Three Main Benefits of Online Credit Card Processing
You’re probably very familiar with the credit card readers stores use to take payments. Such machines are great for the retail business model; however, for service providers, there might be some limitations.
If you must collect information that helps you in building relationships with your customers, an online terminal could be your best bet. The following are three major advantages:
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, when a transaction is entered into a credit card reader that is created for swiped/dipped payments (on a card-present merchant account), the resulting ‘non-qualified’ rate will be much higher, which is costly for the business. With not all businesses needing or wanting to charge physical credit cards, using a virtual terminal becomes a smart alternative. It not only lets you process both mailed and called-in payments easily, but your merchant account will be programmed to accept ‘card not present’ transactions at a qualified rate, normally an entire percentage point less than a non-qualified rate on a card reader, which means you can save from hundreds to thousands each month.
Recurring Payment Functionality
One of the best advantages online terminals have over physical card terminals is that they generally have a recurring payment functionality. You just need to enter the credit card details, set a date for the recurring payment, and let the online terminal handle the rest. For businesses relying on recurring payments, keeping track of members or clients monthly to get hold of their payment information can be very tedious. If you’re presently using a card reader for payment processing, you’re probably familiar with this issue. A switch to an online terminal will improve your cash flow through recurring billing, as well as provide your customers convenient service.
Safe Customer Data Storage
Handling customers’ credit card information is a very important issue for all business owners. Storing credit card information physically for a future purpose could be a violation the rules for PCI DSS compliance. This problem can be avoided if you use an online terminal for your credit card information management and storage needs. Your virtual terminal provider will ensure the safety of such data and keep your business free from the risk of data breaches. The last thing you want to worry about as a business owner is losing confidential credit card information. By saving it securely in the cloud, you can feel more confident about the safety of your customers’ payment information.