Explained Simply: What is a Merchant Services Provider?

Your Merchant Services Provider is a vital partner that can help you operate and grow your business. They facilitate credit card processing and provide other important services for your business. Essential services offered by a merchant services provider include:

Accepting payments from your customers via credit, debit, and electronic payments allowing for seamless transactions.

Securely managing PCI compliance when processing and storing payment information for your business, making your customer data safe.

Providing your business with technology to track payments, understand business data, and collect outstanding invoices.

Let’s get back to basics to understand the definition of a merchant.

In This Article

TL;DR

  • Merchant services companies provide businesses and individuals with the tools and requirements to accept credit cards, debit cards, and other forms of electronic payment for transactions to take place. 
  • The products that merchant service providers offer to businesses in order for them to actually be able to accept and process payments in a way that works for them and their customers.
  • A Merchant Services Provider grants you the technology and information your business needs to optimize operations. You can learn a lot about your business from the payment data provided to you by your Merchant Services Provider. 

What Is a Merchant?

“Merchant” is a term used by payment processors to refer to their customers. Customers, or merchants, are businesses that accept credit card payments from their clients in-person, online, or over the phone. A Merchant Services Provider offers products and systems to help those businesses run smoothly.

These products and services often integrate with the business tools you already have. For instance, your payment provider may connect to a POS system for your retail store or to your QuickBooks Online for reconciliation. Merchant Service Providers can also provide customer management, inventory systems, and payment reporting.

Who Is Considered a Merchant?

A merchant represents a person or company that sells goods or services. Merchants can sell items in-person or online (sometimes called an eCommerce merchant). Most merchants today operate both in-store and online.

Different Types of Merchants:

  • eCommerce Merchant: A merchant who sells items online.
  • Retail Merchant: A merchant who sells items that they purchase from manufacturers.
  • Wholesale Merchant: Merchants/manufacturers who sell items to retail merchants. 
  • Affiliate Merchant: Merchants who use affiliate networks to sell goods.
  • Direct-to-consumer (DTC) Merchant: Merchants who sell items to consumers that they themselves create.

DTC merchants have become quite common in recent years, as selling goods on the internet has a very low barrier to entry. Most DTC companies are still wholesale merchants, selling their items to retailers who then sell the item to the consumer. 

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What Is a Merchant Account?

A merchant account is a bank account specifically established for business purposes where companies can make and accept payments. Note that a merchant account isn’t the typical bank account. This is a basic assumption that poses a lack of clarity for most business owners. Merchant services accounts allow businesses to accept credit and debit card transactions or other forms of electronic payment from customers, with the aid of a payment gateway.

Merchant account services often come with added fees, but also an array of services. Most often the merchant has to cover the transaction fees from payment processors, the credit card association, and the issuing bank for the merchant account. To that effect, it’s perhaps savvier for the merchant to look out for an option that’ll help cut down the cost per transaction.

On the other hand, a low processing fee doesn’t guarantee reliable service and support in the long run.

Merchant Account Provider vs. Merchant Services Provider

While the two entities overlap quite a bit, there are some distinctions between merchant services and merchant account providers.

The former is a much broader term that’s used to describe an organization that has various offerings for merchants—including payments, technology integrations, businesses services, etc.

Merchant account providers typically stick to helping businesses set up their merchant account—i.e., the type of bank account that enables you to accept credit and debit card payments.

In many cases, these terms are used interchangeably.

How Does Merchant Services Work?

Merchant services companies provide businesses and individuals with the tools and requirements to accept credit cards, debit cards, and other forms of electronic payment for transactions to take place.

There are thousands of merchant service providers in the U.S alone. From ISOs and third-party merchant services providers like Square, Stripe, Paypal, and Stax to big bank-operated merchant services (Bank of America, Wells Fargo, Chase Bank) each company offers its own tools, services, and fees. Depending on the size of your business, one model will be more expensive than another.

How Easy Is It To Open a Merchant Services Account?

A merchant services account establishes a business relationship between a merchant services provider and a business. Doing so provides the business with the ability to accept debit and credit cards, contactless payments such as Apple Pay, eCommerce transactions, and more. Some payment processing companies like Square don’t require a merchant services account in order to do business with them.

Not having a merchant services account can be a risky choice. Payment processing providers such as Square often accept higher-risk business clients that wouldn’t normally qualify for a merchant account. That increases the risk for the payment processor. If your business falls into that category, you’re more likely to experience an account hold for certain transactions. If the payment processor decides to no longer assume that higher risk, they can simply cancel your account leaving you unable to accept payments from customers.

Merchant Services Products

The next essential part of what makes up “merchant services,” is the different tools available for payment processing. The products that merchant service providers offer to businesses in order for them to actually be able to accept and process payments in a way that works for them and their customers.

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What are the Contactless Payments

Contactless payments include credit and debit cards, Apple Pay, Android Pay, Google Pay, Fitbit Pay, and other devices that use near field communication (NFC) or radio-frequency identification (RFID).

Pay on-the-go with Mobile Payments

Mobile payments are payments made for a product or service through a portable electronic device such as a tablet or cell phone. Mobile payment technology can also be used to send money to friends or family members with applications such as PayPal and Venmo.

Swipe, Dip, and Tap: Credit Card Terminals

A Credit Card Terminal also called an Electronic Data Capture Terminal or EDC Terminal is an electronic device that enables merchants to accept credit cards allowing customers to swipe, dip, or tap their credit or debit card to make a payment.

Online Shopping Made Easy: eCommerce Solutions

eCommerce is the activity of electronically buying or selling products on online services or over the Internet. From accepting credit cards and debit cards online to set up your customized web store, eCommerce solutions can bridge the gap when in-person payments are not an option.

Boost Sales with Virtual Terminals

A virtual terminal is a software application for merchants that allows them to accept payment with a payment card, specifically a credit card, without requiring the physical presence of the card.

Upgrade Your Business with POS Systems

A point of sale system, or POS, is the place where your customer makes a payment for products or services at your store. Simply put, every time a customer makes a purchase at your store, they’re completing a point of sale transaction.

Secure Payment Gateway

A payment gateway is a piece of software that works with your website or eCommerce store and allows you to take and process secure credit card payments online. The payment gateway serves in the place of a credit card terminal.

Secure Payment Processing with Merchant Services Provider

A Merchant Services Provider functions as the intermediary between banks, your business, and your customers. This allows you to confidently accept your customers’ preferred form of payment. With a Merchant Services Provider, you can depend on this payment arriving securely in your bank account.

When a customer swipes a card, the Merchant Services Provider moves the customer’s funds to your bank account. The funds will typically appear in your bank account within 48 hours. Many businesses do qualify for next-day funding and can get paid even faster.

Your Merchant Services Provider is where you will purchase or rent credit card terminals and mobile swipers. If you have an online business, they will seamlessly integrate with your eCommerce store. Virtual terminals let you accept payments online or key in payments over the phone. Your Merchant Services Provider will help you find the right payment processing services for your business.

Secure Payment Merchant Services Provider | Nfc Security

Secure Payments: Prioritize Payment Security

Payment Security is vital for businesses processing credit card transactions, online payments, and maintaining card number storage. There can potentially be a lot of risks involved when accepting payments today. According to one Nilson report, 2021 card fraud losses in the U.S. totaled $11.91 billion, an 18% increase over $10.09 billion in 2020. Through Payment Security, a Merchant Service Provider can help you and your clients conduct business transactions safely and securely.

Your Merchant Services Provider can help you ensure PCI compliance. This means that cardholder data stored by your business, including names and card numbers, is secure. Businesses can be proactive in protecting data by using strong passwords and updating their antivirus software regularly.

Meanwhile, your Merchant Services Provider will maintain PCI compliance on the payment end of your business. This includes tokenizing payment information and protecting your business by putting fraud prevention measures in place. Learn more about how Stax protects your payments.

Technology Provider

A Merchant Services Provider grants you the technology and information your business needs to optimize operations. You can learn a lot about your business from the payment data provided to you by your Merchant Services Provider.

  • Which customers are spending the most time and money with you?
  • What times of day, month, or year are you collecting the most payments?
  • Are there products or services on which you could increase your revenue?

Important Questions to Ask Your Merchant Services Provider:

  • How are your equipment costs structured?
  • What are your processing costs?
  • Are there any other costs or fees?
  • What kind of contract is required?
  • What kind of reporting and statements are offered?
  • Is all of your equipment PCI DSS compliant?

Which Merchant Service Is Best?

Every cent counts towards improving your business operations. This is why finding the best merchant service provider is so important. If you need to grow your business and serve your target market, then you need to have proper merchant services in place. There are over 1000 payment processing companies in the U.S. Here are a few things to consider while choosing payment processing platforms for your business.

With all the changes occurring in the economy, it’s imperative to provide a myriad of payment options to your customers. Payment processing solutions such as mobile payments, virtual terminals, and touch-free or contactless payment solutions expand revenue generation opportunities and give your customers a more seamless experience.

In some cases, it also makes sense to partner with a company that offers payment services beyond credit cards. Payments types like ACH and Text2Pay are quickly gaining steam, so it makes sense to use a provider that supports these modes of payment.

What Should You Look for in a Merchant Services Provider?

While looking for a merchant services provider, make sure to take note of their costs. Depending upon the kind of solutions you need, you will most likely have to keep the following charges in mind.

  • Setup Fee
  • Equipment Fee
  • Monthly Fee/Service Fee
  • Transaction Fee
  • Credit Card Processor Fee

Payment Processing Pricing

Flat Rate: Suitable for small retail businesses and startups with a low sales volume, the flat rate is a fixed percentage that’s based on a charge when processing payments. This pricing model is quick and easy to set up and has the best ease of use

Interchange-Plus Pricing: Each credit card issuer such as Mastercard and Visa has specific interchange rates for each card type whether it be CNP or Card present transactions. With the interchange-plus pricing structure, the processor adds a markup to the interchange and takes a cut out of each sale.

Direct Interchange: A direct interchange fee is one where the merchant charges a one-off monthly fee without any percentage rate. It’s not the best for small businesses that generate low volumes of sales.

Tiered Rates: Tiered rates are grouped in different structures that separate each card type(Visa, Mastercard, Discover). It’s not the most convenient for small to medium-sized businesses. Since the fees fluctuate this is not an ideal option for B2C transactions.

Additional Fees to Watch Out For:

  • Account fees
  • Minimum processing fee
  • Statement fee
  • Account setup fee
  • Cancellation fee
  • Chargeback fees
  • NSF fee
  • Early Termination fee

Don’t Forget About Customer Support

Be sure to vet the customer support offerings of a merchant services provider. Payment processing has several moving parts, and tech issues may arise. In these instances, you want a knowledgeable partner who has your back and can ensure that everything runs smoothly.

When selecting a provider, look into their customer service capabilities. Is support available 24/7? What platforms or channels can you use to access the info you need? What are other merchants saying?

The answers to these questions will help you gauge a provider’s reliability when it comes to customer support.

Final Words

Ranked one of the best merchant services companies of 2023, Stax has disrupted the payments industry with our subscription-based pricing model. Stax is a subscription-based merchant service provider with total transparency built into its model. All merchants have access to direct cost payment processing with 0% markups, no contracts, and no hidden fees.

We believe that all of this useful data should be placed in the hands of business owners like you. You can increase your knowledge and make strategic decisions that will positively impact your business. That’s why we built Stax, our all-in-one payment platform. With Stax, you can track payments, create payment links, and collect invoices in one place. Plus, you can also view detailed reports about the state of your business at any time.

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Quick FAQs about Merchant Services Provider

Q: What are the essential services provided by a Merchant Services Provider?

  • Accepting credit, debit, and electronic payments
  • Securely managing PCI compliance
  • Providing technology for payment tracking, business data interpretation, and invoice collection

Q: What is a Merchant Account?

A merchant account is a specialized bank account created for business purposes, allowing companies to make and accept electronic payments, including credit and debit card transactions, with the assistance of a payment gateway.

Q: What’s the difference between a Merchant Account Provider and a Merchant Services Provider?

Merchant Account Provider solely helps businesses set up their merchant account, while a Merchant Services Provider offers a broader range of services, including payments, technology integrations, and business services.

Q: How do Merchant Services work?

Merchant Services Providers supply businesses and individuals with the tools and requirements necessary to accept credit cards, debit cards, and other electronic payment forms for transactions to occur.

Q: What types of payment processing products do Merchant Services Providers offer?

  • Contactless Payments (NFC/RFID)
  • Mobile Payments
  • Credit Card Terminals
  • eCommerce Solutions
  • Virtual Terminals
  • POS Systems
  • Payment Gateway

Q: How do Merchant Services Providers ensure payment security?

Merchant Services Providers use measures such as PCI compliance, tokenizing payment information, and fraud prevention to create a secure payment environment.

