Contactless Payments Merchant Accounts

Consumers don’t like carrying cash but are wary of handing over a credit card because of the risk of credit card fraud. But what’s the alternative? Contactless payments. The next generation of electronic payment, contactless payments don’t require the customer to hand over their card. The whole transaction is completed electronically, and their card never … Continue reading “Contactless Payments Merchant Accounts”

Consumers don’t like carrying cash but are wary of handing over a credit card because of the risk of credit card fraud. But what’s the alternative?

Contactless payments.

The next generation of electronic payment, contactless payments don’t require the customer to hand over their card. The whole transaction is completed electronically, and their card never leaves their hand. It’s faster, easier and much more secure.

But what about the merchant? Should cash-heavy merchants rush into setting up a contactless payments merchant account? The answer is a resounding yes! Contactless payments merchant accounts deliver even greater benefits to merchants than it does to consumers. Read on to find out how.

What is Contactless Payment?

Contactless payments merchant accounts are the third generation of electronic payments. (The first generation was the old plastic credit card, and the second was the magnetic stripe card.) Merchants with contactless payments merchant accounts enable customers to use their credit cards for purchases without ever handing their card over. Contactless payments merchant account transactions use one of the following methods:

o Contactless readers;

o Retailer cards/fobs;

o NFC (near field communication) enabled cell phone payment software; or

o Back end processing/over the air payment software.

Customers love it!

Research shows that 86% of consumers want to carry less cash, and most carry less than $20. (Survey was conducted in 2005 by lpsos and commissioned by MasterCard). They’re growing more comfortable using credit, but they’re still quite worried about security issues when handing over their card. In fact, 91% of likely users would feel more secure if they were allowed to hold their payment card through their entire payment process.

And then there’s ease of use, speed and convenience. Nationwide, almost 75% of respondents refuse to wait in line longer than five minutes for a purchase of less than $25, and more than 25% refuse to wait longer than just two minutes.

So how does contactless payment compare in terms of speed? Very well, in fact… It takes only 1/3 to ½ of the time of the average cash or traditional credit card transaction:

o CVS Pharmacy Average Cash Transaction = 33.7 seconds

o Average Card Transaction (w/o Signature = 26.7 seconds

o Average RF Transaction = 12.5 seconds

So contactless payments increase customers’ sense of security and decrease hated wait-times. It’s no surprise, then, that customers love it!

And the growth rate of contactless payments merchant accounts shows it. According to Brian Triplett, senior vice president for emerging product development-Visa USA, “The adoption rate is the fastest we’ve seen for any new technology. I do expect we will continue to see significant growth; whether it’s double or triple we’ll have to wait and see.”

What are the Benefits for Merchants?

The most obvious benefit for merchants in having contactless payments merchant accounts is that consumers love it, so they’ll use it more often and spend more.

But the benefits don’t end there. Contactless payments merchant accounts also:

o Leverage ‘Top of Wallet’ convenience – Like traditional credit cards (and unlike cash), the customer’s card is always in their wallet, which means they’re more likely to spend, simply because they can.

o Deliver increased merchant differentiation – Particularly in the early days of adoption, merchants with contactless payments merchant accounts will ‘stand out from the crowd.’ They’ll offer consumers a new and exciting way to pay for goods and services.

o Are cheaper to operate – Transactions clear as a card-present, magnetic stripe-read transaction, but card readers are a fraction of the cost of a new POS terminal.

o Increase efficiency – Businesses with contactless payments merchant accounts enjoy much more rapid check-out times during peak hours.

o Are easy to install and upgrade – The hardware for contactless payments merchant accounts is all plug-n-play.

o Increase customer loyalty – Studies show that customers return to the participating merchant’s location on an average of two times a month.

o Leverage a general consumer movement away from cash (20%) – Even customers who don’t specifically love contactless payment probably DO specifically dislike cash. By offering them an alternative, businesses increase the likelihood of a sale.

Put simply, businesses with contactless payments merchant accounts enjoy increased transaction volume (average 45%) and increased ticket size (average 20%).

What Merchants Benefit Most from Contactless Payments Merchant Accounts?

Contactless payments merchant accounts are ideal for cash-heavy merchants. Target industries include:

o QSR

o Petroleum & C-store

o Book Stores

o Dry Cleaners

o Video Rental

o Pharmacy

o Grocery

o Parking

o Movie Theaters

o Stadiums & Arenas

o Theme Parks

o Events

o Cafeterias (Schools & Corporate)

o Taxis

o Transit

o Vending

o News Stands

o Parking Garages

Conclusion – The Future of Contactless Payments Merchant Accounts?

Contactless payment offers significant bottom-line benefits to merchants. It’s the next generation payment system that’s faster, easier, more secure and more convenient for consumers, which means it facilitates more sales (greater volume transaction) of greater value (ticket lift) for merchants. It’s a win-win situation!

