Passing on credit card fees to customers can be a big decision for your business. Some small business owners feel like they have no choice due to the high cost of credit card processing, but many retailers worry that it could drive away customers.Fortunately, there are several ways to pass on credit card fees to customers that comply with state laws and don’t require you to overhaul your entire point-of-sale system.Let’s take a look at the pros and cons of credit card surcharges, and what you need to know before charging customers a surcharge or convenience fee.
When it comes to passing on credit card fees to customers, you can either do it directly or indirectly. Passing the fees on directly means that your customer covers the cost of their credit card purchases and you pay less or nothing at all.Passing them on indirectly means that you use other strategies to reduce your credit card processing fees, such as incentivizing other payment methods.
A surcharge program is the most direct way to pass on your credit card fees. In short, a surcharge program charges your customer a fee on credit card transactions in order to offset the amount that you would be charged by your payment processor.For example, with a surcharge program through Nadapayments, your customer is charged 3.5% of the purchase amount, so you take home 100% of the sale and pay $0 in transaction fees.Surcharge programs can be tricky to implement on your own, since you’ll need to abide by state and federal laws and let the credit card networks — and your customers — know about the program.That’s why it’s best to work with a merchant service provider like Nadapayments, who will take care of the paperwork for you.
Another way to pass on credit card fees is to charge a convenience fee on some, but not all, credit card purchases. If you’ve ever bought tickets to a movie or a concert online, then you’re probably familiar with these kinds of convenience fees.Unlike surcharge programs, convenience fees are legal in all 50 states, as long as you abide by the policies of the card companies (i.e., Visa and Mastercard).The important thing is that you can only charge a convenience fee for “alternative” sales channels. For example, if you have a brick-and-mortar store, you could charge a fee for over-the-phone transactions but not in-store purchases.This option won’t pass on the entire cost of credit card processing, but it will offset the cost of some payment methods.
If you don’t want to charge customers directly for using a credit card, an alternative is to set a minimum purchase amount for credit card transactions.Since some payment processors charge a flat fee plus a percentage of the transaction amount, smaller transactions result in higher costs for business owners. By setting a minimum purchase amount, you’ll be able to keep accepting credit cards but minimize fees cutting into your bottom line.
Finally, another option is to offer a cash discount instead of implementing a surcharge fee. This is a good option in states where surcharge programs aren’t legal, including Connecticut, Massachusetts, and Colorado.Instead of charging more to customers who pay with a credit card, you charge less to customers who pay with cash or a debit card. This encourages customers to choose a payment method that incurs lower fees, and lets you factor the cost of doing business into your pricing model.Cash discounts are common in gas stations and convenience stores and are often applied to debit card transactions too since they have lower processing costs.
The most straightforward method of passing on credit card fees to customers is starting a surcharge program — but how do you know if it’s the right thing to do for your business? Let’s take a look at the pros and cons.
The first advantage is obvious: You can accept credit card payments without cutting into your profits, since the customer will bear the cost of the transaction.Depending on the size of your business, accepting credit cards can eat into your bottom line, especially if you pay merchant account fees on top of processing costs.Setting up a surcharge program simply passes those costs on to the customer, allowing you to keep your prices low for all customers. Plus, customers have the option to avoid the surcharge fee by paying with cash or a debit card instead.
The downside to starting a surcharge program is that some of your customers may be unhappy about it and may complain to your employees.If all of the other merchants in your area charge surcharge fees too, then it may not be a big deal. But if customers can go elsewhere to avoid the fee, you may be afraid you’ll lose business.You can minimize this risk by announcing the surcharge program before you launch it, and reminding customers they can opt out by paying with cash, check or a debit card.With the right messaging, your customers will understand that the program is designed to give them more payment options to choose from. Companies using Nadapayments as their surcharge solution haven’t reported any decline in sales as a result.Another con is that there are strict rules you need to follow. For example, you’ll have to register the program with each card brand and the surcharge can’t exceed 4%.When you get started with Nadapayments, we’ll take care of these details for you to make sure you don’t run into any issues.
If you’re thinking of changing your payment policies, it’s important to do it right to avoid disruptions and reduce customer complaints. Here are a few tips to help you out.
First, don’t try to hide your credit card fees behind confusing language and terminology. Post signage that explains your policy at the checkout counter, and display any credit card fees as a line item on your customer’s receipt.Not only is this a legal requirement in many states, but it will build trust between you and your customers and reduce confusion. Who knows, maybe they’ll even be in favor of the change because they want to support local businesses and help keep prices low!
Some customers will be fine with your surcharge program, but others may prefer to opt out and use another payment method. That’s where cash and debit cards come in.You aren’t allowed to pass on debit card fees to customers, so you’ll have to cover the cost yourself. However, processing costs for debit cards are much lower. For example, Nadapayments charges only 1% plus $0.25 cents for debit card transactions, so you’d take home $49.25 for a $50 payment.
Finally, be sure to follow all the rules and regulations in your state. Even in states where surcharge programs are legal, such as California, customers can report you to the state’s attorney general for “unfair or deceptive” practices if you don’t disclose it.If in doubt, get help from a company like Nadapayments, who will work with you to set up a surcharge program that’s compliant with the laws of your state.