Q: How can a Merchant Services Provider help optimize business operations?

By providing valuable payment data insights, Merchant Services Providers can help businesses understand customer spending habits, peak payment periods, and potential areas of revenue growth.

Q: What should a business consider when choosing a Merchant Services Provider?

  • Costs (setup fee, equipment fee, monthly fee, transaction fee, processor fee)
  • Support for various payment types (credit cards, ACH, Text2Pay)
  • Customer support availability and quality
  • Payment processing pricing models (Flat Rate, Interchange-Plus, Direct Interchange, Tiered Rates)
  • Additional fees (account fees, minimum processing fees, statement fees, contract cancellation fees, etc.)

Top 7 Payment Trends to Watch in 2024 and Beyond

Payment processing has never been more complex than it is today. This is, in part due to the abundance of options, and the continual advancement of technology.

The payments industry is constantly adapting to meet the needs of businesses and consumers alike, and staying informed about the latest trends is crucial for success in this evolving landscape.

The payment processing ecosystem continues to evolve with new capabilities, and businesses must stay up to date on trends to provide the best customer experience possible.

Financial institutions play a vital role in facilitating digital payments. They serve as intermediaries between merchants, consumers, and payment processors, ensuring seamless and secure transactions. As the payments industry continues to evolve, financial institutions are adapting their services to meet the changing needs of businesses and consumers.

They are investing in advanced fraud detection and prevention technologies, enhancing transaction security, and exploring partnerships with fintech companies to provide innovative payment solutions. This collaboration between traditional financial institutions and fintech startups is driving the industry forward and fostering a culture of innovation.

As we look to the future, the payments industry will continue to witness the rise of mobile payments. With the widespread adoption of smartphones and the increasing availability of internet access, consumers are relying on their mobile devices for various activities, including payments. Mobile payment apps, such as Stax Pay, PayPal, Venmo, and Alipay, are gaining popularity worldwide, offering a convenient and secure way to make transactions on the go. Businesses that embrace mobile payments can tap into a growing customer base and provide a seamless shopping experience across multiple channels.

With multiple payment channels available to merchants, deciding which to accept can be a daunting task. Digital payments are leading the way in the payment industry with continuous innovation and security measures that modernize the shopping experience, both in-person and online.

To help you make sense of the payments landscape, this post sheds light on 7 payment trends for businesses to watch.

In an era marked by technological advancements and changing consumer preferences, digital payments have emerged as a cornerstone of the modern economy. The convenience, speed, and security offered by digital payment methods have revolutionized the way we transact and interact with money. We will explore the transformative potential of digital payments within the ever-evolving landscape of payment trends.

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Background on the Payments Industry

The payments industry stands at the forefront of financial innovation, reshaping the way we transact and exchange value. As financial services organizations seek to meet evolving consumer demands, technological advancements and changing market dynamics are propelling the industry forward.

The rise of e-commerce and digital marketplaces has given birth to a surge in online payments. Consumers now expect seamless, secure, and frictionless experiences when making digital purchases. As a result, financial services organizations are adopting innovative payment solutions to meet these demands. From mobile wallets and digital payment gateways to instant payment systems, the industry is witnessing a remarkable shift towards online payments.

The global cashless payment volumes have been on a steady rise, driven by convenience, security, and speed. Consumers are embracing digital payment methods such as credit cards, mobile payment apps, and contactless technologies. This cashless revolution has prompted traditional payments providers to reevaluate their strategies and adapt to the changing landscape. To remain competitive, they are enhancing their digital capabilities, fostering collaborations, and embracing new technologies.

The payments industry continues to undergo a remarkable transformation, driven by technological innovation, evolving consumer behaviors, and the need for enhanced digital experiences. Financial services organizations must navigate these changes, embracing online payments, collaborating with fintech firms, and prioritizing security to stay competitive. As the industry adapts and evolves, it holds the potential to revolutionize financial transactions, promote financial inclusion, and shape the future of commerce.

Financial Services

The financial services industry has long been a pillar of the global economy, providing individuals and businesses with essential services such as banking, investment, insurance, and more. In recent years, this industry has experienced significant transformations driven by technological advancements, changing customer expectations, and evolving regulatory landscapes. We will explore the latest developments and trends reshaping the financial services industry, and the opportunities they bring for both financial institutions and consumers.

Digital Transformation and Customer-Centricity

The advent of digital technologies has propelled the financial services industry into a new era of convenience and accessibility. Financial institutions are leveraging digital platforms to streamline processes, enhance customer experiences, and expand their reach beyond traditional brick-and-mortar establishments. Online and mobile banking services enable customers to access their accounts, make transactions, and manage their finances conveniently from anywhere, anytime. The focus has shifted towards customer-centricity, with personalized offerings, tailored recommendations, and intuitive user interfaces becoming standard practices.

Fintech Disruption and Collaboration

The rise of fintech startups has disrupted traditional financial services, challenging established players to adapt or risk falling behind. Fintech companies leverage innovative technologies to offer specialized financial solutions such as peer-to-peer lending, robo-advisory services, digital wallets, and blockchain-based payments. To stay competitive, traditional financial institutions are embracing collaboration with fintech firms through partnerships, investments, and incubator programs. This collaboration brings together the expertise and infrastructure of traditional institutions with the agility and innovation of fintech, fostering a dynamic ecosystem of financial services.

Rise of Mobile Wallets and Contactless Payments

One of the prominent payment trends in recent years is the widespread adoption of mobile wallets and contactless payments. Mobile wallet applications, such as Apple Pay, Google Pay, and Samsung Pay, allow users to securely store their payment information and make transactions with a simple tap or touch of their smartphones. The convenience and contactless nature of these payments have gained significant traction, particularly in the wake of the COVID-19 pandemic, where hygiene and contactless interactions have become paramount.

Peer-to-Peer (P2P) Payment Solutions

P2P payment solutions have transformed the way we exchange money among friends, family, and colleagues. Platforms like Stax, Venmo, PayPal, and Cash App have made it incredibly easy to split bills, repay debts, and send money instantly. P2P payments have become an integral part of our daily lives, simplifying transactions between individuals and enabling seamless digital transfers.

Integration of Digital Payments in E-commerce

The e-commerce sector has experienced tremendous growth, fueled in part by the increasing popularity of digital payments. Online shopping platforms, from global marketplaces to small-scale businesses, have embraced digital payment methods as a means to enhance customer experience and drive sales. The integration of secure checkout options, such as credit cards, digital wallets, and even cryptocurrencies, has expanded consumer choices and facilitated frictionless transactions in the digital marketplace.

Biometric Authentication and Enhanced Security Measures

As the digital payments landscape evolves, so do the security measures to protect user information and transactions. Biometric authentication methods, including fingerprint recognition and facial identification, have become more prevalent in ensuring secure digital transactions. These advancements in security technology add an extra layer of protection, making digital payments not only convenient but also highly secure.

Financial institutions are investing heavily in robust security measures to safeguard customer data and protect against cyber threats. Additionally, evolving regulatory frameworks, such as PSD2 in Europe and open banking initiatives, promote greater transparency, competition, and data sharing among financial institutions. Compliance with these regulations is crucial to ensure trust, maintain integrity, and protect consumer interests in the financial ecosystem.

Internet of Things (IoT) and Connected Devices

The proliferation of connected devices and the Internet of Things (IoT) has opened up new possibilities for digital payments. With IoT-enabled devices, such as smartwatches, fitness trackers, and voice-activated assistants, users can make payments seamlessly without the need for physical interaction. For example, a smart fridge could reorder groceries and make payments automatically when supplies run low. The integration of digital payments with IoT technology simplifies transactions, making them a natural part of our connected lives.

1. Going Cashless Leads the Way for Digital Payment Trends

Common cashless transaction types include credit and debit, mobile wallets, ACH transfers, and any eCommerce transaction. Cashless transactions are expected to increase tremendously in the coming years, and businesses need to be prepared.

Going cashless is part of a larger revolution in the payments industry where processing companies and businesses seek to evolve their practices. Customer demand for digital transactions and the expectations for payment options to suit their needs is a driving force for the evolution of payment processing.

2. Mobile Wallets Become Table Stakes

Mobile wallets were already commonly used in recent years thanks to their convenient, contactless, and secure nature. The use of digital wallets is popular for in-person transactions through the near-field communication (NFC) technology, and eCommerce transactions.

Users can store their debit and credit cards with an end-to-end encrypted digital wallet and make secure transactions easily. Gone are the days where retailers can simply accept cash, and digital wallets provide a safe, secure, and seamless customer experience at the point of sale.

Though mobile wallets may not be universally used like traditional payment options, more and more people are leaving their residence without their analog wallets.

Providing multiple payment options is now table stakes for any business accepting secure payment from customers, and digital wallets will continue to grow as a payment trend.

Digital Wallets | Payment Trends

3. Tap-to-Pay with Contactless Credit Cards

Another trend that’s showing rapid growth and popularity? Contactless credit card usage.

More retailers are offering this as a safer payment solution and providing information about how contactless payments work is important to educate wary customers. Contactless card transactions typically process faster than inserting the chip, and also incur less wear and tear on the card. Additionally, contactless cards are more secure than swiping a card’s magnetic strip and are processed with end-to-end encryption.

Though not all banks issue cards with contactless capabilities, there are currently over 190 million contactless Visa credit cards, with 300 million total expected to be in circulation by the end of 2021. Additionally, most major card issuers are now sending these out by default and replacement cards are frequently getting this upgrade.

American Express states that most of its products have contactless technology, and many other financial institutions such as Bank of America, Capital One, and Chase have several options available.

Combined with mobile wallet tap-to-pay adoption, businesses should consider accepting contactless payments, as this payment trend continues to be widely adopted by consumers.

4. Paving the Way for More P2P Payments

Peer-to-peer payments (P2P) are more commonly known by their app names. Venmo, Cash App, PayPal, Google Pay, Apple Pay, and Zelle are popular apps that allow users to transfer money from linked bank accounts or credit and debit cards to another user.

While this is often used by consumers to transfer money between individuals, some businesses can easily implement this payment method to provide a more seamless experience for their customers.

Although P2P payments are not suitable for many businesses, some do offer pay-to-merchant (P2M) options, with PayPal leading in this space and accepted by many retailers. However, there are some drawbacks for businesses seeking to offer P2M.

These payments may take longer to process, incur larger transaction fees, and may be less secure than other payment methods. This method may not be suitable for all businesses, but for some, the streamlined payment experience for the customer could be a deciding factor.

P2P Payments

5. Buy-Now-Pay Later is Gaining Popularity

Buy-now-pay-later (BNPL) is a payment option that allows customers to spread out their purchase payments in a way that resembles a personal loan. The terms of these loans vary, with some including interest, and others dividing the purchase into multiple interest-free automatic withdrawals.

Other differentiators of BNPL payment services include whether there is a hard or soft pull on the customer’s credit, late fees, and payment cadence, and loan duration. One example of a BNPL merchant partnership is Amazon’s partnership with Affirm, which allows customers to use this service on purchases of $50 or more without a credit check or interest on the purchase.

These transactions are different from typical credit card transactions and can sway customers who are on the fence to make a purchase. According to McKinsey, BNPL was used as a payment option for 30% of respondents, and 29% of people report that they would have made smaller purchases or not purchased at all without BNPL.

Depending on the average price point and shopping habits of your customers, adding a buy-now-pay-later option could lead to significant increases in business, especially around prime shopping seasons. While it may not be suitable for every business, this payment method is certainly making waves and has several providers available for merchants to consider.

6. Cryptocurrency and Cross-Border Digital Payments

The use of cryptocurrency for payments has increased in recent years, with about 21% of survey respondents citing this as their primary reason for entering the cryptocurrency market. Cryptocurrencies are known to be volatile in their value, but the investment potential is the leading reason for ownership, with 43% of survey respondents citing this as their motivation for holding cryptocurrency. Major companies such as Microsoft, Tesla, Expedia, and WeWork now accept cryptocurrency payments. This digital payment trend is one to keep an eye on, as the usage has evolved to be more mainstream.

The digital payments landscape is evolving rapidly, driven by technological advancements and changing consumer expectations. Businesses must stay informed about the latest payment trends to navigate this complex ecosystem successfully. Embracing digital payments, leveraging emerging technologies, and collaborating with financial institutions are key strategies for businesses to thrive in the ever-changing payments industry. By staying ahead of the curve, businesses can deliver exceptional customer experiences and drive growth in the digital economy.

There is also a rising trend in cross-border payments using cryptocurrency. These transactions often process faster and automatically convert to local currency, creating a seamless customer experience. PayPal has one of the most notable offerings for cross-border transactions, allowing customers to buy, hold, transfer, and use multiple cryptocurrencies in transactions around the world.

