UK consumers love plastic, and more than ever before the UK is moving into a cashless society, due to new technologies such as Contactless Payments and Wallet based apps.
If you haven’t done so already, investing in credit & debit card processing is a great opportunity to tap into this enormous and lucrative market. Card acceptance has grown considerably over the last 2 years. The UK Card Association has contributed this growth to Contactless Payments and Digital Wallets such as Apple Pay and Samsung Pay. With more than 101.8 million contactless debit and credit cards in circulation in the UK, 125 taps every second and spending reaching 2 billion a month, it is clear to see that consumers are opting for contactless payments at the till.
So as coins disappear from customer’s pockets and we enter into a cashless society, there are still many businesses that harbour doubts about whether card processing is worth the time and investment.
Chip & PIN solutions, is eager to put the record straight about many of the urban myths surrounding card processing. So, they’ve put together ‘seven top card-processing myths’ to help try and ease any concerns you may have.
Set-up costs are too expensive to justify this investment
False. With point-of-sale (POS) technology advancing all the time, physical card processing machines are becoming more accessible every year – with card terminals available to suit budgets of all sizes from as low as £11.99 per month.
Additionally, monthly charges are not the crippling financial force many people assume they might be. The Minimum Monthly Charge (the amount your merchant bank will take in card processing fees) can often be as little as £10.00 – which when taken into account with a card processing rate of between 1.5-2 per cent, means offering card payments is more affordable than you might think!
My merchant account has to be with my business account provider
False. Businesses can mix match their merchant account and businesses accounts with ease – meaning you don’t have to seek merchant services from your existing business account provider.
Offering your business flexibility, this means you can shop around for the best merchant rates and not stay constricted to those offered by your business account provider – giving you the best of both worlds.
All merchant account charges are the same
False. Far from being a ‘one rate fits all’ market, different banks charge different amounts and percentage rates for card processing – just like any other market.
If your card machine looses connection, you lose a sale
False. From time to time, it is possible that your card-processing machine may lose connection or signal for some reason. But even if the worst does happen, card machines have a number of processes in place to ensure your business doesn’t lose any money.
Most card machines are able to store a number of transactions irrespective of whether you have connection or not. As soon as you have regained signal/connection, your card machine will immediately send them to your acquirer for processing. As a final backup, manual vouchers are also available to complete with your customer and return to your merchant bank.
Card processing opens up my business to fraud.
False. Although no system can deliver cast iron anti-fraud guarantees, today’s card processing systems are safer than ever before – with European card fraud continuing to decline thanks to chip-and-pin security.
As a merchant, you will also have to comply with the Payment Card Industry Date Security Standard (commonly known as PCI DSS) – a worldwide standard set up to help businesses process card payments securely and reduce card fraud. These 12 high level requirements help maintain good practise and hugely minimise your exposure to costly fraudulent activity.
Contactless cards are just a fad
False. Far from just a flash in the pan, contactless cards are continuing to grow in both public awareness and usage – and if you’re looking to add card processing to your service offering, it’s vital that you consider accommodating for contactless technology.
It is now industry standard that any new payment terminal deployed must accept contactless, and by 2020 if you wish to accept card payments all terminals must have contactless functionality.
The public still prefer using cash
False. With credit and debit card usage increasing every year, consumer trends in the UK are continuing to change. Far from simply being a welcome convenience, many of us now prefer card to cash.
Want to know more about credit card processing? If you’ve got any questions get in touch with Chip & PIN Solutions 0800 881 8104 or visit www.chipandpinsolutions.com