Despite this expansion, the global COVID-19 epidemic caused a significant change in the cannabis market in 2021, and the sector has had significant difficulties ever since in 2022.

Here is a preview of the coming year- key take aways:

1. The cannabis market is expanding quickly, with projected global sales of up to $149 billion by 2031.

2. Even while the sector has made considerable strides, particularly in terms of legality, there are still numerous obstacles ahead.

3. Since different nations and states within the United States handle the use and sale of cannabis differently, legality and regulation will continue to be important factors driving the market.

4. Banking will remain difficult because cannabis businesses in the US are not permitted to use conventional banking systems.

5. Companies in well-established “addiction” industries like alcohol and tobacco will further solidify their positions in the cannabis industry through alliances and acquisitions.

6. The Federal Reserve’s recent rate rises may make it more challenging for cannabis companies to raise money for future expansion.

As the industry expands, it must adapt to a complicated legal environment that is always evolving. The problem for cannabis businesses is that different nations and states within the United States have differing regulations governing the permissibility of cannabis usage, distribution, and cultivation.

More established businesses outside of the legal cannabis market are gaining ground as it continues to develop. Alcohol, cigarette, and pharmaceutical companies—the so-called “addiction” industries—have made significant investments in the cannabis industry. With the goal of selling cannabis in similar quantities to how they sell their own products, they have been buying up other businesses. In the process, completely new lines of cannabis-infused items have begun to be sold, including cannabis drinks that are being pushed as alcohol substitutes. These trends have the potential to drastically alter the cannabis market.

The amount and number of persons who use cannabis for medical purposes are being impacted by the COVID-19 pandemic. That’s because the pandemic has had a negative impact on mental health around the globe. According to a research published in The Lancet in October 2021, there were 53.2 million more significant cases of major depressive disorder and 76.2 million more instances of anxiety disorders worldwide in 2020 as a result of the pandemic. Therefore, it should come as no surprise that the worldwide medical cannabis market is expected to expand at a staggering 26.6% CAGR from 2019 to 2027.

The pandemic hasn’t necessarily increased use on all fronts, to be sure. Adolescent drug and alcohol use was the focus of a study conducted by University of Michigan academics. Despite a record drop in perceived availability of marijuana, the survey also found that teen marijuana use has not changed appreciably over the pandemic.

For cannabis businesses and investors, the US market continues to be quite challenging. As previously stated, as of November 2022, fewer than half of the states and territories in the US had legalized cannabis for recreational use. Despite the fact that the majority of Americans believe marijuana should be legal for either recreational or medical use, this limited legality still prevails, according to a Pew Research Center survey done in April 2021. While 31% believe it should solely be authorized for medical use, as many as 60% believe it should be legal for both recreational and medical usage.

In recent years, advocacy for marijuana legalization at the federal level has increased. Banks, alcohol and cigarette manufacturers, as well as other businesses, have joined social justice campaigners, union members, and proponents of personal use in calling for federal legalization.

Three Democratic senators from the United States—Senate Majority Leader Chuck Schumer, Chairman of the Finance Committee Ron Wyden, and Senator Cory Booker of New Jersey—released a discussion draft of a bill in July 2021 that aims to legalize marijuana on a national basis. The Cannabis Administration and Opportunity Act, a proposed law, would protect adults from criminal prosecution for purchasing and possessing up to 10 ounces of marijuana. Additionally, the law would end non-violent marijuana offenses, encourage medicinal research, and give cannabis businesses access to essential financial services like bank accounts and loans. As of November 2022, little progress had been made since the bill’s introduction in the Senate in July 2022.

Republicans in the U.S. House of Representatives launched separate legislation in November 2021 to decriminalize marijuana on the federal level, with South Carolina’s Nancy Mace leading the charge. The States Reform Act, which also eliminates legal risks for cannabis-related enterprises, would regulate cannabis usage similarly to alcohol consumption. The proposal differs significantly from the Democratic draft version put forth in July in a number of key ways.

Voters in Arkansas, North Dakota, and South Dakota rejected initiatives to legalize marijuana for recreational use in November 2022. This shows that there are differences in public sentiment across the country and that it could be challenging to pass a more comprehensive federal legalization bill right now.

Banking is an additional difficulty. Cannabis businesses have had limited access to capital because Congress has not yet lifted banking restrictions on them. The Secure and Fair Enforcement (SAFE) Banking Act would make it illegal for federal authorities to sanction financial institutions for offering services to marijuana-related firms that are permitted by individual states. The most recent time it passed the House was in June 2022, however it has never made it through the Senate.

Cannabis businesses, like any new industry, must raise money to fuel expansion. Cannabis businesses do not have the same easy access to banking services that many other businesses do because of their shaky legal status. This raises the difficulty and expense of raising finance. But in recent years, those expenses have become comparatively less expensive because to low interest rates. After many rate increases from the Federal Reserve, the industry may see growing difficulties in 2023.

While marijuana is still prohibited on a federal level, an increasing number of U.S. states and territories have legalized it for either recreational or medical use. 21 states, plus Washington, D.C., will have legalized marijuana for recreational use by November 2022. Although many bills to legalize marijuana at the federal level have been submitted, none of them have been passed.

The cannabis sector is confronted with both industry-specific and general economic difficulties. When examining the sector in detail, rising competition from non-cannabis businesses joining the market and the changing competitive environment among emerging cannabis businesses are big causes for concern. Cannabis businesses find it challenging to conduct business due of the complicated legal environment.

More generally, recent spikes in inflation have driven up a number of costs for the cannabis industry, and rising interest rates may have made it harder for those businesses to raise cash. Consumer spending on deemed non-essential items, maybe including cannabis products, could decline due to recessionary fears.

Companies in the United States who are well-positioned could benefit from the anticipated rapid expansion of the global cannabis market. In the United States, marijuana use for both therapeutic and recreational purposes is growing more widespread. Finally, there is a rising global market for cannabis-related items.

Despite the cannabis industry’s expansion and the social acceptance of its use, there are still many obstacles to overcome. In 2023, these tendencies will also produce a turbulent and rapidly changing environment for investors as well as cannabis businesses. The main issue for investors will be choosing which of the numerous startups, IPOs, and established cannabis companies can weather the storm and prosper over the long run.

Despite the fact that there is still a lot of uncertainty, a number of trends have started to take shape, especially those that re-center the consumer. These trends are being influenced by the digitization of currency and shifting consumer preferences. Here are a few we’ll be keeping an eye on attentively in the upcoming year:

People still make in-person payments for goods and services even if a large portion of trade has moved online in recent years. Outside of the United States, tap transactions account for more than 70% of all in-person transactions worldwide, and contactless transactions are more prevalent than 50% in more than 70 nations and territories.

Although they still trail behind much of the rest of the globe in the United States, contactless in-person payment rates have surged in recent years. In the US, the number of contactless cards is more than four times more now than it was just two years ago, and penetration has increased by more than twice as much. Penetration has more than tripled in certain places, including New York and San Francisco. As long as social distancing and other contactless COVID protocols continue to exist, as well as the fact that 75% of all F2F transactions take place at contactless-enabled merchants and that more than 400M US cards are now contactless, we anticipate the already popular tap to pay trend to continue growing in popularity in the US.

Along with the fast digitization of cash and the growth of ecommerce over the past few years, a variety of Buy Now Pay Later (BNPL) options have made significant advancements in providing customers with fresh and creative methods to pay for the items they need right now. As customers demonstrate a clear thirst for novel ways to leverage credit lines, what some once dismissed as a fad can no longer be ignored.

In fact, we predict that BNPL will increase this year, especially as credit card companies introduce installment programs for their customers, giving consumers additional possibilities to use their existing credit lines in a BNPL style. Why? mainly because there is a noticeable customer demand for these services. Nearly a quarter (24%) of American adults with credit cards believe they would be “much more likely” to utilize a BNPL service if it was made available through their current credit cards. The percentage drops to almost half (49%), when the proportion of American people with credit cards who are “slightly more likely” to use BNPL connected to their current card is included. Of that same group, 25% are “very likely” and another 45% are “somewhat likely” to use BNPL if their purchases were eligible for the same loyalty benefits as their credit card purchases.

Throughout the pandemic, blockchain innovations like NFTs and cryptocurrencies experienced considerable growth, and credit card firms, like everyone else, became gripped by a fear of missing out (FOMO). Users would receive “cash” back in their preferred cryptocurrency while using cryptocurrency rewards cards like the BlockFi Rewards Visa Signature card, which made this promise. Debit card agreements between Visa and significant exchanges like Crypto.com and FTX were also in existence.

Unfortunately, as of December 2022, both BlockFi and FTX are insolvent, with the latter doing so spectacularly in a way that sent ripples through the ecosystem, crashed coin values, and made international headlines. However, FTX and BlockFi were only the most recent in a string of failures in a very challenging 2022.

The year ahead is likely to see a worsening of crypto’s trust issue as markets approach 2023 near two-year lows and the fraud-riddled FTX debacle undermines the promise of transparency. Because of this, future collaborations between credit card issuers and cryptocurrency exchanges are probably doomed to failure as all but the most devoted customers leave the market and the number of new users stagnates. The large card firms may decide that tying their brands to such an unstable ecosystem may not be worth it at all given that the full effects of the high-profile bankruptcy of late 2022 have not yet been fully realized.

The greater emphasis on the experience and demands of the person has been the driving force behind many of the recent changes in consumer payments. Additionally, a wider shift in consumer expectations has led to an expectation that access to international financial tools will be seamless, digital, and transparent—almost tailor-made. Humans who ask why the same level of attention on innovation, ease, security, and speed isn’t placed in today’s B2B ecosystem frequently forget that B2B is still operated by people. We anticipate an increase in the consumerization of B2B payments as a result of these pressures.

For various market segments, this means a variety of things. For instance, the expansion of SMB and marketplace ecommerce requirements has fueled the demand for safe and efficient digital payouts. Fintechs and other new market entrants are developing solutions with the potential to change cross-border money flow at the same time that new payment schemes and networks are being invented and spreading. We anticipate a demand for similar advancements in B2B money movement as real-time payments, transparency and traceability, and the overall consumer payment experience improve and modernize.

Years before the epidemic, QR codes appeared to be going extinct, only to reappear with a vengeance as businesses and events sought to reduce the amount of cross-contamination caused by cash, tickets, and receipts.

Today, QR codes are widely used in a variety of contexts, such as restaurants where patrons may scan a code to read the menu, make an order, and pay for their meal without waiting for a server, and physical stores where patrons can scan a code to access special offers and other product lines. By scanning a QR code in-store, customers may use Decathlon’s “Scan & Go” app to bypass lengthy lines and have their purchases delivered right to their door.

By 2025, there will be more than 2.2 billion QR code payment users worldwide, or 29% of all mobile phone users.

The past couple years have taught us that the future can be hazy, difficult to fathom, and even more difficult to forecast. We believe that society will continue to experience some unplanned turmoil in the years to come. Even so, we do think that in the new, digital world, the companies most positioned to meet the challenges that lie ahead will be those who genuinely center consumers, placing customer needs and desires at the very core of their services.