Nadapayments offers more than just a credit card surcharge program. It’s an all-in-one merchant service provider that will handle all of your credit and debit card transactions with no setup costs and no monthly account fee.You’ll pay just 1% plus $0.25 for all debit card transactions, while your customer will pay a flat 3.5% on all credit card transactions. You’ll get all of the signage you need to explain your surcharge program to customers, plus a virtual terminal for keyed-in payments. And, you can rent a credit card reader with the surcharge program built right in for just $35 per month.Sign up with Nadapayments to launch your credit card surcharge program today!
Sometimes it can seem like every customer has a different payment method they prefer. Some customers want to buy everything online, others want to be able to tap their credit card on a contactless card reader, and others prefer to use their smartphone to pay with an Apple or Android mobile app.Being able to accept multiple types of payments can be good for your business, but not every point-of-sale (POS) system has the same functionality. Restaurants, e-commerce stores, and retailers all need different things out of a point-of-sale-system.Let’s take a look at what kind of POS systems are out there and how you can choose the right POS system for your small business needs.
The tricky thing about choosing a POS system for small businesses is that there’s no one-size-fits-all system. There may be multiple components of your POS system, but they typically take the place of a traditional cash register and may include:
Your merchant services provider may offer all of these items as a package, or you may have to purchase some of these components separately.For example, Nadapayments provides a Wi-Fi-enabled smart terminal for $35 per month, which includes a receipt printer and reams of receipt paper. You’ll also get a a virtual terminal you can run on your own computer or tablet.If you’re happy with your existing POS system, you can use the Nadapayments card reader to implement a surcharge program and integrate it with your existing system.The Nadapayments card reader accepts payments via:
Once all the components of your POS system are up and running, you’ll be able to ring up items, accept credit card payments, and provide printed or digital receipts. Some POS systems offer additional tools to help you take restaurant bookings, manage inventory, and monitor sales figures over time.
POS systems are about more than just accepting credit card payments. POS systems save time and reduce employee error by making it easy to scan or key in the code for each item and print out a receipt.For certain types of businesses, like restaurants, your POS system will help you group items by table and even split the check.Retail and e-commerce businesses can use their POS system to collect a customer’s contact details in order to email a receipt or run a loyalty program.Of course, the functionality of your POS system will depend on what kind of hardware and software you use and which payment processor you choose.
When it comes to POS systems for small businesses, the “hardware” you need may be as simple as a credit card reader and a smartphone or iPad. You can run a POS app on your device and use a card reader to swipe your customer’s payment info, turning your smartphone into a mobile POS system.This is a great option for sole proprietors and small business owners who don’t work out of an office — such as landscapers or fitness instructors — who need to be able to accept mobile payments on the go.If you operate a retail store or cafe, then you may want to consider additional hardware options, such as an EMV card reader that can accept contactless payments.
POS software refers to the program or app that you use to process payments. Some point-of-sale solutions are cloud-based, which means that data is stored in the cloud, and you can access it by logging in on any of your devices.On-premises software is installed locally, such as on your company’s PC or Mac, so it may be more customizable but may also require more maintenance. The right POS software for you depends on how many locations you have, how many employees will be using it, and whether you want your POS hardware to be stationary or mobile.Most POS features will be intuitive for anyone who’s worked at a checkout counter before, but some features may require some training.
When choosing a payment processor, you’ll also want to take a close look at the pricing structure. You’ll need to compare upfront costs, monthly fees, and how much you’ll pay for debit and credit card processing.For example, Nadapayments only charges 1% plus $0.25 for debit card transactions. When it comes to credit card transactions, you won’t owe anything for processing fees. If your customer chooses to use a credit card instead of cash, check, or debit, they will incur a 3.5% surcharge.Your only recurring fee is the $35-per-month cost of the credit card reader, which gives your customers multiple payment options, including contactless payments.This pricing model is simpler than many other POS solutions, which often charge a higher transaction fee for online ordering than for in-person payments. Also, since most payment processors don’t offer a surcharge program, you’ll be stuck paying for credit card processing fees.
The best point-of-sale system for your business will depend on your sales volume, your industry, and what kind of payment methods you want to accept. Any POS system may do the bare minimum — allow you to accept credit card payments — but more advanced POS systems can provide real-time sales metrics and inventory management.Let’s take a look at three industries that rely on POS systems, and which POS features your small business could benefit from.
Retail POS systems are designed for retail businesses like hardware stores, bookshops, and other shops where customers make purchases in person. Your business may offer some online sales, but most sales are made using a physical card reader.Retail POS systems streamline the checkout experience and make it easy to track inventory. You can use a retail POS system to generate sales reports, accept gift cards, and run a customer loyalty program.
Even within the restaurant industry, POS systems can vary widely. For example, a cafe or quick-service restaurant can use a POS system to speed up the ordering process for dine-in, pickup, and delivery.A full-service restaurant may need a more advanced POS system with tools for both the front and back of house staff. You may want a POS system with a built-in floor plan and the ability to accept tableside payments.
E-commerce POS systems are for businesses that operate primarily online. These POS systems rely on payment gateways and virtual terminal credit card processing, but may still offer a physical credit card reader for in-person payments.The main features to look for in an e-commerce system are inventory management and customer management tools. You can integrate your POS system with your CRM to run customer loyalty programs and email marketing campaigns.
