Payment Processing Services
Payment processing solutions enable a merchant to accept payments with credit cards, whether the consumer is using a plastic card (including EMV chip cards) or other payment options such as contactless payments, digital wallets like Apple Pay or Android Pay, stored value cards, and debit cards.
A payment processing solution will include software that connects the merchant with the payment processor, which may be direct or through a payment gateway, and enables transactions that move money from the card account to the merchant’s account. The payment processing solutions will also include encryption, tokenization and other security solutions to keep card data safe.
Why It Matters to Your Customers
Cash-only businesses have become extremely rare as most merchants realize a significant fraction of their customers will prefer to use payment cards. At a time of growing competition and shrinking margins for many merchants, it’s important to provide customers with every convenience to enhance shopping experiences and build loyalty—and that includes allowing them to use their preferred payment methods. Accepting payment cards can also help increase the average sale, since customers aren’t limited by the amount of cash in their wallets.
Why Payment Processing Services is an Opportunity
Providing payment processing to your customers will result in recurring revenue for your business. Each payment processing vendor’s terms vary, so do your homework on the charges your customers will incur and the margin you can make to determine the best options to offer as a part of total point of sale (POS) solutions.
The U.S. transition to EVM chip card payments is still far from 100% adoption. As more EMV chip cards are issued, merchants that delayed upgrading to EMV technology may be ready to move now as more consumers equate EMV with security. A prospect may have also experienced chargebacks due to processing a fraudulent card with its mag stripe, and may no longer want to bear the liability in those circumstances. The opportunity may be greatest among hospitality businesses, which lagged behind other merchants in EMV adoption.
There is growing opportunity to provide payment processing solutions to healthcare organizations, as the payer is more often the patient instead of exclusively an insurance company. Healthcare providers are following the lead of merchants and are looking for solutions that optimize customer experiences while making payments easy and convenient.