The Ins and Outs of Modern Payment Processing

According to the World Economic Forum, we are experiencing the beginning of a cash revolution. The convergence of technological innovations in the telecommunication, banking and retail industries have moved us towards an increasingly cashless society wherein consumers are accustomed to and reliant on the convenience of paying alternatively. Many shoppers, especially younger ones, rarely carry cash at all, and checks are even rarer. 

On top of that, the COVID-19 pandemic further advanced the move away from hard currency and towards cleaner, more efficient and contactless digital transactions. After more than a year of primarily , customers have new expectations and preferences for what businesses should provide for payment options. Small companies need to continually adapt in response, by combining the convenience of digital processes with the human element of face-to-face interactions. 

Of course, as many business owners know, payment processing comes with a loss of value when a transfer occurs with third-party involvement, as opposed to the equal exchange of value that cash allows. However, if leveraged properly, digital payments can benefit businesses and consumers and ultimately generate more ROI.

Payment processing needs to be integrated — incorporated into a system that communicates with all the other critical software a business uses. Done well, this means there’s no need to switch between systems, which simplifies the checkout process and sends customers on their way with less time and hassle. Because, one customer expectation businesses can count on is the need for convenience; the faster a checkout is, the happier customers are. You can provide such convenience by securely storing card information for future visits, so that returning customers get even quicker touch-free transactions. Plus, when necessary, it allows service companies to easily charge for no-shows or cancellations.

Integrated payment processing also allows consolidation of financial reporting, reducing human error and streamlining accounting. By synchronizing compatible accounting software systems with integrated payment processing (i.e., QuickBooks), companies can have all revenue processing data directly imported into their accounting system.  

It’s easy to overlook the importance of choosing the right integrated system, however; the initial approach might be to just take the card, get paid…the end, right? But paying attention to detail is critical. Just a one percent difference in each transaction fee can quickly add up to thousands of dollars. Some payment services may, for example, charge more in instances when the card isn’t present, such as in over-the-phone payments. In the era of curbside pickup and contactless delivery, where customers expect to be able to pay offsite, this can significantly impact a bottom line, so small businesses must take note of these seemingly small matters. 

Here are other terms you should know about payment processing: 

  • Basis point(s): A basis point is one one-hundredth of a percent (0.01%). Many of the fees in processing are fractional percentages, so instead of saying “zero point zero one percent,” your processor may say “one basis point.”  
  • Batch: This is essentially a digital basket that collects transactions. It allows you to receive one deposit that includes multiple transactions instead of one per transaction. Usually, you’ll keep it open for a day (or create one per employee). 
  • Discount rate: A discount rate in credit card processing is not a discount in the traditional sense; in fact, it’s nearly the opposite of what you might imagine. It is, in fact, the percentage rate charged to your business for the credit card volume processed.  
  • Interchange: Interchange fees are charged by the card networks (Visa, Mastercard, Discover and Amex) that help facilitate transaction processing. These are charged to customers on an Interchange Plus pricing model and often appear on monthly statements as “interchange fees.” 
  • Near-Field Communication: NFC is the technology that makes Apple Pay and Google Wallet work. It allows some cards or cellphones to communicate payment information securely when tapped on or near a device. 

Businesses that still primarily use cash are losing time and money. And those aren’t the only losses: manually tallying services and add-on products is time-consuming and increases the likelihood of error. Even credit card processors require an extra step to manage tips, cancellation fees, membership billing or business’ finances as a whole.

Payments are no longer a passive part of business operations and the customer experience. Integrated processing provides new opportunities for companies to add value to services, and the post-pandemic world will not undo the technological advancements it necessitated. Payment preferences and best practices will continue to evolve, and small businesses will ultimately need to update them to keep current and grow. 

Internet Explorer Channel Network
News Related

OTHER NEWS

Raiders vs Broncos live stream: how to watch NFL online from anywhere

It’s goodbye and good riddance as the Raiders start their post-Jon Gruden era on the road, with a trip across the desert to Colorado. Having started the season 3-0, the ... Read more »

Italian police seize hundreds of dormice destined for dinner plates of mafia dons

Italian police seize hundreds of dormice destined for dinner plates of mafia dons – Andrew Crowley /Andrew Crowley Three people have been arrested in southern Italy after a police raid ... Read more »

Tube passengers step in as thug hurls abuse at young woman

Angry man confronts woman on Tube (CrimeLDN) A young woman confronted by an abusive male on the Tube had to be protected by fellow commuters. In a video posted on ... Read more »