Cannabis has been classified as a Schedule 1 Controlled Substance (drugs having a high potential for abuse and no currently recognised medicinal use) by the federal government for the past 52 years. Cannabis has just been made legal for adult-use in 19 jurisdictions as well as 36 states for medical purposes. Three crucial aspects of marijuana/cannabis legality would be impacted if this cannabis decriminalization bill were to be approved by the Senate:

1. The Controlled Substances Act would no longer include cannabis on its list of prohibited substances.

2. Federal cannabis violations would no longer carry criminal penalties.

3. Previous federal marijuana convictions would be erased.

It’s crucial to stress that the MORE Act does not legalize marijuana; the states would still have to make that decision (similar to the way alcohol is federally regulated). By repealing the federal ban (removing it from the list of federally banned substances) and eliminating related federal punishments, the MORE Act just decriminalizes it.

The MORE Act would levy a well-liked tax on cannabis sales and draws inspiration from the numerous states that have legalized it over the past ten years. According to the present plan, the tax will initially be 5% before rising to 8% over the course of three years. Cannabis retail sales will be subject to the tax, and money collected from the levy will go to a newly created Opportunity Trust Fund. The Cannabis Justice Office, a brand-new government agency dedicated with monitoring the MORE Act’s social justice measures, would be in charge of collecting this levy.

The Opportunity Trust Fund would distribute their tax proceeds as follows: 40% would go to the federal Small Business Administration to support implementation and a newly created equitable licensing grant program, 50% would support a Community Reinvestment Grant Program, 10% would support substance abuse treatment programs. The Community Reinvestment Grant Program would give cash to qualified organizations so they could manage services for people who had been negatively impacted by the War on Drugs. Job training, reentry assistance, legal assistance in civil and criminal matters (including the erasure of cannabis convictions), literacy initiatives, youth recreation or mentoring initiatives, and health education initiatives are a few of these services.

The MORE Act would also ensure that persons may not be subjected to discrimination by the federal government due to cannabis use. It would save those who use cannabis from losing their hard-earned benefits or immigrants from deportation. Additionally, the bill would permit research. Cannabis research for medical purposes is still technically unlawful because it is still prohibited at the federal level. Numerous academic publications have been written about the potential health advantages of cannabis, including cancer treatments, aids for mental health, and even applications in dermatology.

Finally, decriminalizing cannabis would enable the industry to adopt safer business procedures and engage in activities that are subject to federal regulation. The use of federally mandated banks by cannabis-related enterprises as regular businesses, as opposed to paying a premium for banking services from specific banks offering cannabis programs, is one of the primary points here. Only 7% of banks and 3% of credit unions, according to Reuters, offer a cannabis program, and some of those that do charge 400 times more for a cannabis business account than they do for standard business banking accounts.

Businesses must pay any additional fees that banks impose in order to bank with a company that offers a cannabis program. This is due to two factors: first, not many banks engage in cannabis-related banking; and second, the fact that cannabis is still illegal at the federal level necessitates more paperwork and scrutiny on the part of banks.

If this is approved, cannabis businesses might also be able to use other commercial strategies including using social media for promotion, delivering business-related SMS, and more.

Unsurprisingly, party lines primarily determined how the House voted. Brian Mast, Tom McClintock, and Matt Gaetz were the only Republicans to endorse the legislation. Henry Cuellar and Christopher Pappas, two Democrats, were against the MORE Act. Ted Budd (R), Cheri Bustos (D), Liz Cheney (R), Mike Johnson (R), and Lee Zeldin (R) were among the five representatives who abstained.

To pass the Senate, the MORE Act will require 60 votes, which entails a majority of Democrats and 10 or more Republicans. Even though the bill has not yet been taken up, a few Senators have expressed their views on it.

Elizabeth Warren, a senator, stated, “I don’t use it, but I think it should be legal. We need to normalize our tax and banking regulations to accommodate a company that will make users billions of dollars and remove a lot of risk from the current system, which is lawful in some states but not at the federal level and is absurd.

Sen. Lindsey Graham said he opposes marijuana legalization but believes medical cannabis has “value” and “legitimacy.”

James Lankford, a senator, remarked “I am aware that the House will attempt to eschew science and claim that since people use it, there is no need to investigate it; instead, it will be permitted,” said Lankford. “But increased cannabis usage won’t make our workplaces or our streets any safer, and it won’t make our families any stronger.”

Candidates for Congress from Texas, Jessica Cisneros, Pennsylvania’s John Fetterman, and Indiana’s Thomas McDermott have all issued statements endorsing the MORE Act and criticizing their rivals’ opposition.

In reference to the CAO act, Senator Cory Booker remarked, “Right now we’re looking at doing the one that we’ve been working on for a long time.” “It’s simply extremely hopeful that there is an appetite not just to decriminalize at the federal level, but truly conduct restorative justice — things that are very necessary,” he said in response.

The CAO Act is the comprehensive marijuana measure for the Senate and has not yet been submitted in 2022. Senators Cory Booker, Ron Wyden, and Senate Majority Leader Chuck Schumer are the bill’s sponsors. Similar to the MORE Act, this legislation would delist marijuana from the Controlled Substances Act and give states the authority to choose their own cannabis regulations. In contrast to the 5-8% suggested in the MORE Act, the 10% cannabis sales tax in the initial draft of the CAO increased to 25% over the course of five years. This federal tax’s proceeds would be used to finance restorative justice initiatives, public health initiatives, and safety studies.

President Joe Biden concurs with the majority of Democratic lawmakers that “our existing marijuana laws are not working,” the White House Press Secretary Jen Psaki said in response to a question about the MORE Act. However, she did not say if Biden favors the MORE Act.

“As the president mentioned during the campaign, our present marijuana laws are not working,” Psaki continued. He concurs that we need to reconsider our strategy, which should include addressing racial disparities and structural injustices in our criminal justice system, expanding research on marijuana’s impacts, and promoting the responsible use of marijuana for medical purposes. “We look forward to working with Congress to achieve our shared goals, and we’ll continue having discussions with them about this purpose,” she continued.

Cannabis decriminalization won’t go away, therefore it’s time for a national conversation about the “elephant in the room.” This fall marks the tenth anniversary of recreational marijuana legalization in Colorado and Washington, and as a nation, we haven’t done enough to confront this issue. Data from Euromonitor shows that “legal” cannabis sales in the US increased by 30% to $22 billion just last year, surpassing what Americans spent on wine. This year, sales growth is anticipated to continue.

Due to preemption, all states that have “legalized” marijuana over the past ten years continue to technically violate the law. Due to this, the cannabis sector confronts significant challenges (recall the banking restrictions), and Americans continue to pay for the antiquated regulations that still apply to cannabis use.

Many people are concerned that the conflicting goals of the MORE and COA Acts could lead to an unneeded impasse. Considering our current political climate, we believe they are correct. There is no need for us to give the marijuana industry or regular Americans another year of unsuccessful reforms.

A dispensary is in violation of 18 U.S. Code Section 1956: Laundering of Monetary Instruments if it employs a cashless ATM. Most people associate “money laundering” with illicit activities, but cashless ATM fees can be categorized in the same way. Customers’ transactions are hidden when a debit card is used for a cashless ATM charge at the register. The conditions of use for Visa and Mastercard are seriously broken when attempts are made to conceal transactions, and there is the possibility of daily fines ranging from $2,500 to $200,000. Additionally, dispensaries may be subject to penalties starting on the first day of violation!

Retailers occasionally pass off cannabis purchases as debit transactions. Customers must pay a convenience fee, similar to what is charged at an ATM, in order for them to round the transaction up to the nearest $10. This covert method of payment may also result in kickbacks in fees for the retailer.

Cashless ATMs are used by companies that are fronts for illegal activities to conceal their activity, and local governments have begun cracking down on dispensaries. Numerous cashless ATMs were shut down completely in Colorado. Similar problems occurred there, and several dispensaries were closed down with just 48 hours’ notice.

Is it feasible that the United States will eventually become a cashless society? Customers may no longer require cash-dispensing ATMs because electronic transfers, digital payments, and smartphone wallets are already accepted as standard payment methods. ATMs will remain in operation as long as cash is still readily available. Dispensaries might eventually start accepting credit cards as well as Apple Pay. The legal cannabis market is still developing, so keep an eye out for what might be in store.

With the introduction of BestCardFees’ fully transparent and regulated merchant processing service, PIN Debit solution, cannabis payment processing has advanced significantly. You will value 100% transparency with complete bank and processor information when using Fincann’s compliant merchant processing.

A first-of-its-kind PIN Debit solution for licensees of plant-touching THC, such as dispensaries, growers, and delivery services, is BestCardFees’ merchant process program. These businesses can accept debit cards through our platform in a legal, open, and simple way.

Our program for totally transparent merchant processing is the first established, lawful, and compliant method of accepting card payments. For the sake of promoting the industry’s sustainability, there should be no workarounds or gimmicks. Instead, payments should be straightforward, easy, and secure. Transactions are for precise monetary amounts (as opposed to cashless ATM workarounds), which eliminates the need for drivers to carry cash and prevents costly errors, consumer confusion at checkout, and cash handling.

Now that you can accept payments like the rest of the world, you can concentrate on developing your business, which is what you do best.

Many dispensaries have used the workaround of merchant processing, which is not the same as a cashless ATM. Cashless ATMs behave like an ATM transaction to the dispensary yet, unlike a standard card-based transaction, appear to the bank as an ATM transaction. Customers “withdraw” cash to pay for their purchase (without the ATM fee) at the counter, and the cashier gives them the change for the remaining cash. These transactions rely on deceit, and the workarounds are frequently promptly stopped once the bank learns about them.

Cashless ATMs are no longer necessary thanks to BestCardFees’ fully compliant and transparent merchant processing solution. The following are some significant variations:

– PIN Debit: Sales are for the precise dollar amount of the purchase (Cashless ATM: Sales must be rounded up to the nearest $5 to $20)

– PIN Debit: Customer does not pay convenience fee (Cashless ATM: Customer pays convenience fee and typically an out of network fee)

– PIN Debit: 100% transparent – full acquiring bank disclosure (Cashless ATM: Acquiring bank not disclosed in most cases)

– PIN Debit: No cash handling (Cashless ATM: Dispensary associate must provide change)

– PIN Debit: Frictionless checkout process (Cashless ATM: Checkout requires explanation)

– PIN Debit: Sales, on average, increase 25%+ versus cashless ATMs or cash (Cashless ATM: Sales, on average, increase 18% versus cash)

– PIN Debit: Seamless transition to credit cards when federal change allows (Cashless ATM: Requires new merchant account for credit cards when federal change allows)

– PIN Debit: No contract (Cashless ATM: 3 to 5 year contracts)

– PIN Debit: No early termination fees (Cashless ATM: High early termination fees)

– PIN Debit: True DBA and business address on descriptor and receipts (Cashless ATM: Disguised DBA and false address information is common)

– PIN Debit: Fully transparent bank approved cannabis program (Cashless ATM: Bank not aware of cannabis transactions or ATM placements)

Discover how BestCardFees can help your business access marijuana banking services.

Use cases: PIN debit transactions require users to input their debit card PIN at the time of purchase and, like cashless ATMs, only function for card-present transactions. PIN debit payment terminals can be utilized for in-store, curbside, and delivery transactions and come with USB cable, wi-fi, Bluetooth, and 4G cellular capabilities.

Checkout process: PIN debit enables you to process payments for the precise amount of the sale and works with any debit card. Unlike cashless ATMs, you are not required to round up the transaction amount to the nearest $5 or $10 increment. Using your debit card at the grocery store to pay for cannabis is the same as doing it with PIN debit.