For businesses that only need a credit card reader, Nadapayments’ surcharge program is the obvious solution. For a low monthly cost, you’ll get a Wi-Fi-enabled EMV card reader that’s ready to use and has all of the software you need built right in.For businesses that need more advanced POS features, such as a restaurant booking system or inventory management, you can simply integrate Nadapayments with your existing POS system and take advantage of no credit card processing fees.Unlike other payment processing solutions, Nadapayments is an all-in-one merchant service provider that’s compatible with online sales, retail, restaurants, and more. You’ll be able to accept more types of payment methods, including Apple Pay and Google Pay, while saving money on transaction fees.Plus, you’ll get the signage you need to explain your surcharge program to customers, and a receipt printer is built in, so you can provide your customers with printed or digital receipts.Get started with Nadapayments and launch your surcharge program today!
Every business owner wants to get the lowest credit card processing fees they can, but it isn’t always clear how to do it. Do you need to open a merchant account or a business bank account? Or can you lower your transaction fees another way, such as using a payment service provider to handle your transactions?For large businesses, opening a merchant account may be a better deal, but for small businesses, a payment service provider will offer better rates and more flexibility. Here’s how to accept credit card payments without a merchant account — as well as how to use a surcharge program to get rid of credit card processing fees entirely.
A merchant account is essentially a specific type of bank account for businesses that’s used to handle online payments and credit card transactions. There are a few different types of merchant accounts for different types of businesses — for example, internet merchant accounts for e-commerce businesses.Depending on what products or services you offer, and where you sell them, you may need to open more than one merchant account to process all transactions. Not every bank offers merchant accounts, though, and you’ll have to go through an application process to get one — even if you already have a business bank account.
A merchant account is provided by an entity called a merchant acquiring bank, and it’s their job to facilitate the sale between you, the cardholder’s bank, and your credit card processor. Your customer’s money goes into the merchant account, where your credit card processor can access it to take their cut. Then, the remainder of the purchase amount goes into your business bank account, where you or your business partners can access it.Most merchant acquiring banks charge a monthly fee for a merchant account, usually between $10 and $50, regardless of how many transactions go through it.
In order to get a merchant account for your business, you’ll have to apply for one with a merchant acquiring bank. These banks usually have a lengthy application process and may want to know the following details about your business:
Some businesses are considered “high risk” because they’re more likely to experience fraud or chargebacks. If that’s the case for your business, then your acquiring bank may charge you higher fees or decline your application altogether.If you’re a small business without a lengthy credit history, then you may have better luck applying for a merchant account at a bank that you already do business with.
Merchant accounts have their advantages. Since they’re provided by established banks who vet the businesses they work with, you’re less likely to run into processing delays and account issues than with third-party payment processing companies.And for businesses with a high sales volume — over $10,000 per month — they may offer a more appealing pricing structure than payment processing services.But for new businesses or startups that don’t have a high volume of sales or extensive business history, a merchant account may be harder to obtain. The application process can take more time than its worth, and you may not actually save any money on credit card transaction fees compared to other processing options.
The obstacles to opening an account with an acquiring bank can leave you wondering how to accept credit card payments without a merchant account of your own. The good news is that there are plenty of companies that can do the heavy lifting for you. These are known as “payment service providers” or “merchant aggregators”.Payment service providers (PSPs) maintain their own merchant account, where they receive the funds from all of the customers they work with. After deducting their fees, they’ll send the money into your business bank account — usually within a few business days.You’re probably familiar with some of these companies — such as Stripe, Square, and PayPal — but all of them offer slightly different services and payment structures.
Most payment service providers charge a processing fee for each transaction. Instead of paying a monthly fee for a merchant services account plus the processing fees that your credit card network charges, your fees will look something like this:
Some payment service providers charge different rates for different payment methods — such as in-person vs. card-not-present payments — or for online transactions.
Not only do payment services providers handle everything behind-the-scenes, they’ll also provide you with the tools you need to accept credit card payments in person.This usually means a credit card reader or point-of-sale (POS) system that you can use to swipe, tap, or otherwise process in-person payments.In some cases, you may be able to install a POS app directly onto your mobile devices, but in other cases you may need to buy more extensive hardware.
Payment service providers are faster and easier to get started with than acquiring banks, and don’t require as thorough of an application process. However, they may still decline to work with high-risk businesses with a higher likelihood of chargebacks.On the plus side, they’ll take care of PCI compliance for you so you don’t have to worry about keeping your merchant account compliant with PCI regulations yourself.They also tend to have a much more favorable pricing structure for small businesses – that is, any business turning over less than $10,000 per month. Even so, processing fees can still add up and eat into your profits, especially if you have to pay higher fees for online transactions or certain types of payment methods.
Nadapayments is a merchant service provider that makes it easy to start accepting credit card payments right away — even if you don’t have a merchant account. Nadapayments will take care of all the paperwork and set up your merchant account for you. You’ll be able to accept payments from all of the major credit card networks — including Visa, Mastercard, American Express, and Discover — without ever having to deal with the credit card companies directly.Plus, when you use Nadapayments as your merchant service provider, you’ll be able to say good-bye to credit card processing fees with a built-in surcharge program. When you customer pays with a credit card, they’ll be responsible for paying a 3.5% surcharge, and you’ll pay $0 in processing fees. (These fees don’t change, even for online and other card-not-present transactions.)The surcharge program gives your customer a choice. If they’d rather pay with a check, cash, or debit card, they will not be responsible for paying a 3.5% surcharge. And when your customer uses a debit card, your business will only have to pay 1% plus 25 cents for the transaction.There are no setup fees when you use Nadapayments, just a flat $35 per month to rent a Wi-Fi-enabled EMV terminal. A payment gateway for online and over-the-phone transactions is included. Plus, you’ll have free access to a mobile app for accepting payments on-the-go.
