Are your accounts receivables still reliant upon checks? Are your business processes still heavily manual, receiving payments by mail and dependent upon teams to prepare deposits and reconcile manually? Several macro-economic trends indicate that organizations now, more than ever, should be utilizing electronic payments. Not only to minimize manual processes and reduce costs, but to please customers who prefer the convenience. The added bonus of getting paid faster will delight finance teams who are focusing on cash flow.
ChargeLogic Merchant Services
We all know the iconic scene in Friends when Ross and Chandler navigate a tight staircase with a large couch. Right now, many businesses are also yelling "PIVOT" as they transition multiple aspects of their business model in short order. For many businesses, it's pivoting to a work-from-home routine and ensuring their employees have what they need to accomplish their daily tasks and continue to be successful in their roles. For other businesses, its more extreme by pivoting their order and fulfillment process. Brick and mortar retailers are the most common example, who in many cases have had to shift to an online ordering and delivery system where one may not have existed before. And then there are the most extreme cases where manufacturers, distributors and retailers have shifted the very product set they make and/or sell to accommodate the changing demands of society. Through all these quick pivots, it's crucial to not "break the couch" and ensure critical pieces - like customer payments - aren't broken or lost in the process.
If your business accepts credit cards, you are probably paying for these services through one of the three most common pricing models: tiered, flat rate, or interchange plus. As a merchant, you should be familiar with all three options in order to determine the best fit for your business.
This method of pricing works on a tiered qualification system. Typically the merchant service provider will divide transactions into several classifications or “buckets” and charge a transaction rate for each tier. You may see tiers listed in several ways. For example, some merchant services divide their tiers into various qualification levels. As such, Qualified transactions might be charged at a rate of 1.XX, Mid-Qualified at 2.XX% and Non-Qualified at 3.XX%. This tiered system works well for merchants if they can get all or most of their transactions in that lowest priced tier.
Paying with a credit card seems quick and easy when you’re the customer. All you do is swipe, insert, or tap to make a purchase or click on a website. However, as the merchant, credit card processing can take on a whole new meaning. Knowing who the players are can help you know your options and determine the best choice of vendors and partners.