Category: Payment Processing

ACH Payments and ACH Transactions: How Do They Work and How Long Does an ACH Transfer Take?

To say there are numerous ways to make or receive payment is a huge understatement.Today, business owners need to consider not only the many payment methods available, but also what options are most cost-effective for the business, and which options will resonate most with their customers. While electronic payments innovations such as mobile wallets and peer-to-peer payments will continue to grow, there are several essentials for all businesses to consider. One of which is ACH transactions, a staple for all businesses for customer transactions, payroll, and more. 

There is a lot of terminology surrounding payment processing, and ACH payments have their own vernacular.This article discusses what you need to know to better understand the ACH payments, including how do ACH transactions work and how long does an ACH transfer take.

TL;DR

  • The terms ACH payment and ACH transfer are interchangeable in meaning and work by moving funds from one bank to another through a centralized system (the Automated Clearing House). 
  • ACH debit transactions typically take 1-3 days to process while ACH credits usually take one day to process; however, same-day ACH payments are also available for most transactions if needed with a small additional cost.
  • ACH transactions are typically far less expensive than wire transfers or credit card fees, especially for larger transactions.

What is the Automated Clearing House (ACH) Network?

The average consumer may not realize they regularly make and receive payments from the Automated Clearing House network (ACH), but this network was responsible for 30 billion in payments, totaling nearly $77 trillion in transactions in 2022.  

Electronic transactions have taken over in popularity, and paper checks are starting to feel like a vestige of a bygone era. The ACH network is already in use for most organizations in the form of ACH direct deposit payroll and recurring payments done outside of debit and credit transactions.

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Two Types of ACH Payments

ACH Direct Deposits

Direct deposits are payments sent from the government or businesses to consumers or employees. This includes government benefits, tax refunds, or your payroll. ACH direct deposts are made to a financial institution using the routing number and bank account number of the receiving institution to direct funds into the checking or savings account of the recipient.

ACH Direct Payments

These are payments used by individuals or businesses to pay for goods or services. ACH direct payments, also known as ACH debit transfers, are a bank transfer from the consumer or business bank account to the recipient account.

Examples of ACH Transactions

93% of Americans are paid through direct deposit, meaning that the Automated Clearing House network is a part of the daily lives of most of the country already. Other types of ACH transfers are as follows:

  • Paying an electricity bill with your bank account
  • Transferring money to a friend from one bank account to another (Venmo, Zelle, PayPal, Cash App)
  • Paying for a wedding venue rental with routing and bank account information
  • Businesses paying for supplies with their business checking accounts

How Long Does an ACH Transfer Take?

One of the most frequent questions we get is, how long do ACH transfers take? An ACH debit transaction such as bill payments through your bank will typically take 1-3 business days to process. ACH credits, such as payroll direct deposit or payment to vendors and third-parties take about one day to process. 

The ACH network processes payments for 23 ¼ hours each business day and settles transactions in batches four times per day during business hours of the Federal Reserve.

What are same-day ACH transfers?

Starting in 2016, NACHA made same-day processing of ACH transfers available. With a same-day transfer, there are a few considerations to be aware of including the cost and time of day for same-day processing.

First, the originating depository financial institution (ODFI) has two windows of time to submit the transaction to the ACH Operators: a morning submission deadline of 10:30 AM EST with a settlement time of 1 PM EST, and an afternoon submission deadline of 2:45 EST with a 5 PM EST transaction settlement time. 

If the cutoff time is met, the receiving depository financial institution (RDFI) will have the funds available same-day. The RDFI is required by NACHA to receive same-day ACH payments and make them available in the recipient’s account by 5 PM local time (for the RDFI). If the cutoff time is not met, the funds should be available in the receiving bank the next business day.

Also worth noting is there is an additional fee for same-day ACH transfers, this entry fee is 5.2 cents and is paid from the ODFI to the RDFI for each same-day ACH transaction. The collection and disbursement of these fees are handled by the ACH operators and reflected on the monthly statement.

In summary, when processing a same-day ACH transfer, the cutoff timelines matter, but in any case, ACH processing is often even faster than settling a credit card transaction.

How Much Money Goes Through ACH Payment Processing?

Direct deposit combined with other payments and deposits, such as mortgage and utility payments, tuition and recurring subscriptions, made through the ACH network exceed 77 trillion dollars annually.

The terms ACH payment and ACH transfer are interchangeable in meaning and work by moving funds from one bank to another through a centralized system (the Automated Clearing House). This payment method saves time and money for the business and customer, and is ideal for many types of payments, including but not limited to recurring and scheduled transactions.

Take control of getting paid and say goodbye to the stress of late payments with ACH Debit. Automate collection and reconciliation, saving time usually spent on financial admin.

Related Content: 5 Benefits of ACH Payments Over Check Payments

What Are Ach Transactions? Man Looking At Laptop Screen.

ACH Payment vs Credit Card Payment

Credit card payments are straightforward and well known. The card number, expiration date and CVV security code are required to process a payment or send a refund. The average credit card processing fee varies, but is typically between 1.4-3.5%, excluding other monthly fees to the merchant services provider and other costs of equipment.

Credit and debit card transactions may be costly for merchants but are a mainstay of business operations. Digital wallets linked to credit and debit cards are also gaining traction in small and large businesses. These offer a convenient solution for the customer, with fees similar to those of a typical swiped card transaction.

How Much Does it Cost to Process ACH Payments?

ACH payments are done directly through a bank account, requiring the name of the bank, type of account (checking or savings), and the routing and account number. ACH transfers usually take one to three business days to complete and can be a lower-cost option for businesses (the average cost of a transaction is about $.29).

These payments are commonly used for direct deposit payroll, recurring bill payments, large business-to-supplier transactions, and payments and refunds to and from the IRS.

ACH Payments vs. Wire Transfers vs. EFT Payments

The main difference between an electronic funds transfer (EFT) and ACH payments is that EFT is a term for all types of digital payments, but ACH is a specific type of digital payment—so ACH is a type of EFT payment.

Whereas, wire transfers may seem similar to ACH payments on the surface but they have a few key differences. Wire transfers are more costly, with an average charge of $10-$35 per transaction, and operate like an electronic cashier’s check. This means that when sending a wire transfer, the funds are immediately pulled from the sender’s account and cannot usually be reversed.

Processing time is faster with wire transfers and usually cleared within the same business day. Wire transfers also have a level of risk associated with them because once sent, they are difficult to cancel. Wire transfers can be done internationally, which is both a benefit and a risk. Verifying the recipient is imperative to protect against fraud and users should be careful when sending a payment via wire transfer.

ACH Credit Transfers (ACH Push Payments)

ACH payments are usually divided into push payments and pull payments. Push payments send money, and pull payments collect it. Though they are similar, they work in slightly different ways. Push payments (also known as ACH credit transfers) are transactions, where the payer instructs their bank to send money from their account to another account, vs a pull payment where you provide bank account information to the payee and the amount is then withdrawn.

ACH Transfer Transaction Limits

According to the National Automated Clearing House Association (NACHA), which manages ACH payments, ACH transfer limits, as of March 18, 2022, the Same Day ACH dollar limit has increased to $1 million per payment.

However, ACH transfer limits are subject to other rules on how much money can be moved. These limits can be per day, per single transaction or per single month depending on the bank. And it is likely that your incoming ACH transfer limits may still average around $25,000.

Benefits of ACH Payments

Now that we’ve covered the fundamentals of ACH payments, let’s look at some of the benefits of this payment type.

Less expensive than other methods of payment

One of the main benefits of ACH payments is the cost savings for large transactions. ACH transfers cost 1% of the transaction amount, with a cap of $10, so they’re less expensive than wire transfers or credit card payments.

Great for recurring transactions

Recurring payments are convenient via the use of ACH transfers and are already in use for many consumers for transactions like automatic bill pay. An added benefit for the consumer and businesses using ACH transfers is not being inconvenienced by expiring credit and debit cards, as bank account numbers do not change unless an account is closed or compromised.

While most payments are made either electronically or through ACH transfers, checks are still in use for many. The convenience factor for ACH deposits is a big draw to move away from paper check payments. For a customer using checks, they have to remember to make the payment, write out and mail the check and then wait for the postal service to deliver and payment to be processed. This adds days to the process and leaves a lot of opportunity for human error.

Using an ACH payment means the customer does not need to remember to pay the bill, the processing time is sped up, and the business doesn’t need to physically deposit a check and wait for it to clear.

Safe and secure

ACH is also a safer option for customers since they only need to share their banking information once with the business, reducing the risk of lost or stolen checks or exposing credit card information online. Since ACH payments are not immediate, they are able to be reversed which makes it harder for a bad actor to compromise banking information.

More convenient for your customers

Since ACH transactions can be a safer payment option for customers, and reduce fees that a merchant may pass on, this means that an ACH payment is often the preferred option for your customers.

How to Accept ACH Payments

Many businesses already offer a variety of secure payment options to their customers. Giving customers the ability to choose what suits their payment preferences can encourage purchases and increase business; and companies benefit by being able to accept payment in multiple forms, eliminating a potential barrier to purchase.

If you’re planning to accept ACH payments and enable ACH transactions between your business and your customers, here are some steps you can take to get started.

1. Determine the role of ACH payments in your business

As with any business decision, it’s important to determine how ACH payment adoption fits into your strategy. Before implementing it, be sure to have a clear business case for ACH transactions.

Do you have customers who are requesting the ability to work with ACH direct deposits? Will ACH streamline processes, improve the customer experience, and ensure that you actually get paid? The answers to these questions will help you figure out if there truly is a need for ACH payments, and if so, how to implement them properly.

2. Choose the right payments processor

The next step is to sign up with a payments processor that supports ACH payments. It’s best to choose a provider that supports multiple payment options (i.e., credit cards, ACH, invoicing, etc.) from one solution. Doing so streamlines payment processing, and it also makes reporting and analysis easier, since you’ll be able to see the status of various payments under one platform.

For instance, if you want to monitor and manage settlement and funding status for ACH payments alongside your credit card transactions, you can do so if all your payments are handled through a single solution.

Stax is an all-in-one payment platform that allows for merchants to collect all manner of payments with transparent pricing, and no contracts or hidden fees. Implementing this solution can increase convenience for the customer and lower costs for the merchant.

With Stax, businesses can accept payment through swiped cards, manually keyed payments, text-to-pay, mobile payment integrations – and of course, ACH transfers. Payments are made simple, and the platform also provides data and analytics and financial reporting to better understand sales trends. These capabilities make Stax an affordable and convenient solution to accept all payment types without having to manage multiple payment systems.

Stax charges a monthly membership fee instead of pay by transaction model, making it ideal for high-volume transactions. The monthly membership fees depend on the capabilities a business enables and offer predictability in monthly costs and transparent pricing.

3. Figure out the logistics of ACH transfers in your business

You should also iron the steps you need to take to enable ACH payments. You have a number of options here, including:

  • Using a virtual terminal. You can enter your customers’ account information into your virtual terminal, similar to how you would deal with keyed-in credit card transactions. This option is best used when taking payments over the phone or via mail order.
  • Setting up online payments with an option to pay using ACH. If you’re conducting business online, you can add an option to take payments via ACH and ask customers to enter their account details. The specifics of this process will depend on the payment gateway you’re using, so check with your provider on how to enable ACH payments online.

Also Read: What is an ACH Return and What Should You Do About It?

ACH Transactions: Key takeaways

ACH transfers are a safe and convenient way to pay and offer significant cost savings for large transactions and recurring payments – especially when compared to credit cards and wire transfer fees. With many options to choose from, deciding on the payment processing merchant is an important decision for any size business.

Considerations for the type of business, amount, type, and volume of transactions, and customer demographics will determine the best fit. Many providers offer several solutions, and finding the best fit for the business helps to manage costs and provides a streamlined and convenient experience for customers.

As technology advances, savvy consumers expect options to suit their needs. Offering a variety of payment options, including ACH transfers is a safe and convenient way to better serve customers and grow business.

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FAQs about ACH Payment

Q: What is an ACH Payment?

An ACH (Automated Clearing House) payment is an electronic transfer of funds between banks or credit unions across an ACH network. This payment system allows for the efficient transfer of money without the use of paper checks or credit card networks. ACH payments are often used for direct deposit payroll, recurring bill payments, large business-to-supplier transactions, and payments to and from the IRS.

Q: How does an ACH Payment Work?

Funds are moved from one bank account to another through the Automated Clearing House, a centralized system. The ACH network processes payments for nearly 24 hours each business day and settles transactions in four batches during the business hours of the Federal Reserve. There are two types of ACH transfers: ACH debit transactions, which usually take 1-3 business days to process, and ACH credit transactions, which typically take one day.

Q: What differentiates ACH Payments from other payment methods?

Unlike credit card payments or wire transfers, ACH payments are usually less expensive, particularly for larger transactions. Moreover, ACH transactions are often favored for recurring and scheduled transactions, such as monthly bills or payroll, due to the reduction in human error and delays caused by processing paper checks.

Q: What are same-day ACH transfers?

Initiated in 2016 by NACHA, same-day processing of ACH transfers has been made available. To qualify for same-day processing, there are two submission deadlines for the originating depository financial institution (ODFI) to submit the transaction to the ACH Operators. If met, the receiving depository financial institution (RDFI) will have the funds available on the same day.

Q: Are there limitations to ACH Transfers?

Yes, ACH transfers are subject to limits that can be per day, per transaction, or per month, depending upon the bank’s rules. As per the National Automated Clearing House Association (NACHA), the Same Day ACH dollar limit is increased to $1 million per payment as of March 18, 2022.

Q: How does one accept ACH Payments?

To accept ACH Payments in your business, consider the role of ACH payments in your business, and choose the right payments processor that supports ACH payments. Then, figure out the logistics of ACH transfers in your business, with options including using a virtual terminal or setting up online payments with an option to pay using ACH.

Q: What are the differences between ACH Payments, Wire Transfers, and EFT Payments?

An Electronic Funds Transfer (EFT) refers to all types of digital payments, while ACH is a specific type of EFT. Wire transfers, on the other hand, are more costly and operate like electronic cashier’s checks, with funds being immediately withdrawn from the sender’s account. Wire transfers get cleared within the same day, can be done internationally, and are difficult to cancel once sent.

Q: What are the benefits of ACH Payments?

ACH Payments offer several advantages. They are generally less expensive than other payment methods, particularly for large transactions. They are highly convenient for recurring transactions and are safer than other methods since customers only need to share their banking information once. Also, they increase convenience for customers, likely making it a preferred option.