Cardinals vs Browns live stream: how to watch NFL online from anywhere

The Browns pushed the Chiefs and the Chargers all the way but fell short both times, and now they face another powerhouse, the league’s only undefeated team, though Kyler Murray’s ... Read more »

Facebook claims hate speech visibility dropped 50 percent in nine months

Facebook is responding to whistleblower Frances Haugen’s testimony by attempting to shift the narrative on hate speech. Integrity VP Guy Rosen has posted a defense of the social network’s anti-hate ... Read more »

Facebook disputes report that its AI can't detect hate speech or violence consistently

Facebook vice president of integrity Guy Rosen wrote in blog post Sunday that the prevalence of hate speech on the platform had dropped by 50 percent over the past three ... Read more »

At least 13 auto safety rules are years overdue. Many of them could save lives

WASHINGTON (AP) — As traffic fatalities spike in the COVID-19 pandemic, the federal agency in charge of auto safety is struggling with a growing backlog of safety rules ordered by ... Read more »

Jabra's wireless earbuds are up to 40 percent off at Amazon for today only

Want some wireless earbuds to help you study or get in some cool-weather exercise? Here’s your chance to get some at a good price. Jabra’s earbuds are steeply discounted as ... Read more »

Daniel Craig Crashes Rami Malek's 'SNL' Episode For Prince Audition Sketch

Kenan Thompson, special guest Daniel Craig and host Rami Malek shared the screen during the No time to die, but plenty of time for sketch comedy, apparently: Daniel Craig made ... Read more »

Shocking moment woman falls down manhole with baby in arms

Shocking moment woman falls down manhole with baby in arms Read more »

10 Kate Spade Surprise purses you can buy for under $100 right now

— Recommendations are independently chosen by Reviewed’s editors. Purchases you make through our links may earn us a commission. If you’re planning on gifting a loved one a chic purse ... Read more »

Intel Alder Lake CPUs could fail to work with some DRM-toting games

Intel’s Alder Lake processors could have compatibility issues with older games that use DRM protection, according to a fresh report. The story here is that Intel has just released a ... Read more »

Going all-in on crypto mining? These are the best GPUs for you.

Cryptocurrency mining is a heavy process for the GPU, requiring the component (and your PC) to be running hard for prolonged periods of time. While it’s possible to choose the ... Read more »

Apple's new MacBook Pro chips may be called the M1 Pro and M1 Max

Leaks are still pouring in just a day before Apple’s “Unleashed” event kicks off. According to MacRumors, Bloomberg‘s Mark Gurman understands the chips for the widely expected 14- and 16-inch ... Read more »

Black Friday started early at Amazon: the 6 best deals you need to see

Black Friday still might be over a month away, but that doesn’t mean you can shop incredible deals at Amazon’s latest sale. The retailer is releasing “Black Friday-worthy” discounts throughout ... Read more »

Soldier who died in training accident on Salisbury Plain named

Jethro Watson-Pickering (Yorkshire Regiment/PA) A soldier who died during an Army training exercise on Salisbury Plain has been named. Private Jethro Watson-Pickering, 23, of the 1st Yorks Regiment, was part ... Read more »

Nintendo Switch Online N64 games: a brief introduction to every game

Nintendo Switch Online is a service that could be better. It’s Nintendo’s own version of PS Plus or Xbox Live, albeit with a less refined online play experience, a library ... Read more »

LG's 27-inch 1440p screen is great for gaming and down to its lowest price

LG’s 27GL850-B 27-inch Ultragear Nano IPS 1440p gaming monitor was going for as much as $500 in March and was still as high as $450 in July. Today’s drop to ... Read more »

Artists launch colorful 'jellyfish' balloon to the stratosphere in inaugural test flight

© Provided by Space Beyond Earth’s “Living Light” artwork. A group of artists has launched a colorful, jellyfish-looking craft into Earth’s stratosphere as part of a unique test flight.  This ... Read more »

Inspiration4 astronaut Sian Proctor reflects on historic SpaceX spaceflight experience

© Provided by Space Sian Proctor served as the pilot for the private SpaceX mission Inspiration4. CAPE CANAVERAL, Fla. — Sian Proctor, the pilot for SpaceX’s historic Inspiration4 mission, is ... Read more »

Chiefs vs Washington live stream: how to watch NFL online from anywhere

This clash of the teams with the two worst defenses in the NFL is a must-win for both franchises, which are matched at 2-3. Expect both quarterbacks to rack up ... Read more »

