Three Main Benefits of Online Credit Card Processing
You’re probably very familiar with the credit card readers stores use to take payments. These devices work well with the retail business model, but if payments are not processed personally – as is usually the case with service providers – there may be limitations.
If you have to collect information that helps you build relationships with your customers, an online terminal may be your best choice. Below are three key benefits:
A physical credit card reader is generally the cheapest option for retail businesses, where ‘card-present’ transaction rates are lower than ‘card-not-present’ transaction rates by around 500-100 basis points. However, if a transaction is entered into a credit card reader that is meant for swiped or dipped payments (on a card-present merchant account), it will lead to a much higher ‘non-qualified’ rate, which is expensive for the business. Because not all businesses want or need to charge physical credit cards, an online terminal will be a suitable alternative. It does not only let you to process mailed and called-in payments conveniently; your merchant account will be configured to take card not present’ transactions at a qualified rate, which is usually a full percentage point lower than a non-qualified rate on a card reader, hence saving you up to thousands of dollars monthly.
Recurring Payment Feature
One of the best advantages online terminals have over physical card terminals is that they generally have a recurring payment functionality. Just key in the credit card information, define a date for the recurring payment, and leave the online terminal do the rest of the job. For businesses that depend on recurring payments, looking for members or clients every month to obtain their payment information can be a challenge. If you’re presently processing payments using a card reader, you may be aware of this problem. By switching to an online terminal, you’ll benefit from the improved cash flow provided by recurring billing, and provide convenient service to your customers at the same time.
Safe Customer Information Storage
For business owners accepting credit card payments, proper handling of customer information is a very crucial matter. If you’re physically saving credit card information for any future needs or purposes, you may be in violation of PCI DSS compliance rules. This problem can be avoided if you use an online terminal for your credit card information management and storage needs. The virtual terminal provider will make sure that such data are completely safe and that your business will not be subject to data breaches. The last thing you want to worry about is losing confidential credit card information. With your customers’ payment information stored in the cloud, you will be more confident that it will be safe and secure.
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