Application process: Applying for a merchant services account necessitates careful underwriting of the company and its beneficial owners, particularly in high-risk or highly regulated industries. The underwriting for cannabis PIN debit processing adheres to payment industry standards. When credit card processing is offered, underwriting can ease the transition and assist assure the longevity of your merchant services account.

Contracts: A typical merchant services agreement is used by PIN debit, and depending on our provider, it may also be used for credit card processing when that option is offered. Contracts for cashless ATMs are merely agreements for the placement of ATMs (basically, an agreement for the provider to put an ATM in your store).

Fees: PIN debit and cashless ATMs differ significantly in their pricing structures. A fixed ATM fee (commonly referred to as a “convenience fee”) is paid by the consumer for each cashless ATM transaction that is processed as an ATM withdrawal, which results in fees. Customers can also be required to pay an out-of-network ATM fee, depending on their bank. The conventional merchant services price structure for PIN debit consists of a fixed fee per transaction plus a discount rate (a portion of the transaction amount). For transactions under $100, PIN debit fees are often less expensive than cashless ATM fees. Although some providers provide “cash discount” pricing, which essentially passes the expenses on to customers, the standard fee structure for PIN debit calls for retailers to pay the fees. Understand your local laws on setting different prices based on how a customer pays if you wish to use cash discount pricing. Some companies are reluctant to switch from customers paying the costs (and businesses frequently receiving a commission) to themselves footing the bill for merchant processing fees. However, a lot of our clients discover that the rise in income brought on by the removal of customer convenience fees more than covers the expense of merchant processing. Other advantages include the reduction of client fees and the elimination of the need to repeatedly explain convenience fees.

Chargebacks: A PIN debit transaction is far more challenging for a client to reverse than a cashless ATM transaction. A consumer only needs to phone their bank and claim they didn’t get cash for the ATM charge to their account to reverse a cashless ATM transaction. Because the customer’s assertion that they received marijuana instead of money is accurate, the merchant is helpless to stop it. A PIN debit transaction is challenging to reverse since there is evidence that the card was swiped and the right PIN was entered.

Reporting: How much simpler it is to reconcile deposits and sales records to payment reports when using PIN debit as opposed to cashless ATMs is another important advantage. Reconciling is substantially easier as PIN debit transactions are not rounded up.

You might be wondering whether signing a merchant services agreement will have an effect on your current cashless ATM contract if your cashless ATM hasn’t been shut down yet.

Because the agreements are for separate products/services, entering into a merchant services agreement for PIN debit shouldn’t conflict with your cashless ATM installation agreement. The first is for an ATM at your business, while the second is for accepting payments.

Churches are using those platforms as technology develops to increase the effectiveness and efficiency of their ministries while preserving a feeling of community. Churches can better serve their congregations in the next years with the correct platforms and technology solutions in place.

In terms of software products, there are a few developments that churches should be aware of in 2023. First, churches of all sizes are increasingly able to examine solutions for both large and small congregations. These include online donation processing companies and platforms that make it simple for churches to accept donations without a physical location or staff member, cloud-based software that enables volunteers to access their ministry-related files and workflows from any location, integrated customer relationship management (CRM) solutions to track ministry members and activities, automated event scheduling tools that let churches better plan services, classes, and events.

Churches have also observed the advantages of using digital marketing tools like email marketing automation platforms and social media management systems to reach people in addition to their current members and followers. These solutions can aid in fostering a lively sense of community while disseminating encouraging ideas.

Churches will follow the trend of many industries where AI is quickly taking over. Churches can more effectively assess the requirements of their audience and cater to those needs by utilizing AI-driven products and services. For instance, a church can leverage the primary services provided by AI copywriting and picture generation, two straightforward but potentially useful services, to boost productivity and expand. For instance, a significant portion of this piece was written with the aid of artificial intelligence.

Church technology has seen a rise in the popularity of cloud-based solutions, which provide churches access to their data whenever and wherever they need it. With no need for physical file storage, churches can manage projects, coordinate with other ministries and departments, and keep track of attendance data. The halo effect has increased workplace flexibility, enabling work from home remote settings to become typical in many churches. This allows for a better quality of life, reduced real estate costs for office space, and a widening of the talent pool from which a church hires regularly.

Over time, mobile apps have become more and more popular, and in 2023, this trend will continue. Churches are adopting apps more frequently to connect with their members when they are on the go and engage with their congregations in fresh ways.

Making decisions in the church is relying more and more on data. Churches can use data from several sources, including demographics, levels of involvement, and financial records, to help them make better decisions about their ministry. Systems and databases will therefore continue to be integrated. We’ve already witnessed acquisitions in the church technology sector in recent years, which will surely hasten database consolidation and enable the creation of dashboards that will better support decision-making.

Churches are using automation more frequently because it can improve employee productivity, cuts expenses, and streamlines processes. For operations like email marketing, data entry, inventory management, and scheduling, churches are utilizing automation. Additionally, certain businesses enable guest-follow-up procedures to be automated so that communications are consistent and a church may develop relationships with a larger number of people as they learn about the church.

Churches will need to focus more on security in 2023 due to the prevalence of cyberattacks. Churches must establish best practices for securing the information of their members and make sure that their data and systems are safe from external attacks. Ransomware and cyberattacks are becoming frequent problems that businesses must manage and defend against. Churches are not immune to this unpleasant trend, especially given that their ecology include databases containing the personal data of families and individuals.

Churches are increasingly using digital giving as a method of donation collection. Churches are adopting digital tools to facilitate donating for their members and offer a safe, effective method of collecting money – many leveraging consumer choice solutions from BestCardFees to pay $0 in credit card processing fees. While the cryptocurrency market has recently been on an up-and-down rollercoaster, introducing options to accept cryptocurrency donations will gain popularity as we move forward in 2023. Digital giving is also moving to telephony where interactive voice recognition (IVR) systems guide donations over the phone with security. Many churches are also beginning to push weekly prayers out to members via text messages (SMS).

In order to reach larger audiences while maintaining the same degree of involvement as in-person services, live streaming has become an integral feature of many churches’ services in 2023. However, as the algorithms deprioritize organic reach for brand pages, live streaming on social media has seen its visibility and reach drastically decline. The popularity of live broadcasting on the church’s main website will climb in 2023 and beyond as the general trend toward tending and expanding owned properties.

These trends, which range from mobile applications and data analytics to automation and AI-powered personalization, will undoubtedly affect how churches run in the years to come.

With so many new trends, it’s critical for churches to stay current on technology and figure out how to utilize these new tools. These trends demonstrate how church technology solutions are continuing to advance and give churches the resources they require to better serve their communities.

In order to use the newest technology to improve their ministry work, churches need to be in a growth posture while keeping certain specific trends in mind. Technology will continue to advance, and so will the ways in which churches employ it to further their missions. The landscape of church ministry is rapidly changing, and new opportunities are opening up for pastors and members to engage with one another more deeply.

There is no shortage of tech options available for churches in the upcoming year, from social media management tools to email marketing automation platforms, cloud-based software solutions, and online contribution gateways. With these resources at their disposal, churches have never-before-seen access to a wealth of digital materials that will support them in achieving their objectives as they work tirelessly to have a good impact on their congregations.

Every department and ministry front of a church is fast integrating technology. Churches can gain from more effective operations and improved community outreach with the right set of technological solutions. Additionally, churches may make sure they are best prepared to serve their members and communities for years to come by keeping up with the most recent developments in church technology products.

With the use of an eCommerce Merchant Account, your online business will be able to process payments from debit and credit cards on your e-commerce website. In general, merchant accounts differ from conventional business bank accounts. An agreement between an online store and its payment processor or provider of eCommerce Merchant Services governs and controls them. An eCommerce company can collect money from customer purchases more quickly and easily with the use of a merchant account.

An organization’s bank account that is used to accept and process digital payments and transactions is known as a merchant account. In order for an online merchant’s payment processing to generate revenue, an e-Commerce merchant account is typically established under an agreement between an owner of an e-commerce business and an eCommerce payment processor that can process credit card or debit card payments on the merchant’s behalf.

The process of eCommerce Payment Processing is as follows:

1. When a customer purchases something from an eCommerce store via a credit or debit card as a payment method, a merchant account transaction process starts.

2. Once the store receives the data of a card (type, number, CVV code), it sends the transaction request to its acquiring bank.

3. Merchant-acquiring bank processes the request to the card issuer which uses various verification methods and security checks to approve the operation.

4. After the transaction’s approval, the merchant acquiring bank authorizes the transaction, and payment is transferred from the customer to the eCommerce Merchant Account.

While eCommerce payment processing may seem complex, it only takes a few seconds to complete.

Accepting and processing credit card payments for online purchases is known as eCommerce credit card processing. Online banking and shopping have increased dramatically over time. As a result, eCommerce credit card processing is becoming highly common and essential for online retailers.

Simply put, a credit card processing account for online purchases acts as a link between the bank and the online retailer. It is essential to a merchant’s operations since it authorizes credit card transactions; without its approval, a payment cannot be processed.

Several verification procedures are made before the money is put into the eCommerce merchant’s account. The credit card payment is authorized and the transaction is successful following these checks. eCommerce credit card processors are also concerned about the security of the merchant and ensure that all transactions are legal and adhere to PCI guidelines.

Although processing credit cards for online purchases might seem like a time-consuming task, it actually just takes a few seconds. This is the reason why online retailers and businesses are increasingly utilizing eCommerce credit card processing.

Your options for eCommerce payment processing will alter as consumer expectations shift and payment technologies develop further. This makes picking the best processing method difficult. The following characteristics are typically found in the finest eCommerce payment processing for online retailers:

1. It accepts the preferred payment options for your clients. For companies that conduct international commerce, it also supports numerous currencies.

2. It satisfies the particular demands and needs of your company.

3. The processing account is free of any additional fees or hidden costs.

4. To suit your customers’ expectations and your company’s needs, it offers pre-built connectors or comes with a payment gateway.

5. The eCommerce merchant account offers efficient, round-the-clock support.

6. It provides features in addition to payment processing. Reliable eCommerce payment processing accounts provide APIs to speed up transactions in addition to good integration choices.

7. It is adaptable and can grow along with your company. This implies that if your business expands, you can add more integration choices, payment options, and other services.

The eCommerce Merchant Service has a number of important advantages. It grows your business online, makes life more convenient, boosts sales, and does a lot more. The following benefits are only a few of the major ones:

Save Time: eCommerce merchant services are the fastest way to accept and process electronic payments over the internet. This speed is a crucial aspect of online merchant success.

Secure Transactions: Your eCommerce merchant services account ensures that all your payments and transactions are heavily encrypted and secured so that sensitive data is protected. This helps your business meet requirements such as PCI compliance (Payment Card Industry Data Security Standard).

Convenience: By working with a reputable eCommerce merchant services provider, you can accept payments round-the-clock and feel confident that your online business will always be able to handle them.

Increased Sales: Your eCommerce merchant account allows you to accept more payment types. This means fewer missed sales, more impulse buys, and greater market reach.

Grow Your Business: The growth of your business is the ultimate benefit of having an internet eCommerce account. Accepting various forms of electronic payments is an excellent way to ensure your business continues to grow.

eCommerce merchant accounts are essential and should be your first priority if you want to accept and process credit card payments online. The application procedure is simple. Getting the account accepted is the main difficulty. Thankfully, there are a few things you can do to increase your chances of success and make sure everything goes according to plan. Here are a few ideas:

Do Your Homework: When you talk to a potential eCommerce merchant account provider, ask what type of documentation is required during the application process and then gather the necessary documentation so that the underwriting process is easy and quick.

