Tag Archives: customer service

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Amazingly Effective Strategies Auto Repair Shop Merchants Can Use To Improve Marketing

Don’t assume when running an auto repair shop that clients will start coming to you. While cars always break down and need repair, that doesn’t mean customers will flock to the first repair shops they see. They want to know which shops are the most reliable and affordable to hire.

You can market your auto repair shop to customers to let them know you have the best services and deals in town. You can use a few points to help you highlight your business and let people see what makes it valuable. People will know more about your business when you use these points for making your work more useful to everyone.

Produce a Sensible Website

Your auto repair shop marketing plans should start with your website. Your website needs to be easy to review and optimized with the appropriate keywords. It should provide enough information on what you provide and what makes your service distinct.

You can also pair your website with a Google listing that highlights your location, your hours of operation, and any unique services you provide. People will trust your work if they see your website is detailed and has all the information they demand.

Run a Blog

You can add a blog to your website to inform people about your work. Your blog shouldn’t be all about promoting your work though. The blog should discuss topics on auto repair and maintenance. It can have articles on how repair projects work, what people should watch for in their vehicles, and trends involving the auto industry. People will trust you when they read your blog, as you’ll show you understand the industry and have astute details on how it operates.

Market Your Work At the Right Time

You can market your business before significant weather changes to let people know your auto repair shop is there for them no matter what happens. You can talk about how you can help replace tires if they were damaged by potholes in the winter, for example. You could also discuss how you can repair hail damage during the summer months.

Be sure you market your work before the weather changes, as you can let people know you exist before they consider your services. You can let everyone see your business is ready for whatever happens next.

Direct Mail Works

Direct mailings are ideal for marketing, as you can send postcard-sized advertisements to people to let me know about your work. Your ads can include coupons or promotional offers. They can also feature a list of the services you provide.

Direct mail is a smart move, as you’re targeting many people who have one thing in common. They all have vehicles they drive and rely on for going places. Your direct mail effort will do more in reaching people who need help with their vehicles.

Provide Smart Offers

One way to market your business is to provide unique special offers. You can provide discounts on one’s first service appointment, or you can give a deal on an oil and filter change. Someone can use your offer to see what you provide without paying lots of money. A customer who is highly satisfied with your work might be more likely to visit you later and pay regular price for future services.

Use a Memorial Phone Number

You might be eligible to apply for a unique phone number that people can remember. You might use a number with the last four digits spelling out something like “tire” or “gear.” Incorporating something as memorable as that into your marketing campaign can help you make your work more memorable to prospective customers. They will know that you provide a car-related service while focusing on unique things of value for their demands.

Host Events

Talking with people in your community helps you understand what people are looking for in a business. You can host events in your area to stay in touch with your community and to learn more about their needs. You can hold an auto enthusiast club meeting, or you can conduct seminars on how car maintenance plans can work. Your meetings will let people see how committed you are to support their car maintenance needs and that you have plans for how to make everything work.

Solicit Reviews From People

Potential customers are more likely to trust you if they read positive reviews surrounding what you provide. Good reviews show that you understand what your clients want and that you’re here to help them with their needs.

Ask anyone who visits your repair shop to provide a review of your business. They can post a review on Google or any social media site you utilize. You can get enough positive reviews after a while to show you have a good clientele and that your business is trustworthy.

Send Reminders To People

Do you have any prior customers you wish to contact on occasion? You can send reminders to customers after they visit you for the first time. You can send messages surrounding when people need to get their oil changed or when they need their tires rotated, for example. Reminding people of what you have to offer will help them stick around and do business with you once again. 

Promote Free Estimates

The last marketing idea is to provide prospective customers free estimates for service. You can have a customer bring one’s car into your shop. You can then review that car and see what services it could benefit from the most. This service will come with a listing of possible repairs you can provide and how much you would charge for the work.

You can boost your auto repair shop’s standings with others by using these smart strategies for promoting your work. Be sure to plan your marketing efforts soon, as it will be easier for you to market your content when you know what works.

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Essential Tips to Increase Revenue for Construction and Contracting Merchants

Your construction or contracting business will be more successful if you plan the proper marketing and promotional efforts. You’ve got plenty of competition to work with, and there’s never a guarantee that the market will remain strong. Here are a few things you can do to boost revenue and make your construction company easier for people to trust.

Plan Your Work Well

The first tip to use is to plan your work ahead of time. You’ll know what your strengths and weaknesses are when you look at what you’re doing with your work. You can review prior projects and see how well your business is growing and what your clients like about your work when figuring out where you wish to go.