While it is possible to accept credit card payments without a merchant account, those options still come with high processing fees. By setting up a credit card surcharge program with Nadapayments, you’ll avoid the headaches of setting up a merchant account and enjoy $0 fees on all credit card transactions. Get started with Nadapayments today!
Transaction fees can be a surprise for businesses and customers alike. No one likes to look at their bank statement to find that they were charged fees they didn’t know about.As a business owner, it’s important to understand the transaction fees associated with credit card and debit card payments, so you can get the lowest credit card processing fees available for your industry — and so you can be transparent with customers.We’re here to take the mystery out of credit card transaction fees and show you how to eliminate them altogether with a credit card surcharge program.
Transaction fees are a type of service fee charged by a payment processor on top of the purchase amount when you make a sale. They’re basically the cost that your payment processor charges you in order to facilitate the transaction.When it comes to transaction fees, most payment processors charge a percentage of the transaction, but other times they charge a flat rate. Usually, these fees are paid by the merchant, but in some cases, they might be passed on to the cardholder — for example, if you use a credit card surcharge program.Transaction fees can vary from one credit card issuer to the next and even within the same credit card network for using different payment methods.Likewise, transaction fees for debit cards tend to be lower than credit card transaction fees since they’re regulated differently.This is why it’s so important to read the fine print before entering into a contract with a merchant services provider. All payment processors will charge fees, but some pricing models may be more favorable for your business than others.
To find the cheapest way to accept credit card payments for your business, it’s important to know what fees you’re being charged and how they’re calculated. Most transactions incur multiple fees, but not every fee will apply to every transaction.Here are a few of the most common transaction fees you’ll encounter.
The interchange fee makes up the bulk of credit card transaction fees, and unfortunately, it’s non-negotiable because it’s set by the credit card issuers. Even if you’re able to negotiate a good deal with your payment processor, they won’t be willing to charge less than the interchange fee, otherwise they’d be losing money.Your payment processor will pass on the fee in one of three ways:
The second option is often the best deal, since it’s the most transparent, but you won’t know what the exact rate is until after the transaction is complete.
The second unavoidable fee is the network fee, which is charged by the major credit card networks, like Mastercard, Visa, and Discover.These fees vary from one network to the next, which is why in the past, some merchants have chosen not to accept American Express due to its higher fees. These days, though, all of the credit card networks charge similar network fees.
The next fee to consider is the processing fee charged by your merchant acquiring bank or your payment services provider. If you have a merchant account, this is where your issuing bank will take their cut of the total amount for processing the transaction.If you use a payment processor, then you’ll still pay a processing fee, but you won’t have to pay additional fees such as an annual fee on your bank account.This is one area in which you can shop around to get the lowest rates. Some service providers, like Square, charge a different rate for card-present payments than for online and e-commerce transactions.Others, like Nadapayments, charge the same rate regardless of whether the credit card details are entered manually or if the card is swiped.
Foreign transaction fees aren’t charged to merchants, but they’re worth keeping in mind if your business operates in multiple regions or accepts different currencies. Most credit card issuers charge the cardholder a fee for foreign transactions — up to 3% of the transaction amount — but some travel credit cards may waive this fee.This is distinct from a currency conversion fee, which allows the cardholder to pay for a foreign transaction in U.S. dollars (USD).This fee can be an additional 1%, so it’s usually a better deal for the customer to accept the charge in the local currency and receive the mid-market exchange rate.
Finally, your processor may charge an additional fee if you need to verify a customer’s address during the payment process.This fee isn’t usually applied to card-present transactions, but if your business makes a lot of keyed-in sales, then an address verification fee may be applied automatically.
Transaction fees have become just another part of doing business, especially if you want to provide your customers with as many payment options as possible. But that doesn’t mean you have to put up with hidden charges on your financial statements.Here’s what you need to do to navigate transaction fees and get low- or no-fee credit card processing for your business.
First, read your statements carefully to make sure that you understand all the charges. The fees that we’ve described here are just some of the fees you’ll encounter, so you may see other fee descriptions as well, such as an “authorization fee.”If you have any questions, ask your merchant services provider or merchant acquiring bank and see if you can negotiate a better rate based on your sales volume.
Since you can’t choose your cardholder’s issuing bank or credit card network, your merchant services provider is where you have the most leverage.If most of your transactions take place online or over the phone, avoid using a payment processor that charges more for those types of transactions.If you have a merchant bank account but have sales of less than $10,000 per month, you may be better off switching to a payment services provider or merchant services provider to eliminate monthly fees.