Pay Off Any Debts You Can: Pay off any outstanding business liens, credit cards, debts, negative bank balances, and judgments. Doing this will significantly improve your chances of getting approved for eCommerce merchant accounts.

Publish Clear Privacy and Return/Refund Policies on Your Website: Secure your website and develop a comprehensive, clear privacy policy and return policy. Also, be sure to pay the refunds quickly to prevent chargebacks and keep your relationship with the payment processor safe.

Address Any Negative Reviews: Respond to any negative reviews you have and make the necessary changes. This simple act can do wonders for your PR and increase your chances of getting approved for a merchant account.

Getting a new e-Commerce merchant account will require underwriting and online merchant approval. The process begins with an application to an online merchant account provider. At a minimum, the following are some key documents/details that you will need to provide:

1. Business bank account information as well as routing numbers

2. Employer Identification Number (EIN) for tax purposes

3. Fully operational business website (address)

4. Social security number, government ID, or driver’s license of the business owner

5. Business & personal contact information

6. Online merchant’s financial information

7. Estimated processing volumes

A significant threat has emerged from eCommerce fraud as a result of the rise in popularity and demand for online shopping. Fortunately, there are measures you may do as a merchant to guard against eCommerce fraud. To assist you in this, a variety of eCommerce fraud protection products are available. The best solution for your eCommerce Account to prevent credit card fraud is unquestionably 3-D Secure.

By lowering fraudulent purchases and chargebacks, 3-D Secure helps prevent illegal transactions and credit card fraud. The assurance that a user confirms the transactions is provided by it. A customer receives an SMS with a verification code during the checkout process. To continue, they must enter this code; else, the transaction will be halted. Thus, 3-D Secure aids in ensuring that eCommerce merchants only transact with reliable, actual online customers in the United States. using Payment Card Industry Data Security Standards to the fullest.

A few years ago, 3-D Secure 2.0 was released, fixing several problems with the previous fraud prevention program while also adding new functionality. The greatest modification is the decrease in fraud while improving user experience. Users using 3-D Secure 2.0 can authenticate using a one-time passcode that is delivered to them by SMS or even by using their fingerprint, voice, or other biometric data. Additionally, this fraud prevention technology reduces chargeback liability for online and eCommerce firms.

The greatest way for an eCommerce merchant to avoid chargebacks is via chargeback warnings. Chargeback alerts, as their name implies, are proactive notifications that are sent to the merchant to forewarn them of a potential chargeback. The greatest chargeback alert solution is provided by HRMA-LLC, which can lower chargeback ratios on your merchant accounts for eCommerce payment processing.

There are two categories of chargeback alerts: fraud and non-fraud. When someone’s card is used to make a purchase without their permission, a fraud alert is generated, and they call their financial institution to inquire about the charges. When a cardholder disputes a deliberate transaction because a product was faulty, a refund was denied, a service was terminated, or they didn’t receive the merchandise, this is not fraud.

A reliable chargeback service monitors your account and transactions and provides alerts in real-time to promote effective chargeback management. The reduction of chargebacks is the major benefit of such a service. On average, it can help eCommerce merchants reduce chargebacks by 20%.

At BestCardFees, your business success is our ultimate goal. Our dedicated staff is standing by to assist you in navigating the eCommerce payment processing space. Our team is committed to providing competent knowledgeable advice and a plan of action to get your merchant account approved quickly. We look forward to working with you! You can also get a free quote from us to see how much we could be saving your business: free quote

Between a credit card being swiped and money being deposited into a company’s bank account, who is involved?

We appreciate you asking. The stages that make up the lifespan of a credit card payment are surprisingly complex, and this blog offers a beginner’s guide to those steps. When you’ve finished reading this blog, you’ll be aware of:

– What happens during the credit card authorization process

– Who is engaged and what their positions are

– Why cards may occasionally be refused

– Gaining a competitive advantage

Let’s create the groundwork for who is involved and what their roles are before getting into the details.

We’ll start by discussing the major participants and how they contribute to every credit card transaction, including:

The merchant – markets a product or service

The customer – makes a purchase with a credit or debit card

The payment processor – offers technology that allows the business and financial institutions to exchange requests back and forth.

The acquirer – receives credit card authorization requests and pays out to businesses for transactions that are authorized

The issuer – distributes credit cards to specific cardholders and decides whether to accept or reject transaction requests based on account information.

The card associations – the principal card companies (Visa, Mastercard, etc.) that control credit card processing

Often the hardest working and most inspiring people on the earth, merchants are often referred to as business owners, companies, or “Bob down the street who runs the restaurant.” Customers wouldn’t be required to pay if they didn’t have the desire to produce and offer goods and services to the general public.

The methods of accepting credit cards are up to the retailer. Smaller businesses, however, typically choose straightforward, cost-effective options, such a reliable handheld POS. Businesses are more likely to offer omnichannel processing—that is, processing that can be done in person, over the phone, and through an online portal—because scalability is a concern for them.

Customers go by a variety of names, including customers, cardholders, visitors, and buyers. However you refer to them, the vast majority would rather use a card than cash while making purchases.

Consumers used cash in just 26% of purchases, according to the Federal Reserve’s 2019 Diary of Consumer Payment Choice research.

The same kind of findings were made by U.S. Bank. In the same year, more than 2,000 Americans were polled, and 50% of those polled claimed they carried cash less than half the time they are out. Therefore, even while setting up card processing technology could be expensive and time-consuming, the advantages exceed any short-term inconvenience.

The technology needed to transfer transactions over an electronic data network for authorization is provided by payment processors. In essence, they operate as a liaison between the participating financial institutions and merchants in a transaction.

The transaction details that the payment processor receives from the merchant are encrypted before being sent to the issuer or card association for validation. They also take various anti-fraud precautions, like monitoring the nation where the card was issued and past payment records for irregularities.

Payment processors, however, do more than that. They occasionally offer tangible point-of-sale equipment, such as hardware terminals where customers swipe, dip, and tap their cards. They also provide customer support, aid with PCI data security compliance, and a variety of additional services to merchants. Sometimes a transaction’s acquirer and payment processor are the same person.

Although they go by various names—acquiring banks, merchant acquirers, etc.—their purpose is rather obvious. Acquiring banks buy merchant accounts and, in essence, assist the merchants in receiving payment from cards. The acquirer acts as the network’s entry point for a transaction.

To construct a merchant account, which is distinct from a typical company bank account, merchants must sign contracts with acquirers. The ability to take credit card payments is provided through a merchant account, which essentially signifies a relationship with an acquirer.

Why is a merchant required to obtain this particular account from the acquirer? because acquirers are granted special trust after promising to abide by the card organizations’ norms and regulations because they are registered with card associations (think Visa or MasterCard). Business owners agree to abide by the card association guidelines when they apply for a merchant account.

When a credit card or debit card transaction is approved, the money is initially credited to the merchant account and then promptly deposited into the merchant’s business checking account.

However, acquirers cannot succeed on their own. Before approving a transaction, they rely on card issuers to check sure everything is in order with the card and connected bank account (i.e., funds are available).

Would an issuing bank sound important under any other name? Let’s hope so, as card issuers perform crucial work in the background. They present users with debit and credit cards on behalf of financial institutions listed with the card associations up front, before any transactions take place.

They verify a customer’s card is legitimate and linked to a bank account with enough money (or credit) to cover the desired purchase when they get an authorization request.

When an acquirer requests approval from an issuer, the issuer responds with a code that is shown on the merchant’s POS screen as either “Approved” or “Declined.”

All of this takes place quickly. Isn’t technology amazing?

The issuer also manages “settlement,” which is how the merchant receives the right amounts, if the transaction is approved. The merchant account deposits funds into the merchant’s business bank account after receiving payment from the issuer for approved transactions.

These businesses—also known as card networks, card brand associations, or bank card associations—set the rules for how merchants, issuers, and acquirers—the companies we previously mentioned—process and utilize credit cards. American Express, Discover, Mastercard, and Visa are significant competitors.

The criteria that merchants must abide by in order to be granted permission to take credit cards for payment are regulated by card associations, along with factors like interchange rates. Even more, they establish and uphold data security guidelines, such as the switch from conventional magnetic stripe cards to the safer EMV chip cards.

The procedure varies slightly depending on whether the card is used in-person or not, such as in e-commerce and phone payments. Let’s just focus on the procedures for an in-store payment transaction for the purpose of simplicity.

1. Customer – to make a purchase, the customer slips their card into the POS terminal.

2. Merchant – the cardholder’s information and transaction specifics are electronically sent to the payment processor by the merchant’s POS system.

3. Processor – the acquirer receives the authorization request from the processor.

4. Acquirer – the issuer must first give his or her approval before the purchaser can proceed.

5. Issuer – the validation request is delivered to the issuer – they verify the legitimacy of the transaction, the balance of the cardholder’s account, and the health of the merchant’s account.

6. Denied – the acquirer or processor communicates the “Approved” or “Denied” code from the issuer to the merchant – the purchase comes to an end here if the transaction is rejected.

7. Authorized – if the transaction is accepted, the issuer authorizes the purchase and places a hold for that amount on the customer’s account – the merchant then receives payment.

8. Batching – a batch of authorized credit card transactions is sent by the merchant to their acquirer – typically, this is completed at the conclusion of each business day.

9. Clearing – a batch of transactions is received by the acquirer, who then collects the necessary money from the issuers and credits the merchant account.

10. Settlement – the acquirer normally bills merchants for all interchange and related fees in a monthly credit card statement and deposits merchant earnings in their company bank account.

11. Customer – in the end, the cardholder reimburses the issuer for the transaction, together with any interest and fees related to the card agreement.

The worst sensation for a consumer is to be informed as softly as possible by a cashier or waiter that their credit card has been rejected.

As a company owner, you can teach your workers how to sensitively manage these notifications. Here are a few reasons for refused transactions, nonetheless, in case a client asks aloud why it’s taking place:

1. Suspected fraud – a bank may flag transactions as possible fraud when a consumer makes purchases outside the scope of their typical buying habits, uses a card for the first time after a significant period of inactivity, or uses the card outside of the state or nation.

2. Over credit limit, missed payments, or insufficient funds – anybody can experience overuse of credit, late payments, or insufficient finances – you mistakenly believed you made a payment but didn’t, or you failed to remember you previously rented a car, putting you over your credit limit due to the security hold.

3. Incorrect card information – it’s simple for a few numbers to get shifted around, especially when placing a purchase over the phone or online – if your company accepts payments over the phone, make sure that your staff always reads the numbers back to the client to ensure that they are correct.

4. Technical issues with the credit card company or issuer – although annoying, bugs do occur. In situations like these, other payment methods, such as holding the product while texting the consumer a straightforward invoice they may pay later, are practical and keep the line going.

Certain aspects of life include a risk. The future of your company’s payments, though, need not be. Picking the appropriate partner like BestCardFees is half the battle, whether you’re a modest company just getting started or a successful mid-sized firm looking for a competitive edge. Companies rely on us to help them navigate market shifts and technological obstacles so they can stay competitive and concentrate on creating extraordinary enterprises rather than managing the daily grind.