Another emerging trend is the use of blockchain technology in the payments industry. Blockchain, a decentralized and immutable ledger, offers enhanced transparency, security, and efficiency in transactions. It enables peer-to-peer payments without the need for intermediaries, reducing costs and settlement times. Financial institutions are exploring the integration of blockchain into their payment infrastructure to streamline cross-border transactions, improve remittance services, and simplify compliance procedures.

Digital payments have emerged as a driving force in the payments industry, transforming the way we conduct transactions. With the rise of digital wallets, consumers can securely store their payment information and make purchases with just a few clicks. Digital wallets, such as Apple Pay, Google Pay, and Samsung Pay, provide a convenient and streamlined checkout experience, both in-store and online. As more consumers embrace this technology, businesses must ensure they are equipped to accept digital payments to meet customer expectations and stay competitive in the market.

In recent years, the concept of Central Bank Digital Currencies (CBDCs) has gained significant attention and sparked intriguing discussions in the world of finance and technology. CBDCs represent a new form of digital money issued and regulated by central banks, aiming to combine the benefits of traditional fiat currencies with the efficiency and security of modern digital payment systems. In this blog post, we will delve into the world of CBDCs, exploring their potential impact, benefits, and considerations as central banks around the world explore their adoption.

Understanding Central Bank Digital Currencies (CBDCs)

Central Bank Digital Currencies (CBDCs) are digital representations of a country’s official currency issued and backed by a central bank. Unlike decentralized cryptocurrencies like Bitcoin, CBDCs maintain a centralized control structure, with the central bank overseeing their issuance, regulation, and redemption.

CBDCs leverage advanced digital technologies, such as blockchain or distributed ledger technology (DLT), to provide a secure and efficient means of transferring value. This technology ensures transparency, traceability, and integrity of transactions while maintaining central bank authority and regulatory oversight.

Benefits of Central Bank Digital Currencies (CBDCs)

Enhanced Financial Inclusion: CBDCs have the potential to extend financial services to unbanked or underbanked populations. With CBDCs, individuals without traditional bank accounts can access digital wallets directly provided by central banks, enabling them to participate in the digital economy and gain access to essential financial services.

Efficient Cross-Border Transactions:

CBDCs can streamline cross-border transactions by reducing intermediaries and associated costs. With the instantaneous nature of digital transactions, CBDCs have the potential to enhance the speed, transparency, and efficiency of international money transfers, benefiting businesses and individuals alike.

Improved Monetary Policy Implementation:

CBDCs provide central banks with greater control and visibility over the monetary system. The digital nature of CBDCs enables real-time data analysis, facilitating more effective policy implementation and economic decision-making. Central banks can respond swiftly to changing economic conditions, making monetary policy more agile and targeted.

Strengthened Security and Financial Integrity:

CBDCs offer enhanced security features that help combat illicit activities such as money laundering and fraud. The use of advanced cryptographic techniques and immutable transaction records on a distributed ledger ensures the integrity of CBDC transactions, reducing the risk of counterfeiting and unauthorized access.

Considerations and Challenges

While CBDCs hold great promise, their implementation presents certain considerations and challenges that require careful evaluation:

Technological Infrastructure:

Deploying CBDCs requires robust technological infrastructure to handle large-scale transactions securely and efficiently. Central banks must ensure that the underlying technology is scalable, resilient, and capable of accommodating the needs of a digital payment ecosystem.

Privacy and Data Protection

Balancing privacy and security is a crucial aspect of CBDC implementation. Central banks must establish robust data protection frameworks to safeguard individuals’ financial information while complying with regulatory requirements and preventing illicit activities.

Interoperability

Achieving interoperability between different CBDC systems and existing payment infrastructures is crucial for seamless cross-border transactions. Collaboration among central banks and international regulatory bodies is essential to establish interoperability standards and protocols.

User Adoption and Education

The successful introduction of CBDCs relies on user adoption and acceptance. Educating the public about the benefits, functionality, and security features of CBDCs will be essential to build trust and encourage widespread adoption.

7. Security Through AI and Machine Learning

Given the amount and variety of fraud retailers face, businesses must rely on AI and machine learning to enhance their security measures. AI and machine learning monitor for real-time fraud indicators and decline transactions as appropriate, and provide insights into trends in fraudulent transactions.

Payment processing companies are advancing to include real-time analysis of transactions to look for fraud and provide valuable insights to retailers. For businesses of any size, using machine learning to evaluate the massive quantities of data from transactions helps to optimize operations and work proactively against fraud.

One of the key payment trends to watch in 2023 and beyond is the integration of digital payments with emerging technologies. For example, the adoption of artificial intelligence (AI) and machine learning in payment processing is revolutionizing fraud detection and prevention.

AI algorithms can analyze vast amounts of data in real-time, identifying patterns and anomalies that may indicate fraudulent activities. By leveraging AI-powered solutions, businesses can enhance security measures and protect both themselves and their customers from potential threats.

Final Words

In the era of speed and convenience, innovations in payment processing are foundational to the customer experience. The adoption of an integrated payment platform, such as Stax, provides a secure and scalable way to serve customers. Helpful analytics and 24/7 support mean your business can rest assured that you and your customers receive best-in-class service.

Just as there are many options available to customers for their shopping needs, there are options in choosing your payment processor. Stax operates without hidden fees, contracts, or markups. Our integrated payment system has solutions for every business and works with existing software applications seamlessly – saving your business time and money.

From small businesses to large enterprises, choosing the right provider for your payment processing needs is critical, as is the need to prioritize the customer experience.

With Stax, your business and your customers experience innovative and scalable payment solutions with award-winning service. Get in touch with us to learn more.

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FAQs About Payment Trends

Q: What are payment trends, and why are they important?

Payment trends refer to the evolving methods, technologies, and consumer behaviors that shape how transactions are conducted and processed. Staying informed about payment trends is crucial for businesses to adapt, enhance customer experiences, and remain competitive in the ever-changing landscape of the payments industry.

Q: What are the top payment trends to watch?

The top payment trends to watch include:

  1. Rise of digital wallets and mobile payments
  2. Expansion of contactless and biometric payments
  3. Growth of peer-to-peer (P2P) and instant payments
  4. Integration of blockchain and cryptocurrencies in mainstream transactions
  5. Adoption of Central Bank Digital Currencies (CBDCs)
  6. Advancements in voice-activated and Internet of Things (IoT) payments
  7. Increased focus on security and fraud prevention measures

Q: How will digital wallets and mobile payments shape the future of transactions?

Digital wallets and mobile payments offer convenient, secure, and contactless options for consumers to make purchases and transfers. These methods eliminate the need for physical cards or cash and provide seamless integration with smartphones, making transactions quick and easy. They are expected to become increasingly popular, driving the shift towards a cashless society.

Q: What are contactless and biometric payments, and why are they gaining traction?

Contactless payments involve using cards, smartphones, or wearables near a contactless-enabled terminal to make a payment. Biometric payments use unique physical attributes, such as fingerprints or facial recognition, to authorize transactions. These methods enhance convenience, speed, and security, reducing the need for physical contact and improving the overall payment experience.

Q: How do peer-to-peer (P2P) and instant payments revolutionize money transfers?

P2P and instant payments enable individuals to send money directly to others quickly and effortlessly, often in real-time. These payment methods are reshaping the remittance industry, simplifying bill splitting, and facilitating transactions between friends, family, and businesses. They eliminate the need for traditional intermediaries and offer immediate access to funds, enhancing financial inclusion and transaction efficiency.

Q: What role do cryptocurrencies and blockchain play in future payments?

Cryptocurrencies and blockchain technology provide secure, decentralized, and transparent transactions. With growing acceptance, cryptocurrencies like Bitcoin and Ethereum are being integrated into mainstream payment systems, enabling faster cross-border transactions and reducing costs. Blockchain, the underlying technology, ensures trust, immutability, and accountability in financial transactions.

Q: How will Central Bank Digital Currencies (CBDCs) impact the future of payments?

CBDCs are digital representations of traditional fiat currencies issued and regulated by central banks. These digital currencies have the potential to streamline payments, enhance financial inclusion, and improve monetary policy implementation. CBDCs aim to combine the benefits of digital payments with the stability and oversight provided by central banks, revolutionizing the way we transact and exchange value.


 

How to Implement Cashless Payments in Your Business

Significant advances in the fintech industry frequently introduce innovative new technology for payment methods, allowing consumers and businesses several cashless payment methods to consider.

While cash payments are still in use, we are moving closer to becoming a cashless society than ever before. With so many payment options available, small and medium-sized businesses are able to implement a variety of payment methods—offering secure and convenient solutions to their customers.

This post is dedicated to explaining cashless payments: what they are, the pros and cons, and how to implement them.

What are Cashless Payments?

Plainly stated, cashless payments include any mode of payment outside of paper or coin currency. While this does include payment methods such as the paper check and money orders, for the purposes of this post, we’ll spend most of our time discussing the most common and technology-centric cashless payment options.

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Cashless vs. Contactless Payments—What Is the Difference?

While sometimes used incorrectly and interchangeably, cashless transactions differ from contactless payments.

Contactless payments are defined as any transaction that is processed in a way that removes the physical interaction between the purchaser and the merchant. Examples include eCommerce and transactions processed with near-field communication (NFC), or radio frequency identification (RFID) technology—more on that later.

Essentially, all contactless payments are cashless, but not all cashless payments are contactless.

What Are the Different Types of Cashless Payments?

The list of cashless payment options continues to grow as new technology is created and consumer demand increases. Below are some of the most popular cashless payment options available.

Credit and debit cards

Unless you’re a truly cash-only business, accepting debit and credit cards is a standard for any sized business. This is the most frequently used and widely accepted cashless payment option available.

While credit cards have been in use for decades, another trend has emerged related to card payments: contactless credit and debit cards. Tap-to-pay is widely available and many newly issued cards are enabled with this technology.

One note of consideration is that while many businesses already accept credit and debit cards, the payment terminal needs to be enabled with contactless payment technology—meaning it may be time to upgrade hardware, or even your payment processor if you don’t currently support contactless pay.

ACH

For some businesses, accepting ACH payments can result in lower processing fees than credit cards and is a great option for recurring payments. This cashless payment option is completed through the Automated Clearing House network and processed by transmitting bank routing and account information between the payor and business.

This payment method is already widely in use, as this is the same system that 93% of Americans use to receive employer direct deposits. While not necessarily appropriate for a small retail business, this payment method makes a lot of sense in other sectors such as legal, healthcare, and more.

Checks

Paper checks, while antiquated, are still widely used and a cashless payment option. There are a number of downsides to accepting paper checks, including increased risk to the business and delayed processing time.

Mobile wallets

Mobile wallets have gained popularity in recent years, even more so since the pandemic caused a surge in demand for contactless options. Also referred to as digital wallets, this payment method connects the user’s credit and debit cards to an e-wallet which can be used for eCommerce or near-field communication transactions (using the same technology as tap-to-pay). Another feature of making a mobile payment is the security—payments made through mobile wallets are two-way encrypted, making this a secure and convenient payment option.

Cryptocurrency

As the cryptocurrency market continues to grow, there is a lot of information to keep track of. Crypto payments have increased significantly in recent years, with some payment apps like PayPal integrating cryptocurrency trading and payments into their app. Additionally, crypto payments are accepted at some major corporations such as Expedia and Microsoft. While this may not be ideal for small-to-medium-sized businesses, if the market consolidates and stabilizes, this could be one to keep an eye on.

Payment apps

Payment apps, like Venmo, Cash App, PayPal and Zelle are another convenient way to accept payment, both online and in person. While many of these payment apps began as a way to conduct peer-to-peer payments, some businesses are able to easily implement some of these options into the point of sale.

A prime example is a rise in popularity of Apple Pay, Google Pay, Amazon Pay and PayPal to check out in many eCommerce transactions.

Buy now, pay later

Buy now, pay later (BNPL) is a cashless payment option that allows customers to spread out their payments into installments without a credit check. Popular apps include Afterpay and PayPal.

Depending on the BNPL provider, there are varying terms for purchase, but this is an excellent cashless option to increase the bottom line—in fact, a recent McKinsey survey found that 29% of BNPL users would have made a smaller purchase, or not at all, if this was not offered.

Pros and Cons of Cashless Payment Systems

Any business owner looking to evaluate payment options needs to consider the pros and cons of which cashless payment options to offer to their customers. Below is a list of some of the pros and cons to consider.

Pro: cashless payments can increase revenue

Businesses with limited payment options or those that only accept cash transactions are almost certainly leaving money on the table. Because cashless and digital payments dominate the payments industry and are preferred by many customers, making options available can increase sales.

