There are a large number of competing payment processing services out there that offer a different strategy towards accepting payment. In addition, there are a large number of providers that offer different types of services. With all of this in mind it’s no wonder that so many businesses have a hard time figuring out which service is the best suited for their particular needs. The payment processing industry is an industry riddled with services that employ particular strategies that benefit some merchants while handicapping others due to the type of service they provide.
It is important to understand the different strategies and methodologies employed to help merchants accept a payment in an effective and efficient manner and whom these strategies are aimed towards. Understanding this is the key to becoming successful in not only converting customers but ensuring that payments are being accepted in ways that customers will be comfortable with. One of the most important aspects of a financial transaction is ensuring the customer is comfortable with the way it is being handled. Clients don’t like their financial information falling into the wrong hands, nor do they like the uncertainty of how something works.
Credit Card Processing
With credit cards being the most popular method of paying at any type of establish most merchants at the very least ensure that they can accept credit card payments. Either through swiping the card or utilizing the latest chip and pin technologies businesses are accepting credit card and debit card payments from their customers. Credit card processing is often heralded as one of the best methods of accepting payments from customers.
One of the greatest benefits that credit card processing has going for itself is the wide acceptance not only in the United States but around the world. International retailers are able to accept payments from the United States via credit and debit card. This ensures that those using these types of cards for payment are able to purchase services not only in the United States but around the world as well. It is a convenient standard that employs security standards that are agreed upon amongst the major industry players around the world.
While many are quick to dismiss accepting checks due to the antiquated methodology which comprises the process, there are a large number of businesses that opt to accept checks based on principle. In some lines of work checks are seen as a necessity especially when dealing with clients that are more comfortable dealing with checks. Clients that do not utilize a line of credit often don’t care too much about a debit card either and are therefore more likely to present a check to the place of business. Not accepting a check could be a loss of the sale.
It is important to understand your client base before making the decision whether to accept a check or not. In a number of industries clients are experienced in writing checks. Many rental housing and apartment complexes provide their clients with the ability to write checks to pay for their rent due to the convenience of just simply dropping off the check and the simplicity of a process that hasn’t been messed with in years. Rent payments are usually higher dollar payments and thus are considered to be easier handled through a check. Numerous other higher dollar establishments often allow check payments.
Automated Clearing House
The ACH system is a system specific to the United States. The automated clearing house is a system put in place to handle financial transactions in between different financial institutions. Many payment processors offer ACH processing solutions to help businesses accept their payments directly from the checking or savings account of their client. While a more tedious approach ACH payments are a secure processing solution that allows the client to feel a bit more comfortable with this approach as there are no interest charges involved since a line of credit isn’t being used.
Understanding how each of these payment proc
esses work is key to understanding which solution is best for your business.