There’s only one way to get rid of credit card transaction fees entirely, and that’s to pass them on to your customer using a surcharge program.With a surcharge program, if your customer wants to pay with a credit card, they will be charged a fee on top of the total amount of their purchase. For example, Nadapayments charges a flat 3.5%. In line with state regulations, your customers will see the surcharge on your credit card reader or point-of-sale (POS) system and can decide whether or not to accept it.The customer can choose to pay with cash, check, or a debit card if they want to avoid the surcharge. If they choose to pay with a debit card instead, they’ll pay $0 in fees, and you’ll pay only 1% plus 25 cents — much less than the fees for a standard credit card transaction.
Transaction fees may be a necessary part of doing business, but they don’t have to be a mystery. With Nadapayments, you’ll benefit from a transparent pricing structure and a surcharge program that passes on credit card transaction fees to customers.For $35 per month, you’ll get a Wi-Fi-enabled EMV credit card reader to process in-person payments, while access to the web-based virtual terminal is entirely free. You’ll pay a low transaction fee for debit card transactions and $0 for credit card transactions.Sign up with Nadapayments to lower your credit card processing costs today!
A merchant account is a type of business bank account that makes it possible for you to accept credit cards online or in-person. Some businesses — especially those with more than $10,000 in monthly sales volume — may find it hard to get by without one.But with monthly merchant account fees to pay and credit card processing fees on top of that, having a merchant account can really make a dent in your profit margins.Fortunately, opening your own merchant account isn’t the only way to accept credit card payments. We’ll show you how to lower your merchant account fees and even get rid of credit card processing fees altogether by starting a surcharge program.
As a small business owner, you may already have a business bank account that you use to pay bills and safeguard your money. But chances are, it isn’t set up to process credit card payments. That’s because credit card transactions go through a different process than check and cash deposits and require a special type of business account.In short, you’ll need a separate bank account called a merchant account in order to receive credit card payments, which comes with its own merchant account fees.Merchant accounts are provided by merchant acquiring banks and typically require a lengthy application process before you can open an account. This can make merchant accounts pricey and inconvenient for small business owners, especially if you don’t have a high-enough sales volume to justify the monthly fee.That said, there are ways to accept credit card payments without a merchant account, such as by working with a merchant services provider like Nadapayments.
Before we get into the best alternatives to merchant accounts, it’s worth taking a look at how merchant accounts work so you can understand their pros and cons.The main purpose of a merchant account is to transfer your customer’s payment into your business bank account, but it’s a multi-step process.First, your customer’s credit card issuer will approve the transaction and send their money into the merchant account.Then, the acquiring bank, credit card processor, and/or credit card network — such as Visa or Mastercard — will deduct their transaction fees. These are usually based on the current interchange rate, but may also include markups on top of that.Finally, the money is deposited into your business bank account, where you or your employees can access it.
Although swiping a customer’s credit card and communicating with the issuing bank may only take a few minutes, it can take several business days before the funds are available in your bank account.With so many steps involved — as well as the potential for delays and chargebacks — it’s no surprise that some small businesses choose not to accept credit cards at all.But as customers come to expect more and more payment options — such as mobile and contactless payments — refusing to accept credit cards can cost you customers.It’s up to you to find out whether merchant account fees are worth it and whether you can reduce those fees by using a merchant services provider that takes care of the merchant account for you.
There are several different types of merchant account fees, so you’ll have to check with your acquiring bank to find out which fees will apply to your business.In general, there are two types of fees to look out for: account fees, which are charged by the acquiring bank directly, and transaction fees, which may be applied by the payment processing company or credit card networks, like American Express or Discover.Your bank may charge any of the following fees:
Not all of these merchant account fees may apply to you, but since merchant service agreements tend to be quote-based, they can be hard to predict in advance.You’ll also be charged a credit card processing fee for each transaction, usually based on one of three pricing models:
The most cost-effective option for you depends on your sales volume and the type of cards you accept. For example, flat-rate pricing tends to be more predictable but can add up quickly if you process a lot of sales with low transaction amounts.
As mentioned, you may be incurring both merchant account fees and credit card processing fees. To reduce or eliminate merchant account fees, you have two options: using a payment services provider or using Nadapayments. One of these options will also eliminate credit card processing fees (more on that later).For businesses that don’t have a high monthly sales volume, using a payment services provider can be a more affordable way to accept credit card payments since they don’t have the monthly minimum fees associated with merchant accounts.You’ll still have to pay a flat fee or percentage for each transaction, but you won’t have to pay an annual fee or other additional fees just to maintain an account. For example, PayPal charges a fee for each transaction, with a different rate for online payments, keyed-in transactions, and card-present sales.Nadapayments, on the other hand, charges the same rate for all credit card transactions, regardless of the payment method — and passes those fees on to customers. So you’ll be able to avoid both merchant fees and credit card processing fees.When you set up a surcharge program with Nadapayments, there are no setup fees or annual account fees — just a $35 fee per month to rent a Wi-Fi-enabled credit card terminal. Your customers will pay a 3.5% surcharge when they pay with a credit card, and you’ll pay $0 in fees. When customers pay with a debit card, you’ll only owe 1% plus $0.25 per transaction.Credit card surcharge programs are legal in almost all 50 states, and Nadapayments will provide the signage so your customers are fully informed of the credit card processing guidelines. If your customers don’t want to pay a surcharge, they can easily choose to use another payment method instead, like cash, check, or debit card.Plus, Nadapayments will save you from having to open a merchant account of your own, since it will take care of all the paperwork for you. This makes it easier to get set up quickly.And, along with the credit card terminal, you’ll have access to a virtual terminal and mobile app at no extra cost, giving you the flexibility to take payments over the phone, online, and on the go.While payment services providers can help you avoid merchant account fees, only Nadapayments can eliminate both merchant account fees and credit card processing fees.
