Prepaid debit cards  have been introduced in the market for quite some time.  To keep up with the competition, different issuers have enhanced it’s features to make them more flexible and user-friendly.  Today, prepaid cards are not just ideal for people with bad credit history.  Even those who do have good credit standing can choose to own a debit card for personal reasons.

In fact, small business owners are beginning to recognize the benefits of using such.

If you are a small business owner, then you should be interested to learn how it can be beneficial for your business.

In this article, let us discuss why debit cards are advantageous for merchants and how you can make the most out of them.

Encourage Customers to Pay with Debit Cards

If you have a merchant account, then why not encourage your customers to pay with a DC’s instead of a credit card?  Some merchants even accept ONLY debit card payments.  The reason?  There is much lower card processing fees involved with debit card transactions than with traditional credit card transactions.

Merchant account providers can afford to require lower fees on debit card payments because it involves much less risk than credit card payments.

When a DC holder pays for his/her purchases, the balances are instantly paid off using the customer’s available funds from his/her debit account.

The only risk associated with this purchase is if a customer makes claims that the products were not received in good condition or that the transaction was made without consent and demands for a charge-off.  Of course, the same thing applies with customers who use the credit card mode of payment.

On the other hand, when a credit cardholder pays for his/her purchases, the customer has the option to pay for the full balance within that billing period or pay only the minimum amount required by the credit card issuer.  Thus, credit card processing costs tend to be more expensive than debit card processing fees.

Manage Your Payroll with Debit Cards Payment System

Whether you hired in-house employees, freelancers or home based contractors, you can simplify your payroll system using debit card payment.  How is a DC payroll system more advantageous than the traditional one?

First, you can conveniently keep track of your payroll records by accessing your debit account.  Most debit card companies provide an online account access for their cardholders so you can check on your account status from your own computer at any time.  If you need to document the report, you can simply print out a copy for filing purposes.

Sending payments through debit cards is more cost-effective, more convenient and safer.  As a business owner, all you have to do is deposit sufficient funds in your debit account, and you can send out payments through online banking.

Unlike wire money transfer services, you will not be charged with additional costs every time you send in payment.  Your employees can make a withdrawal from the ATM immediately after their salaries have been sent.

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The Cost of Credit Card Payment Processing

About the Author:

Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line.

Do you own a business? If yes, then perhaps one area of your business that you’re most concerned about is your payment processing system. Today, every small businesses can accept credit card payments from customers. However, with cases of credit card fraud ever increasing, both consumers and business owners are warned to take the necessary precautions to avoid possible problems.

What is a chargeback and how can you avoid them?

One of the most common problems about accepting credit card payments is getting charge backs. But what are charge backs?

When you accept credit card payment from a customer, there’s a possibility that the customer can change minds, or isn’t even the real owner of the credit card.

Perhaps the credit card has been stolen and is being used without the real card owner’s consent.

By the time the credit card owner receives his/her billing statement, he or she may dispute these unauthorized charges. Under the Fair Credit Reporting Act, a consumer has the right to dispute unauthorized charges in the account. In this case, when the consumer calls up the bank and advise them about these unauthorized charges, the credit card issuer may move for a reversal of that particular credit card transaction.

Obviously, credit card charge backs can affect a business’s sales and marketing performance. If you’re not careful, a huge amount of chargeback can result to a major loss in your profits. What you thought was a genuine sale for your business later on may prove to be a fraud.

To avoid being a victim of credit card fraud, it is the merchant’s responsibility to accept credit card payments with extreme caution. Here are some steps you should take before closing that credit card purchase.

• Swipe the card or imprint it on the transaction receipt. In case of a dispute, having the card swiped proves that the customer presented the credit card when the purchase was made.

• Closely examine the cardholder’s signature. Sometimes, it is easy to overlook this crucial step especially when there are a lot of customers in line, waiting for their turn in the cashier. But checking if the customer’s signature matches the signature at the back of the credit card can alert you of a credit card theft. Instead of presuming that the credit card holder is the real owner, keep in mind that there is always a possibility that the credit card being used is stolen.

• Ask for proof of identification. Some shops do not ask for additional IDs unless it’s a huge purchase amount. But even if it’s just a small amount of purchase, every merchant should make it a practice to ask for at least one ID from their client.

• Check the credit card’s expiration date. Don’t forget to check the expiration date on the credit card. There are cases when credit card thieves use old or expired credit cards and get away with it.

• Call the credit card issuer. If you’re in doubt, take a moment to call the credit card issuer to confirm the details of the cardholder.

About the Author:

Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line.