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What Does Google+ Mean For Small Businesses? [2023 Update]

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With the launch of Google+ this year, most of the media buzz about the topic has been the confrontational aspects of Google+ vs. Facebook. But now that Google+ has started to settle in, there’s deeper issues at play for it and the impact it can have on e-commerce. The Official Merchant Services Blog takes a look at where things stand with Google+ and what impact it can have with small businesses.

Since its start in 1998, Google has been building an entire array of web tools. E-mail, calendars, the vaunted Google Docs, advertising, site analytics, mobile applications and third party apps for everything else, the “Google Universe” now offers a complete lifestyle hub for its users. The only thing it had been missing was social media … until now. Google+ is that last addition, and has the capacity to bring all of the rest of the tools Google offers together seamlessly into a rapidly growing social network.

What does Google+ mean for the small businesses?

Google Apps Marketplace and Google’s Chrome Web Store are extensive marketplaces for web apps that host everything from accounting to project management to Customer Relationship Management (CRM) applications to Enterprise Resource Planning applications. A full suite of management tools come together through Google and then Google+ Circles provide the interactive connection for co-workers using these apps.

Google+ is poised to become the conversation manager, overseeing all of the apps that are generating activity inside of a business. Google+ offers an expansive, easy to manage unifying force for business communications within Google’s universe. As a result, small businesses are migrating (over 3 million so far) away from expansive on premise software solutions to Google Apps for their IT infrastructure in a cloud computing environment. And this gives Google+ the opening it needs to target small businesses.

Single Platform or Best-of-Breed?

This Google-branded “universe” held together by Google+ also brings up a key issue for businesses regarding their tools: Do they go for a series of best-of-breed tools, the top of the line features available from a mix of companies and options, or do they go for a single source for all their business interactions?

With the former choice the business has the top-of-the-line tools and functionality available. But the usage can be fragmented between different pieces of software and programming. Purchasing managers, IT, and end-users are left juggling a medley of vendors and individual tools that on their own can be the best of what they do, but overall may not play well together. It could be something like Microsoft for IT, Oracle for backend infrastructure, Facebook for marketing and social media, LinkedIn for business to business connections. A series of integrations across a landscape of tools that ends up being complicated and expensive.

With choosing Google, and using Google+ to hold it all together, the business now has a single set of tools from the same source. This unifying force is very appealing to small business owners. As they look to replace desktop software and move toward a web-only environment, Google+ gives them that much more convenience on this path. Online tools offer an ease of use, accessibility and low cost that a series of different software packages can’t match. And even mixing together various web-based apps can be more cumbersome than the single Google toolbox can potentially offer. This extends beyond the document sharing of Google Docs and gives a viable web-based alternative for all that’s needed to keep a small business running day-to-day.

Unlike Facebook, which still focuses on the social aspect and presents itself as a place to hang out, Google+ is placing itself in a unique position to be the catalyst for a small business toolbox that manages all the different things a small business needs to thrive.

Now that the benefits of Google+ are thoroughly defined and out of the way, it’s time to focus on the one glaring negative. Businesses still can’t properly utilize the system yet. The only problem with Google+, and it’s a big one, is that businesses can’t register for the time being. Google says that won’t change until winter 2011.

What that means is you have to take advantage of Google+ currently in other ways. So the potential boon Google+ can bring as a unifying force for small businesses is still waiting for Goggle to finish integrating the features and let businesses in on it all. For now, Google+ remains an incomplete tool that still only works as a social tool like Facebook. That will change. And when it does, businesses will have an entire universe of functionality stitched together and ready made for them to take to the clouds and run things through just the web. Host Merchant Services will continue to monitor the development of Google+ and keep our readers up to date.

In the meantime, here’s a blog that gives some advice on how to use Google+ right now.

And here’s a blog from Forbes that cites 5 Things Small Businesses Should Know About Google+.h

Why the Durbin Amendment Got it Right [2023 Update]

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The people in Washington aren’t exactly popular these days, and mostly for good reason.  Unemployment is high, the so-called economic recovery is weak, and small businesses are hurting.  However, another round of stimulus is on its way, and this time it might just work.  Even better, this stimulus comes at the expense of banks that got us into this mess to begin with. To be fair, there is plenty of blame to spread around but that is a topic for another day.  The Durbin Amendment went into effect October 1st, and many businesses will see a significant reduction in their monthly debit card processing fees.  This isn’t just for pin-based transactions, but applies to all Visa and Mastercard logo signature debit cards, as well as card-not-present debit card transactions via Internet and phone order.  On average, fees will be reduced by over 1% per transaction, resulting in a windfall for small business.

There are a lot of arguments against the Durbin Amendement.  I’ll outline and debunk the major ones here:

The savings will not get passed along to the merchants.

True, your merchant services company is not required to pass the savings along to you.  If you are on tiered pricing instead of Interchange plus, you aren’t going to receive the benefits.  But this is also creating a huge opportunity for merchant services companies like us to introduce customers to the benefits of our pricing model and to save them a very significant amount of money.  In short, if you’re merchant services company isn’t passing the savings along to you, it’s time to find a new merchant services company.