 

11 Easy Ways Businesses are Accepting Payments Online

When the world wide web became available to the public in the early ’90s, the growth of eCommerce and online shopping wasn’t far behind. With triple-digit growth seen annually since its emergence in the mid-1990s, online shopping now accounts for 13% of all U.S. retail sales.  Clearly, accepting online payments is no longer an option for your business—it’s a must.

One of the major benefits of accepting payments online is the ability to get paid faster and in some scenarios, expand your revenue outside your local area of business. For professional service businesses such as legal consultations or therapeutic services online invoicing lets customers and clients the ability to pay for your products and services from anywhere at any time.

Whether you’re currently transitioning your company to a digital format or you are interested in finding a more convenient approach to get paid faster, here are 11 ways your business can accept payments online.

Accepting Online Payments using Credit and Debit Cards

As a business owner processing payments using a credit card or debit card is most common. The process uses an ACH transfer (Automated Clearing House transfer) or the transfer of money electronically from the customer’s bank account through the ACH network to the merchant’s bank account.

These transfers don’t require a payment gateway to be processed (although you do need a merchant account). ACH payment transaction fees are usually lower than credit card processing fees and are charged either per transaction or at a flat rate. For scenarios where the card isn’t present, you can use its details to perform contactless payments via online or digital payment gateways.

Mobile Payment Processing

As payment technology continues to advance financial institutions are increasingly providing customers with the ability to use mobile phones for banking transactions. This increases your customer’s ability to pay for just about anything from anywhere. Accepting mobile payments saves time by allowing you to collect compensation right from your phone or tablet.

With additional payment processing methods such as Apple and Google Pay on the rise, cloud-based payments have become a necessity. Most credit card processors use cloud-based technology, so your data, as well as your customer’s information, is secure. In other words, mobile payments are secure, fast, and convenient.

eChecks Through ACH Process

An eCheck is simply a form of online payment. Money is withdrawn from the payer’s checking account through an electronic funds transfer (EFT). Funds are electronically withdrawn from your customer’s account, sent via the ACH network to the payee’s banking institution, and then electronically deposited into the payee’s account.

eChecks are one of the most popular types of recurring payments. Funds are verified within 24 to 48 hours of the transaction being initiated. Should the payer have the funds available in their checking/bank account, the transaction is cleared within 3 to 5 business days and the funds are moved from the payer’s account to the payee’s account.

Click to Pay Email Invoicing

Email invoicing is the exchange of the invoice document between a business and a customer in an integrated electronic format. Traditional invoicing is manual and tedious, often prone to human error resulting in increased costs and payment processing lifecycles for your business.

Email invoicing or electronic invoicing is an easy and safe way for businesses to send out online payment requests. With a simple click, your customers can open the invoice via email, input their preferred payment information, and pay you instantly.

With email invoicing, you’re also able to schedule payment reminders and recurring payment options for long-term customers.

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Recurring Billing

Also known as auto-pay, recurring billing means the customer has authorized the merchant to deduct payments for recurring goods and services each month from their bank account. Payments can also be made with a securely saved debit or credit card. Recurring billing and payments prevent late fees by processing payments on or before their due date.

Recurring billing is effective for a wide range of businesses. Not only does it decrease late or missed payments, but it also improves your cash flow and assists your business with long-term financial planning.

SMS Text Payment Requests

SMS payments (sometimes referred to as text to pay) allow businesses to request payments and for customers to pay for goods, services, or products via a text message sent from a mobile phone. With the SMS payment system, purchasers send a text message to pay for an item or service.

With a 95% open rate over email invoicing, sending customers SMS text payment requests minimize your turnaround time of getting paid and optimize the opportunity for your customers to pay using digital payment options directly from their smartphone.

Related Article: What is Text To Pay And How Can You Leverage It For Your Business

Contactless Payment Options

Industry data shows that global contactless card purchases are forecasted to hit over $10 trillion by 2027. 

This payment method is clearly here to stay, so if you currently don’t accept contactless payments, now is the time to upgrade your system. 

Offering contactless payment methods provides safe and efficient payment options for your customers. Outside of mobile payment solutions, there are various types of contactless payments, including touch-to-pay credit and debit cards, Apple Pay, Android Pay, Google Pay, Fitbit Pay that can be used via smartphone or smartwatch, as well as other contact-free devices.

Virtual Terminal

A Virtual Terminal is a web-based payment application that assists your business with sending invoices, scheduling future & recurring payments, and it securely saves payment information for customers with recurring charges. Fit for businesses that primarily operate over the phone, require online invoicing, or have recurring monthly memberships, virtual terminals incorporate your entire payment experience into one easy-to-use platform.

Built into your integrated payment platform a virtual terminal allows your business to accept a variety of online payment types including debit, credit, and ACH bank payments all from your dashboard.

Peer-to-peer (P2P) Payments

Peer-to-peer (P2P) payments refer to the transfer of funds between individuals or entities without the involvement of traditional financial intermediaries such as banks. These transactions are typically facilitated through digital platforms or mobile applications (like Zelle and Venmo) which connect users directly to initiate the transfer.

P2P payments offer a convenient and efficient way to send and receive money, eliminating the need for physical cash or checks. They are often used for various purposes, such as splitting bills, repaying friends or family, or making purchases from individuals or small businesses.

eCommerce Shopping Cart

eCommerce refers to internet-based stores selling goods and or services to customers. This online shopping network allows people to do business without the constraint of distance and time.

Simply put, once a customer has added items or services to their online shopping cart, they can go directly to the checkout page. There, they can pay with a credit or debit card, processing their payment digitally. This process allows your customers to complete their entire purchase without ever having to leave the business’s website.

Payment Gateway Plug-Ins

A payment gateway plug-in authorizes credit cards or direct payment processing for e-businesses, online retailers, or traditional brick-and-mortar stores with an online presence. Adding a payment gateway plug-in to your business website allows you to seamlessly process payments directly from your web store.

Adding a payment gateway plug-in is an ideal solution for businesses interested in selling goods and services online via an eCommerce store. Doing so makes purchasing quick and easy for customers and expands your client reach, expanding your business’s ability to generate revenue exceeding your local area.

How Can Stax Help Your Business With Accepting Payments Online?

Online payment solutions are crucial to modern business. Without them, you are unable to accept payment methods that are becoming an industry standard.

While card-not-present rates tend to be higher, with Stax you save more on the costs. Not only will your business have access to the wholesale card-not-present rates, but you’ll also gain access to the Stax Platform. This helps your business easily streamline payments, increasing flexibility in how you receive payments between in-store and online.

Whether it’s invoicing, recurring billing, pay by phone, contactless payments, or being able to receive payments through your website, Stax offers multiple online payment options that can help your business succeed.

10 Ways Businesses Are Accepting Payments Online

How to Accept Payments Online: 3 Simple Steps

Every business operating in this current day and age—whether brick-and-mortar or eCommerce—must do so in an efficient and effective manner. A core component of this new era is the speed and convenience of payments. Further, it is crucial for small business owners to be able to accept payments online.

Not only is it a requirement for being up to date with the latest payment processing technology, but it is also a matter of meeting customers’ demands and fulfilling their expectations.

That is why the total transaction value of digital payments in 2023 is projected to reach a whopping $9.46 trillion. With more and more integrated payment platform solutions coming to the forefront, this figure is likely to grow at an exponential pace.

If you have just started your business or want to set up virtual terminals for credit card processing for an older entity, the process may seem a bit daunting. But even if it sounds stressful, it isn’t impossible to understand.

If you use the right kind of merchant services, you can begin to collect payments online in no time. Here’s how you can collect online payments and run your online store.

Step 1: Find an Integrated Payment Solution

To start taking payments online without any hassles, your best bet is to turn towards an integrated payment platform as your payment service provider. This will give you the ability to process and automatically sync major credit cards (e.g. Mastercard, Visa, Discover, American Express), debit cards, automatic clearing house bank transfers of ACH payments, and e-check transactions.

Thankfully, specialized entities provide these integrated payment platform solutions and make the process simple.

Built with scalability in mind, these virtual terminals for payment card processing can help you with accepting credit card payments online in no time using an easy-to-use payment gateway. But they do not stop there. Depending on the kind of payment technology you select, you can also accept an array of other digital payments.

These include but are not limited to digital wallets (like PayPal, Venmo, Apple Pay, Google Pay, etc.), recurring billing, email invoicing, text2Pay, and bank account payments.

If you select an integrated payment method, you can also set up your point of sale (POS) terminal at your brick-and-mortar store with it. This way, you can see all your revenues and incoming credit card transactions in one place.

With Stax, you can offer a variety of payment options to your customers including credit and debit card payments, mobile payments, ACH transfers, eChecks, and contactless payments. You can even create customizable, professional invoices for your customers or send them a checkout link via text or email to get paid faster.

Step 2: Making Payment Provider Comparisons

You may have seen it firsthand.

It’s common (and widely expected) for your customers to shop around for details at other payment service providers before going with what you have to offer.

Similarly, you need to make proper comparisons between integrated payment platform services before selecting one for your online business.

Here, you will need to keep some key factors in mind. These aspects include but are not limited to:

  • Functionality. Check what kind of features and integrations the solution offers. Does it help you keep your customers’ information safe by ensuring PCI compliance? Does it allow you to integrate your most commonly used business apps with its APIs?
  • Ease of use. Evaluate how easy it is going to be for your employees to learn and use the solution.
  • Variability. Check if the payment service provider is only offering virtual terminals for payment card processing or if you can accept multiple payment methods.
  • Cost. Compare processing fees and costs between other payment service providers to make sure you are paying competitive prices. While there’s no way to accept online payments for free (because of the non-negotiable interchange fees set by card networks), look for a merchant account provider that doesn’t charge a host of additional fees or markups. Typically, they would pass on the costs of interchange and their markup in the form of monthly fees or transaction fees. As such, providers like Stax which offer membership-based pricing with no hidden fees or markups, are the most cost-effective for growing businesses.
  • Customer support. Evaluate the level of customer support offered by each provider to ensure that you receive prompt assistance when needed. Look for providers that offer 24/7 customer support through multiple channels such as phone, email, or live chat. Read reviews and testimonials from existing customers to get an idea of their satisfaction with the provider’s support services.

Step 3: Setting Up Your Payment Solution

Now that you have made your decision about which online payment service provider to go with, it’s time to set it all up.

Some integrated payment platform providers make the onboarding process as smooth as possible. Make sure that you choose a solution that not only provides you with an easy setup but also goes on to offer long-term ease of use.

As a general rule, always keep in touch with the payment service provider while setting up payment gateways or virtual terminals for payment card processing. This allows you to ask questions and get relevant answers during and after the setup phase to avoid any potential issues.

The Bottom Line

At Stax, we make it quick and easy for businesses to accept credit cards in-person, online, and on the go. Through our best-in-class, integrated solutions, Stax gives your business the ability to accept payments anytime, anywhere across Apple or Android applications.

Our smart all-in-one platform is perfect for businesses that need online payment services or take payments over the phone. With simple invoicing, recurring charges, and online bill pay, you’ll get paid faster with Stax.

If you are currently in the process of finding an online payment processing software, reach out to Stax today. Our Payment Consultants will be glad to answer any questions you may have and help you find a solution that’s a perfect fit for you.

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FAQs about Accepting Online Payments

Q: What are some ways businesses can accept payments online?

Businesses can accept online payments through various methods such as credit and debit cards, mobile payment processing, eChecks, email invoicing, recurring billing, SMS text payment requests, contactless payment options, virtual terminals, peer-to-peer (P2P) payments, eCommerce shopping carts, and payment gateway plug-ins.

Q: Why are online payments important for businesses?

Online payments are crucial for modern businesses as they facilitate transactions without the constraints of time and distance. They also provide faster payment processing, thereby improving cash flow. In an increasingly digital world, not accepting online payment methods may limit a business’s customer base and revenue prospects.

Q: Can businesses accept payments via mobile devices?

Yes, with the advancing technology, businesses can now accept payments via mobile devices. This method is convenient, fast, and secure, allowing customers to pay from anywhere, anytime.

Q: What are eChecks and how do they work?

eChecks are a form of online payment where money is withdrawn electronically from the payer’s checking account and deposited into the payee’s account via an electronic funds transfer (EFT). eChecks are popular for processing recurring payments and typically clear within 3 to 5 business days.

Q: What is Email invoicing?

Email invoicing is the digital exchange of invoice documents between a business and a customer. It enables businesses to send out payment requests to their customers online. Customers can then open the invoice via email, enter their desired payment information, and make instant payments.

Q: How does SMS Text Payment Requests work?

SMS payments allow businesses to request payments via a text message sent from a mobile phone. With a high open rate, SMS payment requests offer a quick turnaround time for receiving payments and allow customers to use digital payment options directly from their smartphones.

Q: What are contactless payment options?

Contactless payment methods allow customers to make payments without physically touching payment hardware. These methods include touch-to-pay credit and debit cards, Apple Pay, Android Pay, Google Pay, and Fitbit Pay. They can be used via a smartphone, smartwatch, or other contact-free devices.

Q: How can Peer-to-peer (P2P) Payments benefit businesses?

Peer-to-peer (P2P) payments allow the transfer of funds between individuals or entities without the need for traditional financial intermediaries. They offer a convenient and efficient way to send and receive funds, eliminating the need for physical cash or checks.

Q: What is an eCommerce shopping cart in the context of online payments?

An eCommerce shopping cart is a software application that allows customers to select and store items for purchase while browsing an online store. Upon checkout, customers can pay for these items using their desired online payment method.

Q: What is a Payment Gateway Plug-In?

A payment gateway plug-in authorizes credit cards or direct payment processing for e-businesses and online retailers. This plug-in allows businesses to seamlessly process payments directly from their e-commerce store.

Q: How can businesses set up an online payment solution?

Businesses need to select an integrated payment platform that can process major credit cards, debit cards, ACH payments, and e-check transactions. Comparison of different providers, considering functionality, ease of use, payment methods supported, cost, and customer support is crucial in making an informed decision. After selecting the provider, businesses can set up the solution with the help of customer support from the provider.

 

Best Website Builder for Small Business

There’s no new news in saying that every small business needs an online presence. Whether you’re a coffee shop, retail boutique, or professional services—a website is crucial for your business. It’s not just a digital placeholder; it’s a dynamic tool that can unlock doors to growth, credibility, and a wider customer base.

Yet, 1 in 3 small businesses still don’t have a website or even a landing page. Of those, 20% rely on social media. But it shouldn’t be a case of one vs. the other.

At its most basic, a website is a place to create the brand narrative, tell your business story clearly, and give you an online brand presence. Step it up a notch, and it is a sales machine, fully kitted out with SEO tools and eCommerce features to drive online sales and nurture new site visitors into long-term customers. It also requires much less upkeep than a social profile.