A chargeback is fundamentally the reversal of a single disputed transaction. The word “disputed” is crucial because, unlike voids or refunds (which we’ll discuss shortly), customers question merchants through their banks rather than dealing with them directly.

What would prompt someone to file a consumer complaint? A charge that a cardholder did not recognize or approve frequently appeared on their credit card. If their bank determines that the claim is legitimate after looking into it, they will issue a chargeback to the company.

The monies are returned to the cardholder once the business has deducted the transaction amount from its account.

So, what exactly is a refund then?

Refunds also include giving money to the buyer, but unlike chargebacks, they are more frequently handled directly between the client and the business.

1. They didn’t consent to the transaction.

2. It charged their card twice (or more)

3. The products or services they paid for were never delivered to them.

4. They weren’t happy with a service.

5. They returned a product, but the shopkeeper never issued a refund.

6. They asked for a refund, but the business declined.

7. A stolen credit or debit card was used to make purchases of goods or services.

8. Fraudulent transaction.

Types of chargeback fraud:

1. Criminal fraud: The use of a stolen credit card or card information to make a purchase.

2. Friendly fraud: A customer uses their card to make a valid, authorized purchase and then disputes it.

Let’s examine the chargeback procedure in detail.

Purchase and payment dispute initiation:

A customer notices an unusual or unauthorized transaction or withdrawal from their bank account on their credit card statement. They may also want to question a fee because they received subpar service or never received the goods they were paid for. They get in touch with their bank, the “issuing bank,” and they start an investigation.

Communication and gathering of evidence:

The issuing bank includes a chargeback code and notifies the merchant’s bank, which is also referred to as the “acquiring bank,” of the chargeback.

Chargeback reason code: A common code that identifies the cause of a chargeback when a charge is challenged. They differ depending on the card network and aid in classifying cardholder disputes and determining future measures. Each chargeback cause code for Visa, Mastercard, Discover, and American Express is distinct.

The merchant’s bank then collaborates with the merchant to gather and deliver to the issuing bank any proof that might contradict the chargeback.

Issuing bank decision:

The investigator for the issuing bank examines all of the material and evaluates whether or not the cardholder’s allegation is supported. Either they send a chargeback to the merchant’s bank or they confirm the charge’s validity and support the business.

In the event that a chargeback is made, the cardholder’s bank will reverse the erroneous payment by providing a provisional credit. Then, they add a chargeback fee to this credit amount and charge the merchant to make up for the bank’s loss.

Arbitration:

If the two parties are still unable to come to an agreement, we enter a chargeback dispute procedure known as arbitration. This involves the credit card company. Following the presentation of the evidence by both the issuing and merchant banks, the card company makes the final determination to resolve the dispute.

A chargeback can feel like a punch in the gut, but if you’ve been hit with one, don’t panic.

Connect with the customer directly:

Most chargebacks are misconceptions that may be cleared up by engaging with the client who issued the original payment. They might have even attempted to get in touch with you before, but were unsuccessful, so they believed a chargeback was their last choice.

(Side note: To prevent this, be cautious in your customer service response times! By doing this, you’ll strengthen your relationship with your clients and reduce the likelihood of chargebacks in the future.)

As soon as you get in touch, try to help them out directly. Simple explanations for the situation include the consumer forgetting to make an order with you or failing to recognize your company name on their credit card bill.

The customer must get in touch with their bank to cancel the chargeback if the problem is fixed and they determine it is not necessary. All correspondence should be kept on file so that you can submit it if required in the following phase.

Compile evidence and prepare a rebuttal case:

If the customer decides to proceed with a chargeback, you must either accept it or gather representational evidence to support your position.

Chargeback representation: A procedure whereby the merchant challenges the chargeback by supplying pertinent information and evidence that the charge was valid.

Do you still have those chargeback cause codes? This will be helpful because it will indicate the type of evidence you should gather, such as signed receipts, delivery proof, customer correspondence, or other authorized confirmations. Don’t put it on the back burner because you have a short window of time to execute it—typically only 7–10 days.

You then deliver the proof and a written refutation to your acquiring bank or payment processor within that time window. They will then relay it to the issuing bank, with the acquiring bank acting as a go-between.

The unvarnished truth is that chargebacks are bad for business. Even without the fees, credit you owe the customer, and perhaps damaged goods, the representation process is laborious. They waste both time and money.

Additionally, if you receive a lot of them (more than 1% of your overall transactions), payment processors may designate your company as high-risk. As a result, you can incur increased fees for payment processing and even run the risk of having your merchant account closed.

There isn’t much you can do after the arbitration procedure has reached a conclusion. You can, however, take precautions to prevent chargebacks in the future.

From technology to transparency, you can minimize your chargeback risk in several ways.

Be transparent with customers:

By establishing expectations and establishing explicit regulations, you can lessen the misunderstandings that cause chargebacks.

Keep customers informed of issues like product recalls, shipping delays, and personnel mistakes. For instance, if you detect that a credit card transaction was processed improperly, take immediate action by getting in touch with the customer.

Create a concise refund and/or return policy and post it (together with your contact information) prominently throughout your company, on your website, and on your receipts.

To prevent clients from contacting their credit card company, respond to customers right away and offer a solution.

Use a reliable shipping partner:

Don’t cut corners when picking a shipping service if you own an online store. In the short term, using a shoddy last-mile courier service may seem less expensive than using one of the main national mail carriers.

Think about a shipping app that connects to your POS and e-commerce system. Order confirmations include tracking information by default, saving you the time and effort of obtaining it from numerous sources.

Avoid card-not-present transactions when possible:

Card-not-present (CNP) transactions, as they are known, are exactly what they sound like: When you execute the transaction at your company, the card isn’t there. They pose a special risk. One reason is that it’s frequently simpler for a fraudster to obtain someone’s card information than it is to take a physical card, which they could only use legally in CNP transactions.

Following are some best practices for executing card-not-present transactions safely if you must:

1. Take note of the card’s name, billing address, phone number, expiration date, and CVV code in addition to the card’s number.

2. Utilize the address verification service (AVS), which enables you to contrast the billing address that the client provided with the billing address that is listed on the issuing bank’s records.

3. Utilize a safe virtual terminal to accept the payment.

4. Tracking and delivery confirmations should be noted.

5. Opt for a signature proof of delivery.

Consider switching to an online ordering platform with a secure integrated payment terminal if you operate a takeout restaurant that currently collects payment information from customers over the phone.

Opt for modern, secure payments and POS technology:

You need information if you’ve received a chargeback and want to start your own dispute. Additionally, it is beneficial to have more data. Choose a small company point of sale system that enables you to create detailed client profiles, maintain precise inventory levels, and have real-time access to any of this data from any device.

EMV payments are no longer a nice-to-have on the payments front. If you want to maintain your company secure and compliant, accepting them is a need. The good news is that Heartland’s payment terminals are all EMV-capable, so take solace in knowing that your risk has already been minimized as long as you accept them.

If we haven’t previously collaborated, let this year be the year you team up with BestCardFees who prioritizes the security of your company. Our solutions give you the tools you need to reduce the risk of chargebacks while helping to complete the loop on in-person card fraud.

What is the goal of EIN? One sort of tax identification number is an EIN (TIN). Your EIN is generally used to identify your firm for tax purposes, similar to how a social security number is used. It is required to submit taxes, sign tax-related documents, hire staff, establish vendor accounts, register a business bank account, and prepare formal financial reports.

A nine-digit identifying number is an EIN. An EIN number resembles a Social Security number when written down. However, after the first two numbers, it is split only once (XX-XXXXXXX). On the other hand, a social security number is typically split between numbers three and five (XXX-XX-XXXX).

Not all businesses require an EIN. An EIN is one kind of TIN number, as we briefly mentioned, but there are other kinds of TIN numbers. TIN numbers can be of 5 different types:

• SSN: Social Security Number
• EIN: Employer Identification Number
• ITIN: Individual Taxpayer Identification Number
• ATIN: Taxpayer Identification Number – this number is for pending US adoptions
• PTIN: Preparer Taxpayer Identification Number – accountant who file on behalf of others

Not all of these EIN numbers are applicable to businesses, as you may have seen. The primary distinction between an EIN and an SSN, as well as who requires which number, is something that US-based firms with US citizen owners must comprehend.

Who then requires an EIN? A business often needs an EIN if they are hiring new employees, have a multi-ownership structure (like a corporation, partnership, or LLC), or are significantly changing their organizational structure.

You are only eligible to receive one EIN number for sole proprietorships. You must submit the appropriate papers to update or amend your EIN if the owner or legal information has to be changed.

There is no cap on the number of EINs that multi-member companies like corporations or LLCs can have. Depending on how your firm runs, you might need more than one EIN.

For instance, a big corporation just requires one EIN for the whole company. However, you can apply for a new EIN number for each of those divisions if you decide to silo off those businesses for tax purposes (as they are now separate tax entities). For several sites, you can also decide to take this route.

After you’ve established your company as a legal entity and obtained a chosen corporate legal name, you should obtain an EIN. Both of these details are required when you apply for an EIN number.

You must submit your application for an EIN number on the IRS website. You can get your EIN right away after filling out the free application.

EIN numbers can be applied for, processed, and distributed without cost.

An EIN can typically be obtained right away. However, the procedure could take a little bit longer if you are asking more complicated things, such an update to an EIN number or tax-exempt status.

Let’s move on to the process for requesting an EIN.

Either the SSA or the IRS (Internal Revenue Service) issues TINs (Social Security administration). The IRS is the only agency that issues EIN numbers.

Recap: You will need to formally form your business structure before you can apply for an EIN number. So if for example, you are looking to form an LLC, you will need to take that step first. Once your business is formed, you may apply for an EIN number. The IRS will ask for your business structure and formation date on the application.

You can apply for an EIN number online through the IRS website. There are some exceptions to who is eligible for processing an online application.

There are numerous TIN alternatives available when registering as a business entity for tax purposes. Not all TIN possibilities are available to businesses, as we indicated above, and not all firms require an EIN.

You are permitted to use your social security number as your TIN if you operate as a lone owner or a single-member LLC. You may be qualified for an EIN if your company has multiple members or if you want to safeguard your privacy and avoid using your Social Security number.

The individual who “ultimately owns or controls the entity or who exerts ultimate effective control over the entity” is what the IRS refers to as a “responsible party.” The responsible party must be a person, unless the petitioner is a government body.

Please take note that each EIN can only have one responsible party.

You now understand the meaning of an EIN number, what it stands for, and how long it takes to obtain one. Additionally, you are aware of the benefits of and procedures for obtaining an EIN for your company.

If you went through the proper processes to get an EIN, you might be wondering what to do next.

It’s time to start assembling the elements required to establish a legal firm once you have your EIN number.

Maybe it’s time to:

• Open a bank account for your company.
• Create business credit to use for loans.
• Obtain business permits.
• Create agreements and relationships with vendors.
• Become a member of state registries.
• If necessary, request state employer identification information.
• Review additional stipulations relating to small businesses.
• Request credit card processing.

Without even realizing it, it’s simple to convince yourself that when you charge anything to your credit card, you’re not actually spending “real” money. And that is true in a technical sense.

Author and certified public accountant Michele Cagan states in her book, “Debt 101,” “In fact, you’re not actually spending money – you’re borrowing money.” Even though you know you’ll eventually have to pay the bill, the promise of low minimum payments might make purchases seem like good deals. You won’t really feel the agony of the cost until around a month from now if you don’t pay back the buy right away.