Pro: cashless transactions can shed valuable insight

One advantage of cashless transactions is the data provided, allowing businesses to make more informed decisions. Unlike cash, digital and electronic can shed light on a wealth of information. You can link cashless transactions to customers or customer groups as well as analyze payment volume by time period or payment type.

Payment analytics solutions, like those provided by Stax, help businesses stay on top of trends, keep close tabs on essential metrics, and make data-backed decisions.

Pro: increased efficiency during checkout

Some of the more popular cashless payment options are incredibly simple and fast to process. Consumers today seek out convenient and safe ways to make their purchases, and offering several options not only makes a customer more likely to purchase, it’s often faster than traditional payment methods.

Con: some businesses may struggle with the technological learning curve

Not every business or customer base is going to quickly adapt to cashless options. While the basics of debit and credit cards are commonly known, newer forms of payment like mobile wallets or payment apps may not be as easily adopted. With any new technology, there is a learning curve for both the business and the customer.

Con: businesses cannot accept cashless payments if there is an outage

While businesses can implement a variety of cashless options, if there is a system outage, cash is the only failsafe option. If a business chooses to go completely cashless, internet failures or technology issues mean there is no way to safely accept payment during an outage.

Con: cash is the only payment method that doesn’t charge fees

Any non-cash transaction comes with fees, so deciding to be fully or partially cashless means there will be fees associated with payment processing. However, these fees depend heavily on your payment processor and the costs should be carefully reviewed. Sometimes these fees can be mitigated—for example, credit card surcharging is one way to offset the costs of card processing.

Ready to Implement Cashless Payments?

Any size business—whether operating primarily as eCommerce, hybrid or primarily brick-and-mortar—needs a payment processor that is reliable and meets the demands of the business.

To implement cashless payments in your business, the first step is to choose a processor that is payment card industry (PCI) compliant and able to meet the hardware and software needs of your business. Stax can help your business accept a variety of contactless and cashless payment options.

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FAQs about Implementing Cashless Payments in Your Business

Q: What are Cashless Payments?

Cashless payments refer to any payment method that does not involve the use of physical cash. This includes modes like credit and debit cards, checks, mobile wallets, cryptocurrencies, payment apps, and others.

Q: What is the difference between Cashless and Contactless Payments?

Cashless payments include all forms of payment that do not involve physical cash. Contactless payments, on the other hand, are transactions processed in a way that removes physical interaction between the purchaser and the merchant. While all contactless payments are cashless, not all cashless payments are contactless.

Q: What are the different types of Cashless Payments?

There are several types of cashless payments, including credit and debit cards, Automated Clearing House (ACH) payments, checks, mobile wallets, cryptocurrency payments, payment apps like Venmo and PayPal, and Buy Now, Pay Later (BNPL) options.

Q: What are the pros and cons of implementing Cashless Payment Systems?

The advantages of cashless payment systems include potential revenue increase, valuable customer insights, and improved checkout efficiency. However, they also present challenges, such as the technological learning curve for some businesses and customers, reliance on systems that can experience outages, and transaction fees associated with non-cash payments.

Q: How can a business implement Cashless Payments?

To implement cashless payments, a business needs to choose a payment processor that is Payment Card Industry (PCI) compliant and can meet the hardware and software needs of the business. The business should also consider the various cashless payment options available and choose those that best suit their operations and customer preferences.

Q: What are the security considerations for Cashless Payments?

Security is paramount when implementing cashless payments. Some options, like mobile wallets, offer two-way encryption for secure transactions. It’s important to choose a PCI-compliant payment processor and to stay informed about potential security risks and solutions.

Q: What are some popular Cashless Payment Apps?

Popular cashless payment apps include Venmo, Cash App, PayPal, and Zelle. These apps allow for convenient online and in-person payments and are being increasingly implemented into point-of-sale systems.

Q: How can Cashless Payments increase business efficiency?

Cashless payments can increase efficiency by speeding up the checkout process, reducing the need for handling and managing physical cash, and providing valuable data for business analysis and decision-making.

Q: How does the Buy Now, Pay Later (BNPL) cashless option work?

BNPL is a cashless payment option that allows customers to spread their payments into installments without a credit check. This option can potentially increase a business’s bottom line by encouraging larger purchases.

Q: Are there any fees associated with Cashless Payments?

Yes, most non-cash transactions come with fees associated with payment processing. The specific fees can vary depending on the payment processor and the type of cashless payment method used.


 

Understanding Micropayments: Definition, Examples, and Implementation Tips

In today’s eCommerce market, people can purchase practically anything online, sometimes for very small payments known as micropayments. Usually defined as a transaction less than a dollar—and occasionally even a fraction of a cent—a micropayment can be used to buy everything from digital products like eBooks, movies, and songs, to services like video editing.

As the Internet continues to offer more digital content and services, and financial technology or “fintech” continues to advance, micropayments are becoming a more relevant and secure way to do business.

But just how do micropayments work and what can they be used for in your business model? In this article, we’ll offer several examples of micropayments, the benefits of using them, and strategies for implementing micropayments in your business payment systems.

What are Micropayments?

A micropayment is a small transaction, usually performed online, for small items or services like freelance gigs, royalties, tips, pay-per-click advertising, and other physical or digital goods. It’s even been suggested that micropayments could be used to pay for individual online articles on publications like the New York Times.

Originally coined in the 1960s by technology futurist Ted Nelson, micropayments were conceptualized to pay for individual copyrights for online content and create low cost networks rather than advertising-based models. Although the World Wide Web eventually did develop into an advertising model, businesses began using Nelson’s idea of micropayments to let customers make small transactions.

Just how small a transaction needs to be in order to be considered a micropayment depends on the business and payment processor carrying out the exchange. Some companies view micropayments as any transaction under a dollar. Others consider five-dollar, ten-dollar, and even twenty-dollar exchanges—like the monthly subscription fees on Patreon—a form of micropayment.

How do Micropayments Work?

Consumers can make micropayments in three different ways: pay-as-you-go, prepay, or post-pay. Each method has its advantages and disadvantages.

Pay-As-You-Go

This method simply charges a customer’s credit or debit card a small one-time payment for every article, service, or virtual item. This method has some advantages since it encourages consumers to make impulse buys for low cost digital goods.

However, making impulse purchases doesn’t encourage consumers to come back and keep buying from the same merchant. More importantly, the transaction costs that come with these micropayments (which are often higher than the micropayments themselves) often do not make this method very cost-effective.

Prepay

If you’ve ever used physical or online gift cards, or paid a subscription fee to a micropayment processor,  you’ve used a prepay micropayment model. Prepay allows a consumer to make micropayments on items like app downloads or on-demand movies using the virtual currency on a gift card or in a digital wallet.

Since prepay aggregates or combines all of a customer’s future micropayment purchases into one large sum that’s paid upfront, it makes the transaction costs and processing fees worth the expense. Using physical gift cards to make micropayments also enables consumers to buy from brick-and-mortar stores and not just online. And since this virtual or cryptocurrency  can often only be redeemed at a certain provider, customers have more incentive to return to that business.

Post-pay

With post-pay, consumers pay after they’ve made a certain number of micropayments. Merchants keep track of a consumer’s transactions and then bill them all in a single amount. Consumers that take a subscription approach to this model may be billed a standard amount at the end of each month in exchange for unlimited access to digital items and services from that provider.

Post-pay enjoys the advantages of both pay-as-you-go and prepay. Like pay-as-you-go, post-pay encourages impulse buying from customers. And since customers pay for all of their micropayments in one large amount, the transaction fees are more manageable.

However, merchants still need a micropayment system that tracks all of a customer’s micropayments and combines them in order to manage transaction fees. Some customers may also not make a lot of micropayments in a month, making transaction costs a problem.

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Examples of Micropayments

If you’ve ever downloaded a song from Amazon or purchased a low cost eBook, then you’ve made a micropayment. Leaving tips via online delivery apps like DoorDash is another form of micropayment. Streaming platforms generate revenue not only by getting subscribers to pay an access fee but also by allowing them to purchase movies on demand through micropayments.

However, micropayments can have several other use cases. For instance, if you create a new account with Venmo and link your bank accounts to this mobile payment service, Venmo will make a micropayment of under  $1 into your bank account and then make an equal withdrawal to verify ownership.

In addition, if you offer freelance services through websites like Fiverr or Upwork where clients only need to pay small amounts for temporary projects, these micropayments are stored in a digital wallet by Upwork or Fiverr (after they collect their fees) and then distributed to your account once the wallet collects enough micropayments to pay out.

Google Ads uses a similar method with bloggers and other content creators like YouTubers. These creators monetize their content on a Google platform and gradually accumulate income through ad views and clicks. Once these micropayments reach a certain threshold, such as $100, payment is issued to the content creator.

Why Do Businesses Want to Use Micropayments?

Micropayments offer many businesses—from startup enterprises to large companies—a number of benefits. By offering their current and potential customers the ability to only purchase the individual movies, songs, and content they want to buy, companies can attract more business and sell more products and services.

Providing their customers with a post-payment option also encourages impulse buying, particularly among consumers who enjoy purchasing downloadable games and other entertainment products for low prices.

How to Implement Micropayments

Companies that accept micropayments enable this form of payment in different ways.

A merchant or service provider may establish an account with a third-party micropayment provider that collects, stores, and distributes the micropayments. Consumers also need to set up an account with the same micropayment provider and go through an authentication process to make small transactions. The provider manages a digital wallet that stores the micropayments until they reach a certain amount. At this point, the money is paid to the recipient.

Businesses like PayPal that use a prepaid micropayment system use a micropayment processor their consumers set up an account with. Each consumer then deposits a sum of money into that account and can then draw from that account to make micropayments on small purchases like digital downloads. PayPal charges a percentage of the transaction plus a small fixed fee per transaction.

Businesses that use micropayment processors need to find systems that save them the most in transaction fees. For this reason, most micropayment platforms engage in online transactions since it makes more sense to pay a small fee to download a digital movie or song rather than pay expensive shipping and handling fees to get a physical copy.

Final Thoughts

Micropayments provide businesses the opportunity to expand their customer base by offering consumers the ability to make small payments for the items or services they want. Thanks to today’s eCommerce market, it’s much more feasible to make micropayments on digital items like movies, eBooks, and music.

However, transaction fees continue to be a problem for micropayments. Businesses that use this payment method need to find micropayment processors that can save them money while offering a good user experience.

To explore the payment processing systems available to you, check out Stax. Stax offers a #1 ranked payments platform designed to make processing your payments simpler with an all-in-one solution and subscription-style merchant services.

Contact us and learn more about how we can help your business grow and thrive in today’s digital market with efficient payment processing.

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FAQs about Micropayments

Q: What is a micropayment?

A micropayment is a small transaction, often less than a dollar, made for small items or services such as online purchases, freelance work, or digital goods. Micropayments are typically performed online.

Q: How do micropayments work?

Micropayments operate through three methods: pay-as-you-go, prepay, and post-pay. In pay-as-you-go, customers are charged a one-time payment for every transaction. In prepay, customers pay upfront for future micropayment purchases. Post-pay allows customers to make a number of micropayments, which are then billed in a single amount.

Q: What can micropayments be used for?

Micropayments can be used for a wide range of digital products and services, including eBooks, movies, songs, video editing, and more. They can also be used in freelance gigs, royalties, tips, pay-per-click advertising, and other forms of physical or digital commerce.

Q: What are the benefits of using micropayments in business?

Micropayments offer businesses the opportunity to attract more customers by offering the ability to make small payments for individual products or services. They also encourage impulse buying, particularly for low-cost digital goods.

Q: How can micropayments be implemented in a business?

Businesses can implement micropayments by associating with third-party micropayment providers who collect, store, and distribute the micropayments. Consumers need to create an account with the micropayment provider and undergo an authentication process to make transactions.

Q: What challenges are associated with micropayments?

Transaction fees pose a significant challenge to micropayments. The cost associated with these fees can potentially exceed the micropayment itself, especially in the case of pay-as-you-go.

Q: Are there real-world examples of micropayments?

Yes, examples of micropayments include downloading a song from Amazon, buying a low-cost eBook, or leaving tips via delivery apps like DoorDash. Also, platforms like Fiverr and Upwork store micropayments in a digital wallet, which is distributed to the freelancer when a certain amount is accumulated.

Q: How do micropayment processors like PayPal operate?

Merchants or service providers set up an account with micropayment processors like PayPal, who carry out the collection, storage, and distribution of micropayments. Each customer deposits a sum of money into their account and draws from it to make micropayments on small items such as digital downloads.

Q: Why do businesses prefer online transactions for implementing micropayments?

Most businesses prefer online transactions for implementing micropayments as it is more convenient to pay a small fee to download a digital product, such as a movie or song, than incur expensive shipping and handling fees for physical copies.

Q: What future developments are expected in the micropayment market?