Building a website has gone from a thousand-dollar outsourced web design project to a tiny web hosting fee, sometimes even a free, do-it-yourself (DIY) task.

Let’s examine the features, functionalities, and suitability of today’s website builders and what they bring to the table for small businesses in various industries.

TL;DR

  • No matter the industry, every small business needs a website.
  • Website builders allow freelancers, entrepreneurs, bloggers, and businesses to create websites without the need for advanced technical skills or coding knowledge.
  • The current range of website builders on the market caters to every possible business need, from simple free solutions to feature-rich business and eCommerce site builders. 

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What is a Website Builder?

A website builder is a software tool or online platform that allows freelancers, entrepreneurs, bloggers, and businesses to create websites without the need for advanced technical skills or coding knowledge. It simplifies the process of designing, building, and launching a website by offering a user-friendly interface and pre-designed templates.

Not that long ago, these simple drag-and-drop business website builders were primarily used by bloggers and small businesses. Today, they’ve become so feature-rich and effective that they’re the go-to, even for top-tier enterprise organizations. 

Criteria for Choosing a Website Builder

Not all website builders are equal. Small business owners need to consider a range of factors that will determine which aligns with the specific needs and goals of the business. These factors are:

Ease of use

A top factor is how user-friendly the website builder’s interface is. It should facilitate intuitive navigation, drag-and-drop functionality, and straightforward editing options. A steep learning curve can be a deterrent, especially for beginners.

Ease of use is extremely important. Unless you have a technical background, your expertise as a small business owner lies in creating products, serving customers, or running your company. As such, your website builder must empower you to focus on your strengths, rather than having to worry about the techie bits.

Pricing

Website builders often offer tiered pricing plans, each with varying features and capabilities. Owners should consider the budget and the features required. Some builders offer free plans with limited features, while others provide premium plans with more advanced tools. Pricing should be evaluated in terms of long-term sustainability and value. Also, check for setup fees, free trials, and money-back guarantees.

Customization options

The level of customization provided by your web solution can significantly impact the uniqueness and functionality of the website. Opt for website builders that allow for extensive personalization of templates that enable you to align the site with your brand’s identity. The ability to tweak layouts, fonts, colors, etc., is crucial for achieving a tailored look.

Integration with business tools

For businesses, seamless integration with essential apps or software is vital. These tools should include integrations with social media platforms, eCommerce platforms, payment gateways, email marketing services, customer relationship management (CRM) software, and other tools to operate efficiently.

SEO features

A good website builder should offer built-in SEO tools, including the ability to add meta tags, customize URLs, and optimize images for faster loading times. Some builders also provide guidance on creating search engine-friendly content.

Customer support

While website builders make it easy to launch a website, it can still be complicated for site-building newbies to navigate these new platforms. Responsive customer support is essential to round out the overall site building ease. 

In addition to multiple support channels, such as live chat, email, and phone support, a documentation and resource hub is a huge plus. Tutorials and FAQs give businesses the information they need to keep the website-building process beginner friendly.

Scalability

A website is the long-term face of the business. As such, it should be built with long-term potential in mind. Owners need to consider if it will accommodate the business’s needs as it grows. That means adding more pages, products, and functionalities overtime. 

To that end, be sure to compare site builders on the features you need today and in the future. 

Pro tip: those with add-ons and different plan options will have the most flexibility to grow and change with your organization.

Templates and designs

Some web builders have more website templates and design options than others. You should investigate which builders have templates and website designs that reflect the visual aesthetic of your business. The right template can save time and effort in the initial setup, reducing the need for customization, which may not be in the wheelhouse of every owner.

Top 10 Small Business Website Builders

Now that we’ve covered the basics of website builders, let’s look at some of the top solutions you can consider:

Wix

Wix is a versatile website builder known for its drag-and-drop interface and a wide range of customizable templates.

  • Features: Extensive app market, eCommerce capabilities, SEO tools, blogging features, mobile responsiveness.
  • Pros: User-friendly interface, robust customization options, great for various types of websites.
  • Cons: Design limitations with advanced customization, switching templates can be challenging.
  • Pricing: Offers a Light plan for $16/month with premium plans ranging from $27-32/month.

Squarespace

Squarespace offers elegant templates and is ideal for businesses that prioritize aesthetics.

  • Features: Beautiful templates, eCommerce functionality, blogging capabilities, and built-in SEO features.
  • Pros: Stylish designs, all-in-one platform, high-quality visuals.
  • Cons: Learning curve for beginners, limited third-party integrations.
  • Pricing: Plans start at $16/month, with eCommerce plans ranging from $27 and $49/month.

Shopify

Shopify is the go-to website builder for eCommerce-only sites, providing tools to create online stores.

  • Features: Extensive eCommerce tools, inventory management, secure checkout, app and app store integrations.
  • Pros: Dedicated to eCommerce, excellent sales features, scalability.
  • Cons: Transaction fees on lower-tier plans can be expensive for small businesses.
  • Pricing: Basic plan starts at $39/month, going up to $105/month for small businesses.

Square Online (Formerly Weebly)

Square Online is known for its simplicity and beginner-friendly features.

  • Features: Drag-and-drop interface, eCommerce functionality, blogging tools, app center.
  • Pros: Easy to use, suitable for beginners, affordable plans.
  • Cons: Limited advanced features compared to other builders, fewer templates.
  • Pricing: Plans start free and go up to $79/month for the Premium plan.

WordPress.com

WordPress.com is a hosted version of the popular WordPress.org content management system.

  • Features: Customizable templates, blogging features, plugin options, and eCommerce capability.
  • Pros: Offers more flexibility and control than other website builders and has a vast plugin ecosystem.
  • Cons: Learning curve for beginners, can require some technical know-how.
  • Pricing: Plans range from free to $5/month for a personal site and up to $59/month for eCommerce sites.

GoDaddy Website Builder

GoDaddy offers an easy-to-use website builder with hosting services.

  • Features: Drag-and-drop editor, eCommerce functionality, built-in marketing tools, SSL certificate.
  • Pros: Simple setup, good for beginners, integration with GoDaddy’s domain name and hosting services.
  • Cons: Limited design flexibility, fewer advanced features compared to other builders.
  • Pricing: Basic plan starts at $18.95/month, eCommerce plans go up to $39.95/month.

Zyro

Zyro focuses on easy website creation for those who want a simple website.

  • Features: Intuitive drag-and-drop editing, versatile templates, AI-generated content, eCommerce tools, logo design, SEO basics, blog management, image galleries.
  • Pros: User-friendly interface, AI assistance, affordable plans, eCommerce tools, logo maker.
  • Cons: Limited customization, not suitable for complex projects.
  • Pricing: $3.99/month Website plan and $6.89/month for the Business plan.

BigCommerce

BigCommerce is another robust eCommerce platform offering advanced features for online stores.

  • Features: Powerful eCommerce tools, SEO features, multichannel selling, secure checkout.
  • Pros: Geared towards larger eCommerce businesses, extensive feature set, scalability.
  • Cons: Learning curve for beginners, higher pricing compared to some other builders.
  • Pricing: Plans start at $29.95/month for the Standard Plan, including one website, with higher-tier plans available, such as the Plus Plan, for $79/month, including marketing solutions.

Gator Website Builder

HostGator’s Gator Website Builder caters to individuals and small businesses seeking a straightforward online presence.

  • Features: User-friendly drag-and-drop editor, diverse customizable templates, eCommerce capabilities, mobile optimization, blog management, basic SEO tools.
  • Pros: Beginner-friendly interface, affordability, eCommerce integration, mobile optimization, responsive customer support.
  • Cons: Limited customization for intricate designs, might not suit complex project requirements.
  • Pricing: Gator has an introductory plan of $4.95/month for a single website and then has plans going up to include marketing ($7.95/month) and online stores ($13.95/month).

Volusion

Volusion is a comprehensive eCommerce website builder tailored to businesses seeking robust online stores.

  • Features: Extensive eCommerce tools, customizable templates, product management, secure checkout, payment gateways, SEO features, inventory tracking.
  • Pros: Dedicated to eCommerce, advanced features for online stores, secure payment options, built-in SEO tools.
  • Cons: Might have a steeper learning curve, focused primarily on eCommerce, pricing can be higher for smaller businesses.
  • Pricing: Plans start at $35/month for the Personal Plan and go up to $79/month for the Professional Plan and $209/month for the Business Plan. 

Best Free Website Builder

Most website builders have a free version which will often have limited features but are excellent for those making their own website rather than having great business requirements.

Platform Custom Domain Storage & Bandwidth Templates eCommerce Third-Party Apps
Wix Paid Domain 500 MB 800+ Limited Available
Squarespace Paid Domain Unlimited Storage 100+ Limited Limited
Shopify Paid Domain Unlimited Storage 70+ Full Extensive
Square Online Free Domain Unlimited Storage Customizable Full Limited
WordPress Paid Domain 3 GB Limited Limited Limited
GoDaddy Paid Domain Unlimited Storage 300+ Limited Limited
Zyro Free Domain 500 MB 70+ Limited Limited
BigCommerce Paid Domain Unlimited Storage 100+ Full Limited
Gator Website Builder Paid Domain Unlimited Storage Diverse Full Available
Volusion Paid Domain Unlimited Storage 11+ Full Available

 

Most Customizable Website Builder

CSS and HTML-free high customization capabilities often come with pro plans giving businesses greater access to other features like Wix’s Artificial Design Intelligence (ADI) or PayPal and credit card integrations.

Platform Drag-and-Drop Code Customization Design Flexibility Third-Party Integrations
Wix Yes Yes Yes Available
Squarespace Yes Yes Yes Limited
Shopify Limited Limited Limited Extensive
Square Online Yes Limited Limited Limited
WordPress Limited Yes Yes Limited
GoDaddy Yes Limited Limited Limited
Zyro Yes Limited Yes Limited
BigCommerce Limited Yes Yes Limited
Gator Website Builder Yes Yes Limited Available
Volusion Limited Limited Limited Available

 

Best eCommerce Website Builder

eCommerce sites have the most complex and demanding needs of all website types. Setting up the eCommerce store and shopping cart needs to be seamless and full of features.

Platform Product Management Payment Gateways Checkout Options Inventory Tracking
Wix Limited Limited  Limited Limited
Squarespace Limited Limited  Limited Limited
Shopify Full Extensive  Extensive Full
Square Online Full Limited Limited Full
WordPress Limited Limited Limited Limited
GoDaddy Limited Limited Limited Limited
Zyro Limited Limited Limited Limited
BigCommerce Full Extensive Full Full
Gator Website Builder Limited Limited Limited Limited
Volusion Full Extensive Full Full

 

Best Business Plan

Unlike free or personal plans, merchants looking to drive business through their website will need a paid plan of some sort that gets them the best insights and tools to get attention online. Google Analytics and page ranking insights should come as a standard.

Platform Business Templates SEO Tools Analytics Customer Support CRM Integration
Wix Yes Yes Yes Email/Phone Limited
Squarespace Yes Yes Yes Email/Phone Limited
Shopify Limited Yes Yes 24/7 support Yes
Square Online Yes Limited Limited Email/Phone Limited
WordPress Limited Yes Yes Email/Chat Limited
GoDaddy Yes Yes Yes Email/Phone Limited
Zyro Yes Yes Yes Email/Chat Limited
BigCommerce Limited Yes Yes Phone/Chat Yes
Gator Website Builder Yes Yes Yes Email/Chat Limited
Volusion Yes Yes Yes 24/7 Support Yes

Tips for Building a Successful Business Website

Website builders have come a long way in terms of user-friendliness, functionality, and features. That being said, creating your site still requires careful planning and attention to detail. These are the keys to building a successful business website:

Select the right template

The website template is the face of the business. So, take some time to view and compare different website templates, styles, and layouts. The right one must align with your business identity and goals. Look for a template that suits your industry, style, and desired functionality.

Publish relevant content

Clear and concise content conveys your message and value proposition. Your content should state what products or services are offered and how they solve your customers’ problems. Make it a point to use language that resonates with the target audience.

Use high-quality images

Visuals play a crucial role in capturing visitors’ attention, and high-quality images help you do just that. Striking imagery helps in showcasing your products, services, or team in the best light. Professional photos also establish credibility and create a positive first impression.

Use effective call-to-action (CTA) buttons

Strategically place call-to-action buttons throughout your website to guide visitors toward desired actions, such as making a purchase, signing up for a newsletter, or requesting a quote. Make CTAs visually distinct and use compelling language.

Don’t forget about mobile optimization

All website builders will be mobile responsive, meaning that the site will automatically alter the layout slightly to fit the screen on whatever device the viewer is on. However, not all designs look good on all device layouts. It’s important that you check what the site looks like on all devices before putting it out online.

Implement consistent branding

Attention to detail, like maintaining consistent branding elements such as colors, fonts, and logos throughout the website, goes a long way in building a strong, professional reputation. This branding should also be consistent elsewhere online, such as on social media.

Conclusion

No matter the industry, every small business needs a website. Free options like Square Online and WordPress are excellent free options for freelancers or small businesses with minimal needs. But the possibilities are really endless. Website builders like Shopify and BigCommerce power the eCommerce industry, and builders like Volusion offer businesses the insights to go further.

At the end of the day, remember that it’s not just about the tools. It’s also how they align with your business goals, branding, and user experience. A strong idea of your business needs and branding aesthetics will make it easy for you to identify the best solution.

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FAQs about Website Builder

Q: What does a website bring to a small business?

A website brings growth, credibility, and a wider customer base to a small business. It’s also a crucial tool for creating brand narratives, driving online sales, and maintaining a low-maintenance digital profile.

Q: How does a website builder work?

A website builder is a software tool or online platform that simplifies the process of designing, building, and launching a website. It often provides user-friendly interfaces and pre-designed templates, thereby eliminating the need for advanced technical skills or coding knowledge.

Q: What should a small business consider when choosing a website builder?

Businesses should consider ease of use, pricing, customization options, integration with business tools, SEO features, customer support, and scalability before choosing a website builder.

Q: What are the top 10 small business website builders?

Some top small business website builders are Wix, Squarespace, Shopify, Square Online, WordPress.com, GoDaddy Website Builder, Zyro, BigCommerce, Gator Website Builder, and Volusion.

Q: Which website builders offer free plans?

Wix, Squarespace, Shopify, Square Online, WordPress.com, GoDaddy, Zyro, BigCommerce, Gator Website Builder, and Volusion all offer free versions of their websites, often limited in functionalities.

Q: Which website builders are the most customizable?

Website builders like Wix, Squarespace, WordPress.com, Zyro, and Gator Website Builder are highly customizable with drag-and-drop functionalities and code customization options.