This is supported by a number of behavioral economics studies, such as the now-famous experiment conducted by Drazen Prelec and Duncan Simester at the Massachusetts Institute of Technology, in which participants were chosen at random and given the chance to purchase highly sought-after, sold-out tickets to a professional basketball game.

“You won’t experience the sting of a credit card payment for essentially one month if you don’t pay it back right away.”

The fact that cash would be required for the tickets was disclosed to half of the attendees. The other half was informed that credit card payment would be necessary. When told they would need to use a credit card to pay, participants were often willing to spend more than twice as much as when told they would need to use cash. For the chance to purchase now and pay later, survey participants were willing to pay a 100% premium, in other words.

Dun & Bradstreet’s study, which revealed that customers spend 12%–18% more when using credit cards instead of cash, is another frequently referenced study. A more pronounced difference between cash and non-cash transactions has recently been discovered by the Federal Reserve Bank of Boston. The average amount of a cash transaction in 2016 was $22, compared to $112 for non-cash transactions, a 409% increase, according to a bank study from that year.

This general assumption has also tended to be supported throughout time by earlier studies and empirical evidence:

– One study from the Journal of Applied Psychology discovered that merely by seeing a credit card logo on the tray that holds their restaurant bill, diners left an average tip that was 4.3% higher.

– When individuals used credit cards, the average ticket at McDonald’s was $7 as opposed to $4.50 for cash, the fast food chain previously claimed.

– According to a study by MIT economist Amy Finkelstein, after an automatic collection system, like EZ-Pass, was put in place, U.S. states with highway tolls tended to raise the toll. According to the report, because customers don’t “feel” an electronic transaction the same way they would if they were exchanging “actual money,” states recognized they could charge more.

If you’ve ever bought on Amazon at 2 in the morning, you’re probably all too familiar with this. It seems obvious that credit cards are suitable for impulse purchases as studies have shown that people are willing to spend more when they charge their purchases.

And according to consumer psychologist Ian Zimmerman, Ph.D., many impulse consumers may use shopping as a strategy to improve their moods.

The article quotes him as saying, “The impulse shopper enjoys the thing and experiences pleasure at the notion of being able to buy it right away and take it home.” “The impulse consumer can’t help but feel the need to purchase the item and does so without thinking about whether it is excessively priced or frivolous.”

“With credit cards, it’s less emotionally difficult to spend future money than present money because you don’t have to pay for things right away.”

Enter the “payment coupling” phenomenon, which is defined by research as the interval between the moment you decide to buy something and the time you actually pay for it. Credit cards make it less uncomfortable psychologically to spend future funds rather than present funds because you don’t have to pay for purchases right away.

On the other hand, a 2016 study found that people who pay with cash had a greater relationship with the things they buy, as reported in the Journal of Consumer Research. Because customers perceive cash as “genuine” money, they develop a stronger emotional bond with the goods they spend their hard-earned cash on.

It’s often claimed that “cash is king,” but 2018 saw a crucial turning point for the throne: for the first time, more debit transactions through the Automated Clearing House than checks were written.

Venmo, the preferred peer-to-peer payment system for millennials, processed $31 billion in payments in the first quarter of 2020 alone, a remarkable 48% increase compared to the same period in 2019. Even though mobile wallet adoption has lagged, a 2019 Pew Trust poll revealed that more than half of American adults had used their smartphones for a transaction in the previous year.

Digital payments made with credit and debit cards are projected to keep growing as currency continues to lose favor in favor of cards’ convenience (and possibly due to hygiene reasons in COVID-19 times).

Credit cards still have a lengthy range of benefits listed in the “pros” section, despite the potential for encouraging excessive spending. In fact, you should definitely use a credit card for the majority of your expenses if you can maintain a budget and pay your card account in full and on time each month.

Spending responsibly with a credit card is a good thing. You can benefit greatly if you use it like “real” cash and only swipe what you can afford to repay in full and on time.

First off, carrying a credit card is safer than carrying cash or even debit cards because of federal fraud protections and the 0% liability protection that the majority of card issuers provide. Many also provide consumer buying safeguards like insurance and extended warranties.

Additionally, credit cards enable you to establish credit while also generating large rewards.

Of course, there are times when you may not have much of a choice. A credit card can be your only choice if you simply don’t have enough cash on hand that day, or if an unexpected emergency arises or your financial situation changes. For a variety of reasons, including consumer and employee safety, some establishments don’t even accept cash anymore.

But in the end, using credit cards sensibly is a good thing. You can gain from many things if you use it like “real” cash and only swipe what you can repay fully and on time.

Various financial services offered to business owners are referred to as “merchant services,” including payment processing, payment gateways, loyalty programs, gift card programs, and others. You will require access to merchant services if you wish to accept credit card payments, online payments, or any other type of non-cash payment.

In the past, businesses have processed credit card payments via merchant account providers and a variety of different services. However, payment service providers (PSPs) are now available, streamlining the payment acceptance procedure. While PSPs provide quick, uncomplicated signup procedures and transparent pricing, their fees are frequently higher than those associated with conventional merchant accounts.

From one provider to another, merchant services can differ. As an illustration, whereas some merchant services providers merely give merchant accounts and payment gateways, others offer comprehensive solutions.

Whatever the case, a merchant services provider’s main goal is to make it simple for your company to take payments. Customers who wish to pay with a credit card for goods or services from your company will either utilize a card reader (if they are making the purchase in-person) or a payment gateway (if they are making the purchase online). The payment processor receives the transaction and checks the payment information and the availability of the funds. The payment processor collects the monies and deposits them in your account after the transaction is approved.

1. Merchant Service Providers

A company that offers its customers any kind of merchant service is known as a merchant service provider. This often entails merchant accounts, payment gateways, card readers, point-of-sale systems, and other merchant-related solutions.

A “merchant account provider” is one type of merchant service provider. A provider of merchant accounts grants its customers exclusive access to those accounts. A merchant who has a merchant account has complete control over payments, quick access to funds, and affordable transaction costs. Even though this is the option that many business owners prefer, high-risk enterprises frequently have difficulty obtaining merchant accounts. The underwriting procedure could take weeks or even months.

2. Payment Service Providers

Payment service providers (PSPs) offer assistance to merchants in the payment processing process but do not have exclusive access to any particular merchant account. Instead, PSPs combine a number of clients into a single merchant account (sometimes referred to as an aggregate merchant account), and then transfer money to their client’s company bank account when the money has cleared.

Payment service companies frequently impose flat-rate processing fees. Although flat-rate fees are straightforward to comprehend and make it easier to forecast processing expenses, they frequently cost more. Typical fees for traditional merchant accounts are lower but can vary.

PSPs simplify payment processing for small business owners despite having longer processing times and higher overall costs. To sidestep the underwriting procedure involved with conventional merchant accounts, many firms are ready to pay higher fees.

3. Payment gateway providers

Finally, businesses that supply payment gateways to merchants are known as payment gateway providers. Payment gateways are online terminals that help businesses accept credit card payments. It is crucial to realize that payment gateways are merely tools that facilitate the processing of electronic payments; they are unable to carry out payment processing on their own. As a result, it is typical for payment gateway providers to also provide merchant services, or for traditional merchant service providers to include payment gateways in their service offerings.

However, these services can also be purchased independently, giving companies more freedom and control over how they set up their payment processing system. Many merchant service providers give you the option to interface with your preferred payment gateway if you already have one.

The distinction between merchant accounts and merchant service providers is one that all retailers need to be aware of (MSPs). As was already mentioned, merchant accounts are specific types of bank accounts used for processing credit card payments. On the other side, companies that offer merchant accounts and other financial services are known as merchant service providers. Although a merchant service provider may be able to help you open a merchant account, the conditions are not same.

A business that provides merchants with payment services is known as a merchant service provider. These services could include payment gateways, merchant accounts, and other tools for accepting payments. These payment services may be combined with sales trackers, CRMs, timesheet software, accounting software, and other technology by merchant service providers offering more “full-scale” solutions to simplify managing your business.

Accepting payments for your company can be made much simpler by partnering with a merchant service provider that offers a wide variety of solutions. For instance, you require a merchant service provider with eCommerce capabilities if you have a brick and mortar business and also want to sell your products online.

A merchant account is a type of bank account created especially for using a payment gateway or POS system to process credit and debit card transactions. Applying for a conventional merchant account is still one of the best solutions if a company wants total control over its payment processing.

Traditional company bank accounts are not merchant accounts. Your company may transfer funds to your business bank account once they have cleared into your merchant account.

Since technology has advanced, merchant service providers may now supply American firms with a wide range of cutting-edge options, including:

1. Merchant accounts

As previously mentioned, merchant accounts are bank accounts for facilitating credit card transactions. If you want complete control over your payment processing, merchant accounts are one of your best options.

2. Payment gateways

Online payment processing doesn’t have to be difficult. Your customers will have access to a user-friendly payment interface with a payment gateway so they can enter their credit card numbers, names, addresses, and other essential information. Any successful online business needs payment gateways, which offer an interface for processing digital payments online.

3. Credit card readers

You need card readers to swipe, insert, and tap cards if you wish to accept credit card payments in person. Thankfully, the majority of merchant service providers provide a selection of high-end credit card readers. Many contemporary readers may now link to phones, iPads, and other devices via Bluetooth, simplifying the payment acceptance procedure in your company.

4. POS systems

Even though card readers are great tools for receiving credit card payments, they lack the complete range of payment options that a point-of-sale (POS) system does. POS systems manage inventory, split bills, track sales, process returns, and carry out a number of other automated functions. Today’s POS systems frequently include CRMs and other premium services, making it easier to manage all of your company’s requirements.

5. Mobile payment systems

Mobile payment systems can be useful for any type of business that would benefit from accepting payments while in motion, including those that are mobile like food trucks and market stalls. With mobile payment systems, businesses may handle digital payments without a sophisticated POS system by downloading an app on a smartphone. Without a stationary terminal, processing credit cards fast is made simple with mobile payments.

6. Check processing

Even if American consumers are still less likely to use checks, your company could still wish to collaborate with a merchant service provider that will accept checks. Both traditional check processing and eCheck processing are available from numerous merchant service providers.

7. E-commerce shopping carts

The US economy’s use of e-commerce is growing. In fact, it was predicted that eCommerce sales will top $750 billion in 2021.

You must provide a flawless user experience if you wish to establish an eCommerce presence. An online shopping cart is one feature that customers anticipate from online retailers. Shopping cart software makes it easier for customers to shop online by enabling them to quickly browse and choose what they want from an online store, then pay for everything at once when they’re ready to check out.

8. Virtual terminals

What if you need to process a card over the phone or via email even if the majority of credit card payments in your organization will be made via physical cards or internet transactions? To facilitate a card-not-present (CNP) transaction, you will need a tool. Credit card data and customer information are simple to enter into virtual terminals to conduct CNP transactions.

9. Business funding options

Last but not least, a lot of merchant service providers give company funding options to assist retailers in obtaining financing. For instance, providers of merchant accounts might provide working capital loans, merchant cash advances, and other types of business financing.

The bottom line of your company will suffer if you choose a merchant service provider with high fees because they quickly pile up. Depending on who provides your business’s merchant services, different fees may apply. Let’s look at the many payment choices below:

1. Flat rate pricing

No matter which card brand a consumer uses, flat-rate pricing only costs one fee. Pricing for other payment methods, such as card-present and card-not-present transactions, may still vary.

