What are the differences and the best choice for your business?
Are you considering Surcharging or Cash Discounting? Accepting credit cards is a necessity in today’s world. However, credit card processing fees are taking a larger chuck out of your profit margin these days, especially with the ever-increasing popularity of rewards cards. Moreover, many of the merchant fees associated with rewards cards tend to increase year after year, due to the escalation of the “Cash Back” incentives the Card Issuers give their cardholders.
Who pays for the majority of these incentives? You the merchant. More and more merchants are now electing to add a surcharge or implement a cash discount program to combat these rising costs. This may be a great option for your company if done correctly. So, what is the difference between surcharging and cash discounting?
- Surcharge: Adding a small percentage to a credit card transaction to offset the merchant fees for processing the credit card payment. This surcharge is added to offset the processing fees associated with accepting credit cards. This fee only applies to credit cards and does not apply to other forms of payment such as debit cards, cash, or checks. Surcharging must also be done in a compliant manner and by a processor that follows the rules and ensures their merchants are compliant.
- Cash Discount: A reduction in price for customers who pay with cash or check instead of credit or debit cards. The discount is deducted from the advertised price at the time of sale. Another method of Cash Discounting is adding a small percentage to increase the price of the sale, known as a Non-Cash Adjustment.
Making this Win-Win Solution
Ask yourself, is this a good move for your business? Will there be pushback from the customers? The solution is simple. Giving your customers an option to pay with a lower-cost alternative is a win-win! They continue to receive great pricing if they pay with cash or check, and you are able to offset your processing fees. It is good for both parties when these programs are rolled out correctly with proper signage, employee training, and a good Point of Sale System, which calculates and ensures compliance.
Card Systems understands that every business is unique, which is why we take a consultative approach to find the right solution for your business and card processing needs. Whether you’re just getting started or have been in business for decades, Card Systems can offer endless benefits to help you run your business more efficiently and more profitably.
Is Your Merchant and POS Provider QIR Certified?
Visa requires all merchants including Level 4 merchants (small businesses) to have their payment processing devices and systems installed by Qualified Integrator and Reseller (QIR). That means ensuring your EMV or chip reader and/or software used in your business is installed, maintained, and serviced by Qualified PCI Certified Technicians. Small businesses tend to be more susceptible to fraud thus more at risk. ACCORDING TO VISA, since EMV adoption, credit card theft has dropped about 76%.
The Difference Between EMV and the Old Magnetic Swipe Process
Although an EMV (or chip) reader can be slightly slower than the old card swipe, it is safer for the cardholder and the merchant. This is because the magnetic strip once carried all of your account information, and it was easy to copy. The new chip technology creates a unique code from with communicates that “this amount of money from this card was used for this transaction and this one only.” Thus removing the ability to reuse the information because of the unique code generated from the chip. Make sure you are using credit card terminals and or software systems that already have this technology-enabled.
Why do you need a QIR-certified Payment Provider to Install Your POS System?
The biggest reason is, securing your data. Only qualified professionals should install or troubleshoot your Point of Sale System or credit card terminals. This we where restaurants become vulnerable and open to malware. The POS goes down and someone does a quick fix or remotes in and leaves a firewall open or with an easy-to-hack password. Also, Skimmers can be placed within a machine and sold to unsuspecting merchants resulting in stolen information and potential fines.
The Payment Card Industry Security Standards Council (PCI SSC) has a certification for eligible resellers to give the business owner peace of mind. The customer’s information is secure when making transactions. In addition, the technicians installing and servicing your terminals are trained to do so with the most up-to-date standards, no matter the size of your company.
PCI DSS recommends always checking your current or new providers to ensure they maintain the highest security standards. We make sure our team at Card Systems is PCI certified. Even though filling out the form every year and doing a security scan can be painful at times with cameras and other connections in your business, it helps protect you and your customers. It is just common sense like closing your front door, locking it, and then checking it from time to time.
Search by country, region, or state on the PCI SSC Qualified Integrator & Reseller List.
Is your Credit Card Terminal causing you to lose valuable transactions? It may be time to update the programming in your terminal or even time to look for a new solution.
Ingenico Credit Card Terminals
The clock is ticking on the Ingenico ICT220 and ICT250 terminals. We recommend that ALL Ingenico devices be updated to the new Trust certificates. Certificates begin to expire in May 2019 on Models V2 and older.
If the Trust certificate expires before it has been updated, your equipment will need to be replaced. The download of the new file extends the Trust Certificate’s expiration date to the year 2029.
The certificates in these terminals are nearing expiration, and it is only a matter of time before you will experience issues or lose processing capabilities altogether. It is imperative you update these terminals now.
Pax Credit Card Terminals
Your terminal may need an update to accept debit cards. The new EMV chip and PCI Compliance regulations allow the card issuing Banks to determine whether a PIN number is required. The merchant and/or cardholder will no longer be able to choose how the transaction is processed. Entering a PIN is always the most secure method for processing credit card transactions, and is the best way to verify the transaction is not fraudulent.
Credit Card Terminal Updates or a new POS System will Save Down Time and Money!
Downtime and outdated equipment can cost your business dearly. Make sure you update your credit card processing terminals when needed. If your Merchant Processor hasn’t reached out to you to update this certification, call us, and we will be happy to help.
It may even be time to think about replacing your current terminal to a smart terminal to collect data or even a POS (Point of Sale System). A POS System can track your inventory, keep time and attendance for your employees, and also track customers and their spending habits. The newer POS systems can calculate and pay sales tax and ping you…yes ping you, when someone is opening a cash drawer without a sale occurring. Imagine the possibilities, increased profits and the time you will gain with these new simple to use systems. Isn’t it time you consider what a new POS system can do for your company?