Author Archives: hostmerchantservices

MasterCard Making Changes To Subscription Payments

While credit card access makes the world of commerce go round, many customers find themselves saddled with expensive subscription programs they never intended to participate in long-term. To reduce this risk, MasterCard has begun targeting negative options. Negative option billing is providing goods or services for a recurring payment, and will be continuously paid until the subscription is canceled.

 

Subscription Management

For merchants hoping to sell subscriptions for regular deliveries, the negative option method of payment collection has long been very effective. Consumers sign up for a particular product line, and if they don’t opt out of a specific delivery window, the products are shipped. The default is that the person has opted in for the purchase.

MasterCard has found that this method of selling has locked some consumers into debt they never intended to take on. Merchant services providers will need to make sure their merchants are made aware of some of these new rules. Merchants will now be required to notify the customer that their free trial is ending. They will not be allowed to charge the customer without doing so.

 

MasterCard Will Be A New Hurdle

Moving forward, before a consumer’s MasterCard can be charged, the consumer will need to confirm with the credit card company that they have opted into the subscription. This provides the consumer with one more check for their product subscription prior to the first charge being placed.

After the free trial period ends, the negative option merchant must obtain the following information and have an agreement from the customer before charging them.

  • The amount of the transaction
  • The name of the customer as it appears on their credit card
  • The date the payment is due
  • The terms and agreements detailing the steps for canceling the subscription

 

MRP Registration

Merchant services providers will need to register negative option merchants with the MasterCard Registration Program, so they can have access to account data. Possible high-risk negative option providers will need to be screened for registration to the MRP system.

 

Relationships Are Key

If your customers work directly with your company via a subscription series, there may be some disruption as MasterCard attempts to confirm the validity of new subscription programs. Merchant services providers will need to be ready to help the valid sellers jump the hurdle put up by MasterCard to confirm that your service is truly one the customer wants to stick with.

Don’t Get Hit With A PCI Non-Compliance Fee

Don’t Get Hit With A PCI Non-Compliance Fee

As a merchant, you probably already have some familiarity with PCI compliance. PCI or PCI-DSS is a set of rules that all organizations handling card or payment information must follow to reduce the risk of data loss. The goal of PCI requirements are maintaining a secure network, protecting cardholder information, and implementing access control measures.

PCI requirements can be complicated and depend on the level of risk based on how many transactions you process every year. Many of the required actions will already be accomplished by your payment processing provider but there are some steps you must take yourself. It’s important to understand your obligations under PCI rules and how your payment processor handles PCI compliance. You may face not only PCI compliance fees from your processor but also PCI non-compliance fees that are easy to avoid.

How Payment Processors Handle PCI Compliance
Merchant services providers can handle PCI compliance in many ways. It all depends on whether your provider offers PCI compliance fees and whether you are charged a fee for these services. If you are an experienced merchant and comfortable handling PCI requirements, you may choose a provider who provides no PCI services and charges no fees. Most merchants prefer working with a processor that provides PCI compliance services for greater protection and reduced liability.

If you do decide to pay a fee for PCI compliance, make sure you understand what you’re getting. PCI compliance is a non-standard fee and guidance and support can vary. Some processors even charge PCI compliance fees without providing any extra value to merchants. At Host Merchant Services, every account includes a PCI Compliance Assessment Survey as well as live support, required PCI compliance network scans, and step-by-step help to ensure your business is compliant.

What Is a PCI Non-Compliance Fee?
As a merchant, you have some responsibilities to ensure your business is PCI compliant, even if your processor offers PCI compliance services. If you fail to do so, some processors charge what’s known as a PCI non-compliance fee. This avoidable and costly fee is often $20 or more per month. Companies that enforce the fee typically use it as a commission for agents and a way to punish merchants for a mistake.

One of the most important requirements you will have as a merchant is completing a Self-Assessment Questionnaire (SAQ) every year. This questionnaire is a standard list of questions covering the type of merchant you are, what payments you accept, a list of your locations and facilities that accept cards, and the vendors you use. If you have an eCommerce business, you will also need to show evidence of passing a vulnerability scan with a PCI SSC Approved Scanning Vendor every quarter.

At Host Merchant Services, we never charge PCI non-compliance fees. We believe the better approach is guiding merchants through becoming PCI compliant to ensure greater security and protection for all parties in a transaction. To ensure your business meets PCI requirements, we provide comprehensive assistance with every aspect of PCI compliance, including help with the SAQ and required network scans.