2. Tiered rate pricing

No matter which card brand a consumer uses, flat-rate pricing only costs one fee. Pricing for other payment methods, such as card-present and card-not-present transactions, may still vary.

Although this is a common method for organizations to anticipate payment costs, it is costly over time. The markup contained in the flat fee that retailers pay to their merchant service provider is hidden from view by the retailers.

3. Interchange plus pricing

Card brands charge interchange fees that vary depending on the type of card being used, the way a transaction is processed, and the type of business involved. Interchange plus pricing is a fixed markup on top of interchange fees, paid to merchant service providers. While interchange fees may vary based on what card brands charge, merchants will always know what the interchange-plus fee is.

4. Other fees

There are some other fees you should also consider when choosing a merchant service provider:

• Refund fees
• Chargeback fees
• Account initiation fees
• NSF fees
• Minimum processing fees
• Statement fees
• Various other fees

Choosing the finest merchant service provider, such as BestCardFees, is crucial to your success, regardless of whether you’re running a brand-new company or one that has been in operation for a while. You can increase the payment prowess of your company by finding a merchant account with reasonable costs, strong integration possibilities, and top-notch hardware alternatives. Never undervalue the impact of a trustworthy and inexpensive payment processing partner!

Consumers now anticipate a lengthy list of accepted payment options as payment options modernize across the United States. It might be difficult to comprehend all of the payment alternatives that are accessible to your company, though. This guide combines the best payment methods, making it simpler for small businesses to take advantage of the current payment landscape.

In the US and the rest of the world, the use of credit and debit cards is steadily increasing. In reality, the number of credit card customers in the US exceeded 196 million in 2021. Such popularity is logical given that credit cards make it easier for users and companies to make secure, prompt payments for products and services.

Still, there are hazards associated with this method of payment. Malicious individuals may steal card information to buy products and services from your company, which you will probably be responsible for paying for. A nightmare for your bottom line, cardholders can also submit chargebacks if they are dissatisfied with your goods or services. Therefore, if you want to accept credit or debit card payments, adding robust security measures—like CVV checks, two-factor authentication, and other types of fraud detection—remains essential.

Getting a merchant account is important for your company to accept credit and debit card payments online, offline, over the phone, by email, and through a variety of other channels.

Although they are less common among American consumers now, physical checks still occur. The actual checks you receive can be processed through your regular banking partner. To prevent accepting invalid checks, however, make sure that sufficient security measures are in place.

Thankfully, digital checks now make it possible to send money quickly and securely online. Let’s look at the choices for digital checks below:

eCheck: eChecks are digital checks allowing individuals to transfer money between bank accounts. In effect, a customer authorizes a business to remove money from their bank account in exchange for goods or services. Your business must receive approval from your customer before initiating this type of money transfer. Fortunately, many eCheck companies make it simple to use this service to transfer money.

ACH: the ACH Network handles ACH transactions. What is the ACH Network, then? The Automated Clearing House (ACH) is a network for electronic financial transfers used by individuals, companies, and other organizations in the United States. The ACH Network enabled payments totaling over $72 trillion in 2021.

Although ACH payments are safe, affordable, and trustworthy, there are a few drawbacks to take into account. First off, receiving money via ACH payments can take a few days because they are not instantaneous. Second, certain banks have limits on the amount of money that may be transferred over this network, which prevents it from supporting some expensive purchases.

Although your company can still use paper invoices, digital alternatives are far more practical. Sending invoices is now simpler than ever thanks to digital invoice generation. Even a payment link for easy credit card transactions can be included in the invoice!

Software for accounts:

It’s not just organizations who specialize in invoices that offer invoice payment choices to business owners in the US; your company can also create and manage invoices using its accounting software. Many accounting software providers, like QuickBooks, Xero, and others, include internal invoice apps that make issuing invoices simpler.

Customers and company owners still find cryptocurrency to be a hot topic. In fact, according to Delloite research, more than 2,000 firms in the US will accept cryptocurrencies by 2020.

Accepting cryptocurrency has a number of dangers, though. First of all, because cryptocurrency values are so unstable, there could be dramatic shifts in price within a few days. Second, accepting only well-known, reputable coins may be a better idea than taking a wide variety of crypto tokens because the cryptocurrency sector is notorious for being prone to numerous scams. As a relatively new industry, cryptocurrencies may eventually be regulated, which would alter or lessen their status as a payment option in the United States.

Consumer interest in the buy now, pay later (BNPL) market has soared in the US. By 2024, the business is expected to grow to more than $110 billion. Customers that use buy-now, pay-later services can spread out the expense of their purchases over several installments. Customers may pay interest on these payments in some situations, but in other cases, they may merely be charged late fees.

So why should your company use this kind of service? Customers can access large-ticket purchases more easily thanks to BNPL services. In essence, they let your company to give clients credit without a dedicated corporate credit department. And the evidence is there: according to recent study, BNPL services can boost ticket numbers by 30% to 50%.

Cash payments, which were once the most common means of payment, made up 20% of all transactions in the United States in 2021. Despite this, the majority of businesses choose to accept cash for in-person transactions because they don’t require access to a platform in order to do so.

Cash is the only form of payment that may be made directly from client to merchant without the assistance of a third party. However, businesses that accept cash should be able to spot fake currency since without a third party to assume liability for fraud, the business is left with few or no options.

Accepting online payments increases your reach regardless of whether you run your business entirely online or intend to create an online platform to support your brick and mortar location. Thankfully, thanks to technology improvements, business owners now have access to the payment security they require in the form of payment gateways.

While there are numerous payment gateway options available on the market right now, there are other solutions that may be used in addition to them (mentioned below) to give your consumers a streamlined payment experience.

1. Shopping carts

Customers can purchase items from your online store with the help of online shopping carts. Customers use a shopping cart to choose goods and services from your website, put them to a virtual shopping cart, and complete their entire order in one go. This makes it simple to buy a variety of goods and services and streamlines your company’s back-end fulfillment procedure.

Numerous shopping cart programs can be integrated with your merchant account or with a number of other payment processors, including Stripe, PayPal, and others. Similar to how BNPL services now link with shopping carts, users may now submit finance applications right away.

If your firm doesn’t have an internal web development team to design a shopping cart platform, many online software providers offer this service. Gaining access to the advantages of an online shopping cart has never been simpler!

2. eCommerce platforms

While eCommerce platforms provide flexible options for firms looking for a full-scale solution, shopping carts serve as the basic tools for processing online payments.

One-stop shopping and payment processing services include WooCommerce, Shopify, and other top eCommerce platforms. With the help of these cutting-edge eCommerce options, you can easily create an online store without any coding knowledge, upload products, add custom branding to your website, create shopping carts, monitor customer sales, gain access to CRM features, integrate with different eCommerce software products, and more!

If you want to create an online store but don’t have the funds for a huge coding team, eCommerce platforms are a great alternative. Despite having internal processing capabilities, many eCommerce platforms still link with third-party payment processors and merchant accounts.

Customers must make in-person payments to brick and mortar companies. Although many consumers still pay with cash, having a point-of-sale system with cash drawers provides advantages because cash payments are still widely used. However, obtaining credit and debit card processing for your company is essential if you want to offer a full range of in-person payments. Let’s look at the most common methods for receiving money in person:

1. Card readers

It is simple to take payments at your business thanks to card readers, which are compact and user-friendly credit card processing equipment. You can input order totals and other information from the palm of your hand with the help of the Bluetooth connections that many contemporary credit card readers make to smartphones and tablets.

The majority of credit card readers support contactless payments, inserting EMV chips, and swiping magnetic stripe cards. With these practical, portable gadgets, transactions may be completed in a matter of seconds. Low-cost card readers are available from a number of top payment service providers and processors.

2. POS systems

A full-grade point-of-sale (POS) system offers further benefits if you desire greater capability when taking payments in your business. Systems at the point of sale provide a sophisticated interface for handling transactions. Your company can upload menus, service lists, and product lists to make it easier for your personnel to take orders.

Modern point-of-sale systems are loaded with technologies including touchscreen user interfaces, cash drawers, product scanners, printers, and more.

Many POS platforms in the past required lengthy contracts, pricey hardware agreements, and other unappealing contract terms. But because of the growing competition, there are now a lot of accessible point-of-sale platforms that can be customized.

Whether you run a major software corporation, a mail-based subscription service, or any other type of business that consistently provides customers with goods or services, recurring payment can be a useful business model. You need a payment processing platform that makes routine payment collection easy if you want to develop a reliable income stream.

Thankfully, many merchant accounts and payment processors provide subscriptions and recurring payments. This method of payment can be integrated with a payment gateway to initiate automated recurring invoicing for products or services. Just be sure to make it simple for customers to cancel, otherwise you risk having to deal with chargebacks!

Customers can purchase goods and services without a real credit card quickly and easily by accepting mobile payments. This is more practical for many clients, and it speeds up business processes, making it simpler to handle high order volume. Let’s look at the several mobile payment methods that are available to business owners:

1. Mobile phone & contactless payments

Customers can make purchases without PINs using contactless and mobile payments by “tapping” their cards or phones on card readers. Cardholders of credit cards with chips who use NFC payment technology can also take advantage of contactless payments.

For contactless payments, cardholders can also transfer their credit cards to Apple or Android devices to use Apple Pay and Google Pay. Fast verifications (by password, facial recognition, and other ways of verification) are possible with these mobile phone payments to guarantee speedy payments.

Paying with a contactless mobile device is becoming more and more common. The platform for Apple Pay is currently used by more than 507 million individuals worldwide. Similar to Apple Pay, Google Pay has a sizable global user base—more than 150 million people use Google Pay globally.

Since there is no set limit on contactless payments in the US, unlike other nations, each card network determines these regulations.

2. QR codes

In recent years, QR code payments have also become a popular means of payment. Businesses can use a QR code to link directly to a payment gateway or landing page with QR code payments. In order to make it easier for your consumers to access a payment form and complete a transaction with their phone, you can add QR codes to menus, adverts, websites, and more.

In the Covid-19 era, when many businesses switched to no-contact payment methods, digital menus, and other sanitary practices, QR code payments saw tremendous growth. The QR payment market has a value of more than $8 billion in 2020, but by 2030, it is anticipated to reach $35 billion. Being a pioneer in a new payment environment might put your company on the cutting edge!

3. Mobile and wireless terminals

Mobile devices simplify transaction processing for both merchants and customers, making it simpler for customers to pay. Mobile and cellular terminals provide a substantial degree of payment flexibility.

Without the need for a sizable point-of-sale platform, wireless terminals make it simple to accept credit card payments whether you run a food truck, market stall, or any other mobile business. Mobile terminals enable your workers to receive tableside payments, send orders straight from the table to the kitchen, monitor current stock levels, and more even if you own a large restaurant or retail establishment.

Merchants can now get mobile and wireless terminals from a variety of merchant account, point-of-sale, and payment service providers. You can use your iPhone or Android phone as a mobile terminal by downloading software from various providers and installing it on your device.

CRM software enables organizations of all sizes to more easily manage their client relationships and boost sales. Although there are numerous CRM software versions available to retailers, the majority of them offer customer profiles, sales monitoring, email marketing capabilities, customer incentive programs, and more.

Similarly, some CRM platforms now include internal payment processing, simplifying for firms anything from transactions to sales monitoring. Investigate the choices for payment processing if you wish to upgrade the CRM service in your company. While some CRMs link with external merchant accounts and payment service providers, others offer in-house payment processing.