Opening a merchant account can add a surprising number of fees to the cost of doing business: from setup fees to account fees to statement fees. If you want to start accepting credit card payments without merchant account fees, then Nadapayments may be the payment processing solution for you.Nadapayments makes it easy for small businesses to accept credit cards without the hassle of securing a merchant account and paying merchant account fees. Sign up today to pay $0 on all credit card transactions!
The high cost of payment processing leaves many retailers asking themselves, “Is it legal to charge a credit card fee to customers?”After all, you don’t want to start charging a credit card fee only to get slapped with fines and penalties of your own.The good news for small business owners is that it is legal to charge fees on credit card purchases in most parts of the U.S. There’s no federal law against it. Each state can set its own guidelines, though, so you’ll want to make sure you follow the rules and regulations under state law to avoid running into issues.Here’s everything you need to know about the legality of charging credit card fees in the U.S., and how to implement a surcharge program for your business.
Before you charge customers a fee for credit card payments, it’s important to know what type of fee is right for your business model. There are basically two types of credit card fees: surcharge fees and convenience fees.The right type of fee for you will depend on the forms of payment you accept and which credit card networks you use.Let’s take a look at how these two types of fees compare.
A convenience fee is applied when a customer makes a purchase using an alternative payment method or channel.For example, if most of your sales take place in person, you could charge a convenience fee for purchases that are made over the phone. This involves more work for you but is more “convenient” for the customer, so they’re charged a fee for it.These days, some “alternative” sales channels have become the go-to option. Buying tickets to the movies or a concert online is pretty common, so customers may complain about having to pay a convenience fee for it.Convenience fees are legal, but each credit card brand — including Visa, Mastercard, and Discover — has its own set of policies that you’ll need to be aware of.
Surcharge fees differ from convenience fees in that they pass on the processing cost from credit card purchases to the customer.These usually max out at around 3.5% but may vary depending on the fees that your credit card processor charges.The point of a surcharge fee isn’t to cover the cost associated with a specific payment channel — such as typing in the card number manually — so they’re the same regardless of whether a customer pays in person, online, or over the phone.However, they only apply to purchases made with a credit card, not a debit card. You can’t charge a fee if a customer pays with a debit card — or cash, for that matter. That’s why you’ll often see gas stations advertise one price for credit card payments and a “cash discount” for paying with cash or a credit card.
You may have heard mixed reports about surcharge programs that leave you wondering, “Is it legal to charge a credit card fee after all?” That’s because laws around credit card fees have changed over time, so it can be tricky to keep track of all the regulations.In fact, convenience fees and surcharge fees haven’t always been legal. According to the General Services Administration, federal regulations changed in 2013 as part of a legal settlement between credit card companies and retailers.Currently, there’s no federal prohibition on credit card surcharges, but there are rules for surcharging that you’ll have to follow in most states.
You’ll need to let the credit card networks you use, such as Visa and Mastercard, know that you plan to charge customers a credit card fee. If you use Nadapayments to implement your surcharge program, we’ll take care of this step for you!
You can’t simply charge a credit card fee without letting the customer know. This usually means putting up signage near your point-of-sale system, but it also means integrating the fee into your credit card terminal or mobile app.Your customers should be able to see the credit card price alongside the cash or debit card price, so they can decide which payment method they want to use.
The surcharge fee should be used to cover processing costs, not to make a profit. It can’t be more than 4% of the purchase price. (Nadapayments charges 3.5%.)
The surcharge fee must be shown as a separate line item on the customer’s receipt, so they can easily see what they were charged for.
You aren’t allowed to charge customers a fee to pay with a debit card, so you won’t be able to include a debit card fee in your surcharge program.Fortunately, debit card processing is cheaper than credit card processing, so you won’t be hit with sky-high processing costs.With Nadapayments, you can accept debit card transactions for 1% plus 25 cents, using the same POS system that you use to process credit card payments.
Once you’ve met these five rules for surcharging, are you good to go in any state? Not quite. Four U.S. states and territories don’t allow credit card surcharge fees at all:
Other states, such as California, don’t have a blanket ban on surcharge programs but prohibit practices that are “unfair or deceptive.” That’s why it’s so important to disclose your surcharge program to customers and apply it consistently.Customers can make a complaint to the Attorney General’s office if you don’t run your surcharge program fairly.If you run a business in multiple states, then you’re free to start a surcharge program in the states that allow it, but you’ll have to restrict it in those that don’t. You may be able to account for merchant fees in other ways, such as setting a minimum purchase amount for credit cards or offering a discount for paying in cash.In addition to state-specific rules, you may also have to abide by policies set by your credit card processor, such as charging the same fee for all credit card networks.Since the rules for surcharging are complex, you can use Nadapayments to set up your surcharge program and get everything taken care of for you.
