In today’s day and age, the average modern shopper is a well-connected, technologically savvy individual. Consumers are now very dependent upon their smartphones, tablets, iPads, etc. to make their everyday shopping purchases. Because of this, the amount of debit and credit cards usages has dramatically increased. As consumers grow more attached to electronic consumerism, more businesses are replacing the old methods of the check processing to accept these electronic forms of payment.
Since the mid-1990s, there has been a consistent downward trend in the use of checks as a payment method. Comparatively, the usages of debit and credit cards have increased by over 77%. In 2013, the SEC filings from VISA and Mastercard stated that the United States debit card circulation reached as high as 572 million. Check out (Cardhub) to get an in depth look at how the usages of electronic forms of payments have significantly increased over time.
According to a recent study by market research firm, Javelin Strategy & Research, by the year of 2017, more than three-quarters of shopping transactions will be made with debit and credit cards. It is essential for businesses to take action now and to set aside their cash-only and check-processing-only methods to adapt to the inevitable takeover of the electronic cards. With the ease of use that the electronic forms of payment gives to the customers, businesses that are slow to adapt to this service are asking to lose sales to their competitors.
Businesses that are hesitant to implement credit card processing services have the general fear of credit card fraud. However, it is within the processing companies’ best interests to protect your company from any fraudulent activity. Security and fraud prevention are two vital criteria that these companies want to help you reach. It is their ultimate goal to keep your money safe.
There are three types of credit card processing services that businesses use. This includes: mobile credit card processing, online credit card processing and merchant account services.
Mobile Credit Card Processing: This service is recommended to merchants that don’t want the restriction of time or place to get in the way of their payment accessibility. These services can transform any smartphone, tablet, iPad, etc. into a quick payment processor. The initial set up is easy, and it only requires the customers to set up a merchant account to receive the debit and credit card payments.
The mobile credit card processing service is convenient for companies that are on the go. Food trucks, repairmen and street vendors are some of the top merchants that would benefit from its use.
Online Credit Card Processing: This is a third-party processor that allows businesses to handle online credit card transactions without the need of a merchant account. Online credit card processing companies allows businesses to accept electronic invoicing, online credit cards and electronic check payments quickly and efficiently.
Third-party processors are very beneficial to businesses because they can cater to specific payment processing needs and can help in saving the company money.
Merchant Account Services: This is one of the easiest ways that businesses can accept payments by electronic card. This service is typically provided by a bank or financial institution, which represents the middle man within this financial transaction. They process the payments from the customer’s credit card account and place it into the merchant’s bank account once the transaction processing has been cleared.
Merchant account services can help improve customer satisfaction because it allows customers to pay with their preferred form of payment. For the customer that prefers a fast and convenient way of shopping, the quick swipe of their debit or credit card is the best form of payment that you can offer to them.
Credit card processing services are now more widely used than ever before. Businesses that want to succeed in today’s world need to constantly adjust to these technological advances to keep up with our modern consumers.