You can also plan your work surrounding the equipment you wish to utilize and what new investments you should be managing. You can use the work you put in to see what fits your business needs. You will be more successful if you know what you will do and if you have an idea of whatever might be best for your business after a while.

Keep Things Safe

Your business won’t make any money if you don’t keep things safe. Your employees must stay safe on the job, or they won’t help you all that much. A poor safety record may also keep your business from being reliable or trustworthy. Review your company’s safety standards and equipment to see that it is working well and that everyone in the company knows how to use all your equipment. 

Provide Smart Customer Service

Keeping tabs with your clients is critical to your success. You can talk with those clients about the projects you are planning and how you want to handle different changes of value. Discuss with your clients about what they want out of their projects and what changes you need to make to be more effective. Your customers will feel confident in your work if you provide a sensible series of details on whatever works in your place and how you’re going to keep everyone protected while working. They will know that you recognize their requirements for work and that their projects will be in good hands.

Your customer service department is often the first thing people will get in touch with when they contact you for work. Your department should be amicable and ready to support your prospective clients with the needs they hold. Your customer service team should understand what you provide and convey that information to your possible customers.

Produce Value Propositions

Every construction team has a unique value proposition. Some companies focus on green building efforts. Others can handle properties for specific industries. These propositions are more than marketing points, but they are also philosophies surrounding what a business does and how it can help people.

Look at what makes your company different from everyone else. Think about the processes or routines you utilize and if you do anything different from what people might expect. You can highlight this as part of your marketing effort to make your business more interesting to people. It becomes easier to promote your work when you see what makes your business unique and outstanding for people to hire.

Create Sensible Benchmarks

The benchmarks your business uses can be critical to its success. Benchmarks are standards where you can measure your strengths and weaknesses. You can review how you perform against industry standards or other contenders in your field of work. A proper sense of comparison is critical for your success, as you can figure out what you should be doing and how you can boost your business and make it more effective.

Be sure your benchmarks are sensible and that you can meet them. It is easier to succeed when you know what you’re getting out of your work and that you’re not trying to be too lofty in the effort.

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Look At Technology

The construction industry is always evolving. New forms of technology will make it easier for some projects to run right. But technology only works when you know what you’re using and how you’re going to make your plans useful.

Take note of whatever technologies your construction business could utilize. Plan your work based on whatever you want to offer to people and how you’re going to support them with whatever needs you hold.

What Will Your Marketing Highlight In the Future?

You can plan a new marketing campaign surrounding your business’ operations and what you wish to promote. But the marketing project should be sensible enough to where everything fits right.

You can plan a marketing strategy for the next six to twelve months. The strategy should be thorough enough to where you know what you will do in the future and you will boost whatever work you wish to manage. The marketing plan should highlight what your business represents and what you feel the most confident in supporting.

You can also adjust your marketing work based on whatever changes you wish to handle. Your project can include different rules surrounding whatever fits in your business and what campaigns you feel are sensible for work.

Be Flexible

The last idea to use is to be flexible and in control of your work. Be willing to consider future ideas for work and how you’re going to change things for the better. You can plan your work surrounding whatever clients you want to attain, but you would be better suited managing multiple plans for different types of customers. Staying flexible in your work increases your chances of people trusting your work, plus they will see you understand everything you wish to handle.

Everything you do for your construction or contracting business will be critical to its success. Be certain when planning your work that you know what fits. Marketing doesn’t have to be a challenge, and communicating with people well will be critical to your success in work.

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Tipping Goes Virtual as COVID19 Impacts US Restaurants

COVID-19 has affected restaurants harder than many other industries mainly due to the lack of cash flow. Not that restaurants aren’t making the money, they just make it differently. Most payments are electronic to avoid the risk of passing germs with cash (not necessarily because of the lower accessibility of it).

That leaves restaurant owners and wait staff with a problem. How do they get paid? If there’s no cash, owners have to run to the bank, which isn’t as easy as it used to be thanks to the pandemic. Wait staff, who deserve to have their tips right away, are now forced to wait, sometimes as long as two weeks until they receive their paycheck.

Fortunately, many restaurants have started tipping virtually, here’s what that means.

eTipping is an Option

Many restaurants have turned to eTipping, similar to what Uber and Lyft offer. At the end of the night when the restaurant closes out the tabs, they electronically send your tips to your bank account. You should have the funds within a day (usually less) this way.