Phone credit card processing makes clients’ lives easier and prevents your company from completing transactions without upfront payment. If you own a catering business, a restaurant, or any other establishment that accepts advance orders, upfront payments safeguard your income.

There are other choices than manually entering card information into some credit card readers to process phone payments, including card numbers, expiration dates, CVV numbers, and more. Here is a virtual terminal that we can explore:

1. Virtual terminal

Easy-to-use internet terminals for processing payments are called virtual terminals. The business gets the customer’s card number data over the phone and physically enters them into the virtual terminal rather than scanning a card or asking for information online. With a virtual terminal, your company uses a computer instead of a card reader like you would when entering a credit card number.

Although virtual terminals are frequently associated with receiving phone payments, you may also use this capability to accept payments by email or conventional mail. Just enter the card information as you would when making a phone payment.

Additionally, since the card isn’t present, accepting cards through a virtual terminal or card reader is more expensive. Although it is a practical choice, the possibility of data theft from the cardholder makes this option vulnerable to credit card fraud. When accepting card-not-present (CNP) purchases, keep this in mind.

Building a variety of payment channels gives your company a strong revenue-generating basis. However, business owners may find the variety of payment options accessible today to be daunting. Fortunately, merchant services providers can guide you through the extensive selection of payment options that are currently accessible, advising you on the ones that will benefit your operations the most and helping you to secure those solutions.

BestCardFees, a merchant services company, provides merchants with professional advice, quick onboarding, and simple connections. We enjoy making money-making simple, and our merchants appear to agree with us!

A point of sale system should ideally be composed of fundamental hardware and software elements that aid in the execution of its procedures. The display, a receipt printer, and a credit card reader are among the hardware elements. The software that enables these elements to work together is then added. How does a point-of-sale system operate then?

The capacity of point of sale systems to track and synchronize billing across all departments is one of its biggest assets. Additionally, they typically come with thorough reporting features that record all part of accounting required to support your company’s ability to assess the success of business operations and reach crucial conclusions. Numerous tools for payment processing have also been implemented into advanced systems.

The inventory for your business will be tracked from purchase to sale through the point of sale system. It streamlines the procedure by keeping track of your inventory, ensuring that you maintain balanced inventory levels, and communicating routine updates to the pertinent departments.

So why do you think your company needs a POS system? Here are several justifications for thinking about buying one:

1. Most business processes are automated

By automating several areas of your business operations, a point of sale system helps you save time. For instance, since there is no need to sift through several receipts, it expedites the checkout process, inventory management, and payroll processing.

2. Reminds you of the performance of your business

The creation of quick reports allows business owners to monitor their company’s success in real time. For instance, you don’t need to look through a ton of store records to figure out what inventory is on hand, and you don’t need a ton of records from other teams and systems to figure out how liquid the company is either. Whether you are connected through the cloud or are in the office, the system allows you immediate access to these reports.

3. Decreases the Frequency of Theft and Abuse

The conventional manual payment processing systems had a number of flaws and were inefficient in many ways. This made it possible for records to be altered, which resulted in a variety of accounting problems, including the misappropriation of money raised, false reporting, and open staff theft. These incidents are eliminated by the POS system by coordinating the cash collection and sales points.

4. Helps You Save Cash

If you want to get rid of accounting errors and resource misuse, you must implement a number of countermeasures due to the old payment system’s various inefficiencies. Separating services, such as having various attendants distribute goods and collect money, lowers the level of service and lengthens the sales process.

Because different people play several roles, it is also expensive. By incorporating the required checks and balances within the system to prevent fraud and by doing away with the need for several people to perform the same task, a POS system can help you avoid this and reduce spending.

If you want to streamline your company’s sales, accounting, and inventory management divisions, you need a point of sale system. More importantly, you require it in order to integrate payment methods like credit card processing, lower the risk of fraud in cash handling, save money, and stay informed about the state of the company.

Credit card readers are, by definition, gadgets that carry out payment processing by reading card data, encrypting it, and transferring it to the payment network, which either accepts or denies the transaction. The entire process only takes a few seconds. As a result, you can swiftly and effectively collect safe payments while your clients enjoy using their preferred payment method.

Choosing the best credit card reader for your business requires careful consideration of a number of variables. The information that you need to consider while making this choice for your company is provided below.

The market for credit card readers currently offers a wide range of choices for processing payments. There are several methods for accepting credit card payments, including contactless payments and the more conventional magnetic stripe method. You must thus decide which are most important to your company.

If you want to keep to the fundamentals, pick a card reader that accepts a smaller range of credit and debit cards, such as one that only scans magnetic stripes or EMV chips.

Additionally, you should think about how you wish to receive money. For instance, are you establishing separate checkout areas around your store? Do you mostly operate a mobile business where you could need mobile card readers? As you weigh your options, all of these are crucial inquiries.

When limiting your selection of card readers, take in mind the kind that your present payment processor offers. Your processor could or might not carry the precise brand you seek because of reseller arrangements with particular companies.

As a result, you might wish to pick a card reader that is compatible with your current system. The available card readers will limit your options if you intend to stick with your current payment processor. As an alternative, you can decide to switch to an all-in-one (omni-channel) integrated system that offers extra functions that might be very helpful as you build up.

Finding a credit card reader that accepts your clients’ preferred payment method is crucial. Offering EMV or near-field communication (NFC) functions, the latter of which enables contactless payments, could be one way to accomplish this.

You’re searching for a credit card reader choice that fits your needs and your budget as a wise business owner. It’s crucial to comprehend the various credit card processing costs you can encounter when comparing options in order to make sure you’re getting the most value for your money.

As they affect the price of your credit card reader, we go into greater depth below about processing costs and hardware fees.

Cash payments, which were once the most common means of payment, made up 20% of all transactions in the United States in 2021. Despite this, the majority of businesses choose to accept cash for in-person transactions because they don’t require access to a platform in order to do so.

Cash is the only form of payment that may be made directly from client to merchant without the assistance of a third party. However, businesses that accept cash should be able to spot fake currency since without a third party to assume liability for fraud, the business is left with few or no options.

There are costs associated with processing credit cards. This is due to the fact that each time your consumers tap, swipe, or dip their cards, there are numerous parties involved in transaction processing, which is expensive.

You should normally budget between 1.5 percent and 3.5 percent every transaction for processing fees. The costs you pay may vary depending on the type of card used, the card network, whether a card is present or not, and even the merchant category number you were given.

Customers must make in-person payments to brick and mortar companies. Although many consumers still pay with cash, having a point-of-sale system with cash drawers provides advantages because cash payments are still widely used. However, obtaining credit and debit card processing for your company is essential if you want to offer a full range of in-person payments. Let’s look at the most common methods for receiving money in person:

You may have to pay for the actual hardware or equipment required to process credit cards. A display screen, a keypad, and a magnetic stripe to read card data are components of basic hardware. The cost of the accessories will probably drive up the price of the hardware if you want extra capabilities like a built-in receipt printer or touchscreen.

Your merchant services provider may sell you a terminal, which is a popular choice among many companies. As an alternative, you might rent or lease your terminal. Leasing or renting has the advantage of freeing you from having to make an upfront payment, which will result in immediate financial savings. However, in the long run, you might pay more for this.

Except for pricey POS systems, renting terminals is less frequent than it formerly was.

Next, we explore the most common credit card readers used by small businesses to help you sort through your alternatives. This list, which includes solutions that balance price, cutting-edge technology, convenience, and all of the aforementioned characteristics, is based on the input and rankings from businesses like yours.

Clover is a well-known name in the credit card machine market, offering POS systems that are simple to use and packed with several features. For reading payments with a smartphone, Clover offers the countertop Clover Mini and Clover Station Duo, the transportable Clover Flex, and the mobile Clover Go. Alternatively, you can utilize Clover’s virtual terminal, which is hardware-free. The increased upfront cost of Clover is, however, a drawback. Overall, Clover and its practical credit card readers, which we discuss below, are worth taking into account.

You must initially decide on a plan that includes a monthly service charge for all Clover card readers:

• Payments Plus – Free basic plan
• Register Lite – Starting at $9.95 per month
• Register – Starting at $29.95 per month

Clover mini:

A popular alternative for an all-in-one register among small businesses is the Clover Mini. Clover Mini enables your company to collect a variety of payments, scan barcodes, and print receipts. It also comes with a color touchscreen that can be attached to a countertop. It also has capabilities for managing employees and customers as well as inventory.

On the down side, it cannot be reprogrammed and needs a Fiserv merchant account. Clover Mini includes a free plan, but if you want enhanced capabilities, you must purchase a monthly subscription.

Clover Go:

To accept EMV chips, contactless payments, and magnetic stripe payments while on the road, Clover Go employs Bluetooth to connect to smartphones and tablets. Along with your device, there is a free mobile app for both iOS and Android. You must purchase a monthly plan in order to utilize Clover Go. You can choose from a variety of features depending on the package you choose. The Essentials Plan, for instance, has a monthly fee of $9.95. You get basic payment processing, employee management with round-the-clock assistance, inventory management, tax preparation, and reporting with this package.

Clover Station Duo:

The Clover Station Duo, formerly known as the Station Pro, is the most recent addition to Clover’s hardware lineup. It’s a stylish improvement of the Station Solo that adds a second touch screen that faces the consumer. It was created with quick service, full service, and fast casual restaurants in mind.

Clover Flex:

A portable credit card reader with lots of features is called the Clover Flex. EMV chips, contactless payments, magnetic stripe payments, barcode scanning, and receipt printing are all things it can handle. You won’t need to connect it to a personal device because it has a screen of its own. It provides your consumers with a polished checkout experience because it has so many features packed into a compact, user-friendly gadget.

The Clover Flex provides monthly plans that can assist you in managing your inventory, viewing transaction statistics, and providing individual logins for each employee. You can set a payment schedule to stretch out the expense even if the fee may be prohibitive for a small firm just getting started.

Although we’ve discussed the various credit card reader choices you have, you might still be unsure of the specific advantages a credit card reader can provide for your company. A card reader can assist you in the following ways, to name a few:

1. Convenience

The ease of use of credit card readers is a major selling point. A mobile POS can be straightforward and portable. Additionally, you can operate a cashless shop where consumers can easily tap and go thanks to NFC technology.

2. Mobile selling

You can take orders from consumers while they are waiting in line or at their table using a mobile credit card reader. Anywhere outside of your place of business, including farmer’s markets and fairs, you can go with your mobile credit card reader.

You can use your mobile credit card reader to invoice your clients wherever they are in addition to using it to conduct mobile sales. If you’re a contractor that provides services in clients’ houses, this can be a particularly appealing feature.

3. Back-up POS

Having a backup plan is usually beneficial in crises. You can utilize your credit card reader as a backup POS in case your primary POS fails.

4. Beginner POS

A credit card reader can help you get started quickly if your business is new while you’re still getting your other affairs in order.

With the knowledge you’ve gained from reading this article about credit card readers, you’re now better equipped to sift through the many alternatives available to determine which credit card reader will work best for your company’s requirements and begin collecting in-store payments. Consider getting in touch with a BestCardFees representative if you still have inquiries. In addition to being pleased to assist you in finding the perfect credit card reader, we might even be able to provide you with a discounted or complimentary card reader as part of our services.

You’ll soon be able to swipe, dip, and tap with ease while assisting your customers!