Q: Which website builders are the best for eCommerce?

Shopify, Square Online, BigCommerce, and Volusion are widely regarded for their extensive eCommerce tools, from product management and secure payment gateways to inventory tracking.

Q: What tips should businesses consider while building a website?

Businesses should select the right template, publish relevant content, use high-quality images, place effective call-to-action buttons strategically, implement consistent branding, and ensure mobile optimization for a successful business website.

Q: What are some of the best website builders for small businesses according to industry experts and users?

According to various sources, Wix, Squarespace, Shopify, and GoDaddy are among the top rated website builders for small businesses due to their ease of use, diverse functionalities, and affordable pricing plans.

Q: How do website builders support SEO for small businesses?

Many website builders offer built-in SEO tools. Features might include the ability to add meta tags, customize URLs, optimize images for faster loading times, and guidance on creating search engine-friendly content.

 

Understanding Fee Statements: Everything Business Owners Need to Know

Knowledge is power when it comes to winning in business (and life). This is especially true in the realm of fees, fee statements, and payments. 

Virtually all merchants today must accept credit cards and other non-cash modes of payment. And as you know, processing these transactions isn’t free; that’s why you need to understand the fees you’re being charged and ensure you’re not paying more than you should. 

The first step to doing that is understanding the fee statement. Sometimes referred to as a merchant account statement, your fee statement is a detailed record of all transactions processed, associated fees, and other account-related activities over a specific period.

In this article, we’ll help you decode your fee statement, so you can run the numbers and identify areas of potential savings. 

TL;DR

  • A fee statement, also known as a merchant account statement, details all the transactions a business processed, the associated fees, and account-related activities over a specific period. 
  • Not all fee statements look the same. The exact information that’ll be included in your fee statement will depend on your payment processor’s pricing structure.
  • Don’t just take your fee statement’s information at face value. Cross-check the data with your own records and sales reports. This step helps ensure accuracy, uncover potential errors, and confirm you’re not charged for transactions you didn’t process.

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What is a Fee Statement?

A fee statement, also known as a merchant account statement, is a document provided by your merchant services provider, typically every month. It outlines all the transactions that your business has processed during the statement period, including credit and debit card sales and refunds. 

What Information Can Be Found in the Fee Statement?

The merchant fee statement should detail your account activity, as well as the transactions and fee information for the month. Here’s a breakdown of the key information you can expect when you view your statement.

Fee overview

This section is usually found at the top of the statement, and it shows the total fees you’ve been charged. If you want a quick look at the amount due, you should look here. 

Summary of account activity

Some statements may also provide a quick summary of your account activity for the month. This usually includes the total number of transactions, sales volume, refunds, chargebacks, etc. 

Detailed list of transactions

Your statement will also go into deeper detail about your account activity. This typically means listing each individual transaction processed during the statement period.

Fees charged

In addition to listing the merchant’s transactions, the fee statement also details the fees associated with these transactions, including:

  • transaction fees (interchange, assessments, and markup)
  • monthly service fee
  • terminal fees
  • payment gateway fees
  • early termination fees
  • other incidentals like chargeback fees
  • retrieval fees
  • paper statement fee
  • account fees
  • monthly fees

It’s important to note that not all fee statements look the same. The exact information that’ll be included in your fee statement will depend on your payment processor’s pricing structure. 

For instance, if you’re working with a provider that uses interchange plus pricing, then your statement will likely have a breakdown of interchange fees and the markup of your merchant services provider. 

On the other hand, if you’re using a provider like Stax, which doesn’t charge markups and instead uses a membership-based structure, then your fee statement won’t have those markup costs. 

Example of a Fee Statement

To give you a better idea of what a fee statement can look like, here’s an example of the merchant statement we have at Stax. 

Let’s break down the different components of their merchant account statement. 

  • The amount in the “Total” section represents the merchant’s gross funds, less any refunds and surcharge fees. 
  • The amount in the “Total Fees” section lists the fees the merchant incurred for non-surcharged transactions. 
  • Processing fees are paid for non-surcharged transactions. 
  • The Surcharge column shows the surcharges customers paid, categorized based on the card brand. 

Again, your statement will likely look different, depending on your processors and the payment methods you accept. Hopefully, though, this example gives you a solid foundation for understanding the core components of most fee statements.

How to Access the Fee Statement

Like most financial statements, your fee statement can be sent via mail, or you can opt to go paperless and have the documents emailed to you. Modern payment processors usually have a merchant portal where you can log in and access your monthly statements. 

Note that most paperless options require an enrollment process. As such, if you prefer to go digital and have the documents available online, ask your provider about their capabilities. 

How to Review Your Merchant Fee Statement

Now that we’ve covered the basic anatomy of merchant fee statements, let’s look at the steps you can take to review yours effectively. 

Understand your statement

The best way to make sense of your statements is to understand the basics—i.e., what the different terms mean, the different types of fees, and how they apply to your business operations.

The good news is that if you’ve made it this far, you’re well on your way to understanding your fee statements. 

Set aside time to review these documents

Just like with any important task, scheduling an activity increases the likelihood of it getting done. If you really want to dig into your statements, put some time into your calendar to review them.

Familiarize yourself with your statement fee schedule so you know when it’s coming. Then, block out an hour or so to go through it. This structured approach ensures you won’t overlook or rush this financial task.

Verify the information

Don’t just take any information at face value. Cross-check your fee statement data with your own records and sales reports. This step helps you ensure accuracy, uncover potential errors, and confirm you’re not being charged for transactions that shouldn’t have incurred fees.

Pro tip: Most POS systems offer sales and transaction reports that can help you verify the information on your fee statement. Plus, if you’re using integrated payments, generating payment reports that directly correspond with your merchant account activities is relatively easy. Leveraging these tools can simplify the verification process so you can spend less time drilling down on the numbers. 

Compare the information with previous periods

Compare your current statement with the ones you’ve received in the past. This will allow you to spot trends, identify inconsistencies, and monitor changes in your payment processing costs over time. 

Compare different providers

If you switched providers, it’s also helpful to compare the statements of different payment processors. Which vendor is more transparent? Which one offers better rates? The best way to get answers is to compare and contrast the different statements. 

Get in touch with your payment processor if needed

See anything amiss on your fee statement? Get in touch with your provider and bring up discrepancies, errors, or parts that aren’t clear. In addition to rectifying any mistakes, having these conversations will help you better navigate the complexities of payment processing. 

Bringing it all together

Understanding your merchant fee statement isn’t just about digging into financial documents; it’s about gaining better control of your business’ financial health. Knowing exactly what each line and amount means puts you in a better position to negotiate fees, save money, and run a stronger business overall. 

And if you need a merchant services partner that offers powerful payment solutions, transparent fees, and top-notch customer support—check out Stax Payments. 

Unlike other payment processors, Stax doesn’t take a cut out of your revenue. Our membership model gives you access to wholesale processing fees, which translates to hundreds (if not thousands) of dollars worth of savings per month. Plus, we don’t charge any additional costs, so there are no surprises when your statement arrives. 

Stax also offers a fully compliant credit card surcharging program, which allows you to pass the processing fees directly to the customer, further minimizing your costs.

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FAQs about Fee Statement

Q: What is a fee statement?

A fee statement, also termed a merchant account statement, is a document provided by your merchant services provider, typically every month. It details all the transactions a business has processed, including credit and debit cards sales and refunds, during the statement period.

Q: What information is included in the fee statement?

The merchant fee statement should contain details of your account activity, the transactions and fee information for the month. It generally includes a summary of account activity, a detailed list of transactions, and fees charged related to these transactions.

Q: Does the fee statement structure vary with payment processors?

Yes, not all fee statements look the same. The exact information in your fee statement is reliant on your payment processor’s pricing structure. For instance, certain processors might include a breakdown of interchange fees and their markup, while others might omit markup costs altogether.

Q: How can I access the fee statement?

Fee statements can be sent via mail, or you can switch to paperless versions and have them emailed to you. Many modern payment processors typically have a merchant portal where you can log in and access your monthly statements.

Q: How to effectively review your merchant fee statement?

Initially, you need to understand your statement completely. Cross-check the fee statement data with your records and sales reports to verify the information’s accuracy. It’s good practice to compare your current statement with those from previous periods to spot trends and changes in payment processing costs.

Q: Can the fee statement help me save costs?

Yes. Understanding the fee statement helps you spot potential areas of savings and negotiate fees. Verifying your statement details ensures you’re not being charged for transactions that haven’t incurred fees, thereby saving money.

Q: What if there are discrepancies in my fee statement?

If you identify any discrepancies or errors in your fee statement, get in touch with your provider immediately. They will rectify any mistakes and clarify any information that isn’t clear.

Q: What is credit card surcharging?

Credit card surcharging is a program where you pass on the processing fees directly to the customer, thereby decreasing your costs. This program would be represented in your fee statement.

Q: What is Stax’s pricing approach?

Stax operates on a membership model providing access to wholesale processing fees. This could result in significant savings per month. Stax also offers a fully compliant credit card surcharging program allowing customers to bear the processing fees.

Q: Can my POS system assist in verifying my fee statement?

Absolutely, most POS systems offer sales and transaction reports that can aid in verifying the information on your fee statement. This reduces time spent deep diving into the numbers and simplifies the verification process.

 

The Top 10 Best Online Shopping Carts for Merchants (and How to Choose the Right One)

What separates a regular website from an online store? The humble online shopping cart.

This functionality allows customers to select and store items before heading to the checkout and committing to a purchase. If brands want to offer their customers a seamless shopping experience, the shopping cart is a key touchpoint to build trust and confidence.

Shopping cart software comes in a variety of shapes and sizes, from full-fledged customer loyalty management solutions to basic plugins. The right shopping cart for your needs will depend on a range of factors, from transaction volume to preferred payment methods. We’ve rounded up the top 10 online shopping cart systems to help you find the perfect solution for your business.

TL;DR

  • The online shopping cart is a crucial feature for eCommerce stores, allowing customers to select and store items before making a purchase.
  • Selecting the right shopping cart depends on factors like transaction volume, preferred payment methods, and additional features needed.
  • By choosing the perfect shopping cart solution, your business can lower cart abandonment, increase customer satisfaction, and gain greater insight into consumer behavior and preferences.

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Why You Need a Quality Online Shopping Cart

Increased efficiency and time savings

Today’s eCommerce shoppers have high expectations for a streamlined online shopping experience. Whether it’s an impulse buy or a high-ticket purchase, consumers expect to navigate the checkout process with ease. According to Baymard Institute, nearly a fifth (17%) of online shoppers abandon their cart due to a long or complex checkout experience.

High-quality shopping cart software helps to streamline the shopping experience and enables customers to complete purchases with minimal effort. Shoppers can add products to their cart with a single click, apply promotional codes, and set up an account quickly. In turn, this minimizes shopping cart abandonment rates and improve conversion rates.

Improved customer experience

If shoppers don’t get a positive shopping experience, they’re unlikely to make future purchases. A well-designed shopping cart solution offers customers an intuitive, user-friendly interface that guides them through the shopping journey step by step. For example, customizable experiences enable brands to provide shoppers with personalized product recommendations, creating an engaging experience that increases the likelihood of repeat purchases.

Increased sales and revenue

It’s a well-known fact that the majority of online shopping journeys are abandoned before a purchase takes place, causing business owners to miss out on valuable sales.

An eCommerce shopping cart is your best tool to boost order volume by providing you with a valuable set of marketing tools. This includes abandoned cart reminders, personalized promotions, and in-depth reporting to gain insight into customer behavior.

Top 10 Best Online Shopping Carts for Merchants

1. Shopify

One of the most popular eCommerce platforms globally, Shopify has become to go-to option for small and large businesses alike to set up an online store. With a wide range of templates and integration available, Shopify makes it easy for brands to hit the ground running.

Best suited for: Businesses who want to stay within the Shopify system for eCommerce management.

Features

  • Level 1 PCI compliance and 256-bit SSL certificates
  • Responsive checkout design
  • Tax calculations for different states/countries
  • Multiple shipping options at checkout

Pricing

Basic: $39 per month

Shopify: $105 per month

Advanced: $399 per month

Pros

  • Massive thirty-party app marketplace makes it easy for brands to find plugins that address other business needs, such as digital marketing.
  • Suitable for a wide variety of eCommerce businesses.
  • Great ease of use for startups and small businesses.

Cons

  • The basic Shopify shopping cart comes with very few features.
  • Businesses will need to pay a fee to use payment gateways other than Shopify Payments, which has high credit card processing fees.
  • Additional plugins can make it hard to estimate monthly fees accurately.

2. WooCommerce

WooCommerce is a popular eCommerce platform built as a shopping cart plugin for WordPress. This enables WordPress site owners to turn their existing website into a fully functional online store. As an open-source eCommerce solution, it offers one of the most flexible shopping cart options.

Best suited for: Businesses using WordPress who want greater customization options.

Features

  • Secure payment system
  • Order management
  • Detailed documentation and knowledge center
  • Unlimited product variations
  • Real-time reporting and analytics

Pricing

Although WooCommerce is a free plugin, businesses need to have a WordPress site already set up in addition to web hosting and a registered business domain.

Pros

  • Designed to be fully compatible with WordPress systems.
  • A good selection of paid and free website themes.
  • Robust abandoned cart recovery system.

Cons

  • Businesses need to research/add other capabilities from scratch, which can be a lot of hassle for small businesses.
  • Hard to use without some developer expertise.

3. Magento

Magento is an open-source eCommerce platform for building and managing online stores. Although originally developed by Magento Inc., and later acquired by Adobe in 2018 and now forms part of the Adobe Commerce suite. Magento offers merchants a highly scalable and customizable shopping cart solution.

Best suited for: Large businesses that need enterprise-level shopping cart software.

Features

  • Guest checkout and customer account options
  • PCI DSS certified and 3D Secure transactions
  • Multi-storefront management
  • App marketplace for extensions and add-ons

Pricing

Magento Open Source: Free (with limited features)

Magento Commerce: $22,000 per year

Pros

  • Highly flexible and offers great customization.
  • Allows customers to pay in multiple currencies.
  • Strong product management tools, including product bundling and downloadable products.

Cons

  • Finding experienced Magento developers can be challenging.
  • Not cost-effective for small to medium-sized businesses.

4. BigCommerce

Like Shopify, BigCommerce is an all-in-one SaaS platform that supplies businesses with all the tools they need to set up an eCommerce site. BigCommerce offers a decent amount of customization in their shopping cart functionality, as well as an intuitive backend and a variety of payment options supported.

Best suited for: Brands looking for an affordable shopping cart that supports lots of payment methods.