Here’s the problem.

It doesn’t work for every restaurant or employee, for that matter. If an employee doesn’t have a traditional bank account, it could cause more trouble than it’s worth.

Pay Cards

Another more common solution is pay cards. They work like debit cards and restaurant owners can load the cards with the appropriate tips at the end of each night. Employees then have the money available on a card that they can use like a debit card.

Here’s the problem.

Not all retailers or businesses accept all cards. Many pay cards also have fees, sometimes a monthly fee and sometimes a fee for each use. This reduces an employee’s pay, which right now is the last thing anyone needs.

The Benefits of Electronic Tipping

No matter which method you choose, there are many benefits of electronic tipping including:

  • You don’t have to worry about cash flow. With fewer customers paying cash, you’d have to constantly run to the bank to payout tips in a timely manner.
  • You don’t have to resort to payroll tips. Waitstaff and bartenders are used to receiving tips the same day they earn them. Making employees wait until payday would mean putting them off for 2 weeks. This could cause bill paying problems and financial destruction.
  • There’s a lower risk of mistakes and theft. Dealing with cash is risky business. Withdrawing large amounts of cash and doling it out creates plenty of room for errors, misplaced cash, and even theft.

Virtual tipping isn’t as ‘new age’ as it sounds and it could be more beneficial for restaurant employees in the long run. Restaurant owners must work out the kinks, find the right program that suits their employees, and make sure it’s an easy enough system to adapt during these trying times when every aspect of our lives are changing whether we want it to or no.

Payment Processing No Long-Term Contracts

How to Avoid Common Mistakes When Getting a Merchant Account

Choosing a merchant account can be overwhelming. With innumerable fee structures, not to mention growing varieties of payment options, a business can spend full-time hours simply keeping up with the fast pace of credit card processing trends. If you follow the advice from the steps listed below, you’ll be ahead in the merchant account game:

Look for Reviews

When you begin the discovery process with a merchant account provider, seek references and research reviews. Rather than read testimonials on their website or blog, find forums that objectively discuss merchant accounts. Then, follow up by checking online reviews and by contacting one of their customers whose business is similar to yours to determine their satisfaction with services. 

Once you have your short list, ask your potential merchant account providers for details and processes regarding your potential Account Manager and the overall customer service staff. When and how is the customer support team available to merchants? You will need a contact name and direct number for assistance at any time.

Avoid Hidden Fees

Due to the complexity of merchant services pricing, it’s easy for payment processors to hide fees in their statements. Terms such as “qualified” and “non-qualified” rates are red flags indicating tiered pricing, which allows the payment processor to determine which transactions don’t qualify for the lower rates.

In order to ensure there are no hidden merchant fees on a sample statement, ask them to explain rates and fees, including ancillary fees. They must be open and honest about their merchant account fees. Check the MasterCard and Visa websites to compare their rates to the rate quoted by the merchant account provider to ensure they’re not quoting a low rate to obtain business. Explicitly request the following: application fee, set up fee, batch fee, statement fee, monthly minimums, PCI compliance fee, IRS fee, and annual fee. 

Ask if they bill for additional services. Ask if they auto enroll merchants in free trials that require the merchant to opt out if not interested. Ask if they back-bill for fees versus bill fees in the same month they occur. And ask how often they raise rates.

They May Not Support Your Equipment

Confirm their services are compatible with all terminals, gateways, point of sale (POS), mobile devices, chip & signature, Apple Pay, and eCommerce, among others.

Avoid Long-Term Equipment Leases

If you need credit card machines or payment processing devices, ask if they are new or refurbished. Determine if you are buying or leasing the equipment – and what is the cost? Relative to buying, equipment leases are more expensive in the long run. While a credit card terminal can cost a few hundred dollars to buy, a lease can end up costing thousands of dollars over the course of a few years at $30 per month at minimum.

Don’t Be Just Another Residual

Because your merchant services company should view you as a valuable customer, they should increase your payment-processing efficiency, improve your customer service experience, and save your business money. Ask for the payment processing options available. Note whether or not they discuss building long-term relationships with merchants.

Before Signing the Contract

Before signing the contract, learn the termination process. Ask if there is a cancellation fee or early termination fee. Also, determine if the contract automatically renews. Host Merchant Services does everything month to month, no long-term contracts, allowing you to cancel at any point with no fees.