Python is now no. 1. This training can make sure you're a certified expert

TLDR: The Python Programming and Git Certification Bundle includes beginner and advanced training in how to use Python to code all your biggest programming projects. Well, it finally happened. After ... Read more »

Support scientific interest with a price drop on this comprehensive robot arm kit

The pursuit of scientific and technological understanding and innovation requires consistent dedication and a desire to learn. For many eventual individual successes in the industry, that journey starts at a ... Read more »

Apple's October ‘Unleashed' event: what to expect

Apple has announced an event for October 18th, with a video containing the title “Unleashed.” If you’ve been watching the rumor mill, it won’t come as a surprise — the ... Read more »

Packers vs Bears live stream: how to watch NFL online from anywhere

The Packers’ seemingly reluctant win over the Bengals last weekend was one of the strangest games in recent memory, so much so that a Bears triumph can’t be ruled out… ... Read more »

Chargers vs Ravens live stream: how to watch NFL online from anywhere

Two of the oustanding figures from the early weeks of the season, Justin Herbert and Lamar Jackson, go head-to-head in a game that’s got FUN written all over it. The ... Read more »

Russian crew returns from shooting the first feature film on the ISS

Shooting for the first feature-length movie in space has wrapped. Space.comreports Russian actress Yulia Pereslid, producer Klim Shipenko and cosmonaut Oleg Novitskiy have returned to Earth after the first two ... Read more »

How to watch the Apple October 2021 event: will new MacBooks get unleashed?

Apple has announced it is holding it’s ‘Unleashed’ event, where it’s expected to show off new MacBook Pros running on upgraded hardware, and we’ll show you how to watch the ... Read more »

Jabra's huge Epic Daily Deals sale includes $50 off the Elite 85t earbuds

One of Amazon’s Epic Daily Deals today is a gigantic sale on Jabra true wireless earbuds. The items available include multiple generations of Jabra’s true wireless earbuds going as far ... Read more »

Samsung Galaxy S22 leak reveals more about the smartphone's design

We’ve already heard plenty about the Samsung Galaxy S22 as its expected launch date gets closer and closer, but the leaks keep on coming – and the latest one gives ... Read more »

Daniel Craig's James Bond movies show where the Star Wars sequels went wrong

Big No Time To Die spoilers follow. Watch the film before reading this. They actually went and did it… For a franchise that’s spent most of its six decades adhering ... Read more »

7 reasons why programmers burn out — and 7 ways to prevent it

When Jerry started their job as a junior developer, they couldn’t wait to get to work each morning. And each evening, even after their 10-hour workdays, they’d still feel energized. ... Read more »

Best Buy's Black Friday plans: Talking Tech podcast

Hit play on the player above to hear the podcast and follow along with the transcript below. This transcript was automatically generated, and then edited for clarity in its current ... Read more »

What do 10 million fewer iPhone 13 shipments mean?

While the iPhone 13 range seemingly launched without a hitch in September, a recent Bloomberg report claimed that Apple was expecting to ship 10 million fewer units of its newest ... Read more »

Russian spacecraft returns to Earth with movie crew aboard

A Russian actress and director-producer who spent 12 days aboard the International Space Station returned to Earth early Sunday along with cosmonaut Oleg Novitskiy who had been in space for ... Read more »

Three ways to add quicker access to the Windows 11 Task Manager

© Provided by Windows Central Here are three ways to create quick access to the Task Manager on Windows 11. On Windows 11, you can no longer right-click the Taskbar ... Read more »

HP Omen 15 (2021)

© Provided by TechRadar The HP Omen 15 from the front, displaying a vivd, colorful desktop background HP Omen 15 (2021): Two minute review If you’re looking for a powerful ... Read more »

The pandemic laid bare the deep problems in America - from healthcare to housing. Now the question is: will we do anything about it?

Sophia Garcia, center, with Legacy LA in Boyle Heights joins housing advocates and tenants gathered against eviction of tenants from the 50 unit Tokio Hotel apartments n downtown Los Angeles. ... Read more »

The dark side of wellness: the overlap between spiritual thinking and far-right conspiracies

It was the afternoon of 4 July 2020, and Melissa Rein Lively’s video was about to go viral. A PR executive in Arizona, she already had the appearance of a ... Read more »

Britain's Got Talent Finalist Airlifted To Hospital With 'Severe Injuries' After Stunt Goes Wrong On US Version Of Show

A British escape artist has been airlifted to hospital after his act went drastically wrong during rehearsals for a spin-off of America’s Got Talent. Jonathan Goodwin, who is from Wales, ... Read more »