Features

  • Abandoned and persistent cart tools to save cart contents across devices
  • In-depth shopping cart analytics
  • Remarketing campaign tools

Pricing

Standard plan: $39

Plus plan: $105

Pro pan: $399

Pros

  • Doesn’t charge transaction fees on any of their plans.
  • Offers a variety of one-click checkout options, including Amazon Pay and PayPal One Touch.
  • Website themes have advanced SEO features built in.

Cons

  • Payment plans are capped to a certain transaction volume.
  • No social media or email marketing tools are available via BigCommerce.
  • The app store has relatively limited options.

5. Square

Best known for its affordable POS system, Square also offers merchants a shopping cart solution via Square Online. Square Online is an all-in-one eCommerce system that is added to an existing website to manage online orders, fulfillment, and shipping.

Best suited for: Businesses who are accepting orders for home delivery and in-store pickup.

Features

  • Accepts a range of payment options, including PayPal and Apple Pay
  • Displays real-time shipping rates at checkout
  • Online tax calculator
  • Customizable checkout fields

Pricing

Free plan: $0

Plus plan: $29 per month

Premium plan: $79 per month

Pros

  • Offers a great free option for startups and small businesses.
  • The ability the configure smart tipping options for pickup, local delivery, and self-serve orders.
  • Manage online orders for multiple storefronts.

Cons

  • High transaction fees for online payments.
  • Difficulties with accessing timely customer support.

6. Wix eCommerce

Wix eCommerce is a feature within the wider Wix website builder that allows business to convert their website into an online store. Brands can simply use the Wix Editor to add the shopping cart widget to their website and then customize according to their needs.

Best suited for: Wix users who need to quick solution to start selling online.

Features

  • Selling via social media channels
  • Customize the look and feel of your checkout
  • Abandoned cart recovery tools
  • Set shipping costs, coupon codes, and tax calculations at the checkout

Pricing

Business Basic: $17 per month

Business Unlimited: $26 per month

Business VIP: $35 per month

Pros

  • Very easy to add and configure to an existing Wix site.
  • Responsive mobile design.
  • Subscription billing available for all business plans.

Cons

  • Third-party apps or plugins outside of Wix cannot be added to your website.
  • Limited storage space for large product catalogs.

7. 3dcart

3dcart is an all-in-one solution for building an eCommerce website and selling products online. It offers a wide range of customizable website templates, as well as product catalog management and credit card processing.

Best suited for: Established online retailers looking for scalability.

Features

  • Integrations with eBay, Amazon, Google, Facebook, and Shopzilla.
  • Live chat and phone customer support
  • Upselling/cross-selling tools
  • Return management
  • POS system for brick and mortar transactions

Pricing

Startup Store: $19 per month

Basic Store: $29 per month

Plus Store: $79 per month

Pro Store: $229 per month

Pros

  • Offers a 15-day free trial and 30-day money-back guarantee.
  • Supports a wide range of payment options, including PayPal,
    Venmo, Pay Later, Apple Pay, and Google Pay.
  • Unlimited product listings.

Cons

  • Only available to U.S.-based merchants.
  • Not designed for beginner-level eCommerce stores.

8. PrestaShop

PrestaShop is a free open-source eCommerce platform designed for both small and large businesses. It also provides an extensive marketplace where businesses can find additional themes and integrations to expand the functionality of their website.

Best suited for: Brands with in-house development expertise who want a lot of flexibility.

Features

  • Redeem coupons, promotional codes, or time-based discounts at the checkout
  • A streamlined one-page checkout option
  • Pre-installed web hosting available for purchase
  • Integrates with payment processors including PayPal, Stripe, Square, and Authorize.Net.

Pricing

Free to use, but businesses will have to pay for web hosting, customization, add-ons, and developer expertise if needed.

Pros

  • High level of customization, with over 3000 templates available.
  • No additional transaction fees.
  • Optional customer support plan is available for personalized help.

Cons

  • The free version without plugins has very limited functionality.
  • A lengthy set-up period is usually required.

9. Ecwid

Ecwid by Lightspeed is a multi-channel eCommerce solution that integrates with a variety of websites to create an online storefront. Instead of being designed for creating standalone eCommerce websites, Ecwid is focused on adding online store functionalities to an existing website.

Best suited for: New businesses who want to set up an online store quickly.

Features

  • Create shopping apps for iOS and Android
  • Oder and shipping management
  • Multilingual storefronts
  • Tax calculator
  • SEO toolkit

Pricing

Free: $0 per month

Venture: $19 per month

Business: $39 per month

Unlimited: $99 per month

Pros

  • ‘Instant Site’ tool allows brands to create a basic one-page standalone store while they are getting their business set up.
  • Integration with a number of other eCommerce platforms, including Wix and Squarespace.
  • Fully- customizable checkout API.

Cons

  • Free plan comes with very few functionalities.
  • Plans are more expensive for non-U.S. users.

10. Volusion

Volusion is one of the oldest eCommerce platforms and shopping cart solutions on the market, having been founded in 1999. It offers merchants a good mix of reporting, customization, and site management tools at an affordable price point.

Features

  • PCI Level 1 Certified and 3D-Secure payment gateway
  • Mobile app for managing your storefront
  • Centralized dashboard for sales reporting
  • Accept payments in 135+ currencies
  • Built-in CRM system

Pricing

Personal plan: $35 per month

Professional plan: $79 per month

Business plan: $299 per month

Pros

  • Premium Checkout feature option available for higher conversion rates.
  • Strong analytics/monitoring toolkit.
  • No payment gateway maintenance fees.

Cons

  • Cannot sell digital products.
  • Design interface isn’t very intuitive to use.

How to Select the Right Online Shopping Cart for Your Business

Identify your needs and objectives 

Before you commit to a particular shopping cart integration, access the demands of your eCommerce business to help you select the most appropriate option. Consider your business’s niche, the eCommerce platform you’re using, and the breadth of your product catalog.

Consider the features and functionalities you require

Many online shopping carts come with additional eCommerce solutions such as order management, payment gateways, email marketing, and SEO management. Make sure to prioritize solutions that offer these tools to avoid needing separate subscriptions later.

Check pricing plans and decide what suits your budget

Most shopping cart software will offer multiple plans at different price points, depending on what functionalities you require. However, different plans will include transaction fees or additional monthly/annual charges for add-on features. It’s important to compare options closely to find out which offers the best value for money.

Research customer reviews and ratings

Check out the reviews of other eCommerce stores within your niche/vertical that have used a certain shopping cart. This will give you insight into the pros and cons of different solutions and whether there are recurring problems concerning technical issues or reliability.

Take into consideration the compatibility with your existing system

Your shopping cart needs to be able to integrate seamlessly with your tech stack and other business tools to avoid compatibility issues. This means your current eCommerce platform or payment processing solution may dictate what shopping carts are available to your business.

Evaluate customer support and service quality

Given that your shopping cart is responsible for capturing sales, solid customer service support is essential. Be sure to look for a shopping cart solution that offers multiple support channels including phone, email, and live chat.

Consider future scalability 

The best shopping cart software is able to scale alongside your business, saving you from wasting time and resources by switching to another solution at a later date. To assess scalability, find out what transaction volumes a shopping cart is able to handle and what integrations it supports.

Your online shopping cart is an essential feature for any e-commerce business to remove friction from the shopping experience and increase sales. But to achieve this, you need to select the right shopping cart for your business needs. Key factors to consider are:

  • What additional features you may require
  • Whether there is a high volume of positive customer reviews
  • If the pricing plan is good value for your business
  • Compatibility with your current eCommerce platform

Hosted shopping carts, such as Shopify and BigCommerce, are easy to set up but can lack robust customization. Open-source options offer a fantastic sandbox, but businesses need to have the right developer expertise to take advantage of their flexibility.

By choosing the perfect shopping cart solution, your business can lower cart abandonment, increase customer satisfaction, and gain greater insight into consumer behavior and preferences.

Already have a shopping cart in mind? Integrate it with a robust payment processing platform that allows you to accept all payment types—including credit cards, mobile payments, ACH and more. 

Stax helps you do just that. We cover all your payment processing needs so you can focus on driving sales and delighting your customers. Learn more. 

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You Can Now Offer PayPal, Venmo, and Buy Now Pay Later with Stax

Staying competitive in today’s consumer landscape requires flexibility—particularly when it comes to payments. That’s why we’re thrilled to announce that Stax merchants can now add PayPal buttons on their websites, enabling them to accept PayPal, Venmo, and Pay Later payment options. 

Give your customers a choice to pay how they want, on any device. With PayPal and Stax, you can accept PayPal, Venmo, and Pay Later, as well as credit cards and debit cards—all within a seamless checkout experience designed to boost conversion. 

There are no hidden fees. No monthly commitment. And it comes with instant access to funds, fraud detection, Seller Protection on eligible purchases*, and the built-in compliance standards PayPal is known for. 

Learn More

It’s one of the most trusted global brands1, and simply offering PayPal can give you instant credibility with millions of PayPal users, worldwide. 

Paypal Stax Logos

What this means for you

Our partnership with PayPal helps you speed up the checkout process, improve the customer experience, and ultimately drive more sales. Let’s take a closer look at the benefits of offering PayPal in your business. 

Grow your sales and revenue. Having PayPal as a payment option has been proven to increase sales. Research from Nielsen, commissioned by PayPal2, found that consumers are nearly three times more likely to complete their purchase when PayPal is available at checkout. 

In addition, giving customers the option to pay over time using PayPal Pay Later can help increase order values and conversions – at no additional cost to you.  According to PayPal’s internal data, businesses with pay-over-time messaging on their site saw a 39% increase in overall cart sizes.* 

Implement faster checkout. You can speed up checkout by adding PayPal, Venmo, and Pay Later to your website, invoices, or payment links. PayPal users can pay for their purchases with just a few clicks—whether online or on their mobile device—so they’re able to complete the checkout process with as little friction as possible. 

These benefits create a smoother shopping experience, improving customer retention and ultimately increasing your bottom line. 

Paypal Checkout

Your next steps 

If you’re using Stax, take advantage of our PayPal integration today, so you can start offering PayPal, Venmo, and Pay Later to your clients and customers. 

Still looking for a payment processor? Get in touch with Stax today. Our platform enables you to accept multiple payment types—including credit and debit cards, ACH, Tex2Pay, recurring payments, and more. Plus, Stax’s membership model allows you to maximize your revenue and accept payments in the most cost-effective way possible. 

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– 

*Available on eligible purchases. Limits apply. 

1 Morning Consult – The 15 Most Trusted Brands Globally. March 2021. Morning Consult surveyed over 330,000 consumers across 10 international markets to provide a global view on the current state of consumer trust across brands. 

2 Nielsen, Commissioned by PayPal. A study to understand and measure the impact that PayPal has for US-based LE merchants across different verticals (e.g., health & beauty, travel, fashion) by Nielsen Behavioral Panel of desktop transactions from 15,144 US consumers between July 2020 to September 2020. 

3 Businesses with pay-over-time messaging on their site saw a 56% increase in overall PayPal AOV. Average lift in overall PayPal AOV for merchants with PayPal Credit messaging vs. those without, 2019 PayPal internal data. 

4 51% of BNPL users have abandoned a purchase due to not seeing a BNPL option. An online study commissioned by PayPal and conducted by Netfluential in November 2020, involving 1,000 US online shoppers ages 18-39 (among BNPL users, n=357). 

The Ultimate Breakdown: Comparing Mobile Credit Card Readers

The evolution of mobile credit card processing technology means consumers have more choices when it comes to how they pay. Whether you’re using a mobile card reader with your phone or a terminal, using mobile readers for your business transactions can streamline your payment process.

Mobile credit card readers offer your business a convenient way to take credit card payments without investing in an expensive POS system. You can also add additional mobile payment devices such as a smartphone or tablet to further optimize the customer experience at checkout.

Today, many businesses are transitioning to mobile and contactless payment options with the use of mobile credit card readers and full-featured POS apps as a result of their many advantages. With thousands of mobile credit card processing companies to choose from, finding the right fit for your business may seem daunting.

We’ve compared five well-known and well-used credit card processing companies offering mobile credit card reader services. If you don’t know which solution works best for your needs, here you’ll find the ultimate breakdown when comparing mobile credit card readers.

Expanding Mobile Payment Options

The evolution of mobile credit card processing technology has revolutionized the way consumers make payments and how businesses process payments. Gone are the days of being limited to cash transactions or traditional point-of-sale systems. Today, businesses have a plethora of options to accept credit and debit cards securely and efficiently.

Mobile credit card readers stand at the forefront of this transformation, offering businesses a convenient and cost-effective way to accept credit card payments. These portable devices can be easily integrated with smartphones or tablets, allowing businesses to process transactions on-the-go. By utilizing a mobile card reader provider, businesses can obtain not only the hardware but also the necessary software and support to seamlessly accept card payments.

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Streamlining Payment Processes with Full-Featured POS Apps

Alongside mobile credit card readers, businesses are embracing full-featured POS apps to further streamline their payment processes. These comprehensive applications offer a range of functionalities, from inventory management to customer relationship management, providing a holistic solution for modern businesses. Integrating mobile card readers with these apps allows merchants to centralize their operations, leading to increased efficiency and reduced chances of errors during transactions.

Choosing the Right Mobile Credit Card Processor

With many mobile credit card processing companies in the market, finding the right fit for your business can be difficult for new business owners. To make an informed decision, you should consider factors such as:

Transaction Fees: Compare the transaction fees offered by different providers to ensure you’re getting the most competitive rates that align with your business volume.

Free Credit Card Reader: Some providers offer free credit card reader options, which can be a cost-effective way to get started. However, be sure to review any associated fees or transaction costs to ensure it truly suits your business needs. Oftentimes these options are best for small businesses that are just starting out.

Customer Support: Reliable customer support is essential, especially during critical moments. Choose a mobile credit card processor that provides prompt and efficient assistance to resolve any technical issues that may arise.

Compatibility: Ensure the chosen mobile card reader provider supports your existing hardware and mobile device operating system to avoid potential compatibility issues.

Security and Compliance: Prioritize providers that adhere to industry security standards and compliance regulations to safeguard sensitive customer data during credit card payments.

A Comparison of Mobile Credit Card Readers

To make the decision-making process simpler, it’s important to compare and contrast different mobile credit card readers. Look for reputable mobile credit card processor comparison guides that outline the pros and cons of each provider, including their pricing models, features, and customer reviews.

The landscape of payment processing has significantly evolved with the advent of mobile credit card readers and full-featured POS apps. These technologies have provided businesses with the flexibility, convenience, and security needed to adapt to modern payment preferences.

As the competition among mobile card reader providers continues to grow, businesses can take advantage of this thriving market to find the ideal solution that suits their needs and helps enhance the overall customer experience.