Merchants will not pass the savings along to their consumers.  

Again, true, but not necessarily the point.  In a free market, any time you create margin, you create opportunity.  Businesses all over the country are getting a little relief in their margins.  Some will choose to use that margin to compete on price.  Some will pocket the profits.  Many will use that extra profit to reinvest and grow their businesses through hiring and infrastructure enhancements.  No matter how you slice it, this is money directly to small business and that is great for the economy.

Banks will charge fees to offset the lost revenue.  

Sure, this is happening at some high profile institutions like Bank of America.  But other banks are also using it as an opportunity to lure you away.  Banks are limited by competition in terms of how much of the fee they can pass along to you before you bolt to a competitor.  That is the free market working the way it should.  When you take monopolistic fees like Interchange that are unavoidable to merchants and move them to the front of the transaction, consumers and small businesses ultimately win.  You now have the ability to shop for the best deal, where transaction costs were previously hidden and passed along in other ways.

Overall, the Durbin Amendment should provide a multi-billion dollar boost to small businesses everywhere, and the government didn’t have to shell out taxpayer dollars to make it happen.  Sure, it may be somewhat arbitrary, and too much regulation is never a good thing, but the card associations that impose Interchange fees operate as a cartel with monopolistic powers, so the government has a valuable role to play in the process.  We should all celebrate the Durbin Amendment and the tremendous benefits to small business.  If you’re not setup to take advantage of the savings, what are you waiting for?  Apply now!

E-Commerce uses Mobile Payments and Near Field Communications as new Merchant Services Solutions

Payment Processing Changes and How They Effect Small Businesses

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It used to be one of the big decisions a small business had to make was whether or not to accept credit cards. But with E-commerce booming and consumers continually reaching for plastic instead of paper for their transactions, that decision has pretty much been made for small businesses. They have to accept some form of card payment as fewer people carry cash. However, the technology for payment processing is advancing at a high rate right now. And many studies predict mobile payments are on the verge of transforming the way people pay for things even more than before. The future of payment processing is ripe for change.

The Current Payment Processing Landscape At A Glance

Merchant Services, by its very nature, is an industry that for the most part seeks to work unnoticed by the consumer. The companies performing this service, which can be explained here in this Host Merchant Services infographic, tend to make their money off of percentages of a penny. Transaction by transaction those percentages grow into pennies, and as volume increases even further those pennies increase into dollars.

A lot of small business owners have horror stories about their payment processors because a really common practice that companies in the industry started to do to each other to compete better, was to boost the expenses from those transactions, and those percentages of pennies, with hidden fees and contractual obligations.

It got so bad that federal legislation, in the form of the Durbin Amendment, was passed as a way to combat debit card swipe fees. Host Merchant Services is already tracking the effects of those changes in a series right here on the Official Merchant Services Blog.

Changing the Game

But that’s not the only way the game is changing. Some companies, like Host Merchant Services, see the opportunity being created by the old standard. So HMS shines light on hidden fees, cuts away the fat from these agreements and HMS even goes so far as to not hold its merchants to contracts or termination fees.  Many of the features you find at Host Merchant Services are designed specifically to appeal to small business owners. A service oriented Merchant Services solution that lets the merchant know exactly what they are paying on their statement.

Technology Adds its Own Wrinkle

Beyond just what Host Merchant Services is doing to change the model for Merchant Services Providers, the industry is being shaped by advances in technology, specifically the potential for profits from mobile payments. Small Business Owners are starting to find the convenience of being able to process a payment anywhere can give them more flexibility to reach their customers. And so the companies developing the technology for these mobile payments are racing to reach the market with their ideas and advances.

Square Up  –  In 2009 the Co-Founder of Twitter, Jack Dorsey, introduced a breakthrough device that allows both individuals and businesses to swipe and process credit cards directly on their iPhone or Android phone. While Square was not the first company to do this, what set them apart was their fee structure and their lack of a contract. Square has no contract, does not have any monthly fees and only charges when a card is swiped or keyed in. They currently charge 2.75% of the transaction for each swiped card. This is their big selling point because Square lets small businesses that did not have the resources prior to begin accepting credit cards. This is appealing to small businesses with low or inconsistent volume that would normally be burdened by the heavy costs associated with setting up a merchant account.

Google Wallet  – On the other side of the payment world there is Google, who partnered with Citibank to create a new product called Google Wallet. This new mobile payment technology allows consumers to attach a credit card number to an embedded near-field communications (NFC) chip in their Android phone. This in turn gives that person the ability to make payments by swiping their mobile phone next to a chip reader.

NFC technology has been around for about a decade, and is still being tested in target market areas. Google Wallet will be tested first in New York City and Google hopes to roll it out for the rest of the country in 2012. Host Merchant Services noted this previously in an article.

HMSPay  – Host Merchant Services offers its own mobile payment solution, HMSPay. This is similar to Square in that it’s a device that attaches to an iPhone. And its big selling point is that it adheres to HMS’ standards of service and savings. Merchants who use it are able to get ultra-competitive rates that let small businesses take credit cards without being overwhelmed by hidden fees and other excesses found in the Merchant Services industry.