Host Merchant Services

Host Merchant Services can guarantee the lowest rates while providing the best customer service. With no term commitment, no cancellation fees, no hidden fees, and no obligation, HMS provides the highest level of customer service, earning respect from our peers, as well as from our clients. Host Merchant Services will gift you a $50 gift card if we can’t match or beat another price on the market.

Customer Service: A Big Challenge for Payment Processors

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The credit and debit card industry thrives on payment processors and the services they offer; unfortunately, customer service and support seem to be taking a backseat to other factors for many companies. At Host Merchant Services, we believe there is an unfortunate financial motive at play that explains why this is happening.

Consolidation is one of the reasons customer support seems to be lacking these days among the biggest payment processors. Investment bankers see great potential in this industry, and they are approaching big players to make them even bigger players. And therefore customer service has become a big challenge for payment processors.

Once an investment banking firm starts working with a payment processing firm, the prospect of a merger is never far behind. This is how Wall Street operates, and this is how major payment processors acquire their peers and get bigger. Unfortunately, this is also how customer support goes away.

The problem with these consolidated giants is that their customer support platform begins to suffer through growth. Value-added services start piling up, and the smaller merchants will take them because they are bells and whistles, which are always very appealing. The problem is that these features are offered at the expense of customer support. These companies become so large they have to use call centers where you are put on hold for a long period and speak with representatives who aren’t very helpful or knowledgeable about the industry and your account.

Granted, there is nothing wrong with a processing firm offering some bells and whistles for their customers such as free equipment. This would be a very valuable feature for a smaller business that is either starting or expanding to add a new location. In this case, the merchant would love to get new credit card terminals for free, but what about support for this service?

When payment processors offer too much and get too big, they tend to become merchant technology companies. This is when Wall Street investors recommend scaling back on customer support, which is a costly proposition for processors. This is also when online help desk packages are rolled out to replace call centers. There are some large credit card processing companies out there that don’t even have a phone number to call if you need help or would like to sign up. It’s not even an option, which we don’t think is right.

At Host Merchant Services, we believe that customer support is of greater value than the gimmicks the big guys offer. We also believe that customer support will be the next frontier of the credit card processing industry. Once big processors start losing market share due to inadequate merchant support channels, the industry will once again pay attention to this important aspect of the business.

The Importance of Customer Service In The Payment Processing Industry

In the dynamic world of payment processing, customer service plays a crucial role in ensuring smooth transactions and building strong relationships with merchants and consumers. Why is it so important? A knowledgeable customer care representative can handle difficult customers efficiently and help in the growth of the company. On the other hand, a bad customer care executive can ruin the deal and also destroy the company’s reputation.

Good customer service helps to build trust and confidence in the merchants as well as the customers. And especially when it is about any financial information trusted customer support is crucial. With a skilled customer support team any payment processor can easily develop a sense of reliability and enhance reputation.

Efficient customer service reduces frustration for all parties involved. Imagine waiting endlessly on hold or receiving generic automated responses when you need urgent help! Payment processors that prioritize personalized support not only save time but also ensure that issues are resolved quickly.

Outstanding customer service can lead to increased loyalty from both merchants and customers alike. Building long-term relationships requires going above and beyond mere transactional interactions. By delivering top-notch support consistently, payment processors can create lasting partnerships based on trust.

Any payment processor depends on fast and better payment processing and a strong and reliable customer support and service mechanism.

Quality Customer Service: Biggest Challenge for Payment Processors

Quality Customer Service: Biggest Challenge for Payment Processors

1. High call volumes: For any customer service team high call volume is not a positive sign. If the call volumes are high then delays are natural. The delay starts with the call of the customer when no executive is free to take the call. The second part is resolving the issue after understanding the query or problem of the customer. This can lead to long wait times and frustrated customers.

2. Complex technical issues: Payment processing systems are complex, and when something goes wrong, it can be challenging to troubleshoot and resolve the issue quickly. Technical glitches or system downtime can significantly impact customer satisfaction.

3. Lack of communication: Effective communication between payment processors and their customers is crucial for providing quality service. However, there are often gaps in communication channels, leading to delays in resolving issues or providing updates on account statuses.

4. Fraud prevention: Payment processors must constantly stay vigilant against fraudulent activities that could potentially harm their customers’ accounts. Balancing security measures while ensuring a smooth user experience can be difficult.

5. Limited support hours: Many payment processors have limited support hours, which may not align with the needs of all customers who require assistance outside traditional business hours.