By making an informed decision and partnering with the right mobile credit card processor, businesses can stay at the forefront of the payment revolution and meet the demands of their customers.

The Advantages of Using Mobile Credit Card Readers for Businesses

The evolution of mobile credit card processing technology has brought about a myriad of benefits for businesses looking to optimize their payment processes. One of the most significant advantages of using mobile credit card readers is the increased flexibility and choice it offers to both merchants and customers.

Whether you prefer a standalone credit card reader device or a full-featured POS app, the options available cater to different business needs and budgets.

With mobile credit card readers, businesses can accept payments from virtually anywhere, breaking free from the constraints of traditional point-of-sale systems. This level of mobility allows for greater versatility, making it ideal for on-the-go businesses like food trucks, market vendors, or service providers who visit customers at their locations.

Moreover, integrating mobile card readers with a mobile device provides additional conveniences for both the business and its customers. For instance, businesses can use smartphones or tablets to manage inventory, generate digital receipts, and offer personalized customer service, enhancing the overall shopping experience.

Cost-Effectiveness and Flexibility of Mobile Credit Card Readers

One of the primary concerns for businesses, especially small and medium-sized enterprises, is the cost associated with payment processing solutions. Mobile credit card readers offer an attractive cost-effective alternative to investing in expensive POS systems.

Rather than paying substantial upfront costs and ongoing maintenance fees, businesses can obtain affordable mobile card readers that charge minimal monthly fees or transaction-based pricing structures.

This cost-effectiveness, combined with the flexibility of mobile credit card readers, provides an appealing option for businesses seeking to accept credit card payments without breaking the bank.

Moreover, businesses can easily scale their payment capabilities by adding more mobile card reader devices or integrating them with their existing infrastructure, adapting to their evolving needs and growing customer base.

Embracing Mobile Payments

As more businesses recognize the advantages of using a mobile credit card reader and the growing trend of mobile and contactless payment options, the shift towards this payment revolution is becoming increasingly prevalent.

From small retailers to established enterprises, many businesses are now integrating a mobile card reader and mobile payment solutions into their operations.

The convenience, cost-effectiveness, and enhanced customer experience provided by mobile credit card readers are driving factors behind this transition.

As the technology continues to evolve, it’s likely that mobile credit card readers will become an even more integral part of the payment ecosystem, reshaping the way businesses and customers interact during transactions.

Embracing this mobile payment revolution is not just a business decision but also a strategic move to stay competitive and meet the evolving expectations of the modern consumer.

Contactless Payments

Contactless payments have revolutionized the way businesses accept credit cards and how customers make payments. This technology allows for fast, secure, and convenient transactions, making it an integral part of any mobile credit card reader.

How Contactless Payments Work with Mobile Credit Card Readers

Mobile credit card readers are small, portable devices that can be attached to a mobile device, such as a smartphone or tablet. These readers are equipped with Near Field Communication (NFC) technology, enabling them to accept contactless payments from customers’ NFC-enabled cards or mobile wallets.

When a customer wants to make a purchase, they tap their NFC-enabled card or smartphone on the mobile card reader, and the transaction is completed within seconds. This seamless process eliminates the need for physical card swiping or manual entry, saving both the customer and the merchant valuable time.

Benefits of Accepting Contactless Payments with Mobile Card Readers

Speed and Efficiency: With contactless payments and mobile credit card readers, transactions become significantly faster. The quick tap-and-go process ensures shorter queues and reduces waiting times for customers, leading to improved overall customer satisfaction.

Enhanced Security: Mobile card readers that support contactless payments adhere to the same security standards as traditional chip-and-PIN transactions. Additionally, customers retain possession of their cards throughout the transaction, reducing the risk of card cloning or fraud.

Versatility and Mobility: Using a mobile credit card reader is ideal for businesses that operate on the go, such as food trucks, pop-up stores, or delivery services. The compact and wireless design of these readers allows merchants to accept payments anywhere with a cellular or Wi-Fi connection.

User-Friendly Interface: Integrating contactless payment capabilities into a mobile payment processing app can provide an intuitive and user-friendly interface for both customers and merchants. This helps streamline the payment process and minimizes the chances of user error.

Increasing Customer Adoption of Contactless Payments

As contactless payments become more widely accepted, customer demand for the convenience they offer is on the rise. Shoppers appreciate the ease of tapping their cards or phones to make purchases, without the hassle of carrying cash or searching for their wallets. Businesses that embrace mobile credit card readers and contactless payment technology position themselves favorably in the eyes of tech-savvy consumers.

Future Growth and Trends

The future of contactless payments and mobile credit card readers appears promising. As technology continues to evolve, these solutions will likely become even more secure, faster, and compatible with a broader range of devices.

With advancements in biometric authentication and increased integration with mobile wallets, the reliance on physical cards may decrease further, making contactless payments the preferred method of transaction for many consumers.

Contactless payments have transformed the payments landscape, and mobile credit card readers have played a significant role in enabling businesses to accept these convenient and secure payment methods.

Embracing this technology allows merchants to offer an enhanced customer experience, improve transaction speed, and stay ahead in the competitive marketplace. As consumer demand for fast and contactless transactions continues to grow, adopting mobile card readers and contactless payment capabilities will become a crucial aspect of modern business operations.

The Role of NFC (Near-Field Communication) Technology in Mobile Credit Card Readers

NFC (Near-Field Communication) technology plays a crucial role in enabling seamless and secure in-person payments through mobile credit card readers. This short-range wireless communication technology allows data transfer between an NFC-enabled mobile device and a compatible credit card reader within close proximity, typically a few centimeters.

Simplifying Contactless Payments

NFC technology is at the heart of popular mobile payment services like Apple Pay and Google Pay. These mobile wallets allow users to store their credit card information securely on their smartphones, and with the help of NFC, they can make purchases by simply holding their phone near an NFC-equipped credit card reader. The transaction is swift and secure, offering an effortless payment experience for both customers and merchants.

Enhancing Security and Privacy

The use of NFC technology in mobile credit card readers ensures a high level of security during transactions. When a customer initiates a payment, the NFC-enabled device creates a one-time token, a unique encrypted code, that is sent to the credit card reader. This tokenized approach adds an extra layer of security as the actual credit card information is never shared during the transaction. As a result, sensitive card data is safeguarded from potential hackers, significantly reducing the risk of fraud or data breaches.

Compatibility with Mobile Devices

The widespread adoption of NFC technology in modern mobile devices has driven the popularity of mobile credit card readers that support contactless payments. Both Android and iOS devices come equipped with NFC capabilities, making it accessible to a broad range of users. This compatibility ensures that businesses can cater to a larger customer base, regardless of the type of device they use.

Expanding Payment Acceptance

For businesses, incorporating NFC technology into their payment process enables them to accept various mobile wallets like Apple Pay and Google Pay, expanding their payment acceptance options. By offering customers the choice to pay with their preferred mobile wallet, businesses can enhance customer satisfaction and increase the likelihood of repeat business.

Cost-Effective and Free Mobile Reader Options

With the increasing popularity of NFC-enabled payments, many payment processors offer free mobile readers that support NFC technology. These free mobile reader options are often compact and easy to use, making them an affordable and accessible solution for businesses of all sizes.

NFC (Near-Field Communication) technology has transformed the landscape of in-person payments and is a key driver behind the success of contactless payment methods like Apple Pay and Google Pay. Its role in mobile credit card readers has made it possible for businesses to process payments securely and efficiently while enhancing the overall customer experience.

As NFC technology continues to evolve and gain traction, its integration with mobile devices and credit card readers is likely to become more prevalent, reshaping the way we interact with payments in the future. Businesses that embrace NFC technology and offer contactless payment options position themselves to stay ahead in the ever-evolving world of mobile payments.

Stax Mobile Credit Card Readers

Stax offers EMV-compliant mobile credit card readers, ideal for merchants processing a higher volume (typically over $10,000 per month). You also have access to 0% markup processing compared to companies offering high flat rate percentages.

Stax contactless payment tools offer a robust series of features outside of accepting EMV transactions such as sending invoices, accessing business analytics, setting up recurring payments, and pulling up saved customer data anywhere in the world.

With the use of the Stax all-in-one payments platform, there are inventory capabilities for restaurants, bars, and retail locations to replace a traditional POS solution. Stax mobile card reader solution works for every business type needing to accept payments on the go.

How to Choose the Best Card Readers for Your Business

Stax Payment Pricing

Stax offers the industry’s first subscription-based pricing model with pricing plans starting at $99/month. How much you’re paying for credit card processing depends on your payment solutions provider. Many payment processors like Stripe, Square, PayPal, and bank merchant services offer flat-rate processing. Some others, including Stax, offer subscription-style processing that gives you access to the lowest rates of interchange.

Interchange Fees

Interchange fees are transaction fees charged by card-issuing banks to the merchant’s acquiring bank for processing credit and debit card payments. These fees are a crucial part of the payment ecosystem, as they facilitate the transfer of funds between financial institutions involved in a card transaction. In other words, interchange fees compensate the card-issuing banks for the risk and operational costs associated with providing credit or debit cards to consumers.

It’s important to note that interchange fees are not collected by your payment processor or bank; they go directly to the card-issuing banks. Your payment processor, however, plays a role in facilitating the transaction and deducts its own processing fee from the overall charge.

Why Interchange Fees Matter for Mobile Credit Card Readers

For businesses using mobile credit card readers to accept payments, interchange fees directly impact their bottom line. The fees are typically expressed as a percentage of the transaction amount, plus a flat fee per transaction. Since these fees are unavoidable when accepting card payments, understanding them is essential for merchants to manage their costs effectively and optimize their pricing strategies.

Factors Influencing Interchange Rates

Interchange rates are not fixed and can vary based on several factors. The exact structure and rates of interchange fees are set by card networks such as Visa, Mastercard, American Express and are subject to change periodically. Some key factors that influence interchange rates include:

Card Type: Different card types carry varying levels of risk and benefits, leading to different interchange rates. For instance, rewards cards or corporate cards generally have higher interchange fees compared to standard consumer credit cards.

Transaction Method: The way a transaction is processed can affect interchange fees. Transactions made via chip and PIN or contactless methods may have different rates than traditional magnetic stripe transactions.

Industry Type: Certain industries may be subject to specific interchange rates, depending on the perceived risk associated with their business. High-risk industries may experience higher interchange fees than low-risk ones.

Transaction Size: Interchange fees are often structured in tiers based on the transaction amount. Larger transactions might have different rates compared to smaller ones.

Merchant’s Processing History: The merchant’s track record and processing history can also influence interchange rates. Merchants with a history of chargebacks or fraudulent activity may face higher fees.

Understanding interchange fees is crucial for any business utilizing mobile credit card readers. By better understanding the factors influencing interchange rates and implementing smart strategies to manage these fees, merchants can optimize their payment processing costs and focus on providing a seamless and convenient payment experience for their customers.

Clover Payments

Clover provides point-of-sale hardware and software along with payment processing. As far as mobile payments, the company offers Clover Go, a compact mobile card reader that accepts all payment types as long as you have WiFi or data connectivity. The device also syncs with your Clover account and other devices, so all payments made through Clover Go can be tracked and accessed through your dashboard. Clover payment processing rates

In-person transactions: 2.6% + $0.10 per transaction Keyed-in transactions: 3.5% + $0.10 per transaction

Pro tip: If you’d still like to use Clover devices but want to access better processing rates, you can work with a third-party reseller like Stax. As their name suggests, resellers sell Clover’s POS solutions to merchants. However, instead of requiring you to process using Clover’s rates, resellers offer their own processing fees.

Square Mobile Credit Card Readers

Square is one of the most established companies in the mobile payments space. Its small mobile card reader connects to Android and iOS devices. Micro merchants and retailers who only use their mobile readers occasionally benefit the most from this product, due to the high flat fees charged per swipe. This payment processing method works with or without a connection, making it convenient for convention halls and other areas with poor connectivity.

Square Pricing

In-person and mobile card payments: 2.6% + $0.10 per transaction Online payments: 2.9% + $0.30 per transaction Keyed-in and invoice payments: 3.5% plus $0.15 per transaction

Intuit GoPayment

Intuit’s GoPayment service lets you accept and track payments including PayPal, cash, and checks through their mobile app. It also syncs up with your QuickBooks account. To use GoPayment, you’ll need a QuickBooks account. GoPayment allows users to choose between two pricing plans. The first plan is called Pay-As-You-Go and is targeted at businesses with sporadic or low processing volume. The second plan is called Pay Monthly & Save and is targeted at higher-volume businesses.

Intuit GoPayment Pricing

Pay-As-You-Go
Intuit pricing for GoPayment’s Pay-As-You-Go option:

Swiped: 2.4% + $0.25 per transaction Keyed: 3.4% + $0.25 per transaction

Monthly
GoPayment’s Monthly account gives users the option to pay a $19.95 monthly fee in exchange for per-transaction lower rates.

Swiped: 1.6% + $0.25 per transaction Keyed: 3.2% + $0.25 per transaction

PayPal Here

PayPal expands its online payment service with two mobile credit card readers and a flat-rate processing fee. The first reader connects to your device’s headphone jack and accepts swiped credit cards. The other option is a Bluetooth reader that’s EMV compliant and also accepts Apple Pay. Its app supports Windows, Android, and iOS. You benefit the most from this service if you’re a low-volume merchant looking for a way to accept chip cards and be EMV compliant.

PayPal Here Pricing

Swiped: 2.7% per transaction. Keyed: 3.5% + $0.15 per transaction

PayPal Transactions: 2.9% + $0.30.

Shopify

Shopify’s service helps micro-businesses set up e-commerce stores, and they’ve branched out into mobile credit card readers as well. Its card reader works with Android and iOS mobile devices through the audio jack. It uses the same payment processor as your online Shopify store, so you get the same flat rate percentages through both channels. If you already use the Shopify platform, and you have an occasional need for a mobile payment process, you can get a lot out of this service.

Shopify Pricing Plans:

Shopify Basic costs $29 per month, with 2.9% + 30¢ per online transaction. Main Shopify Plan costs $79 per month, with 2.6% + 30¢ per transaction. Advanced Shopify costs $299 per month, with 2.4% + 30¢ per transaction.

Mobile credit card readers give your business a convenient, pay-anywhere option that customers enjoy. It’s important to keep in mind that the majority of mobile payment solutions cater to micro-merchants/low-volume merchants. Be sure to explore options such as Stax if you are a higher volume as the percentage markups most mobile payment solutions charge can seriously cut into your bottom line. You may take some time figuring out the best service for your unique business needs, but it’s worth the trouble to find a service capable of helping you grow your business.