Micropayment systems are continually evolving with the advancement of fintech. They are becoming more relevant, secure, and efficient for conducting business, especially in the eCommerce market. However, finding micropayment processors that can offer a good user experience while saving money remains a challenge.


 

How to Collect Payments from Customers: 7 Easy Contact Free Ways

For many growing business owners, staying on top of cash flow and ensuring timely payments from your customers is time-consuming but also key to a smooth operation. The success of your business primarily depends on the ability to collect on-time payments from customers. As payment technology continues to evolve, the expectation for a great customer experience does as well. This includes the payment process.

Payment Process

Collecting payments from customers has become more streamlined than ever before. Small business owners, in particular, need efficient methods to collect payments promptly and securely, while minimizing the hassle of handling physical currency.

We will outline a step-by-step payment process that allows you to collect contact-free payments, ensuring smooth transactions and reducing the risk of late or unpaid invoices.

Offer Multiple Payment Options:

To cater to diverse customer preferences, it’s crucial to offer a range of payment options. Providing contact-free payment methods such as credit and debit cards, mobile wallets, and online payment platforms like Stax, PayPal or Stripe allows customers to choose the most convenient option for them. By diversifying your payment options, you can increase the likelihood of customers making prompt payments.

Communicate Your Preferred Payment Method:

When initiating a transaction, clearly communicate your preferred payment method to your customers. Whether it’s via email, invoice, or in-person, make it easy for them to understand how they can pay you. Emphasize the benefits of contact-free payments, such as convenience, security, and speed.

Invoice Management:

Maintaining a systematic approach to invoicing is crucial for collecting payments efficiently. Ensure that your invoices include clear payment instructions, including the accepted payment methods and any relevant due dates. By clearly stating your expectations and providing all necessary information, you can minimize confusion and encourage timely payments.

Payment Upfront or Partial Payments:

For some businesses, requiring full or partial payment upfront can be an effective strategy to minimize the risk of late or unpaid invoices. This approach ensures that you have funds in hand before delivering your product or service.

If full upfront payment isn’t feasible, consider accepting partial payments, especially for larger projects or orders. This strategy helps mitigate financial risks while still allowing customers some flexibility.

Automate Payment Reminders:

To avoid the hassle of chasing late payments manually, consider utilizing automated payment reminder systems. These tools can send gentle reminders to customers as the payment due date approaches or when an invoice becomes overdue. Automation saves time and effort while maintaining a professional and consistent approach to managing late payments.

Online Payment Gateways:

Leverage the power of technology by integrating online payment gateways into your website or e-commerce platform. Online payment gateways provide a seamless and secure way for customers to pay invoices instantly. By incorporating payment buttons or forms directly on your website, you eliminate unnecessary steps and make the payment process more convenient for your customers.

Secure Payment Processing:

While collecting contact-free payments, security should always be a top priority. Ensure that your chosen payment methods and platforms are PCI-DSS compliant, encrypt customer data, and have robust fraud prevention measures in place. Customers need to trust that their payment information is safe when doing business with you, and prioritizing security builds that trust.

Offering multiple ways to pay—whether it’s online or on-the-go—provides a more convenient experience for your customers, and a faster way for your business to get paid. Additionally, a streamlined collection process can mean less time spent on the phone, providing less back-and-forth for your office staff.

With a personalized invoice schedule and clear payment expectations, you can easily receive payment from your customers and maintain a healthy cash flow. Integrating a reliable payment system allows you to collect money efficiently, reducing the risk of late or unpaid invoices and ensuring smooth transactions.

Furthermore, consider offering early payment discounts to incentivize customers to make payments promptly, thereby strengthening your business relationships and fostering a positive payment culture for future invoices. Here are some strategies that can help you better understand easy, contact free ways regarding how to collect payment from customer.

With these strategies in place, you can streamline your payment process, collect payments with ease, and ensure the financial stability of your small business.

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Here are 7 easy contact-free ways to collect customer payments.

1. Send Electronic Invoices

Invoices are frequently used by professional services or service-based companies to request payment. Invoices can be sent via mail. However, sending paper invoices can be a time-consuming and expensive process between printing, addressing envelopes, and sending them through the mail.

Online invoicing technology, like that available through , allows business owners the opportunity to streamline the collection of customer payments through a powerful online payment solution.

Sending an electronic invoice allows you to email a balance due directly to your customer’s inbox, along with a convenient button to securely pay online. With more bill payments occurring online, customers have come to expect the convenience of sending a credit card payment with just a click of a button.

For the business owner, online invoices can significantly cut down on the amount of administrative work needed. Plus, you can even include payment due dates on your online invoices helping you to better manage expectations with your customers.

2. Add a “Pay Now” Button to Your Website

For many businesses, a website is more than just a destination for potential customers to learn about the business. It’s also a potential revenue stream, allowing them to securely accept payments online from customers, without having to be in the office physically to answer a phone call.

For example, a business that requires their customers to pay a deposit prior to an event or before any work is done could add a “Pay Now” button to their website, allowing their customers to submit a payment at their convenience – even outside of normal business hours. With the right technology partner, entrepreneurs can rest easy knowing that their customer payment information is securely stored, and online payments can be collected at any time of day.

Text To Pay | How To Collect Payment From A Customer

3. Accept Text2Pay Payments On-the-go

Text payments have a 97% open rate compared to email.  Once received, it takes the average customer 90 seconds to respond to them. With fewer consumers carrying cash, more business owners are almost required to obtain payment processing technology that allows them to accept mobile payments from anywhere.  With contactless payment solutions on the rise, Text2Pay has become a necessity for businesses that want to optimize their payment experiences.

Businesses with field technicians, for example, need the flexibility of having both an online invoicing platform with a mobile payment option. Using a virtual terminal gives users the ability to create an online invoice from their office and complete the sale using Text2Pay.  This flexibility ensures that businesses are able to close out transactions as soon as the work is completed – leading to more reliable cash flow and faster payments without any of the hassle. Plus, from the customer’s side – the convenience of paying right from their phone means they no longer have to wait to receive a final bill or worry about trying to remember to mail in a payment.

Related Article: What Is Text to Pay and How Can You Leverage It for Your Business

4. Schedule a Payment in Advance

Payment automation platforms allow business owners to quickly schedule payments ahead of time – ensuring that late payments are a thing of the past. Scheduling a payment in advance automatically charges your customers based on a yearly, monthly, daily, or even hourly schedule. Used frequently by businesses charging subscriptions, like a gym membership, scheduling a payment ahead of time allows you to streamline your payment process and save countless hours per month in billing your customers.

The main benefit of using a payment automation platform is that it allows businesses to securely tokenize and store their customer payment information one time, and save it for future auto-pay transactions. Plus, with card expiration notifications, business owners can easily see when a payment method is about to expire, allowing them to reach out proactively to their customers to update their card information before a transaction attempt.

5. Consider ACH Payments

Payments processed through the Automated Clearing House (ACH) network are facilitated through bank to bank transfers. So when you collect payments from customers, you’ll need their bank account info. ACH transfers usually take one to three business days to complete.

As for the costs, ACH payment fees are around 1% of the transaction with a $10 cap. The average transaction cost is around $0.29, which is significantly lower than credit card processing. As such, they are ideal for professional service providers that sell premium and high-end offerings.

6. Pre-authorize a Transaction

Pre-authorized payments are another way to quickly accept payments from your customers. For businesses like hotels or car rental agencies, where the final amount of the sale is unknown when the card is first swiped, pre-authorizations are a core function of doing business.

Pre-authorizing a transaction acts as a hold for funds on a credit card, and no funds will be deducted until the business processes a capture on the card. Using a payment platform like a virtual terminal allows you to easily see how much of your business’ cash flow is currently held in a pre-authorized state from your dashboard – and it can help you plan ahead for any incoming funds.

What payment collection methods work best for your business?

In today’s day and age, business owners no longer need to rely on traditional payment collection methods. Gone are the days of waiting for checks to be mailed in to the office, or for customers to call in a payment. With a growing list of options for accepting contactless payments, businesses simply need to understand what options are available to them and identify options that help improve the customer experience.

7. Promote Contactless Payments in Person

Being contact-free with your payments doesn’t mean you can’t collect customer payments in person. If you’re a brick-and-mortar retailer or a merchant that requires face-to-face interactions, you can implement contactless payments with the right technology.

There are many NFC-enabled payment terminals that support contactless payments, allowing your customers to pay with their phones or contactless debit or credit cards.

How to Collect Payments from Customers

Once you have your payment methods and solutions in place, it’s time to ensure that you actually get paid. Here are some tips that can help.

Stay on top of payment prompts and reminders

One of the best ways to get paid on time is to prompt and remind customers to do so. When payments are due, immediately communicate it to your clients or shoppers. Depending on your business, this can come in the form of an invoice, email, text message, or phone call. When sending prompts or follow-ups, ensure that you give them clear instructions on how to remit the payment.

Need inspiration? Consider the following example:

Hi [CUSTOMER NAME] —

This is a reminder that your payment for [PRODUCT / SERVICE] is due on [INSERT DATE]. To avoid late fees and penalties, please remit the payment using the following link or by getting in touch with our office.

[Indicate the amount due]

It’s been a pleasure serving you and we appreciate your business!

Thank you,

[YOUR NAME]

Make sure your payment terms are visible

You may run into issues if your customers aren’t sure about your payment terms. Do you expect payments up front or after the service has been rendered? Should customers pay immediately or do you work using a Net 30/60/90 days agreement?

Whatever the case, communicate your policies clearly in your customer communications.

Reward early payments

If it makes sense for your business, give people an incentive for paying early or up front. Some merchants, for example, give their customers a small discount or some extra perks for paying early.

Consider penalizing late payments

You can also choose to implement past due fees when customers fail to pay on time. But in the case of non-payment or extremely overdue payments, you may want to seek help from a collections agency to work on your behalf.

Use the right tech solutions

Collecting and managing payments manually can be a pain, so it’s worth investing in robust payment technology solutions that can aid the process. This starts with the right payment processor.

Partner with a provider that can support modern payment methods — including the ones we discussed above. Stax, for example, enables you to accept credit card payments, ACH, eChecks, and even text payments. Plus, with features like invoicing, automatic reminders, and recurring payments, we help eliminate manual work and human error from the equation. As such, merchants can focus less on collecting payments and devote more energy to revenue-driving activities.

It also helps to integrate your payments systems with your accounting software. Doing so makes it easier to track your business finances so you can avoid cash flow problems and keep your books in top shape.

With the right technology partner, small business owners can rest easy knowing that their customer payment information is secure, while also freeing up time and energy to focus on what matters most – growing their business.

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FAQs About Payment Collection

Q: What is a payment gateway?

A payment gateway is an online service that handles the secure transmission of customer payment information between your website and the acquiring bank. It’s necessary to process online payments securely, ensuring sensitive data is encrypted and protected during transactions.

Q: How can I accept payments online?

To accept payments online, you need to set up an online payment gateway, which acts as a secure intermediary. Integrate the payment gateway into your website or app using provided instructions or plugins. Offer payment options like credit/debit cards, digital wallets, or bank transfers. Ensure your website has a secure SSL certificate and complies with PCI DSS requirements. Safeguard customer data and provide a seamless checkout experience for online payments.

Q: What are contactless payments?

Contactless payments allow customers to make transactions without physically touching a payment terminal. They offer convenience, speed, and enhanced hygiene, especially in the current landscape. Accepting contactless payments expands your payment options, caters to customer preferences, and demonstrates your commitment to providing a safe and modern payment experience.

Q: Are contactless payments secure?

Yes, contactless payments are secure. They use encryption and tokenization technology to protect sensitive customer information. Additionally, contactless payments often require authentication, such as biometric verification or PIN entry, for added security. As with any payment method, it’s crucial to choose a reputable payment processor, maintain security measures, and stay updated on best practices to ensure a safe payment environment.

Q: Are there transaction limits for contactless payments?

Transaction limits vary, depending on country, payment network, and issuer policies. Familiarize yourself with the specific limits in your region to ensure compliance.


 

Bank of America Merchant Services vs Stax

Founded in 2009 by Bank of America Corp. and First Data, Bank of America Merchant Services is one of the largest payment processors in the country. Although their recent separation from First Data has some business owners shaken, the merchant services provider maintains a strong level of support from its loyal merchants.

Bank of America Merchant Services provides card processing (including electronic checks), check processing, e-Commerce, mobile, and payroll services. When you need a credit card processor, it can make sense to first see what your bank offers for these services. After all, wouldn’t it be more convenient to process payments at the financial institution where you already have a bank account? Unfortunately, a lot of banks charge a premium for this level of convenience.

We’ll compare the difference between Bank of America Merchant Services and Stax so you can make the best decision for your business. Be sure to read this before signing up for a merchant account with Bank of America.