The Importance Of Fraud Prevention

Preventing fraud is something every business needs to make a top priority. This is especially true when it comes to payment processing. Businesses need to know their customers and be familiar with the transactions they regularly initiate. Having that knowledge goes a long way in making your credit card processing a much smoother task.

Failure to stop cases of fraud can severely harm your business. One solution for this is to use strict identity verification services. When a customer places an order, the system will know whether the transaction was made in the proper way and from the proper location. If you do business worldwide, you need this extra layer of protection.

Another aspect of fraud to consider is an insider job. If fraudulent transactions are a regular occurrence for your business, you may find that dishonest employees are taking advantage of this vulnerability. They can easily manipulate the system so that they can pocket the money from customer transactions or find other ways to steal. In extreme cases even business executives have been known to commit fraud against their own company.

This can lead to the deterioration of your business’s morale. For many businesses, this is the first step in a downward spiral. Being able to prevent fraud both internally and externally will protect your business from suffering irreparable damage.

Fraud prevention is important to both customers and payment processing providers because it safeguards their interests and stops them from losing money. In case you are a vendor, and you suspect the buyer may be trying to commit fraud, inform the authorities immediately.

The Benefits Of Having A Mobile Payment Option

In today’s world every business needs to offer a mobile payment option to their customers. If yours hasn’t yet, you need to ask yourself why not. Maybe you don’t realize all the benefits of being able to process credit cards faster than ever before.

Those benefits include the fact that your business will close more sales as a result. A card reader can easily be used with a tablet or smartphone. This makes it easy to sell your products at license and trade shows as well as conventions and other similar event types. You can also allow your customers to pay using their mobile phone, which is a growing trend in the payment processing industry.

Mobile payments make it easier for your business to communicate with customers. They even enable you to offer special coupons and discount to mobile shoppers. Your customers are able to get a description of any product they are interested in, potentially increasing your sales. This is also a convenient way to upsell to customers in a way that likely won’t offend them.

By using a mobile app you can learn a lot about your customers. It can tell you how often someone shops there, and if they prefer to use cash or credit card. When you accept mobile payments you can also keep better track of your inventory. This makes it easier to determine which products you need to reorder and which ones you have plenty of.

Having a mobile terminal allows your business to be on the go. This could be key for any merchant whose business is dependent on traveling from location to location. Make sure you talk to your merchant services provider about any mobile terminal options that may be available. These are the reasons why accepting mobile payments will help your business. Everything from credit card processing to customer loyalty is influenced by it.

How Small Businesses Can Save On Processing Fees

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Launching a small business can be both exciting and overwhelming. A reliable credit card processing solution is a necessity for any business that accepts card payments. Unfortunately, merchant fees can add up quickly. Here are a few tips to help your small business save on payment processing fees.

Shop Around For The Best Pricing

Selecting the right merchant services partner is the easiest way to protect your company’s bottom line. Pricing structures vary greatly from vendor to vendor. Some charge a percentage of each sale while others use a tiered system or a subscription-based model. Analyze your business to decide which fee structure makes sense for your unique needs.

Should You Lease Your Credit Card Terminal or Buy?

Equipment purchase prices and lease terms can fluctuate depending on the provider. Calculate the long term costs for both options. Leasing will cost less initially but may cost more in the long run. Buying your credit card terminal outright can save money if you are planning for the long term. If purchasing your terminal, add a protection plan that will cover you for damage and repairs. After all, your business will be using this piece of equipment quite a lot!

Set a Minimum Amount on Credit Card Transactions

When your customer pays with a credit card, you are charged a merchant services fee to process the payment. For very small transactions, this fee may wipe away any profit. Set a $10 minimum amount for charges to help mitigate your transaction fees and encourage customers to spend more money.

Use Best Practices to Keep Fees Low

There are several steps you can take to keep your transaction fees as low as possible, starting with eliminating two money-draining practices: multiple batching and manual charges.

Does your processor charge a batch fee each time you send daily transactions to the bank? If so, avoid extra batch fees by batching no more than once per day.

Manual charges generally cost more than chip-based transactions. Reason being, many processors charge more when there’s a higher likelihood of an error. Have your customers insert their card into your terminal when possible.