At Stax, our modern payment services focus on going beyond ordinary merchant accounts. The all-in-one platform allows for mobile swipe capabilities through our Stax Mobile app. You can also key in payments or add the optional mobile reader to start swiping. Enjoy the ease and convenience of sending invoices and storing payment methods within the dashboard.

Contact us at Stax to request a custom quote and to learn how our solutions can help you keep up with mobile payments. We will be happy to help you find the right solution for your enterprise.

RELATED: The Best Mobile Card Readers for Small Business

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FAQs About Mobile Credit Card Readers

Q: What is a mobile credit card reader?

A mobile credit card reader is a small, portable device that attaches to a smartphone or tablet, allowing businesses and individuals to accept credit card payments on the go. It enables secure transactions through the mobile device, making it convenient for vendors, small businesses, and freelancers to accept card payments anywhere.

Q: How does a mobile credit card reader work?

Mobile credit card readers use technology like Bluetooth or a headphone jack to connect to a mobile device. When a customer swipes, inserts, or taps their credit card on the reader, it captures the card information securely. The reader then communicates with a mobile app, processing the payment and sending the transaction for authorization.

Q: Are mobile credit card readers secure?

Yes, reputable mobile credit card readers are designed with security in mind. They use encryption to protect card data during transmission, making it difficult for unauthorized individuals to intercept and misuse the information. However, it’s essential to choose a well-established and trusted provider to ensure the highest level of security.

Q: How much does a mobile credit card reader cost?

The cost of a mobile credit card reader can vary depending on the brand, features, and additional services offered. Some readers may be available for free or at a nominal cost, while others might have a higher upfront price. It’s essential to consider not only the initial cost but also any transaction fees or subscription charges associated with the reader.

Q: Are there any transaction fees associated with mobile credit card readers?

Yes, most mobile credit card reader providers charge transaction fees for each payment processed. These fees are typically a percentage of the transaction amount plus a small flat fee. Transaction fees can vary, so it’s crucial to compare rates when choosing a mobile credit card reader.

Q: What types of businesses can use mobile credit card readers?

Mobile credit card readers are well-suited for various businesses and industries, including retail stores, food trucks, pop-up shops, service providers, event vendors, and more. They offer flexibility and convenience for businesses that need to accept card payments on the move or at remote locations.

Toast POS System: Reviews, Features, Pricing, and More

Running a restaurant or food business is a massive undertaking that requires a high level of coordination between your storefront, staffing management, payment processing, and back-end kitchen activities. If just one of these areas is out of balance with the rest of your operation, it would seriously impact profitability and the customer experience. This is why a full-fledged point-of-sale (POS) and restaurant management system is one of the most important technology investments a restaurant owner can make.

Toast POS is a powerful all-in-one restaurant management system that offers a robust plan for every type of food business. In this blog, we’re going to explore the features of Toast POS system—its pricing system, hardware options, and integrations. No matter whether you’re a new restaurant owner looking for the right POS or simply considering a switch to a more high-powered system, this guide covers everything you need to know.

TL;DR

  • Toast POS is an all-in-one restaurant management system designed for food outlets, offering menu management, order tracking, staff management, customer relationship management, analytics, and reporting features.
  • Toast’s purpose-built hardware is designed specifically for kitchen environments, and their pricing plans offer comprehensive solutions to every type of food business, from new restaurant openings to fast food outlets.
  • Toast integrates with a variety of third-party apps and software within the restaurant industry and beyond, and offers a range of online resources for training and troubleshooting, as well as 24/7 technical support via phone, email, and web messaging for every service plan.

Toast POS System Overview

The Toast POS system is a cloud-based restaurant point of sale and online ordering system designed for food outlets such as eateries, cafes, and food trucks. Toast offers large and small businesses a range of functionalities to streamline restaurant management. This includes POS hardware options, menu management, payment processing, and advanced reporting features.

One of the biggest benefits of Toast’s restaurant POS system is that it’s purpose-built exclusively for restaurant operations. This differs from more well-known POS systems that market certain POS software plans as being suitable for restaurants.

For example, Toast hardware is designed specifically for kitchen environments, with spill-resistant surfaces and a hardwired connection. Multiple payment plans offer a comprehensive solution to every type of food business, from new restaurant openings to fast food outlets.

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Features and Benefits of the Toast POS System

The Toast platform offers businesses a range of restaurant-specific and general retail management features. These include:

Customizable menu management

Toast’s cloud-based POS system allows restaurant owners to easily update and customize their menus across locations in real-time. This includes adding/removing menu items, adjusting pricing, and modifying descriptions. The scheduling tool also allows restaurants to set up multiple separate menus for different days or different times of day, such as weekdays/weekends or breakfast, lunch, and dinner. This flexibility makes on-the-spot changes or promotions easy to action from a single device.

Order management and tracking

The Toast POS system offers a robust order management system so that kitchen staff can accept orders and notify serving staff when meals are ready to be delivered tableside. Orders can be accepted via multiple channels, including self-service kiosks, online ordering, and the Toast Takeout app (their version of Doordash).

Staff management and scheduling

Toast has an integrated system for payroll, scheduling, and staff onboarding as an optional add-on. This is a good option for large restaurant businesses with multiple locations, as features include access management (for reporting or updating orders) shift monitoring, and cost management.

Customer relationship management

Toast’s CRM database feature allows restaurants to collect and store customer information in one convenient place. Toast also offers email and loyalty program management, both within plans and as separate add-ons:

Loyalty program management: Set up custom rewards programs with a simple, point-based structure for activities like sign-up bonuses, birthday rewards, and more. Loyalty members can link their profile with their credit card for swipe-based earning and redemption.

Email marketing: Use Toast’s CRM to build custom mailing lists for different customer profiles, such as loyalty members or inactive customers. The tool is fully integrated into the Toast system, meaning there’s no need for a third-party email management platform.

Analytics and reporting

Reporting features are included within every Toast plan and allow real-time access to data across multiple locations. The Location Overview feature makes it easy to monitor and compare net sales, sales growth, and labor cost at different outlets both on Android and iOS. Toast will also automate sending over key metrics daily via email so businesses can keep track of daily fluctuations.

Pricing and Plans

Toast’s pricing can be divided into three main costs: The software plan, hardware, and payment processing fees.

Toast offers three monthly plans:

  • Quick Start Bundle ($0)
  • Core ($65)
  • Growth ($165)

Toast also offers a custom pricing option for larger businesses. The paid plans progressively offer additional value-added services and functionalities. Businesses can also elect to add individual services for an additional monthly fee. Toast has tailored plans for specific restaurant types, such as their Restaurant Basics plan, which starts at $110 and bundles together POS and payroll services.

Restaurants using Toast have a variety of hardware options available, from card readers and POS handheld devices to its Toast Flex checkout terminal, as well as self-service kiosks. Toast hardware can either be purchased upfront when a business subscribes, or included within the monthly fee if they opt for the Starter Kit plan with pay-as-you-go pricing.

Restaurants using Toast must also pay a fee per transaction they process. One of the drawbacks of Toast’s pricing is that it doesn’t publicly disclose its card-present (CP) and card-not-present (CNP) payment processing fees online, other than to say that rates are custom calculated for each business. Navigating deeper into the website and its bundled software/hardware plans reveals different per-transaction rates depending on the type of hardware selected. For example, their Toast Go starter plan offers a rate of 2.49% + 15c when the hardware is purchased upfront, and 2.99% + 15c for the pay-as-you-go plan.

Toast Pos System In A Restaurant

Comparison with competitors

Square – Square’s all-in-one POS system offers five different plans for restaurant settings, from quick service to ghost kitchens. Plans start at $60 per month with processing fees of 2.6% + 10¢ per transaction, though custom pricing applies for businesses processing more than $250,000 per year.

Clover – Clover offers both a full-service dining and quick-service dining plan to restaurant businesses. Their pricing model is slightly different than Toast, as all plans bundle software and hardware together. Hardware is more expensive, starting at $799 for a mini touchscreen POS. However, their transaction fees are lower, at 2.3% + 10¢ for in-person transactions.

Lightspeed – Lightspeed’s restaurant POS system starts at $79 per month and includes one register in each of their plans. Processing fees are competitive at 2.6% plus 10 cents per in-person transaction. However, services such as online ordering, inventory management, and accepting gift cards do come at an extra cost.

Touchbistro – Touchbistro is an all-in-one restaurant management system with menu management and online order management that closely competes with Toast. Starting at $69 per month with a variety of add-on services. Payment processing is managed by one of Touchbistro’s partners, which includes Square and Chase, so processing fees will vary.

A note about payment processing

While some POS systems (like Square) have their own built-in payment processing solutions, other platforms provide the flexibility to integrate with different payment vendors. This option is ideal for most merchants as it allows you to choose a payments partner that aligns with your specific needs and budget. 

One example is the integration between Clover and Stax. Clover POS can be seamlessly integrated with Stax, enabling merchants to leverage the capabilities of Clover’s POS system while benefiting from Stax’s cost-effective payment structure.  

In the realm of payment processing for multi-faceted businesses, Stax emerges as a reliable and versatile option that caters to various industries, including retail, restaurants, ecommerce, or a combination of these. With its comprehensive range of features and competitive pricing, Stax offers a seamless payment processing experience that benefits businesses of all types.  

So whether your business operates online, offline, or a combination of both, Stax has you covered. I 

Integrations and Add-ons

Integrations are an important feature in POS software because the point of sale goes hand in hand with parts of business management such as accounting, inventory management, loyalty, marketing, and more. Instead of maintaining all of these platforms separately, open API integrations enable businesses to share data effectively and view the same information across interfaces.

Toast integrates with a variety of third-party apps and software within the restaurant industry and beyond, including but not limited to Grubhub, Doordash, OpenTable, LevelUp, Lunchbox, and more. Toast also boasts a selection of add-on services which are available for an extra fee, including takeout and delivery services, inventory and supplier management, and invoicing.

Customer Support and Training

One of Toast’s biggest strengths is the number of online resources it offers for training staff or troubleshooting issues, which helps businesses to take a self-service approach:

Knowledge Base. The Toast knowledge base is a comprehensive platform with articles, videos, ebooks, and templates that address FAQs on how to use the system and run a successful restaurant. Categories covered include Marketing, Technology, Management, Staffing, and more.

Toast Community. Toast Community is an online forum and in-person event series where restaurant owners and staff using Toast can connect with other users, join each other on an in-website chat forum, and earn money for referring new users.

Toast Classroom. Toast Classroom offers live and on-demand training for their POS hardware and software, as well as a range of areas related to restaurant management such as team management and customer service.

In addition to the self-service resources, Toast also provides 24/7 technical support via phone, email, and web messaging for every service plan.

Merchant Ratings and Toast POS Reviews

The Toast POS system garners generally positive feedback from merchants, as shown by this roundup from popular review sites:

  • 4.35 out of 5 (g2.com)
  • 4.2 out of 5 (capterra.com)
  • 3.8 out of 5 (trustpilot.com)

The areas where Toast commonly receives high praise include its user-friendly interface, the ability to manage menus and staffing remotely on mobile or iPad, and the variety of third-party integrations available. However, Toast has received repeated criticism from merchants who have experienced difficulty accessing customer service for complex issues, finding they are often referred back to online resources that don’t address their concerns. Several merchants have also noted that Toast hardware breaks down quickly, despite being marketed as restaurant-grade.

Merchant reviews about Toast POS

“I have been using restaurant POS for over 20 years and Toast has shown itself to be one of the best on the market. It is so user-friendly and easy to work in, including the handhelds, that it’s amazing. In training new teams they offer a great program and support team. The layout is ideal for high-volume. Reporting is excellent. I refer Toast to most of our clients.”

“Customer Support is hit or miss. I always get an answer, it’s just a matter of when I get it. After hours and on weekends, I feel like their staffing is very limited which leads to delays in getting immediate help.”

“Toast is by far the best POS and payroll system I have ever worked with. Not having to toggle between and punch system, sales reporting, tip outs and payroll software. Everything is integrated and communicates well. I learn every day the many capabilities Toast offers and very much enjoy working with the system.”

Overall, the Toast point-of-sale system offers a powerful tool to restaurant owners and managers who want an industry-specific solution with flexibility and good ease of use. With its wide range of features and user-friendly interface, it’s a popular choice for many businesses in the hospitality and food service industries. With multiple pricing plans available, restaurant businesses large and small can benefit from Toast and find a combination of services that works for their precise needs. If you’re looking for a streamlined and easy-to-use restaurant management system, Toast POS should be on your list to explore.

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FAQs About Toast POS System

Q: What types of businesses is Toast suitable for?

Toast POS is a versatile and scalable solution for various types of food and hospitality businesses, including restaurants, cafes, bars, food trucks, and catering services. It offers customizable features to cater to different business sizes, types, and needs. 

Whether you are a small business owner or running multiple outlets, Toast POS provides flexible pricing plans and hardware options, including pay-as-you-go, self-service kiosks, and handheld devices.  

Q: Can Toast integrate with third-party apps?

Yes, Toast POS system integrates with a range of third-party apps and software within and beyond the food and hospitality industry, including Grubhub, DoorDash, LevelUp, OpenTable, and more. 

Toast also offers a selection of add-on services, such as takeout and delivery services, inventory and supplier management, and invoicing.   

Q: What level of technical knowledge is required to use the Toast POS system?

The Toast POS system is designed to be user-friendly and accessible to businesses with different levels of technical knowledge. The system uses cloud-based software that enables real-time updates and customizations across multiple locations. 

Toast also provides a range of online resources, such as a knowledge base, community forum, and live and on-demand training, to help businesses train their staff and troubleshoot issues.  

Q: How long does it take to set up the Toast POS system?

The time it takes to set up Toast varies depending on the size and complexity of the business. However, Toast offers a range of resources and support to help businesses get started quickly and efficiently. For instance, businesses can order Toast hardware online and receive it within a few days. 

Once the hardware is installed, businesses can use Toast’s cloud-based software to customize their menus, configure settings, and train their staff.

 

Payment Processing: What Is a Third-Party Payment Processor?

Running a business comes with a whole set of tasks and potential difficulties even for the most successful companies. One of the many necessities that small and medium-sized businesses (SMBs) encounter is payment processing of cashless payments like a credit card. Thanks to checks, credit cards, and debit accounts, gone are the days when cash was king.

This is the era of digitization and seamless payment processing, both offline and online.

But the digital evolution of payment processing doesn’t have to be difficult for a brick-and-mortar retailer or small business owner. On the contrary, it can make life simpler for customers, merchants, and third-party participants to accept payments, including online payments.