Bank of America Merchant Services Rates

With its once secure and helpful products and services for merchants, Bank of America Merchant Services was previously a viable payment processing option for some businesses.

In addition to enabling you to accept all payment types and support all major credit card brands (Visa, Mastercard, American Express), BOFA also offers payment hardware and software—including a tablet POS system, mobile payment processing, and small business eCommerce solutions. Before you sign up, be sure to review the following ways that Bank of America falls short for businesses.

In general, many businesses using Bank of America will find:

  1. Higher equipment fees (can be over $1,000)
  2. Expensive credit card processing rates
  3. Less than stellar customer support

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Bank of America Merchant Services Fees

With Bank of America Merchant Services, you have to use Clover devices. Just like with Stax, you’ll own the equipment outright instead of paying monthly leasing fees. However, with Clover, you may get locked into an annual contract for a T-Mobile or AT&T internet connection.

Plus, Clover devices are some of the most expensive in the market, with an upfront cost of $500-600. If you want to be able to accept contactless NFC payments like Apple Pay, you’ll have to buy an add-on which is another $300. In all, you could pay over $1,000 for the Clover device and all its add-ons.

To compare, Stax offers a number of in-person payment terminals at a variety of price points starting at just $175.

It’s also worth noting that as a First Data reseller that promotes Clover products, your point of sale (POS) software will come with monthly costs. Based on your plan, you will be subject to the following Clover subscription rates:

  • Payments Plus: $4.95 per month
  • Register Lite: $9.95 per month
  • Register: $39.95 per month
  • Counter Service Restaurant: $39.95 per month
  • Table Service Restaurant: $69.95 per month

The above rates are charged per device. So, if you’re on the Clover POS Register plan and have two devices, you’ll be charged $79.90 per month (i.e., $39.95 x 2).
Needless to say, these fees can add up. So if you want to go with a less expensive point of sale software provider, you’ll need to shop around instead of purchasing it from BOFA. If you decide to go this route, you can integrate your POS system with Bank of America Merchant Services and use a traditional payment terminal such as FD130.

 

How do Stax Payment Processing Rates Compare

BOFA Merchant Services lack transparency. Finding their rates and interchange fees on their website is impossible. Stax membership pricing provides award-winning value and service. In many cases, Stax offers more value at a lower cost than most merchant services providers including Bank of America. This is due to our 0% markup and high-quality Stax integrated payments platform.

In contrast, Stax’ membership provides award-winning value and service. In many cases, Stax’ membership-based pricing offers more value at a lower cost than most merchant services providers including Bank of America. This is due to our 0% markup and high-quality Stax integrated payments platform.

With Stax payment solutions, you can manage your financials, payments, customer management, inventory, and more — all under one roof.

Here’s a breakdown of Stax’ processing fees:

For Businesses Processing Up to $500,000 Annually: $99/month + direct interchange

  • $0.08 per swiped, dipped, or tapped transaction
  • $0.15 per online or keyed-in transaction

For Businesses Processing Over $500,000 Annually: $199/month + direct interchange

  • Swiped: $0.08 per transaction
  • Keyed: $0.15 per transaction

Stax’ Processing Fees

Stax is a subscription-based merchant services provider. We offer complete transparency when it comes to your bill. There are no annual fees, no contract fees, no statement fees, and 0% markups – not to mention stellar in-house customer support. If you want to save money and watch your business grow, Stax is the right merchant processor for you. So, how much could each pricing model’s credit card processing costs affect you? We’ve broken down the dollars and cents cost for a subscription-based model (Stax) and what a bank (Bank of America) will charge you on a monthly basis.

Subscription vs. Bank: Scenario #1

CP Cost of Processing $18,000 per Month

4 sales per day x $150 per sale x 30 days = $18,000/month

Stax* Square Bank of America*
$306.60 $480.00 $486.00

Subscription vs. Bank: Scenario #2

CNP Cost of Processing $45,000 per Month

3 sales per day x $500 per sale x 30 days = $45,000/month

Stax* Square Bank of America*
$981 $1,588.50 $1588.50

Additional Fees

Bank of America has been criticized for its lack of transparency when it comes to fees. In addition to an opaque payment processing fee structure, there have also been reports of:

  • Hidden fees
  • Early termination fees
  • Payment gateway fees

Stax doesn’t charge any of these added costs. Our monthly fee covers all your payment processing costs, so your statement is always transparent and easy to understand.

Bank of America Payment Processing Integrations

As for integrations, Bank of America allows you to connect its platform to your eCommerce and accounting platforms.

For eCommerce, Bank of America has a payment gateway service powered by Authorize.net, which allows you to integrate it with your current payment gateway. If you’re new to eCommerce and don’t have an online store yet, you can integrate Bank of America Merchant Services with BigCommerce to establish your website.

Bank of America Merchant Services also integrates with QuickBooks online. According to its website, the integration enables you to automatically sync your Bank of America checking accounts and makes it easy to manage your customers, orders, vendors, and inventory from all your devices.

Stax Integrations

Stax integrates with various solutions that serve your business needs, including:

  • QuickBooks
  • Mailchimp
  • NetSuite
  • Salesforce
  • Infusionsoft

You can also use Zapier to integrate Stax with even more solutions, including HubSpot, Slack, Pipedrive, and Google’s Office suite.

Bank of America Customer Service

Reviews state that Bank of America customers are unhappy with the level of support they receive for their products. On the other hand, Stax offers in-house customer service – not a third-party call center. When you call during business hours, you speak with someone who knows our product intimately and is always happy to help. From training to troubleshooting, we are the company to choose if you appreciate a human touch in your customer service needs.

When you look up Bank of America Merchant Services reviews, you’ll find complaints about its lack of transparency, poor customer support, and hidden fees

Merchant Maverick gives Bank of America Merchant Services 2.4 out of 5 stars, while TrustPilot and CardFellow give it 2.4 stars and 1 star respectively. 

Compare that to Stax, which fares much better when it comes to online reviews. Merchant Maverick gives us a 4 out 5 star rating. Meanwhile, G2 and TrustPilot give Stax 4.9 and 4.2 stars respectively.

How Stax Compares to Bank of America

If you conduct your personal banking with Bank of America, you may be tempted to add on their processing. However, you’ll want to be aware of the full costs and fine print before you sign on. In addition, with Stax’ Fast Access Funding add-on, you can still get paid just as quickly while saving on processing.

Before you choose a payment processor, see our full comparison of merchant service providers in the market, including banks, PayPal, and more. Or fill out the form below to see how easy payment processing can be.

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7 Digital Payment Options to Consider Accepting in Your Business

It’s no question that the world has been digitally transformed — both in business and in life. We can hail a ride from a mobile app, and our transactions for all sorts of goods and services can be easily paid for from our phones. Physical wallets are phasing out, left behind in favor of digital wallets and other digital payment options. All you need to use a digital wallet is a smartphone.

There’s no question that cashless payment systems and digital payment adoption have accelerated over the last few years. In 2019, 77% of US consumers were using at least one type of digital payment system. By the end of 2020, that rose to 78%.

What has grown more significantly is the number of electronic payments and alternative payment methods consumers now use. Between 2019 and 2020, there was an 8% rise in the number of consumers increasing their payment options to two or more types of digital payments. That figure now stands at 58% of the US population.

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What Exactly Constitutes a Digital Payment?

Digital payment methods essentially make up any payment type that is done digitally. From a consumer’s perspective, that means any transaction that doesn’t need a physical credit card, debit card, prepaid cards, or checks. Mobile phone and online bank transfers, mobile wallet payments, in-app payments, online payments, QR code payments, and all other electronic payment methods that qualify as a digital payment.

For merchants, digital payment methods include the ways in which payments are accepted. A consumer may use their physical credit card, for example, but if the point of sale system is digital — such as a mobile device instead of an analog cash register — this would be considered a digital payment.

7 Types Of Digital Payments To Consider Accepting In Your Business Blog Header

Types of Digital Payment Methods

With more than three-quarters of US consumers performing digital transactions, the incentive for businesses to accept them is huge. Whether you’re an eCommerce business or a retailer, the smooth processing of digital payments will help win consumer confidence.

Here are the various digital payment types to consider bringing on board.

1. Mobile point of sale (mPOS) systems

Mobile point of sale systems most commonly come to mind when discussing digital payments. mPOS systems work through smartphones, tablets, and other wireless devices to accept payments from anywhere.

Restaurants, retailers, and on the road service providers benefit the most from mPOS systems. They allow you to move with the device and accept payments wherever you need — both bank cards and mobile wallet payments.

What makes mobile POS systems unique?

Wireless devices allow business owners more flexibility. When social distancing came into place, those with mPOS devices could easily meet customers where they sit, limiting contact or gatherings of people at checkouts. These are not traditional card reader devices.

In addition, most mPOS software solutions come with features that allow businesses to email receipts, track sales, inventory and even set up loyalty programs that go straight through the system. It’s a more convenient, modern way to accept payments, enhance the customer experience, and boost productivity.

Setting up mPOS in your business

Mobile POS systems are easy to adopt. Solutions providers like Stax integrate with a range of solutions to enable merchants to go mobile. Plus, all Stax solutions accept mobile payments, such as Apple Pay, Google Pay, Samsung Pay, etc.

2. Contactless payments

Contactless payment methods are rapidly becoming table stakes for consumers and businesses alike. Thankfully, the technology was already there, and today most businesses accepting card payments are accepting contactless.

What makes contactless payments unique?

Contactless payments are powered by near-field communication (NFC) technology. This allows contactless-enabled cards to connect with the right devices to perform the transaction. This is the same technology that has paved the way for mobile wallets.

Accepting contactless payments in your business

Contactless payment methods can only be accepted by NFC-enabled devices. If you don’t already have one of these devices, you will have to buy one or get access to one on a plan. Same as with an older terminal, credit card transaction fees do apply, which may be a barrier for businesses that have been all-cash. But those who are used to accepting credit cards will find it almost the same. Merchants can simply tap instead of inserting or swiping credit cards.

Both credit cards and mobile wallets work with this technology. And the good news for merchants using mobile wallets is that providers like Apple Pay and Android Pay don’t charge for transactions. It’s just the fees through the payment processors that merchants will need to check.

NFC-enabled POS devices can be explored here.

3. Digital wallet payments

Digital wallets lets consumers make contactless payments, linked to their debit card or credit card information, without the need for a physical payment card. It is essentially a virtual Visa or Mastercard that sits in a mobile device.

Earlier in 2021, Finder.com found that roughly 150 million North Americans have used a digital wallet at one time or another as their preferred payment method. What is the reason for this large number? According to 98 million of that 150 million, it’s because they’re so unbelievably convenient.

What makes the digital wallet unique?

Digital wallet technology has become very easy for consumers to adopt and use. Nearly every smartphone comes with its own wallet that’s ready to be set up – the iPhone has Apple Pay, Google has Google Pay, Samsung has Samsung Pay, and so on. This ease of use and setup has enabled digital wallet adoption to spread rapidly among consumers.

What’s great for merchants is that most in-person POS systems that allow contactless payments will accept mobile wallet payments. A digital wallet is different from mobile app payments in that it is not an app or online electronic payment, but rather a tap or scan of a tokenized card.

Accepting mobile wallets in your business

If you are using a POS or mPOS system that accepts contactless payments, chances are your device will also be able to accept mobile wallet payments. Most mobile payment apps now widely accept contactless payments. To check, simply contact your payment processing company to confirm.

For new or upgraded solutions accepting mobile wallets, Stax has a suite of contactless solutions that have you covered.

4. Peer-to-peer digital payments

Venmo, PayPal, and even Facebook Messenger are examples of peer-to-peer electronic payment solutions. These platforms allow users to search for other users and perform online transactions between themselves.

What makes peer-to-peer payments unique?

Peer-to-peer electronic payment methods link to the payer and payee’s bank account to withdraw and deposit funds, providing a way for users to easily perform a funds transfer. In most cases, mobile banking apps do not have the capability to transfer money between users that don’t share the same bank account. Peer-to-peer solutions bridge this gap.

Accepting peer-to-peer payments in your business

Peer-to-peer solutions are not going to be viable for most businesses, but it does present an opportunity for micro and small businesses. If you run a market stall or a small services business, peer-to-peer payments could be a great way to start accepting payments before investing in the more costly payment gateways and solutions.

To set up a peer-to-peer digital payments, you simply need to download whichever platform you want to use, connect your accounts, and you’re ready to transact.

5. Biometric authentication

Biometrics can seem a bit daunting, but most people are already using this technology to open their phones dozens of times each day. It’s essentially just a tool to verify identity, ensuring only the person who owns the bank account or digital wallet or biometric payment card can be the one to authorize transactions through it. Today, most mobile wallets are already using biometric authentication, requiring the user to scan their fingerprint before the wallet can be opened.