When it comes to secure payment processing, knowledge is power. Research the terms of your merchant services account to avoid surprises on your statement. Your credit card processing solution should provide a stress-free payment experience for your buyer. Customer satisfaction leads to more sales and, ultimately, higher profits for your small business.

Why Next Day Funding Is Important

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For many businesses, funding is a source of fuel to keep running on a daily basis. Office supplies, equipment, inventory, an online store, rent, advertising, and payroll all cost money. For many small companies, going a week without incoming funding can spell disaster. Not to mention, the business owner needs to receive a salary to survive. Plus, utilities need to be paid and more. When a company first opens, consistent funding can become even more critical to meet current expenses until profits can play catch up. In addition, not having enough funding can prevent healthy and well-balanced growth.

Credit Card Processing

Processing credit cards is the lifeblood of most businesses. Modern customers are used to paying with credit and debit cards. If your company enables a cash-only enterprise, you could lose many potential customers who prefer to pay with plastic. Yet, there are many types of merchant services to consider.

If your business accepts credit cards, you will see an increase in sales. Nonetheless, you still want to work with a merchant services company that offers next-day funding. Why? Because it’s your money; you deserve to have access to it right away. Moreover, your expenses aren’t going to wait for your funds to arrive.

What is Next-Day Funding?

It’s vital to choose a payment processing partner who understands your business needs funding for continuous operation. There are many credit card processing companies who make organizations wait days, or even weeks, before providing access to their funds. In some instances, the wait can range between 30 to 45 days.

The good news is you also can work with a processing partner who offers next-day funding. As the name implies, you get your payments within the next day. Instead of waiting, while your bills age and increase in late fees, you can have funds in your account by the next business day. Your company deserves to survive another day, which is why next-day funding is so important.

To achieve stability, businesses need money. Not only are their expected expenses to pay, but there are also many unexpected bills that come along with running a company. Don’t settle for waiting 30 days on your payments. Sign up for next-day funding to ensure your business continues to operate without any unnecessary financial burdens.

Summer Marketing Ideas For Retail Stores

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Getting customers into your store during the summer months can sometimes be difficult. Most people take a summer vacation to somewhere, which could severely cut down on your business. However, there are ways you can market your store for the summer.

One of those ways is to capitalize on the fact that people travel in June, July and August. You can help customers embrace their travel by offering coupons for posting their getaway photos. However, they have to include a product your store sells in order to get their photo on your social media sites. When other consumers see these posts, they will be more likely to become your customers.

Going along with this idea, it also helps to add seasonal items to your store’s inventory. Carrying items used most often, or only, during summer will naturally attract customers. You may even find that some of these items will continue to sell the rest of the year. In this way, you can target customers that are planning a winter cruise to a warm destination.

Since everyone likes to be outside during the summer, consider temporarily moving business outdoors. Relocating some of your sales racks to flank your storefront will naturally draw curious customers in. It also gives your employees a chance to enjoy the warm summer weather while they work.

Another way to attract customers to your store during summer is to host a fun, summer themed event. This can be held inside your store and should somehow tie in with the season. For example, have someone come in and demonstrate a product you hope to sell a lot of during the summer. If you own a clothing store, consider putting on a fashion show with your best summer styles.

To temporarily expand your business, consider opening up a pop-up store for the summer. This is a great way to expose your business to a new set of customers. Even if you simply set one up at a local street fair or other public events, you will find your business growing.

Regardless of which of these ideas you choose to implement, it is important to remember that your customer service should be better than ever. Before trying any of these marketing ideas, first make sure that you are prepared to perform payment processing even if you are doing business away from your regular store. All the marketing in the world won’t help if your customers can’t easily purchase what you have to sell to them.

How To Safely Take Payments Online

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This is a world where consumers have embraced making online purchases. Few businesses can survive these days if they don’t offer online payment processing. Consumers want options available to them when it comes to paying.

Effective merchant services know how important it is to give consumers options they can trust. Credit and debit cards are the two most used options. As a business, you have a choice between accepting these payments with an intermediary holding account or a dedicated merchant services account. Which one you choose depends on the nature of your business.

Another payment processing option you can offer consumers is eChecks. All they have to do to make a payment is provide all the information they would on a physical check. All you need to provide is the proper software/payment form interface. Your customers can then use a check without needing to write one and mail it. Your payments are processed through ACH.
They fall under the umbrella of the National Automated Clearing House Association. The transaction fees charged for ACH payments generally costs less than credit/debit processing fees. Even with these payments, you will receive your money quickly.

