Payment processing is a multi-billion dollar industry. Savvy business owners understand that lower costs for payment processing can significantly impact a company’s bottom line. In part 1 of this blog, we discussed a few costs to consider regarding payment processing, including software compatibility, fees, and charges. Part 2 will cover additional topics including security, compliance, manpower, and pay-as-you-go services. Read on to learn how K & B Solutions could potentially save thousands–even millions–of dollars for your business.
Subscription vs. Pay-As-You-Go
Payment processors often offer subscription-based models or pay-as-you-go plans. Consider your business’s payment volume and frequency. If you have consistent sales, a subscription plan may offer better rates, while a pay-as-you-go plan may be more suitable if your business has fluctuating sales. Evaluate the following plans based on your business’s needs:
- Flat-Rate Pricing: This model charges a fixed percentage per transaction, simplifying fee calculations. It’s suitable for businesses with a low and consistent transaction volume.
- Tiered Pricing: Tiered plans charge different rates based on factors like transaction type (swiped, keyed, online), card type (debit, credit), and transaction volume. Analyze your transaction history to determine which tier is most cost-effective.
- Subscription Models: Some processors offer monthly or yearly subscription plans, which can provide cost savings for businesses with high transaction volumes. However, ensure the plan you choose aligns with your actual transaction volume.
Time and Manpower
Implementing a new payment processing system requires time and effort. Consider the time and manpower required to set up, train, and maintain your chosen payment processing system. Some systems require a more extensive setup than others, which could be time-consuming and costly.
In addition, training staff to use the system could require additional time and resources. Ensure you have access to reliable customer support for troubleshooting issues and technical assistance.
Security and Compliance
Protecting your customers’ sensitive data and complying with payment card industry (PCI) standards is non-negotiable. Ensure that your chosen payment processing option offers robust security features and is PCI compliant. Some of these features include:
- EMV Chip Technology: Using EMV chip technology can protect your business from liability in case of fraudulent transactions.
- Data Encryption: Payment processors should offer encryption to secure customer data during transactions.
- PCI Compliance: Choose a processor that helps you maintain PCI compliance, as non-compliance can result in hefty fines and reputational damage.
A Superb Payment Processing Solution for Your Business
Boost your business with K and B Solutions Payment Processing today! Discover a world of convenience, security, and affordability. Take the next step toward seamless transactions and fraud protection. Contact us, and let’s start growing your business together!