6. Language barriers: After globalization, many payment processing services provide their services globally. Language in different regions of the world varies and it leads to a strong language barrier. Language barriers become a significant challenge for customer service representatives trying to assist non-native speakers effectively. For the company, it adds more expenditure to hire and train customer support staff to cater to customers of different languages.

7. Ongoing training requirements: Customer support and services are always evolving. Therefore it is important to update the staff with proper training and orientation regularly. With evolving technology and industry regulations, payment processor staff need continuous training to stay updated on best practices for handling customer inquiries and concerns.

8. Integration issues with third-party software: Some merchants use third-party software that integrates with payment processor systems but may encounter compatibility issues or difficulties during implementation or troubleshooting processes.

9. Slow response time from other stakeholders: Occasionally, resolving certain customer queries requires coordination with external parties such as banks or card networks; however obtaining timely responses from these stakeholders can sometimes pose challenges

Strategies for Improving Customer Service in the Payment Processing Industry

Strategies for Improving Customer Service in the Payment Processing Industry

1. Prioritize Training: One of the most effective strategies for improving customer service in the payment processing industry is to prioritize training for your customer service representatives. Ensure that they are well-versed not only in the technical aspects of payment processing but also in providing excellent customer support.

2. Enhance Communication Channels: Customers want quick and easy access to the customer service representative. By offering multiple communication channels like phone, email, live chat, etc can lead to a good customer experience. Additionally, a comprehensive FAQ page on your website can help to answer the most common questions for your customers. Make sure these channels are easily accessible and staffed by knowledgeable representatives who can quickly address any concerns or issues.

3. Implement Self-Service Options: Empowering customers with self-service options can significantly reduce wait times and enhance their overall satisfaction. Provide online portals where customers can access account information, make payments, or initiate refunds without needing to contact a representative.

4. Monitor and Analyze Customer Feedback: Customer feedback is crucial for any company for improvement and growth. Therefore, payment processors should regularly monitor and analyze customer feedback to identify areas of improvement within their customer service processes. Use this valuable information to proactively resolve issues, streamline workflows, and enhance overall satisfaction.

5. Invest in Technology Solutions: Technology is ever-evolving. You should be ready to accept and implement new technologies in your customer service system. AI can easily reduce the burden on your staff by handling customer inquiries efficiently. Technologies such as artificial intelligence (AI) chatbots or interactive voice response systems (IVRs) to automate routine inquiries or provide instant responses outside regular business hours.

By implementing these strategies, payment processors can strengthen their relationships with merchants while fostering loyalty among end-users who rely on seamless transactions every day

The Death of E-Commerce? [2023 Update]

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I just sat down at my desk and took a few moments to read Antonio Regalado’s fascinating column on E-Commerce from MIT Technology Review. I recommend it to anyone who runs a business, or really anyone who plans to buy something in the next month or two — you know, during the Holiday Shopping Season.

It’s That Time of Year Again

With that holiday shopping season right around the corner the media spotlight on E-Commerce is about to get dialed up a few notches. The standard media grind of finding a new story to keep things fresh, yet rehashing the same old topics over and over again, is really quite fond of the E-Commerce tale since it basically hits every mark needed in a story this time of year. It’s well trod ground (retail sales figures during the time of year when people flock to shop retail), it’s fresh and flashy (buying with a smartphone is the new “it” thing) and it’s easy to write about (everyone’s got a smartphone and in between texts can probably offer an opinion about the story).

So there’s going to be a flood of “E-Commerce, it’s not just for kids anymore!” style pieces written, along with chart after chart of how many billions of dollars are being spent on products through the whiz bang-up new gimmicks of smartypants phones and interwebs tubes (it’s not a truck, but it powers a fleet of delivery trucks!)

It’s this pending recycle of the news cycle that Regalado’s piece really underscores. It’s starts with the subhead of the article, “E-commerce is an idea whose time has come and gone. Here’s why.” A bold statement when placed up against the pending flood of stories that are going to tell us that E-Commerce is (still) the next big thing.

But that’s the hook of Regelado’s article. And it certainly worked its magic on me and got me to read it.

More Than Meets the Eye

Regalado’s point isn’t that E-Commerce is done. It’s more that it’s becoming part of the everyday fabric of retail business. So he’s saying that E-Commerce has been merged into a total shopping experience and is no longer a new gimmick.

The article really slams this point home when it quotes Chris Fletcher, a research director at Gartner (who we here at HMS have used data and graphics from on this very topic). Fletcher told the MIT Technology Review’s Business Report, “we should stop calling it E-Commerce and call it just commerce,” and suggested that it’s really just a part of the shopping experience now.

