus rates are tougher ones, but also tend to be lower than the far more common tiered rates. Unfortunately, making a Merchant Account Provider agree to give you an interchange-plus rate can be difficult. But it’s still worth a shot.

How Chargebacks and High-Risk account are inter-related

A chargeback is one of the important things to consider for categorizing merchant account under High-Risk. Each merchant processing companies will have a chargeback monitoring program. With that program, they will categorize the high-risk merchants who hold more chargebacks. An individual chargeback fee for a high-risk merchant is generally higher than the other merchants. While high-risk merchants should elevate their risk levels. They must also maintain their chargebacks effectively. However, by reducing your chargeback it is possible to reduce your risk level.

Merchant Industry is a renowned Credit Card Processing Company in New York. It offers you a customized solution that must be able to accept challenges that vests with high-risk merchant account.

Conclusion

The process of setting up a high-risk merchant account is certainly a bumpy road. But if you follow these steps, you will be able to design the perfect solution to carry your business to profit.

Ready to get started? The beginning of your journey is just a click away.

How Does The Credit Card Processing Industry Work

What Is Credit Card Processing?

Credit card processing is the ability to Accept Credit and Debit Cards in person, over the phone, or via mail order through a payment provider that can securely process each transaction. A Credit Card Processor offers services that ensure the customer can make transactions using credit and debit cards simply for quick checkouts.

What Is The Process When Accepting Credit Cards?

The process begins when a customer provides their payment details, whether it’s:

• In-person using a card reader at a Point Of Sale (POS) or a terminal
• Online using an e-commerce store’s hosted payment form
• Over the phone or mail.

First, a customer presents their credit card information for payment. The credit card information is securely captured by the payment processor before being encrypted and routed to the authorization network.

 

After the payment information is sent to the processor, who communicates with the customer’s bank via the appropriate card networks, the transaction is either approved or denied dependent upon verification factors such as validity and sufficiency of funds.

 

Approved transactions will be forwarded to the payment processor and then back to the POS, terminal, or credit card reader to complete the sale. Transactions are then batched for settlement, typically at the end of each business day.

 

Declined transactions will not be processed and the cardholder will have to provide another form of payment to complete the purchase.

Who Are The Key People Involved in Credit Card Processing?

1. The Customer: The initial stage in credit card processing begins when a cardholder swipes their card or provides their payment information to the merchant.

2. The Merchant: The merchant accepts and collects the payment information in one of two ways: Physically, by accepting payments from the cardholder referred to as Card Present Transactions and through online transactions referred to as Card Not Present (CNP) Transactions processed through a gateway that collects the payment from the customer.

3. The Processor: The credit card processor collects the payment information and is responsible for routing that data across various stages as well as facilitating communication between various parties. 

4. The Card Network: The customer’s card will operate through one of the major credit card provider’s networks such as Visa and MasterCard. After the information has been received from the processor the customer’s card network will then relay it to the customer’s bank.

5. The Customer’s Bank: The cardholder’s bank receives the payment request and verifies whether the cardholder has sufficient funds to complete the purchase. If the cardholder has insufficient funds the bank will deny the transaction.

6. The Merchant: Provided that the transaction is cleared, the merchant is expected to provide the customer with the goods and services purchased.

It is important to note that at this point no funds have actually been released yet. Meaning the transaction is not completely settled. Depending upon the customer’s card network, the time period may vary to settle the funds. The process of settling and releasing the funds from the cardholder’s bank to the merchant’s bank involves the same process as described above.

The Current State of The Credit Card Processing Industry

Between technological advances and the preference of mobile payments by millennials and Gen Z, the Credit Card Processing Industry is changing daily. However, despite the rapidly evolving payment options that consumers have today, credit cards remain the leading payment method.

Millennials & Gen Z Consumers

Millennials and Gen Z consumers are disrupting the credit card processing industry by favoring different forms of payment. Although, most millennials own at least one credit card according to a survey conducted by Bankrate. They also state that older millennials (ages 30-38) have more credit cards than any other age group.

Replacing Old Ways With New Ones

Instead of swiping credit cards or manually entering a customer’s credit card information, merchants should be looking to new and exciting ways to process payments.

Popular mobile wallets, such as Apple Pay and Samsung Pay rely on NFC technology which allows customers to make purchases simply by holding their phone to a credit card terminal, reducing the amount of time the customer spends in the checkout line and allowing merchants to accept more customers.

Since many mobile wallets require two-factor verification, processing payments in this method is highly secure. For merchants, receiving mobile wallet payments is fast and affordable. 

All-In-One Cloud-Based Payment Processing Systems

Companies like Merchant Industry understand the changes and advancements being made in the payment processing industry and offer multiple processing options to make our merchants more efficient in a competitive market. That’s why we have created all-in-one processing services that enable merchants to Process Credit Cards Online as well as provide the ability to track sales, inventory, and employee performances. Since all of this information is on the cloud it can be easily accessible from anywhere and at any time at the convenience of the merchant. Learn more at Merchant Industry.

The Future of Credit Card Processing

Both the customer and merchant expect payments to be processed quickly and conveniently. In fact, businesses around the world have already stopped accepting cash payments according to The Wall Street Journal. As more and more people continue to manage their funds electronically and synchronizing their cards to their mobile devices, the credit card processing industry is swiftly moving towards contactless payment methods that are not only convenient, but also secure thanks to techniques like encryption, tokenization, and biometrics. All of which Merchant Industry provides.