Nadapayments makes it easy to charge credit card fees by providing all of the tools you need to set up a surcharge program of your own.You’ll get a credit card reader you can link to your point-of-sale system, plus signage to explain your surcharge fees to customers. Customers will see the surcharge displayed beside the cash price on your POS system and can choose to pay with a debit card if they want to avoid the cost of a credit card transaction.This helps you keep customers informed of their choices and ensures that you meet the guidelines of your credit card issuers and state law.Get started with Nadapayments today to set up a surcharge program and stop high credit card processing fees from eating into your profit margin!
There are more ways to process credit card payments than ever. You can swipe a credit card using a traditional credit card reader, process mobile payments through a cell phone app, and even accept contactless payments.But what happens when the customer’s card isn’t present, such as when they place an order over the phone? For that, you’ll need a virtual terminal.A virtual terminal is a web app that allows you or your customer to enter credit card details manually, charging the card just like you would if the customer was making a purchase in person. It’s a great choice for businesses that don’t rely on face-to-face interactions with customers.Here’s what you need to know about virtual terminal credit card processing, including what it costs and how to set it up for your business.
According to the U.S. Federal Reserve, there were 86.1 billion in-person card payments in 2018 and 33.5 billion remote payments. Although remote payments make up a smaller percentage of sales, they’re growing at a faster rate — 20.5% compared to 5.8%.For businesses that rely primarily on remote credit card transactions — from call centers to home-based businesses — that gap can be even larger.In order to accept credit card payments without the cardholder present, you’ll need to use a virtual terminal for payment processing. If you’ve ever bought anything from an online store, then you already have an idea of what a virtual terminal looks like.A virtual terminal lets you or your customer enter in their credit card information during the checkout process using an online form — just like you do when shopping on an e-commerce platform like Amazon.All you need is a web browser and a good internet connection. Your payment processor or merchant services provider will verify that the credit card details are correct and will charge you a processing fee for each transaction.
Even if you’ve only accepted payments for card-present transactions,using a virtual terminal won’t be that much of a learning curve for you and your employees. The main difference is that there’s more room for error, since you or your customer will be typing in the credit card number by hand.If you or your employees are the ones entering the credit card details, it’s important to make sure the info is entered accurately to avoid complaints or chargebacks.Here’s what you need to know about how a virtual terminal works and how much it will cost to start using one for your business.
The best thing about a virtual terminal is that you don’t need any expensive equipment to start accepting credit cards. Some POS systems require you to install premium software or wait for a credit card reader to arrive in the mail. But not virtual terminals.If you work from home, you can simply log in to a virtual terminal from your web browser when it’s time to bill clients. If you run a store, you can access your virtual terminal from your company’s tablet or any other mobile device.You can even cut down on having to buy paper, since you can send your customers a receipt by email instead of printing it out.
The best virtual terminals are PCI-compliant and use a high level of security to protect your customers’ credit card details. This includes technologies like tokenization and end-to-end encryption to ensure payment details aren’t intercepted by hackers.Of course, you’ll want to take precautions of your own to prevent unauthorized charges, such as not logging into your virtual terminal on a shared computer and verifying the following information for every transaction:
One of the biggest things to consider when using a virtual terminal is the cost. While the virtual terminal itself may be free, it may have higher transaction fees than other types of transactions. For example, Square charges 2.6% plus 10 cents for in-person transactions but 3.5% plus 15 cents for remote transactions.There’s a reason payment processors do this: It’s because keyed-in transactions have a higher risk of fraud. Still, it can seriously eat into your profit margins.If you use Nadapayments as your virtual terminal credit card processor, you’ll pay $0 on all credit card payments, and your customer will be charged a flat 3.5% surcharge. The customer can choose to avoid the surcharge by using a debit card, in which case you’ll only pay 1% plus 25 cents for processing.
Virtual terminal credit card processing can be used for nearly any type of business, but it may be a better fit for some businesses than others. These include:
Some businesses may not benefit from a virtual terminal, especially if you process most of your transactions in-person using a credit card machine. That said, it’s good to have a backup option if your primary payment processing method goes down.Plus, it’s possible you already have access to a virtual terminal through your merchant services provider. For example, Nadapayments will provide you with a credit card reader and access to a virtual terminal for a flat monthly fee of $35.
As with any type of payment method, virtual terminal credit card processing has its pros and cons. One benefit is that you’ll have access to a wide range of payment processing options — including online, over the phone, and even via email. This can make it easier for small business owners to accept credit card payments at the moment of sale and see the money in their bank account in just a few business days — instead of waiting for a bank transfer to arrive or a check to clear.As we mentioned earlier, you may end up paying more in transaction fees, since your payment processor may charge higher fees when the card isn’t present.The best virtual terminals address this by providing a transparent pricing structure so you don’t have to keep track of different processing fees for different payment methods. For example, Nadapayments charges the same rate for in-person payments and virtual terminal credit card processing.
Nadapayments makes it easy for businesses to accept credit card payments anywhere — online, in-person, and even on the go. The Nadapayments app and virtual terminal are free, and if you need a physical credit card terminal for your business, you’ll pay a flat monthly fee of $35 per month for a Wi-Fi-enabled EMV card reader.Plus, by setting up a surcharge program, you can get rid of fees for in-person payments and virtual terminal credit card processing. Your customers will be charged a 3.5% fee if they pay with a credit card, and you’ll pay only 1% plus $0.25 if they use a debit card.Nadapayments takes care of the paperwork and provides the signage, so you can keep accepting payments like you always have, just without the cost.Sign up with Nadapayments to get access to an all-in-one payment solution today!