Definition of Third-Party Payment Processing

Third-party payment processors (sometimes referred to as payment aggregators or credit card processing companies) are entities that allow merchants to accept credit card payments, online payments, and any other cashless payment method without the need to set up their own merchant accounts.

Third-party payment processing business entities aim to make it as simple as possible for merchants to run their business, have simple payment flows, and conduct transactions. That way, you won’t have to worry about setting up or maintaining a merchant account. You can simply create an account with a third-party payment processor, and have all your transactions go through them.

How Does Third-Party Payment Processing Work?

Thirpartypaymentprocessor1

Many businesses have their own merchant accounts with merchant services providers or a credit card processor. When their clients walk through the door and make a debit card purchase through a point-of-sale system, businesses with this type of account have the ability to accept payments directly through their own merchant account and be done.

However, for some businesses that are just starting out, this isn’t always the most economical method of taking payments. It takes time and effort to interface with merchant account providers, and if your business is still in its early start-up stage, your time can be better spent doing other things.

This is where a third-party payment processor comes into play. Instead of having your own merchant account, which often comes with setup costs, you’ll instead work with a third party who has their own relationship with a merchant services provider, essentially serving as an intermediary.

A well-known example of a third-party payment processing company is Square, which allows you to sign up and start accepting debit card payments on the very same business day.

By utilizing a third-party payment processor, you’ll be bypassing the step of having your own merchant account at a financial institution. These companies allow customers like you to use their merchant account to process all of your debit card and credit card payments. As a result, your customers’ payment information will be reviewed by the processor, along with running through a variety of anti-fraud measures, before they allow the completion of your client’s transaction from their bank account.

These payment processing companies can run debit cards, conduct credit card processing, and even serve as an online payment processor solution so you can expand your business to the digital realm. It helps to work with credit card processors and those who process payments online because it can increase the pool of buyers for any type of business.

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What Are Some Examples of a Third-Party Payment Processor?

Examples of well-known third-party payment processors include:

  • Stax
  • Cybersource 
  • Adyen
  • Square 
  • WePay
  • PayPal
  • Tipalti 
  • BitPay 
  • Stripe
  • Amazon Payments 
  • Ingenico 
  • Braintree

A third-party payment processor is a merchant services provider that lets you provide more payment methods to your customers and helps you receive payments without first setting up your own merchant account with a bank.

The simplicity of not having to get an account with a bank to accept credit cards and conduct card transactions with a debit or credit card company can genuinely increase your business experience.

There are thousands of payment processing services in the U.S. alone. The most suitable service will depend on your business needs.

Is Third-Party Payment Processing Necessary?

Many budding entrepreneurs, especially those who are just starting out, wonder whether a third-party payment processor is the right fit for them. After all, they hear that sign-up is easy and they won’t have to pay any fees. However, it’s important to dig a little deeper to understand who third-party payment processors truly work for and when they are necessary.

There are a variety of reasons a merchant might choose to go with a third-party relationship. Some companies might not be able to afford the monthly fees associated with dedicated accounts. Similarly, SMBs processing very low volume in customer credit card payments often can’t afford the setup costs of such an account. This makes a third-party access with a payment processor a good solution for your business when you are just starting out and do not anticipate processing a high volume of credit card transactions.

It is important to remember, however, that while you do not pay startup fees or monthly fees with a third-party payment processor, they still have to make money somewhere. They make up for their lack of fees in their per transaction percentage fee. This fee is significantly higher than it would be with a dedicated merchant account. This means that if you are processing payments at a high volume, this will be more expensive for you.

Do I Need a Third-Party Payment Processor?

Thirdpartypaymentprocessor2

Just because third-party payment processors are available doesn’t mean they’re necessarily the right choice. For most small and medium-sized businesses, the negatives can outweigh the positives when it comes to a third-party payment processor.

If your company is at the point where the startup costs are negligible and your stream of clients is large enough to quickly outweigh those costs, a merchant service provider that offers a dedicated merchant account is your best bet. Additionally, working with a provider such as Stax means you will never see any startup costs, and the 0% markups will counteract the monthly membership.

The biggest downfall with payment processing through a third party is the lack of security. When you have your own dedicated merchant account, your business has gone through the process of underwriting and you are protected against fraudulent transactions and you know exactly when to expect the funds in your account.

What Are the Benefits of Using a Third-Party Payment Processor?

Unlike merchant accounts with banks that tend to be expensive and time-consuming to set up, many third-party payment processors don’t charge a huge deposit fee for setup. You’re only charged for the transactions you make.

At Stax, we don’t charge any outrageous monthly fees either. Here’s a list of some fees you’ll see from other banks and processors, but never from us:

  • No early termination fee
  • No customer support fee
  • No statement fee
  • No IRS fee
  • No batch fee
  • No annual fee
  • No contract fee
  • No cancellation fees

Top Considerations When Choosing a Third-Party Payment Processor

Some of the requirements to consider when choosing a third-party payment processor are:

Software integrations

See to it that the provider you choose works well with the software you’re already using in your business. If you have an online store, your processor should integrate with your eCommerce platform so you can easily partake in website payment processing. It also helps to use website payment processors that work with your accounting software (e.g., QuickBooks, Xero, etc.) to make payment reconciliations easier.

Hardware integrations

The same thing goes for your hardware. When shopping around for a credit card processing company, set your sights on providers that integrate with your card readers, terminals, POS systems, and more.

Cost

Look into the processor’s pricing model, markup, processing rates, as well as any other fees they charge. Then, run the numbers and figure out the most cost-effective option for your business.

Supported payment types

Pretty much all payment processors support credit card payments. However, alternative payment methods – such as mobile payments, ACH, and even SMS payments – are gaining steam, so make sure your vendor enables you to accept these payment types.

Policies

Processes and policies vary from one provider to the next. Some payment service providers, for instance, may require a monthly minimum when it comes to transaction volumes, while others don’t have any limits. Certain vendors may support same-day deposits while others don’t. Research these policies and ensure they work for your business.

Security and Fraud Prevention Measures 

Don’t neglect security and fraud prevention. See to it that your 3rd party payment processing provider follows industry-standard security protocols, such as encryption and tokenization, to protect sensitive customer data during transactions. 

Look for features like PCI DSS compliance, fraud detection tools, and chargeback management systems to minimize the risk of fraudulent activities and protect your business and customers.

Settlement Timeframes 

Find out how quickly you’ll receive funds from completed transactions. Some processors may offer daily, weekly, or monthly settlements, while others provide instant or next-day settlements. Consider your cash flow requirements and choose a processor that aligns with your business’s financial needs.

Customer Support

You need a payment processor that has your back and provides assistance whenever you need it. So don’t forget to ask about your vendor’s customer service offerings. Do they offer 24/7 support? What customer support channels do they use? Some providers may only offer email or live chat, while others also have their agents available over the phone.

Common Pricing Models of Credit Card Processing Companies

Credit card processing companies use a variety of pricing models. The most common are tiered pricing, interchange plus, and flat rate pricing. Some companies (like us here at Stax) use a monthly membership fee which keeps pricing extremely transparent. Merchants simply pay flat monthly fees and then interchange fees.

Interchange plus pricing is when the credit card processing companies charge you the interchange fees the credit card network charges them to run the payment plus a clear markup. 

Flat rate pricing is a percentage fee plus a certain number of cents per transaction. Often it will look like 2.75% + $0.12 per swiped transaction. This percentage will change depending on the risk the company associates to process transactions presented in particular manners – so in person transactions (not considered high risk) tend to be cheaper than a transaction through a virtual payment gateway.

Finally, tiered pricing is the least transparent structure to accept card payments. The credit card processing companies bundle interchange fees and markups into tiers so you can’t tell what the markup is or what they charge for the different types of transactions. Generally, these contracts are also filled with hidden fees that allow them to sell you on low-seeming costs to accept credit card payments and then hit you on the bill with much higher costs.

Generally, companies will also charge a variety of additional fees like chargeback fees, setup fees, and PCI compliance fees. It’s important to check with a vendor to find out what they charge ahead of time so you’re prepared.

What Are The Risks of Using a Third-Party Payment Processor?

Although many third-party payment processors have their benefits, their transaction fees might be higher than you’d expect. The cost of processing individual transactions can be higher than the transactional costs associated with merchant accounts. Depending on the size of your business and the number of transactions processed per month, the fees charged per swipe may not be an ideal solution for your business needs.

Final Words

As a small business owner, you need a reliable way to process payments. Third-party payment processors can make your first foray into accepting credit cards a simple process with minimal hassle. If you’re seeking out your first merchant processor or finally understand how to make a more informed decision, you’re on your way to reduced card processing fees and an all-around better payment experience.

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FAQs about Third-Party Payment Processor

Q: What is a third-party payment processor?

A third-party payment processor is an entity that enables merchants to accept credit card payments, online payments, and other cashless payment methods without setting up their own merchant accounts. Examples of popular third-party payment processors include Square, PayPal, Stripe, and Stax.

Q: How does third-party payment processing work?

Third-party payment processors serve as intermediaries between merchants and merchant services providers or credit card processors. Merchants create an account with the third-party processor, which processes transactions on their behalf using its merchant account.

Q: What are the benefits of using a third-party payment processor?

Using a third-party payment processor can reduce setup costs and time, as businesses do not need to create and maintain their own merchant accounts. Many third-party processors offer simple and cost-effective pricing structures and do not charge excessive fees.

Q: What are the risks of using a third-party payment processor?

The fees per transaction, especially in high volume sales, may be higher with third-party payment processors compared to dedicated merchant accounts. Additionally, the security and protections offered by dedicated merchant accounts may be lacking with third-party processors.

Q: Is third-party payment processing necessary for my business?

A third-party payment processor might be a good solution for small businesses that do not anticipate processing a high volume of credit card transactions. It is essential to weigh the costs, transaction volume, and features offered by third-party processors and dedicated merchant accounts to determine the best solution for your business.

Q: What should I consider when choosing a third-party payment processor?

When evaluating a third-party payment processor, consider software and hardware integrations, cost, supported payment types, company policies, and customer support quality.

Q: What are the common pricing models of credit card processing companies?

The most common pricing models include tiered pricing, interchange plus, and flat rate pricing. Some companies, like Stax, use a monthly membership fee model, which simplifies and makes pricing more transparent.

 

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5 Reasons Field Service Professionals Need Mobile Payment Solutions (and How to Choose The Right Provider)

It is essential for field services businesses to improve their field service management (FSM) and keep their employees up to date with the latest technologies – like mobile payment solutions. The objective is to efficiently manage a team of service technicians and focus on increasing the value of your business.

From cloud connectivity to real-time ticket management, proper utilization of technology can add value to your field service management by saving time, minimizing hassles, and increasing efficiency. That is why the field services sector often makes use of the latest advancements in technology.

The field service management industry is massive. It’s expected to be worth nearly $30B by 2031, and technological optimization is driving that.

With this in mind, it is no surprise that mobile payment solutions and field service apps are also rising in use left, right, and center. This is not only for the sake of operational progress but also due to the advantages that these solutions offer in improving FSM processes. Updating your technology is more than just preventative maintenance – it’s how you’ll get your business to the next level.

To help you learn more about how mobile app payment solutions can benefit your business, here are five reasons why mobile payment systems are a critical part of your mobile field service toolkit.

1. It Improves Revenue Generation Processes

One of the biggest challenges that your field service employees may face comes with collecting timely payments from customers.

More often than not, you have to have more than one department to communicate with customers to complete the payment collection process. This aspect takes away from your employee’s time on multiple fronts and adds unnecessary steps to the process.

By setting up mobile payment solutions through your field service app, your operations employees can collect payments and customer signatures immediately and on-site. This way, you can cut down the processing times accordingly. Streamlining will also improve your customer experience.

2. A Field Service App Makes Your Payments Safer

Field service employees who do not have mobile app payment solutions or supported devices often need to accept payments in cash or check. This component creates a liability on your business until your accounts or finance departments receive the cash or check at their end.

By accepting payments from mobile solutions, you can make these payments safer. Since you are receiving payments directly from customers into your business account, it exposes your business to less risk.

3. You’re Able to Digitize Your Processes

For your employees, conventional payment processing comes with additional paperwork, which is crucial for your accounts department. If any piece of information is lost from your service history records, it can cause several compliance issues.

Using a field service app (especially one that offers mobile payment solutions) helps you digitize your processes. For instance, you can capture and save invoices through the solution, as well as related data for your records. When you combine this with technologies such as cloud storage and work order management, you can benefit from wireless connectivity to a large extent.

4. It Improves Efficiency

Mobile payment solutions improve efficiency by a large margin. Your employees do not have to go through redundant processes, manage paperwork, and wait for confirmation from backend systems when performing service work or writing up service reports.

As a result, your employees can complete more visits and complete more service requests in a single day. This aspect leads them to be able to manage a higher number of customers as well as exceed customer expectations.

5. A Field Service App Saves Costs

From faster payments to improved efficiency, these benefits come together to provide you with higher productivity at lower costs.

By making mobile app payment solutions a part of your field service app,  you will not only cut costs and increase your overall profitability but will also improve your FSM processes.

How to choose the right provider

Choosing the right payment provider for your field service application is a big decision – and there are some key considerations.

First and foremost, is to make sure that your payment provider is able to process payments when offline. Given that FSM pros are likely to get themselves into scenarios with no wifi or even mobile data, the provider’s offline capabilities are a key consideration.

After that, you’ll want to consider:

  • If the payment provider is able to integrate with your field service management software (or other tools you use regularly). Ideally, your service team should be able to work seamlessly on work orders from their mobile device, without having to switch between a variety of software like their field service mobile application, the CRM app, and the the payment provider’s app.
  • The provider’s reputation and customer service offerings. Payments are a critical aspect of field service businesses, and customers will not be happy if payments are held up and experience poor support.
  • The provider’s ease of use, not just for admins, but for field users as well. 
  • The payment options the provider accepts (ie beyond credit card transactions, does it take mobile payments like iOs’ Apple Pay?).
  • The automation features that the provider offers. For instance, do they have invoice templates? Will it speak with not just your field service solution, but also automatically update any inventory management system you may be working with?
  • The provider’s pricing.

Take the Next Step with Stax

The Stax Platform is a smart solution for businesses that take payments online or over the phone. With simple invoicing, recurring charges, and online bill pay, you’ll get paid faster with Stax.

At Stax, our mobile payment solutions are built with Apple and Android mobile app functionalities to help improve your on-the-go operations. With cloud connectivity, real-time updates, and faster processes, you can count on Stax and its mobile payment systems to accept payments anytime, anywhere.

Whether you are looking for a mobile payment system for your new business or need our suggestions on improving your current operations, don’t hesitate to reach out to Stax today to see how it works for your workflows and business needs.

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