Mobile phone payments are another option consumers are demanding. If your company has an app that allows consumers to pay instantly, you are more likely to gain and keep their business. Consumers are always looking to save time when shopping. Mobile payments make it easy for them to do this. Consumers see the ability to make mobile payments as a valuable asset your business provides them with.

Including a payment form on your website also makes it safe and convenient for customers to make purchases. This gives your regular customers the option of creating an account with your site. Then they know when they want to buy something they can log into their account and complete the purchase. When customers create an account they can save their preferred payment method. The time and hassle this saves them is a huge value to most customers. Offering your customers a payment form is as easy as outsourcing it to a company that handles payments.

Another way to safely take payments online is to set up email invoicing. When customers place orders, you send them the invoice, they pay it, and you get your money instantly. You may find that many customers prefer this arrangement for paying for your products or services. You can also choose to send recurring bills to monthly customers if you sell a service they use regularly.

These are the ways in which you can safely take payments online. You will be pleasing your customers and making it easier for your business to keep making money.

POS for Restaurant

What You Really Need in a POS for Your Restaurant [2023 Update]

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POS systems have come a long way in the last decade and now do more than payment processing. The right POS system can help you schedule employees, manage inventory, and deliver a better customer experience. The right point of sale system can make all the difference in running your restaurant efficiently but the wrong system can hold you back. Here’s what you should look for in a new POS system for your restaurant.

Front- and Back-House Communication

Teamwork is important in a restaurant to manage the very different tasks of the front and back of the house. Without good communication, there is bound to be a disparity in efficiency and service. A restaurant POS system can help unit the front and back of the house by allowing servers to take more efficient orders and the ability to enter clear details for cook staff. Once entered on the POS interface, orders can be instantly delivered to the back without gaps or miscommunication. Information is sent directly to the right area of the line to improve workflow and eliminate communication errors.

Detailed Inventory Management

The inventory management needs of a restaurant are very different than those of a retail store. Some POS systems allow for ingredient-level inventory management in real time, sometimes even with the ability to send a purchase order through the system.

Mobile Payment Support

Mobile payments are on the rise and they definitely aren’t going anywhere. Accepting mobile payments at your restaurant can improve sales and give customers the option to use their preferred payment method. If your restaurant is in a metropolitan area, college community, or has a younger clientele, mobile payment support is a must when choosing a merchant services provider and POS.

Off-Site Processing

If your restaurant offers food delivery, it’s important to have reliable support for off-site payment processing. Handling your own deliveries with a robust system that supports mobile payments and online orders can help your restaurant maintain its margins without costly commissions charged by third-party food delivery companies.

Other Features to Consider

POS systems have become very comprehensive over the last decade and many now include a variety of features that can help you manage your restaurant such as check splitting and tip support and support for online reservations that may be built-in or integrated with OpenTable.

Before choosing a POS system, make sure it offers the following reports to manage cash flow, monitor sales, and catch employee theft:

  • Daily Sales Report (DSR) or end-of-day report. This ensures your expected cash at the end of the day is what you expect.
  • Comp and discount report. This tracks discounts and promotions you offer and it may be used to spot potential food preparation or training issues to address.
  • Product mix report. This can be used to calculate food costs, measure kitchen performance, and make menu changes to improve margins.
  • Transfer report. This shows items that have been transferred from one ticket to another or to another employee. This can help you catch employees who steal by moving items off one ticket to another when customers pay in cash.
  • No-sale report. This shows when an employee rings up an item and hits “no-sale” to void the transaction and open the register.
  • Void report. This shows when items are voided often and it can identify theft or training issues.
  • Labor summary report and timekeeping report. These reports help you keep labor records, submit accurate payroll numbers, and schedule staff on your budget.

Looking for the right POS system for your restaurant? Host Merchant Services offers comprehensive restaurant merchant service accounts, free payment processing equipment, and Bonsai Point of Sale, a cutting-edge and customizable POS system developed for restaurants. Get started today with no term agreements, no cancellation fees, and no hidden charges to get the payment tools you need to grow your business.

FAQ About What You Really Need in a POS for Your Restaurant

What is a Mobile POS system?

