Merchant Services: What are you really paying for?
Knowing what you get from your merchant service provider is critically important. Thinking that it would be far less of a headache to stay with your current provider could cost you much more than you think.
There are several aspects to consider when choosing a merchant service provider. Businesses have been relying on their banks to provide them with traditional merchant accounts for ages to process credit and debit card transactions.
Times have changed and now there are more products, packages and independent providers than ever before.
The WAPPoint team would like to shed some light on exactly how the industry works and how you can ensure that you are getting the value you deserve. Firstly, you need to assess the needs of your business and look for a service offering that is best suited to you.
- What type of business do you have? Knowing your business means knowing your customers. If your clients only pay by credit card then you could save a lot of money by making use of an online payment gateway. You might not be office based and then a smart device terminal would be your best option.
- How many transactions do you do in a day? This is important to know because it would not make sense for a retailer who process hundreds of transactions by card every day to use a smartphone terminal as it would just not be feasible.
- What is the NSP signal like in your area? This is perhaps one of the most important aspects to consider. As most POS terminals currently used in South Africa connect via a GPRS signal, it would be a costly mistake not check this beforehand. Should you have very limited signal then a fixed line card machine is the best option for you.
Choosing the right product:
We have covered some of the product options already but it is important to see what exactly you should be looking for in the product type you choose. There are 4 ways to accept card payments:
Traditional Card Terminals:
Mobile Card Machines are the most widely used devices and operate via a GPRS or 3G sim card connection. The most important question to ask before choosing is whether the machine has a Dual Sim option to maximise connectivity?
Fixed-Line Card Machines are being used less and less but are perfect for companies with a fixed place of business and weak cell phone reception. One tip that we can give is that you must have an existing landline and it does not have to be a data line. If you install a landline simply for your card machine it can become quite costly.
Mobile/Smart Device Card Processors:
This is a wonderful advance in the card payments industry. Several product variations have popped up in recent years from both banking and independent service providers. The most important things to consider when choosing a smart device terminal is:
- Can I charge my smartphone/tablet and the device whilst using it?
- Do I have to buy any additional hardware for the device to work with my phone?
- How much data will the app use?
- Does the device come with a guarantee or warranty?
- Will my customers be comfortable paying on such a terminal?
If you exhibit at markets or are a travelling tradesman, these devices can make your life much simpler at a fraction of the cost.
Online Payment Terminals and eCommerce:
If you want to build an online store where people can securely purchase items then eCommerce is the best way forward. Alternatively when you want to accept payments via credit card but do not have the need for a machine then an Online Payment Platform is your best bet. Just because these are the most cost effective options does not mean that they are worse than any of the previously mentioned options. Here are some things to consider when choosing these options:
- Does my payment gateway (eCommerce) have 3D Secure?
- Can I integrate it with my existing website?
- How many of my customers pay with credit cards or hybrid cheque cards?
Choosing the right supplier:
Now that you know which questions you should be asking, the next step is to find out what separates the different service providers from each other. WAPPoint has over 15 years’ experience in the Card Payments Industry and has created a service driven competitive advantage which has made them the preferred supplier for over 300 exhibitions that take place annually in South Africa.
Here are some of the reasons why WAPPoint is the best suited service provider for you:
- Multiple Product Packages with the flexibility to change from one to the other as your business grows.
- Short and Long Term Contract options. If you only exhibit at shows then you have found the perfect supplier to assist you.
- Outright Purchase Packages.
- WAPPoint provides you with Loyalty Rewards in the form of cash back for permanent clients.
- Referral Commissions of R200 per new client that you refer.
- We attend most expos to provide delivery and support at exhibitions.
- Extensive Transaction and Settlement Reporting.
These are just a few of the great benefits on offer from WAPPoint. Do yourself a favour and get in touch with them today! Call them on 021 3000 121 or send them an email to [email protected]