Credit Card Processing is the building block of the transactional model of small business. This is due to the mobility and convenience that credit cards uphold, but there are a lot of variables that need to be taken into account as well. With a plethora of credit card processors to choose from, the market continues to grow and tend to the evergrowing needs of business owners around the globe powered by Cloud Point of Sale Systems. But what you don’t know is that merchants are not always well-acquainted with the actual rate of their credit card transactions.
Generally, merchants are not aware of this fact and hence cannot escape this dilemma to make use of all the saving benefits that are in store for them. Here are some of the ways that small business owners can keep their POS for business safe from such discrepancies:
Blind Trust is never an Option:
It is advised that you should not trust advertisements from processors as they tend to advertise the lowest rates that are even less than the processor’s cost. This might be confusing as to how can processors endorse rates that are way below the average threshold of a processor’s cost? Qualified cards are the answer as that rate would only be applicable on cards that do not entail any rewards or miles programs.
The cards that do incorporate such features do not provide quality for those rates, but that depends on whether they are Mid-Qualified or Non-Qualified based on their respective attributes.
Divide and Conquer:
This is a method that is often used by credit card processors to prevent you from learning about your actual rates. This is where the information is divided via email into small chunks such as long lists of lines or a generic invoice that includes all the primary information but fails to report on the real rates. The statements are forwarded via PDFs that make it even less noticeable for you as compared to the functionality and insight of a full-fledged spreadsheet.
This is actually an attempt made to keep on siphoning your profits by inducting heavier rates without you ever discovering the difference.
Know The Fee Structure:
As a business owner, you need to know what works for you when it comes to the fee structure of credit card processing services. These fees ensure that your current rate that is in effect is more than the price that you appear to be paying. This is reflected on your monthly invoice or statements as Monthly Statement, Chargeback or Compliance fees.
The Customer Loyalty Software and Inventory Management System of the latest Electronic POS systems can make all the more difference to refine your credit card processing and ensure that you never risk any losses.
Credit Card Processing is a double-edged sword when it comes to running a small business. For instance, if the decided rate is 3% according to the advertisements and agreements, then it does not include the charges which are variable such as Qualified, Mid-Qualified, and Non-Qualified. All this is also accompanied the statement fee and Voila! You end up with a gross rate that is twice the amount that you settled for initially!