This quote called up more than a few variants of the corny joke, “In China, they just call it food.” But the point is very well taken this year, and is something we’ve been alluding to for two years now at Host Merchant Services: The whole shopping experience has blending together with Online and Brick and Mortar since the very beginning.

Days of Future Past

This has really obvious but powerful ramifications for our company. As more and more people just accept online shopping as much a part of the process as window shopping or catalog shopping, the amount of credit and debit card transactions continues to increase. Those are the two most common methods of payment in this online environment. And so as the business evolves to the point where popping into a Macy’s ends up auto-texting you a free discount code on your next Macy’s purchase, payment card transactions become the norm.

Keeping an Eye on Heat Mapping

Oh and Regelado’s article really dives into that bit with your location spawning discounts:

” Threatened by the growth of low-cost online merchants, traditional retailers are reacting by following customers onto the Internet. Macy’s does it as well as any. On its website, it installs 24 different tracking cookies on a visitor’s browser. On TV, it runs ads with Justin Bieber that urge millennials to download its mobile app, which tells them which of the chain’s stores is closest to their location. Once inside, they can use the app to scan QR codes on a pillowcase or a pair of shoes. Online orders now ship from the backrooms of 500 Macy’s stores that this year began acting as mini distribution centers.”

Omnichannel marketing is the buzzword associated with this. But it’s something we’ve been discussing at HMS for awhile now. Our partnership with Barclay’s Mobile app opened this slick marketing tactic up to us ages ago. It’s really quite clever. The business uses its connection to your phone (and thus your own transaction history, your GPS location, as well as data that it can find in various places like social media) to track your buying habits.

I remember the first time the heat mapping aspect of Omnichannel Marketing was explained to me by HMS Tech expert Ken Hemmel.

He described a system where I’d be walking along on Main Street in Newark, which was where the Barclays app was being targeted, and I’d pop into a restaurant. I’d buy a meal and have a glass of a particular wine with that meal. The information would then prompt my phone the next time I walked past a wine and spirits store that was participating in the program. And I’d be given a coupon code to save money on a bottle of that kind of wine I had with my meal. This would combine transaction history, with GPS location and turn into an aggressive marketing tactic to get my business.

A Whole Store in Your Pocket

Another salient point Regelado’s article made really resonated with me personally. The article cites US Census economic data and states that only 5.2 percent of US retail purchases were made online in 2012. But then the article cites the effect of online research, noting that 80 percent of BestBuy customers said in a survey that they already searched for price information online before making a purchase in person. And that a third of them do so on a phone while inside the store.

So the last two purchases I made at BestBuy were an HD TV, which I searched for information on while in store, and a computer which I was shopping for online before I went there. I fell right into those statistics. I wanted to comparison shop and read reviews before making the purchase and had the device right there in my hand that let me do exactly that.

The only thing that held me back from ordering either  of these items completely online was impatience. I wanted the item that day. Which is exactly what Relegado’s article also gets into:

“But now [Amazon] and other Internet companies, including eBay and Google, are investing in same-day delivery—getting goods to people just hours after they order them. With their drop boxes and fleets of delivery cars, they’re bidding to eliminate one of physical retailers’ main advantages: immediate gratification.”

The suggestion is that technology is pushing retailers to evolve. They embrace social media, and online power, and create a shopping experience once again tailored to meet the needs and convenience of their customers.

Been There, Done That?

It reminds me of Warren Ellis and Darrick Robertson’s groundbreaking comic book, Transmetropolitan. Set in a Bladerunner-on-acid style future and revolving around a pastiche Hunter S. Thompson-inspired Gonzo journalist named Spider Jerusalem, the comic had a very humorous but also telling take on marketing and advertising in our near future. It suggested neural advertising bombs delivered directly to our brains, tracked by our own viewing habits, to offer us the products we’d be most interested in. As deft and powerful as that future marketing blitz was shown to be in the imaginary world of Transmet comics, the reality is we’re about to be in on the beta test of that entire concept with the way retail is evolving through E-Commerce.

Should Merchants Surcharge?

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Should Merchants Surcharge?

In many states merchants have had a decision to make. Recent developments allow merchants that accept credit cards to pass card processing charges on to their customers. So should merchants surcharge their customers?

First of all, in at least ten states there are laws that prevent merchants from assessing their customers a surcharge. In any case a debate rages among consumer protection groups; how will merchants react to this new legal ability to pass on credit card charges to their customers?