For those that have enabled facial recognition, this too can be the authenticator to enable payments.

What makes biometric authentication unique?

Biometric authentication is one of the most secure ways to verify the identity of the person making the transaction. This makes fraudulent digital payments very difficult, making yet another case for why consumers are rapidly switching to mobile wallets.

And biometric authentication doesn’t stop at mobile wallets. There are many new services and startups in the works around the world that are using biometrics to process payments. Schools in the UK have started using facial recognition to take digital payments in the lunch line. India has designed credit and debit cards that simultaneously are tapped and take fingerprint biometrics to ensure the “tapper” is the person who owns the card. While these digital payment services may seem futuristic, they are already seen as leading security measures in the financial industry and have started to replace the traditional card reader.

Accepting biometric authenticated digital payments in your business

If you’re accepting mobile wallets, you’re already accepting biometrically authenticated payments. But if you want to really step into a totally wallet-free solution, consider looking into biometrics payment platforms and payment solutions. While these solutions aren’t as widespread as other solutions, it may be worth keeping an eye on biometric electronic payment trends.

6. Social media payments

Small businesses doing big things through social media are harnessing the built-in mobile-commerce solutions that some social media platforms enable. Facebook, Instagram, and Pinterest business accounts all offer an in-built social shopping solution, including in-app purchases. These types of electronic payments allow for fast and convenient payment processing from your customer’s chosen financial institutions or credit card companies.

Any business selling online, promoting goods through social media should be aware of the ways these platforms can accept digital payments.

What makes social media payments unique?

It’s very common these days for brands to build entirely on social media. Some may even start as influencers, gaining a great following and venturing into their own product lines, all within the social media ecosystem.

As anyone with a website knows, building web traffic requires a lot of work. If you have a social media platform that’s already thriving, why take them away from that platform when you could instead engage with and accept online shopping payments directly through the social media platform or via a direct link from your business social account?

Accepting social media payments for your business

The best way to accept social media payments depends on the platform. Platforms like Facebook, Instagram, and Pinterest all have unique social selling features, so look into your account settings to learn how to start accepting payments.

7. Crypto payments

No digital payments list would be complete without discussing cryptocurrency. Cryptocurrency has gained its foothold in the mainstream, but it is still largely unknown to many, particularly when it comes to accepting crypto as a valid form of digital payment.

What makes cryptocurrency unique?

Cryptocurrency is a decentralized currency that is not managed by any financial institution. It is run on the blockchain, a totally secure digital currency infrastructure that makes it immune to fraud and theft.

Businesses, at this point, don’t get a lot of direct benefits from cryptocurrency. Regulation is in the works, so it’s not a way to get out of taxes (as it was once purported to be), but with so many consumers now holding cryptocurrency, accepting it is a way to ensure you’re ready to take whatever digital payment method consumers want to use for their financial transaction.

Accepting crypto payments in your business

There are a few ways merchants service provider can accept cryptocurrency, covering both online and in-person payment options:

  • Cryptocurrency POS terminals – A variety of providers are now accepting cryptocurrency in the same way they would accept a mobile wallet or contactless card payment.
  • Personal crypto-wallets – Everyone using crypto has a wallet where they store their currency. Merchants could set one up to allow customers to make peer-to-peer style transfers for goods.
  • Crypto digital payment plugins – eCommerce sites have a range of options in the form of app and plugins that enable businesses to accept cryptocurrency.

Keeping Up with the Future of Digital Payments

Not every business owner needs to rush out and set themselves up to accept all of the digital payment types above. However, it helps to be aware of them so you can be ready to adapt when needed.

It’s also beneficial to choose a payment processor that supports today’s most widely used digital payment technologies.

Stax has a range of solutions, from hardware to software and payment processing, so you are ready to take on the digital payments world.

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FAQs about Digital Payment Options

Q: What constitutes a digital payment?

A digital payment is a transaction that is conducted digitally without needing a physical credit card, debit card, prepaid card, or cheque. This includes payments made via mobile phone and online bank transfers, mobile wallet payments, in-app payments, online payments, QR code payments, and other electronic payment methods. For merchants, it includes the ways in which payments are accepted, whether through a digital point of sale system or other electronic means.

Q: What are different types of digital payment methods to consider for businesses?

Businesses can consider mobile point of sale (mPOS) systems, contactless payments, digital wallet payments, peer-to-peer digital payments, biometric authentication, social media payments, and crypto payments. Each of these methods has unique features and benefits and are widely accepted ways for customers to conduct transactions.

Q: What is mobile point of sale (mPOS)?

mPOS (mobile point of sale) systems are solutions that allow businesses to accept payments through smartphones, tablets, and other wireless devices. They bring flexibility by allowing businesses to move with the device and accept payments wherever needed. Wireless devices are particularly handy in situations like social distancing where contact needs to be limited. mPOS systems are easy to adopt and come with additional benefits like sales tracking, inventory management, and setting up loyalty programs.

Q: What are contactless payments?

Contactless payments are powered by Near-Field Communication (NFC) technology. It allows contactless-enabled cards to connect with the appropriate devices to perform the transaction. The same technology also enables mobile wallets. Contactless payments can be made using NFC-enabled devices and traditional credit card transaction fees apply.

Q: How can businesses benefit from adopting digital wallet payments?

Digital wallets provide an easy and convenient way for customers to make contactless payments, as they are essentially a virtual Visa or Mastercard that resides in a mobile device. In-person POS systems that allow contactless payments typically also accept mobile wallet payments. This can be confirmed by contacting the business’s payment processing company.

Q: What are peer-to-peer digital payments?

Peer-to-peer digital payments enable users to perform transactions between themselves, bypassing the need to share the same bank account. Examples of these include Venmo, PayPal, and Facebook Messenger. While these wouldn’t be viable for most businesses, micro and small businesses may find them beneficial, particularly before investing in more costly payment gateways and solutions.

Q: What makes crypto payments unique?

Cryptocurrency is a decentralized currency that is not managed by any financial institution. It operates on the blockchain, a secure infrastructure that makes it immune to fraud and theft. Accepting cryptocurrency can ensure a business is ready to accept any digital payment method the customer wants to use.

Q: What does biometric authentication entail in digital payments?

Biometric authentication in digital payments verifies the identity of the person making the transaction, making fraudulent digital payments difficult. Biometric authentication can be used in mobile wallets and various new payment services around the world.

Q: What is unique about social media payments?

Social media payments leverage in-built m-commerce solutions in social media platforms. They offer convenient payment processing and allow businesses to accept online shopping payments directly through the social media platform.

Q: How can businesses keep up with the future of digital payments?

Businesses should be aware of the various digital payment options available so they can adapt when needed. It’s also beneficial to choose a payment processor that supports today’s most widely used digital payment technologies.


 

Contactless Payments: Touch to Pay? Here’s What It Is

The pandemic has compelled us to go “contactless” in just about everything we do. From shaking hands to touching doorknobs, people are quite wary of contact.

It’s hardly surprising that contactless cards and mobile payments have become a far superior alternative to using cash, swiping/dipping cards, or keying in your card number to make payments.

A study by The Harris Poll found that 42% of consumers view tap-and-pay credit cards as the safest form of payment. An innovative payment method that was already on a high trajectory gained even more traction, courtesy of the pandemic.

In this article, we’ll explore the ins and outs of touchless payments including touch to pay and the benefits they offer. We’ll also discuss how they work and how you can easily implement touch to pay in your business.

What is Touch to Pay?

Touch to pay (also called tap to pay) technology allows you to make a payment simply by tapping your card, wearable device, or smartphone on a contactless payment terminal. Of course, your smartphone or wearable device needs to be payment-enabled.

At a checkout terminal, if you find the universal contactless symbol displayed, it indicates that the device accepts contactless payments.

Contactless technology isn’t just fast and convenient, but also provides a secure way to make payments. Whenever you tap your contactless card to pay, it generates a one-time code that provides security against fraud.

Due to its safety, security, and ease of use, touch to pay is used by many customers at fast-food restaurants, grocery stores, gas stations, and pharmacies.

How do Contactless Payments Work?

So what’s the science behind touchless payments? There are two technologies that make contactless payments possible — Near Field Communication (NFC) and Radio-frequency identification (RFID).

NFC technology is a set of protocols that enables the communication between two devices in close physical proximity of up to 4 cm. This is very similar to (but not the same as) Bluetooth or AirDrop.

NFC mobile payments leverage apps like Google Pay, Apple Pay, and Samsung Pay on NFC-enabled devices like iPhones (or Android phones) to help people make payments when they’re close to a contactless terminal.

RFID, on the other hand, uses electromagnetic fields to identify and track tags attached to objects. The embedded RFID chip on a customer’s card is recognized by a contactless POS terminal. Tapping the card or holding it close to the terminal enables them to make a payment.

Note that touch to pay is only possible when a card/phone/wearable device is within inches of the contactless symbol at the checkout terminal (unlike mobile wallets that use cellular data or Wi-Fi for payments). Hence, touch to pay has a lower likelihood of intrusion as compared to payment apps operating on a wider and more vulnerable network.

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What are Contactless Cards and How Do You Use Them?

If a Mastercard, American Express, or Visa card features the wave-like contactless symbol, it indicates that it is enabled for contactless payments. Contactless credit and debit cards, as discussed above, use RFID technology to  payments processing.

Unlike good old magstripe or EMV chip cards, these require minimal contact with a point-of-sale system. Payment with a contactless card doesn’t require the cardholder to enter any PIN, passcode, OTP, or any other payment information.

Here is the simple three-step process of making a payment using a contactless card:

  1. Look for the contactless indicator at the checkout terminal. If it’s displayed, the POS terminal is touch to pay enabled.
  2. After billing, the contactless card must be brought close to the demarcated space on the terminal.
  3. The payment is made with a simple tap on the terminal. The payment is also processed instantly.

How to Make Touch-Free Payments with a Smartphone

Despite their user-friendly features, many retailers still don’t have the capabilities to accept contactless cards. However, most retailers do accept NFC mobile payments these days.

To enable NFC payments, customers simply need to add their debit, credit, gift, or other eligible payment cards to Google Pay or Apple Pay on their smartphones. The cards are tokenized for added security, so each card will have a different number in the app than the actual card number.

This converts the smartphone into a “touch to pay” device that allows customers to make payments without having to use contactless cards. All they need to do is to bring their phones within inches of the contactless symbol at the payment terminal until they hear a beep or see a checkmark on their screen.

Contactless Payments: What Is Touch To Pay

Key Benefits of Touch to Pay for Retailers

Touch to pay is one of those trends that garnered immense popularity during the pandemic but is here to stay because of the many benefits it offers. If you’re wondering whether or not to implement touch to pay in your small business, we’ve got you covered.

Besides being secure and social-distancing approved, here’s why contactless payments can be a great addition to your checkout process.

1. Speeds Up Checkout

We can’t stress enough how quick and convenient touch to pay is. Contactless payments involve no verification hassles like entering a PIN, OTP, or passcode, so customers can breeze through the checkout process.
All they need to do is to tap their card or phone at the counter and walk out with their merchandise. You’ll appreciate the cumulative difference those precious few seconds can make, especially during peak business hours.

2. Simplifies Cash Management

Contactless payments eliminate the hassle of counting cash, stowing it safely, and returning the change. Your customers will be thrilled by the convenience and so will your staff.

3. No Extra Staff Requirements During Peak Hours

Businesses during rush hours, weekends, or holidays need to hire extra staff to process payments at the counter. With touch to pay, this can be reduced significantly. Customers can simply approach a battery of contactless terminals and get their payments processed with ease.

4. No Processing Fees Involved

Contactless payments don’t involve any additional processing fees or hidden charges, even when paying through a smartphone. The only charges incurred are the processing fee of the debit or credit card loaded on the phone. This makes the payment solution highly attractive in terms of its operational costs.

Key Benefits Of Touch To Pay For Retailers

How to Implement Touch to Pay in Your Business

With Stax’s contactless payment solutions, implementing touch to pay in your small business can be a breeze.

Stax offers an all-in-one suite of tools for retailers to accept virtual and touchless payments without having to buy multiple solutions or do any configuration themselves. This allows small business owners to offer a touch-free experience to their customers immediately.

Stax’s contactless payment solution includes:

  • Touch-free countertop/mobile terminals to accept NFC payments easily
  • A two-way text platform to communicate and accept payments from customers
  • A virtual portal for securely accepting payments over the phone
  • A one-click online shopping cart that allows you to accept online orders instantly without having to buy a domain or do any coding
  • Easy invoicing via email and text message

With our tokenization and state-of-the-art cloud architecture, you can be sure that Stax will always keep your customer information protected and secure payment. Plus, our solutions have built-in protection to ensure that your customers don’t end up being accidentally charged more than once when they touch to pay.