A Mobile POS system, or Point of Sale system, refers to a software and hardware combination that allows restaurants to manage sales transactions and streamline operations using mobile devices like tablets or smartphones. It replaces traditional cash registers and offers features like order taking, inventory management, tableside ordering, payment processing, and more.

What are the benefits of using a POS system?

Implementing a POS system in your restaurant can bring numerous benefits. It enables efficient order-taking and processing, reducing errors and improving customer service. Inventory management becomes easier, helping you track stock levels and prevent shortages. POS systems provide detailed sales reports, aiding in decision-making and analysis. Additionally, they facilitate seamless integration with other systems like online ordering or kitchen display systems, enhancing overall operational efficiency.

What features should I look for in a POS system?

When choosing a POS system for your restaurant, consider essential features such as intuitive interface for ease of use, menu and order customization capabilities, table management tools, and split bill options. Integration with payment processors and compatibility with various hardware devices are important factors too. Robust reporting and analytics functionalities help monitor sales and identify trends. Additionally, opt for a POS system that offers inventory management, employee management, and customer relationship management features, tailored to your restaurant’s specific needs.

How do I choose the right POS system for my restaurant?

To select the right POS system, start by assessing your restaurant’s requirements. Consider factors like your budget, type of restaurant, number of employees, and anticipated growth. Research different POS providers and compare their offerings, pricing, customer support, and reputation. Seek recommendations from other restaurant owners and read reviews. Request demos or trials to test the usability and features firsthand. Ultimately, choose a POS system that aligns with your restaurant’s needs, is user-friendly, reliable, and offers excellent customer support.

How do I implement a POS system in my restaurant?

Implementing a POS system requires several steps. Begin by ensuring your hardware (tablets, terminals, printers) meets the system’s specifications. Install the necessary software and configure the menu, inventory, and employee settings. Train your staff on how to use the POS system effectively. Transfer your existing data, such as menu items and customer information, into the system. Conduct thorough testing before going live. Communicate the changes to your staff and schedule a transition period to minimize disruptions. Monitor the system’s performance and address any issues promptly.

Tips for Online Merchants

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While selling online has become easier over the last decade with fewer technical barriers and a greater number of options in terms of payment processing and hosting, there is no doubt that running an e-commerce business is still challenging. You must invest in building a user-friendly storefront, promoting your website, and combating issues like shopping cart abandonment and chargebacks. These tips can help you make your e-commerce venture more successful by addressing some of the challenges you may be facing.

Don’t require account registration to checkout
If customers are required to sign in or create an account to checkout, you can be sure your shopping cart abandonment rate will go up. Many people won’t want to go through the trouble, especially if your products can be found somewhere else. It’s never a good idea to add another barrier between a customer’s decision to buy something and their ability to make the purchase.

There are a few ways to overcome this issue. You may offer Masterpass by Mastercard which allows enrolled customers to checkout quickly without entering credit card information. You may also use cookies to allow return customers to automatically log in and make a purchase. One of the best options is offering a “guest checkout” option that allows customers to place an order without having an account.

Offer several payment options
Your customers likely have a preferred method of payment. You should always offer multiple payment options and choose a shopping cart that’s integrated with common payment gateways like Paypal, American Express, and credit/debit cards. Depending on your target demographics, you may want to add other options, even Bitcoin. While supporting every possible payment method isn’t a practical solution, the ability to use their preferred method of payment may be a deciding factor for some customers.

Guard Against Fraud and Data Theft
One of the greatest risks to an e-commerce store is fraud which can result in costly chargebacks. Always use Address Verification Service (AVS), an automated fraud prevention tool that makes sure the billing address the customer provides matches the address the issuing bank provides. You will also need to safeguard customers’ personal information and comply with PCI standards. The good news is many payment processors build PCI compliance into their merchant solutions.

Choose the right merchant account
To receive payments, you will need merchant services. A merchant account is a special type of account that doesn’t give you direct access to your funds but serves as a connection between your company’s account and the customers’ bank or credit card company. There are many merchant account providers but not all are equal. When shopping for merchant services, choose a company that offers dedicated e-commerce solutions and understands the nature of your business. You should also pay careful attention to the fees associated with your merchant account. Choose a payment processor that uses the Interchange Plus pricing model over tiered or flat rate pricing and beware of hidden fees like setup fees, application fees, and contract termination fees.

Shopping for the right merchant account for your e-commerce business? Host Merchant Services offers customizable e-commerce solutions to fit the needs of your business.