Merchants have now had almost a month to start surcharging but not many have done so. It would seem that under the current economic climate and with a do nothing Congress, that merchants both large and small realize it would be a mistake to upset their customers.

Merchants should do more than quietly not pass on these charges. They should inform their customers that they are not, and will not, pass on such charges. Consumers are much more aware than before. On the first day that merchants could pass on credit card processing charges I asked at the market if my grocer was passing on these fees. The clerk told me no and informed me that at least seventy-five percent of customers on that day had asked the same question.

Merchants are being watched very carefully as our society is very distrustful of those that have, and how they treat those that have less. Should merchants start passing on surcharges it could be expected that customers would react in a way that would not be favorable for the merchant.

Thanks to technology and widely available access to the Internet consumers now have more of a voice in business. With social media website growth where people share thoughts and ideas, the word will spread quickly about any merchant passing on such charges. Worse yet will be the response to any merchant that tries, albeit little by little, raising prices quietly to cover these charges. That is the reason merchants should declare their policy on this matter and assure customers why they are not passing on credit card surcharges. Honesty and truthfulness is always the best policy, especially for merchants that depend on customer loyalty to remain in business.

When a social issue goes viral things can get out of hand. One negative aspect of the Internet and online social interaction is that rumors often spread faster than facts. Once social networks get down on a person, subject or organization it takes time, attention and money to set the facts straight. This has happened most recently to restaurant chains. Their response to online social pressure was naive and just made the situation worse. This is another reason that any merchants that accept credit cards should publicly and obviously answer the question; should merchants surcharge?

Zero Dollar Authorization

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Visa’s New Zero Dollar Authorization Helps Merchants Keep Consumers Happy

Many merchants that offer free trials and accept credit cards via the Internet, phone and fax, perform what is commonly referred to as a one dollar authorization on Visa credit cards and debit cards with the Visa logo before approving a customer for a free trial, subscription service or future charge. Now, merchants who accept credit cards and debit cards with the Visa logo online can run a zero dollar authorization instead.

In the past, running a one dollar authorization was the only way that merchants that accept cards via the Internet, phone or fax could verify that a credit card or debit card was valid and that the cardholder is who they say they are. Due to on-going problems, Visa announced its plan to allow merchants to begin running zero dollar authorizations instead.

The decision to allow merchants to run what Visa refers to as “ghost” authorizations came after finding that their dollar authorization program was prompting calls and complaints from consumers. Many consumers call Visa, banks and merchants directly after finding a charge on their statement for what is supposed to be a free trial. Even if the charge is expected to drop off the statement in the future, many consumers disapprove of the charge for a service or product they have not yet decided to buy.

In some cases, the transaction never drops off and the consumer winds up paying a dollar even if he or she decides to cancel the trial. This led to additional problems for merchants, banks and Visa. By the time the consumer calls the merchant directly to find out why his or her Visa credit card or debit card has been charged, they are extremely frustrated. At the end, placing a one dollar authorization on a consumer’s credit card or debit card was causing more problems than Visa, consumers and merchants bargained for. This is one reason why Visa is now allowing merchants to process “ghost” authorizations.

Merchants were losing a tremendous amount of business. To avoid problems, merchants are now processing “Ghost” authorizations. To do this, merchants simply have to configure their payment processor to transmit and run the customer’s name, address, credit card number, expiration date and CVV number for verification. For merchants who run these transactions online, their payment processing page can be configured to run these types of verifications automatically. After running this type of authorization, merchants will know that the credit card is valid and the cardholder’s address is correct.

Visa’s zero dollar program gives merchants the added reassurance they need when accepting credit cards. The zero dollar transaction is also helping keep consumers happy. Consumers like being able to try out a product or service without feeling as though they have to make an upfront payment. Although the one dollar may not seem like much, consumers who sign up for a free trial do not expect to pay anything until their free trial period is over. This is why so many merchants are taking advantage of Visa’s new authorization.

Merchants who have started running “ghost” authorizations have fewer issues to deal with and an easier time retaining new customers. If you have not started running zero dollar authorization, then you should consider how Visa’s new program can help grow your business on and offline.

About Mobile Payment Processing

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Mobile Payment Processing

In modern business, those businesses without a mobile device card reader are missing out on substantial income. Anyone who sells merchandise or services on site will benefit from mobile payment processing through a card reader attachment. Customers are currently paying via mobile devices at a rate of $240 billion annually, and this figure is expected to increase substantially in the coming years.