Contact us today to learn more about Stax’s contactless payment solutions and how you can start accepting touch-free payments immediately.

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FAQs about Contactless Payments

Q: What does Touch to Pay mean?

Touch to pay (also referred to as tap to pay) is a technology that enables making a payment simply by tapping your card, smartphone, or wearable device on a contactless payment terminal. This innovative method gained traction due to its convenience, speed, and enhanced security against fraud.

Q: How do contactless payments work?

Contactless payments operate via two main technologies – Near Field Communication (NFC) and Radio-frequency Identification (RFID). NFC allows two devices to communicate when in close proximity, while RFID uses electromagnetic fields to identify and track tags attached to objects. These technologies enable a smooth and fast payment process when the device is brought close to a contactless payment terminal.

Q: How can I use a contactless card for touch to pay?

If you possess a Mastercard, American Express, or Visa card featuring the wave-like contactless symbol, it means the card is enabled for contactless payments. To make a payment, locate the contactless indicator at the checkout terminal and bring your card close to the designated space on the terminal. A simple tap completes the payment, which is also processed instantly.

Q: Can I make touch-free payments with a smartphone?

Yes, you can convert your smartphone into a “touch to pay” device by adding your debit, credit, gift, or other eligible payment cards to Google Pay, Apple Pay, or similar apps on your smartphone. You can make payments without the need for a contactless card by bringing your phone within inches of the contactless symbol at the payment terminal.

Q: What are the benefits of the touch-to-pay trend for retailers?

Touch-to-pay significantly speeds up the checkout process, simplifies cash management, doesn’t require extra staff during peak hours, and involves no additional processing fees. This makes it a cost-effective and efficient solution during high-traffic periods, contributing to better customer satisfaction.

Q: How can I implement touch-to-pay in my business?

Implementing touch-to-pay in your business can be easy with contactless payment solutions, like Stax’s suite of tools. They offer touch-free terminals for NFC payment acceptance, a two-way text platform for customer communication, a virtual portal for secure over-the-phone payments, and an online shopping cart for instant orders, among other features.

Q: Are touch-to-pay methods safe?

Yes, touch-to-pay methods are considered safe as they use tokenization for added security, and each transaction generates a one-time code, providing protection against fraud. The transaction is only possible when the device is within inches of the contactless symbol, thus reducing the possibility of intrusion.

Q: Will touch to pay charge any additional fees?

Typically, touch-to-pay does not charge additional or hidden fees, making it an attractive payment solution. However, standard processing fees of the loaded debit or credit card may still apply.


 

7 Ways Retailers Can Get Ready for the Busy Season

Holiday shopping accounts for 20% of annual sales for most retail businesses. With the busy season rapidly approaching, retailers need to start making preparations to be ready for the most wonderful time of the year. The social distancing requirements affecting store capacity will give retailers more to consider while getting ready for the busy season moving forward.

Utilizing insights from smaller holiday campaign strategies helps to cultivate a holiday strategy that often ends up producing more successful results. This also helps to shape a more powerful marketing plan as the end-of-year activities approach. For most retailers, the key will be how well the retail store is prepared for a holiday season. Be it a brick-and-mortar store, an eCommerce business or both, here are 7 ways retailers can get ready for this year’s busy season.

Stock Up and Manage Inventory

When preparing for an influx of business, taking stock of your inventory helps track what is selling and what is not. Doing so also provides insight into your customer buying habits. For any retail store, the inventory serves as its backbone. If there is mismanagement of popular products you sell, your whole customer experience can suffer. Remember, supply and demand go hand in hand.

A retail merchant services tool that can help monitor the popularity of certain products is a stock alerts solution. This helps break down sales by item and sales category breaking down which funds need to be allocated towards certain retail products. The stock alerts feature assists retail businesses in seeing which products/services perform best. It is even more beneficial when it is already connected with your payments system, allowing you to set up and receive low inventory alerts before you run out of stock.

Make Your Merchandise the Shining Star

In a sea of holiday sales, making your product and brand stand out amongst the crowd is as important as providing quality merchandise. Keep your retail store top of mind for holiday shopping and influence purchasing with quality social content showcasing new touch-free ways to shop. Offering curbside pickup, online ordering, and pre-order There is a 70% chance that a previous customer will purchase your product over your competitors due to familiarity and overall customer service experience.

Consider how the in-store experience can be adjusted to implement social distancing in a less noticeable and disruptive way. Placing highly sought-after merchandise in a different, open area of the store provides easy and quick access. If you track sales from month to month, you can strategically plan your product layout and promotions to attract and direct customers. This is a great tip to use all year long but especially during the hustle and bustle of the holiday season. Minimize shopper frustration by making the experience easy, achievable, and fun can boost your sales and cash flow, which means you’ll get a great return on your investment.

Add an Online Shopping Cart to Your Website

More consumers are shopping online for the first time, and for products they would normally buy in-store. Creating an online shopping cart that integrates seamlessly with your current website provides your customers with a seamless shopping experience. Benefits of an online shopping cart include:

Stax lets you implement an eCommerce shopping cart to sell your products online with just one click, no configuration or technical skills needed. You can add items to the catalog, select those items, and automatically create an online shopping cart where customers can go to purchase store products instantly. There is no additional cost for this integrated eCommerce tool.

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Provide Multiple Checkout Locations In-Store

The incorporation of mobile and contactless payment solutions improves the opportunity to provide an expeditious checkout experience for your customers. One way you can do this is by adding mobile payment processing capabilities to your POS system. This prepares your retail store for an influx of foot traffic and provides the flexibility required to add mobile Point of Sale (mPOS) devices allowing your business to process magstripe, EMV, and NFC payments with a tablet or smartphone.

Having mobile payment tools that can quickly support the primary checkout area is imperative for effective line-busting. Setting aside a dedicated area stocked and ready with carryout bags and additional stationery offers a seamless checkout experience to customers completing their holiday shopping.

Speed Up Checkout Time and Avoid Long Lines

An Omnico Group study has shown that shoppers will abandon a checkout line without making a purchase after just eight minutes of waiting. The study also found that 77 percent of shoppers are less likely to return to a store where they experienced long checkout lines. What does this mean? Well, besides the fact that we as consumers are very impatient, the opportunity for shop and click has made our expectations very high for quick transactions.

One way to avoid frustration for your customers and provide a seamless process for your staff is by setting up a multiple-server waiting line. With multiple servers, customers all stand in a single waiting line. When it’s their turn, they go to the first free cashier. Using heat maps to determine peak times when the store is at its busiest will help operators ensure that the retail store is properly staffed during peak times.

Make Sure Your Physical and Digital Stores Work Together

If you have or are adding an online store, it’s imperative that both the brick and mortar location and eCommerce store work seamlessly together. Begin your alignment with the 80/20 rule. Offer only your top 20% best-selling products/services on your website to start. This will allow you to work out any bugs with cross-channel marketing between the technology and inventory.

Next, you should aim to provide a unified customer experience. Make sure your marketing is aligned so whether they are in-store or shopping online, the customer is being spoken to in one consistent brand voice. Another way to make sure your physical and digital stores work together is by exploring in-store pickup. Allowing customers to pick up orders in-store gives you the chance to sell them other merchandise. While this may seem like an attractive option it’s not without its challenges. Logistics can be tough. In-store pickup works best when the bulk of your customers live close to your store—like in the same neighborhood.

Use Business Reviews to Your Advantage

Ask area and store manager retailers for their feedback on how you could have set them up better and identify the highs and lows of their local execution. Use your customer experience feedback to understand how customers felt. Learn what worked well so you can do it again next year and identify the changes to create more profit next year. Use your lessons wisely.

Manage your business’s Google Reviews right from your Stax Dashboard. With the Online Reviews tool in Stax, you have the ability to see and respond to your Google Reviews the moment they are posted, without ever having to leave Stax. Reduce the number of platforms you are logging in to and manage everything in Stax.

How Stax Can Help Retailers Shine This Holiday Season

With COVID conspiring to minimize holiday cheer, delivering a positive customer experience may seem like a big ask this year. Don’t let that stop you. The more prepared you are, the smoother and more profitable this holiday season can be for your retail store(s).

Stax prides itself on providing retailers the payment solutions they need to improve their processes and continue to grow their business all year long. Want to learn more about our payment processing tools or maybe you’re interested in taking the next steps towards adding an online shopping cart to your business?

Reach out to us at Stax today. We will be happy to answer your questions and help you benefit from our modern payment solutions right away.

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How to Pick the Best Payment Solutions for Your Business

Choosing the best payment solutions from credit card processors may seem like an overwhelming task with so many options to choose from. However, it doesn’t need to be. Familiarizing yourself with the basics of different payment channels and their benefits is a great place to start. Here’s what you need to know to find the best payment solutions for your company’s credit card processing needs.

What is a Payment Channel?

A payment channel is any way that a customer can make a payment, or anywhere that the merchant might accept a payment. Payment channels are specifically associated with how the payment is made and include the following:

Payment Channels & Best Payment Processing Solutions For Your Business

Having multiple payment channels may not be necessary early on, but in order to pick the best payment solutions as your business grows it will be important to expand your channels. Depending on your business you may need to start with a physical POS (point of sale) system, while someone in the digital space may need to focus on mobile payments.
This guide will help you find the best payment solutions and channel that will best fit your business.

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In-Person Payment Processing

In-Person payments can utilize a physical or virtual POS system to take customers’ payments inside your business. Some Physical POS systems can serve a dual purpose as a terminal, giving customers the ability to swipe directly through a single piece of hardware. Others allow you greater flexibility, enabling you to easily connect terminals via a Bluetooth device. The right terminal expands payment options for customers, allowing them to dip, tap, or use Apple Pay and Google Pay to make payments.

Physical POS Terminal

The physical POS is a traditional payment channel, supported on a cash register, where customers pay right inside your store.

Stax offers two forms of POS retail solutions for business owners. The first are standard EMV smart terminals, a simple countertop terminal solution, the second is a Mobile Checkout POS system.

Mobile Checkout POS systems are an all-in-one point of sale system right at your fingertips. When collecting customer payments, you are even able to use a tablet, or phone device to securely process sales from any location.

Virtual Terminals

A virtual terminal gives you the power to process and manage over the phone and face-to-face transactions in real-time. Because there’s no need for a physical or traditional credit card terminal, a virtual terminal uses software to process transactions. This solution is generally for merchants who don’t have a brick-and-mortar business and often take customer information over the phone or online.

The Stax platform offers companies the ability to process and manage telephone and face-to-face transactions giving you the best payment solutions. It is great for service-based companies, B2B companies, or anyone who does recurring billing. As long as you have an Internet connection, you can process payments directly through Stax. All transactions are securely tokenized and are compliant for your best payment solutions.

Businesses can also continue using their existing POS systems as the Stax platform seamlessly integrates with most terminals.

eCommerce Payment Processing

For businesses looking to process payments through their website or create an online shopping store, eCommerce payments solution allows you to expand purchasing capabilities online. Businesses can collect and manage payment transactions online without the need for a physical or traditional credit card terminal.

Stax’ digital payment solutions and eCommerce tools like an online shopping cart or webhooks allow businesses to engage digitally with even more customers. Stax also supports the ability for businesses to build their own or integrate with a provider like Authorize.net for an eCommerce shopping cart.

Mobile Payment Processing

Mobile payments are vital for businesses that are on the go or those that want to keep hardware to a minimum. Many businesses find using mobile payments works better and faster for them in comparison to physical POS systems. This can be a great solution for service professionals that operate in the field and need to accept payments on location.

Stax offers mobile readers for businesses looking to accept payments in any environment. Additionally, being able to turn your phone or tablet into a mobile POS system is also a benefit that can be easily overlooked by many businesses. With the Stax iOS and Android app, businesses can turn any mobile device into a handheld POS and take payments, send invoices, and view reports from anywhere. You can also monitor and manage business in real-time, with the ability to quickly view daily, weekly, and monthly sales reports.

Contactless Payments

Contactless payment devices allow businesses to accept in-person payments without the need for physical contact. From Text2Pay to touch-free terminals, you can quickly and safely process payments on the go.

Contactless by Stax gives you immediate access to tools that can pair perfectly with your online shopping cart. Offering Text2Pay gives customers the ability to pay for their purchase in just a few taps from wherever they are. Businesses can personalize their customer’s experience by answering questions and making updates to an order via text.

All of these payment channels and more are available for businesses to easily collect payments from customers and maximize their revenue.

To find the best payment solutions for your business compare Stax integrated payment platform and use whichever payment channels serve best regardless of where you plan on taking payments.

To learn more about how the Stax all-in-one platform can help your business, fill out the form below to request a savings estimate today.

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