Three Main Benefits of Online Credit Card Processing
You may be familiar with those credit card readers that are used typically for taking payments by stores . Such machines are great for the retail business model; however, for service providers, there might be some limitations.
If you have to collect information that helps you build relationships with your customers, an online terminal may be your best choice. The following are three major advantages:
In general, a physical credit card reader is the cheapest option for processing credit cards; the rates for ‘card present’ transactions are about 50 to 100 basis points below the rates for ‘card not present’ transactions. However, when a transaction is entered into a credit card reader that is created for swiped/dipped payments (on a card-present merchant account), the resulting ‘non-qualified’ rate will be much higher, which is costly for the business. With not all businesses needing or wanting to charge physical credit cards, using a virtual terminal becomes a smart alternative. It does not only let you to process mailed and called-in payments conveniently; your merchant account will be configured to take card not present’ transactions at a qualified rate, which is usually a full percentage point lower than a non-qualified rate on a card reader, hence saving you up to thousands of dollars monthly.
Recurring Payment Functionality
One of the most important benefits of online terminals compared to physical card terminals is that they typically include a recurring payment ability. You simply have to enter the credit card information, define a recurring payment date, and let the online terminal to do the rest. For businesses that are dependent on recurring payments, looking for clients or members to get their payment details every month can be a big challenge. If you’re presently processing payments using a card reader, you may be aware of this problem. Switching to an online terminal, you’ll see how recurring billing improves your cash flow while providing convenience to your customers.
Safe Customer Information Storage
Proper handling of customer credit card information is a very important issue for business owners. Storing credit card information physically for a future purpose could be a violation the rules for PCI DSS compliance. This problem can be avoided if you use an online terminal for your credit card information management and storage needs. Your virtual terminal provider will make sure that all such data are safe and that your business will not be at risk of data breaches. The loss of sensitive credit card information is the last thing you want to deal with as a business owner. By saving it securely in the cloud, you can feel more confident about the safety of your customers’ payment information.