Landscapers, caterers, repairmen, or anyone who deals with customers outside of their shop or office will benefit from a mobile device payment system. The system is perfect for those attending trade shows or other networking functions.

Cards vs. Cash or Check

Due to the ballooning use of credit cards and debit cards, people do not carry cash like they did in the past. Customers are more likely to spend more with a credit or debit card, because they have immediate access to more resources than the cash they have on hand. Checks must be deposited and there must be sufficient funds for the check to clear. The physical trip to the bank, as well as waiting for the check to clear, takes time and resources away from the business owner.

On the other hand, mobile payment processing insures immediate payment from the customer. The money is electronically deposited into the business owner’s account. An email receipt can be sent directly to the customer for payment. There is an immediate electronic record of the transaction for the merchant.

Initial Investment for Mobile Payment Processing is Small

Some are hesitant because they believe there is large start-up costs or expensive equipment to purchase. Most likely, the small business already has the equipment needed. All it takes is an iPhone or Android smartphone. There is no expensive or bulky card reader to carry around. The reading device is provided free of charge to the merchant.A small device attaches directly to the phone, and an app is downloaded into the phone. The merchant is then ready to accept mobile payments. All the equipment used can be attached to the merchant’s belt. The service is compatible with both iPhone and android software and can be used with all types of mobile calling services, including Wi-Fi, 3G and 4G networks.A reputable mobile processing service will provide state of the art security for the transaction, ensuring proper encryption of the process. The system can be argued to be safer than carrying large amounts of cash or checks on the merchant’s person.

Costs of Mobile Processing

The merchant pays a small percentage of the payment for the cost of the service, often less than 3% of the payment. The small percentage per transaction far outweighs the lost income the merchant suffers. Increased sales means increased profits. Without the cost of equipment purchases, the small fees for the service become even more attractive.

There is no longer any reason for the mobile merchant to remain in 20th century technology for payment processing. Adding another function to their iPhone or Android allows them to use state of the art technology at little cost.

How Do Restaurant Credit Card Transactions Work?

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For restaurant customers, credit card transactions allow you to pay for your meal easily and without much effort. You present your card to your server or cashier, who charges you accordingly. A gratuity is either added automatically, usually for large parties, or you write in how much you want to leave as a tip along with your signature. Within the next couple of days, your account will show a debit in the amount of your total purchase.

How Do Restaurant Credit Card Transactions Work for the Restaurant?

For the restaurant, the process is a little bit more complicated. After your card has been swiped and the total amount of your food and drink bill has been entered, someone on staff must manually enter tip information. At the end of the shift or day, someone at the restaurant, typically a manager or owner, will run a report and confirm the accuracy of the day’s credit card billing data. Once the information has been confirmed, he or she will send that information to the merchant that provides credit card processing for the restaurant.

What Is a Merchant?

The merchant — the company that does the credit card processing — acts just like a bank, so no other banks are involved in the transactions. The merchant receives the money for any purchases made by cardholders electronically, and it pays businesses like restaurants by depositing the money that it’s collected directly into the bank account of the business in the same way people receive paychecks via direct deposit. Because merchants behave like banks, they have capital on hand to pay businesses in the event there is a delay in receiving funds electronically from a credit card company. The merchant takes out any fees before depositing money into the business’s account.

What Does the Merchant Do?

Once this information has been sent to the merchant, it takes the funds from your credit or debit card and deposits those funds into the account of the restaurant owner or company. This usually occurs the next day although it may take longer. The amount of money that gets debited and deposited is based entirely on what gets entered into the credit card processing machine by an employee of the restaurant, which is why mistakes can sometimes occur.

How Do Restaurant Credit Card Transactions Work When There’s a Mistake?

If there’s a mistake at the time the card gets swiped, the restaurant staff can correct it relatively quickly by simply voiding the sale or issuing you a refund. A voided sale will not show up on your statement, but a refund will show up as two separate transactions—a charge and a refund. Because two transactions do actually occur, the money may get debited from your account and then refunded days later by your credit card company.

Noticing a Mistake on Your Statement

If you notice a mistake on your statement, first talk to the restaurant and find out if they made a mistake in billing. While you can dispute the charge through your credit card company, it may be faster and easier to work with the restaurant directly. If there was a genuine mistake, they can still issue you a refund that will be applied to your account much faster than if you had disputed the charge through your credit card company.

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