Businesses, big or small, cannot escape from interchange rates. These are necessary fees charged by major card companies like Mastercard for covering transactions.
As of the second quarter of 2020, approximately 939 million Mastercards are circulating worldwide, and 25% are in the United States. Quite possibly, your California-based boutique will process hundreds of Mastercard transactions in a day. Keep ahead of your competitor and learn more about the business solutions to benefit from Mastercard interchange rates.
Cost-Plus or No-Cost Pricing
For Mastercard payment processing, you have the option to either impose a markup fee per transaction or incorporate the fee to the Mastercard transaction cost. The latter option allows cardholders to pay a single fee conveniently. The merchant then gets 100% of the revenues.
To avail of a no-cost account, look for payment service providers with minimal transaction requirements, say $5,000 per month, or offer a small fixed fee option. These flexible solutions ultimately help small businesses expand client reach and increase sales.
Multiple POS Options
Your point-of-sale (POS) system should fit the size and nature of your business. Your business has multiple POS options. You can choose to have terminals that are handheld, countertop style, or tablet-operated. POS solutions also vary in terms of accessibility (cloud-based or server-based) and functionality (advanced features like inventory management versus simple swipe processing).
Identify your business needs before deciding the type of POS to install. Understanding your business needs will help you minimize unnecessary operational costs related to Mastercard interchange rates processing.
Card Machine Features
Contactless options are becoming increasingly popular nowadays. Customers only need to tap once to complete a purchase. But besides mobile and wireless card machines, you can choose to install the traditional keypad swiper or a touchscreen machine.
While advanced features certainly spell convenience to customers, your business should consider installation and maintenance costs. Also, understand your present customers’ preferred payment option. If the majority of your customers are okay with cash or pin pad machines, then settle for a cost-efficient pin pad card machine and upgrade later on.
Many businesses nowadays run on multiple channels. That is, they have both physical stores and online stores. Your Mastercard payment service provider should offer you a virtual terminal ideal for your online store. This innovative solution lets you save costs and staff hours since you only need to transact with one provider for both online and offline stores. If indeed the company has an e-commerce payment solution, check its supported systems or shopping carts (e.g., Shopify, Wix, Magento, etc.). By checking incompatibilities, you can avoid wasting time and money.
Payment solutions vary across industries. For instance, hotel bookings do not always follow a linear process. Free cancelation policies, down payment requirements, and refund processing often complicate the process. Your payment service provider should allow you to add, delete, or revise package offers as your industry demands. In this case, your hotel may need 24/7 customer support, extended authorizations, and zero cancelation fees.
Comparatively, a retail store with a straightforward payment processing may have a lesser need for zero cancelation fees and extended authorizations. But it will benefit from a fast approval to reflect accurate recent records.
Get your custom solution for the Mastercard interchange rates or any other card for that matter. Remember that customers nowadays value multiple payment options that are reliable, accurate, and fast.