Categories
Credit Cards

How You Can Avoid the Pitfalls that Come with Credit Card Processing

If you own a modern business, it’s likely that credit cards are an integral part of your payment plans. This is especially true if you are involved in any sort of ecommerce or you are inheriting a business that had some less-than-ethical billing systems. Disorganization can also cause problems when it comes to submitting payments and making sure you don’t fall prey the common pitfalls that can be associated with credit card processing.

Here are some ways you can avoid these issues and keep your payment records clean.

Avoid a confusing billing structure

One of the easiest things you can do as a business is make sure that your billing processes are all in order. This can be more of a challenge if you company has been running for years and you have survived through paying as you go or without keeping any sort of record. However, this can come back to haunt you when you are dealing with credit card processing. Without a record of your payments, you can find yourself dealing with issues with the IRS.

This is why it can be essential to find a terminal that will benefit your business early on. You don’t want to have to own several different card terminals that work with various types of payment methods (swiping, EMV chip, etc.). You want to have one system that can easily be integrated into others if need be. This is why it is important to have a solid structure available—even if that means scrapping what you had before and starting over.

Be aware of chargebacks

Chargebacks are a common occurrence when it comes to credit cards and finding the best merchant account to help you handle these is completely necessary as a business. One of the biggest issues that business owners run into is the fact that they are not keeping track of when chargebacks happen and for what amounts. Your entire business’s payment plan can be thrown off by one or two big clients that submit for a chargeback. The best way to avoid this wrecking your business is to be aware of when it happens and to contact your customer as soon as you catch it. It might have been a mistake that you can rectify.

Know your payment facilitators

Your payment facilitators are the ways that you make payments, you’ll probably recognize them as service like PayPal. These can work well when you are running a small business and you have a limited amount of funds going in and out of your account, but the more money that starts to go through (and the more potential chargebacks you have) the higher the chance you are going to run into problems. Know the terms set by your payment facilitators in advance so you can make an effort to circumvent any problems when your business grows.

In conclusion

How you look at your payment process and how they are performed can be essential to the success of your business. Once you know the pitfalls to avoid, you can go forward with the knowledge that you are less likely to run into them.

Categories
Credit Cards

Things you can expect from Credit Cards in 2018

The new year has already started and time is moving forward. Each new year brings more innovation to the world for the development and advancement of mankind. The world of finance is no different. Credit cards have been enjoying immense popularity for some years now due to their convenience. They let the customer buy-in credit at the point of sale and charge an annual fee and interest on the credit received. A credit card can be issued to you as long as you have a stable source of income. In exchange, you can enjoy bonus, rewards and various perks that come with it. What can we expect from this convenient and lavish mode of payment in the future? Will credit card policies become lenient or more strict in the near future? Some of the top 2018 credit cards predictions are listed below according to some veteran finance bloggers on the internet.

Huge Rewards can be expected

Credit card companies give users rewards on various purchases. These bonuses vary from small to large depending on the issuer of a credit card. Some credit cards allow the customer to receive as high as a 5% reward per purchase of the original payment. We can expect an increase in cashback rewards in 2018 as credit card companies are looking forward to attracting new applicants with tempting offers.

Raise in interest rates

The interest rate on your debt has been predicted to be increased. If you have any previous debt you haven’t paid off, it is advisable to pay it as soon as you can. Otherwise, you will be in deep debt due to the rise in interest rates.

Checkout without the signature

More credit card companies are following the MasterCard’s lead to skipping signatures at physical checkout locations. This will lead to faster and more convenient checkout for your purchase in the near future. It is predicted that by the end of this year, pens will vanish from checkout points.

Facial Recognition for Payment

Instead of signatures, your identity will be verified with the help of facial recognition. This technology is already being used in China and soon it will reach other countries of the world as well. Alibaba, a name many will recognize in the world of e-commerce, has already initiated Smile-to-Pay service that lets a customer pay for the purchase by smiling.

Mobile Wallets will rise in Popularity

As observed in recent years, electronic payments have become more renowned like Samsung Pay and Chase pay. This feature let users pay with the convenience of their cell phone. We will see more promotions for this feature in 2018. And as a result, there are chances of more Mobile rewards being granted to users as well.

Changes to Southwest Companion Pass

The Champion pass is the most coveted credit card perk right now that will face some negative changes. When Southwest adds Hawaii to the service, the companion pass will become too precious. The chances for an increase in required points for sign up are pretty high.