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Offshore Merchant Account Advantages

An offshore merchant account has all the advantages a wise and practical merchant wants for his online business such as easy application, low to zero initial deposit and taxes, account safety and security, quick payments, and more.

Any form of business now accepts credit or debit card payments because of its many advantages to the retailer and customers. It also generates a lot of profit by increasing sales and cash flow in the business because of the fact that over 80% of customers now pay through their credit or debit cards.

Having an offshore merchant account has loads of benefits that the retailer and the business will gain. Below are its advantages:

Easy application

It is very easy to apply unlike a domestic merchant account. Offshore merchant account providers do not have very strict rules and guidelines when it comes to applications because they simply have no strong competitors thus they can accept applicants to the maximum. It is possible to acquire for it even if you are new and inexperienced, and even if your business is small. Set up time may only require one week, depending on the account provider you choose.

Low or zero initial deposit

Many domestic accounts may ask huge amounts of money as initial deposit from applicants who can’t even afford getting such. But in an offshore merchant account, merchants do not have to worry about any of it.

Reduced or zero taxes

Usually the providers are located in another country than the applicant thus processing fees of credit or debit cards are not regulated with high taxes. They usually have lower to zero tax percentage and up to 15% savings on tax payments. This is a great deal to merchants who want to gain more money.

Acceptance of multiple credit cards and currencies

Having this account grants the retailers the capability to accept a variety of credit or debit cards, and different currencies all over the world. Domestic merchant accounts may only be limited only to their local currencies which hinders the business to spread out internationally. But in an offshore merchant account, different types of currencies are welcome especially that it is not limited to one country alone. And costumers also need not to worry about currency conversions when paying.

Safety, security and privacy

Offshore merchant accounts are thought to have high risks in frauds or scams. But with thorough research you can find a provider that is authentic which will guarantee you that your account will be safe and secure. Many offshore providers are currently applying latest security technologies and protection systems from fraud and unknown encryptions to ensure all the account holders that their accounts and financial transactions are safe with utmost privacy.

Reliable payment gateway

The credit and debit card processing gateways are always stable and functioning. Merchants and customers don’t have to worry about downtime processing problems. With this account, your business will be able to accept credit and debit card payments round the clock with speedy account updates.

Quick payments

Merchants don’t have to wait for days for payments transfers because it will only take a few seconds for payments to be processed and you will be paid instantly.

International customers

It is not limited to one country and currency thus enhancing the retailer’s business potential. It is available worldwide so international customers can be able to purchase your products and services with unlimited transactions.

Shopping cart

The accounts are compatible with scripts that enable shopping carts or ‘one-click buy’ functions to merchant’s online web stores

Nowadays, many businesses are expanding and reaching into the international industry. These businesses need such account to accept credit or debit card payments from international costumers because local merchant accounts are limited only in the domestic area. It is not also true that these accounts are scams like some people say. Offshore merchant accounts are actually well-secured.

Free Merchant Accounts Vs Internet Merchant Accounts

To achieve success in the e-commerce market it is important that your business accepts credit card payment and if possible, also provides various other payment processing services. This will help increase your sales as you would ultimately get more customers, for people prefer those businesses who accept online payments. In order to accept the various payments, an internet merchant account is absolutely necessary.

An internet merchant account will help you not just in increasing your sales but you also earn larger profits. Most people avoid internet merchant accounts due to their mere high fee. There are various internet merchant account providers out there who are willing to provide you with a free merchant account and save you a whole a lot of money. Some of these will refer you to a third-party merchant account for their free internet merchant account services.

Whether you are a retail store owner or own a high risk business, owning a free merchant account is suppose to end all the unnecessary hassle and provide you with vast opportunities. The free merchant accounts are marketed on the basis that your online business will gain huge profits once you get a free merchant account with a third party company and will save you time and money.

Free merchant accounts proclaim to provide you with processing software that will not cost you a dime. You get secure servers and there is absolutely no transaction, customer service or gateway fee. You have to pay a very small transaction fee and there is no credit check on your free merchant account. Some free merchant accounts also start accepting online payments within a few minutes.

Behind the free merchant accounts – there is a catch!

The internet merchant account providers who boost about free merchant accounts actually do charge. No company will offer you a free merchant accounts. The initial setup might be free but they will charge you a higher fee for card processing and transactions as compared to a proper internet merchant account that you can get with a reliable internet merchant account provider. Some processors can also withhold up to 10% of your profits for future returns when you use a free merchant account. Free merchant accounts also expect you to pay more money per sale and high volume sales lead to your account deactivation.

It is therefore better to own an internet merchant account for your online business, depending on the kind of business you have. An internet merchant account makes your life a lot easier than a free merchant account. You would not have to worry about your internet merchant account being closed down due to high volume sales and will provide you hassle free solutions. They can actually help boost your sales and expand your business worldwide. For a minimal fee you become capable of multiplying your profits. No more paying annoying amounts to processors or worrying over spending extra money for transactions. So getting your own internet merchant account is way better than getting a ‘so-called’ free one and ending up paying more in the end.