Credit card processing fees can really eat into your profit margins. A few percentage points may not sound like a lot, but those transaction fees can add up quickly, and you may even be tempted to stop accepting credit cards altogether.But giving up credit cards as a payment method isn’t realistic in today’s world, where customers expect to be presented with multiple payment options.So in order to keep accepting credit card payments as a small business, you’ll want to choose a payment processor with the lowest credit card processing fees.Let’s take a look at what kinds of fees you can expect from major payment processing companies — and how to eliminate fees altogether with a surcharge program.
If you’re looking for a list of companies with the lowest credit card processing fees, then you may need to do a little research – and math! That’s because choosing the best credit card processor for you depends on several factors, such as your transaction volume, type of business, and pricing model.The cheapest credit card processing option for an online store may be different from the best credit card processor for a small business owner. You’ll want to compare the monthly fee structure, the cost to rent or buy a credit card machine or a POS system, and any hidden fees that might turn up, such as chargeback fees.That said, comparing the fees for several popular credit card processing companies is a good place to start. Here’s how six merchant services providers stack up when it comes to credit card processing fees:
There are a few things to keep in mind here, though. The first is that the same credit card processor can charge dramatically different fees depending on the type of transaction.For example, Square charges 2.6% plus 10 cents when the card is present. If you enter the card number manually or charge a card that you already have on file, the fee jumps to 3.5% plus 15 cents – so a low processing fee may not be available for your business.Meanwhile, Dharma Merchant Services charges an interchange fee plus 0.15% for most small businesses but drops it to 0.10% for nonprofits.Of course, even the cheapest credit card processing fees are still an expense! But you can eliminate them altogether by using a surcharge program and a merchant services provider like Nadapayments. This is the cheapest way to accept credit card payments because it passes on transaction fees to the customer — or encourages them to pay with a debit card, check, or cash instead.
Before we go any further, let’s dig a little deeper into credit card transaction fees to see how they’re calculated. As we’ve seen, the fees for online payments and e-commerce transactions may be calculated differently than point-of-sale transactions.But your processing costs will also depend on the pricing model you choose and possibly on whether you enter into a long-term contract or choose a monthly subscription.There are three main types of credit card processing pricing models: flat-rate pricing, interchange-plus pricing, and tiered pricing.
Flat-rate pricing means you’ll pay a consistent fee for every transaction. The fee might vary depending on the type of transaction it is (for example, 2.6% plus 10 cents for contactless payments and 2.9% plus 30 cents for e-commerce payments), but it won’t change based on processing volume or the credit card network.The benefit to this approach is that it’s predictable, but it may end up costing you more per transaction than other pricing models.
Interchange-plus pricing is based on the interchange rate determined by the credit card networks, such as Visa, Mastercard, and American Express. Your merchant services provider will pass along that fee plus a markup.This model tends to offer more transparent pricing, since the fee is based on real-time processing rates (plus the markup). The downside is that these fees may change over time and are usually different for each credit card network, so they’re less predictable.
Tiered pricing is the least transparent pricing model because the payment processor can charge a different fee for each transaction based on their own criteria. They may charge less for “qualified” transactions and more for high-risk transactions, making it harder to predict which sales will be hit with higher processing fees.
Depending on the type of business you run, there may be ways to lower your credit card processing fees without sacrificing sales or customers. Here are a few ways to get lower credit card processing rates or eliminate transaction costs altogether.
If you aren’t locked into a long-term contract with your payment processor, shop around for a better deal. Consider switching from a tiered pricing model to flat-fee pricing, but be on the lookout for hidden fees for using a payment gateway or virtual terminal.Some payment processors charge additional fees to rent credit card readers and POS systems, so be sure to factor that in to the overall cost of each payment processor.
You don’t have to accept every type of credit card out there. Some credit card networks, like American Express and Discover, charge higher fees, so it makes sense if you don’t want to accept those added fees as the cost of doing business.Even major brands like Amazon have stopped accepting some Visa credit cards – at least temporarily – due to high processing fees. Some customers may complain, but chances are they’ll be just as happy to use a different credit or debit card.
Even flat-rate fees can feel steep if your customers make a lot of small purchases. For example, since Stripe charges 2.9% plus 30 cents per transaction, you could pay up to 33 cents in fees on a $1 purchase.By implementing a minimum spend, your customer will be incentivized to use a debit card instead or spend more at your business to make the fees worthwhile.Setting a minimum purchase amount is legal, as long as it’s no more than $10, and is applied to all credit card networks equally.
Finally, the best way to get the lowest credit card processing fees is to get rid of them! A surcharge program — not to be confused with a convenience fee — passes the fees on to the customer if they choose to pay with a credit card. The customer will pay the transaction cost, and your business will get to keep 100% of the profit.For example, if you use Nadapayments to implement your surcharge program, a customer that pays by credit card would have a 3.5% surcharge added to the purchase price. So on a $10 purchase, the customer would pay an additional 35 cents.However, if the customer chooses to pay with a debit card, you’ll pay only 1% plus 25 cents in fees, and the customer won’t have to pay a surcharge.Here’s an example of how a $100 sale would look if the customer used a credit card or a debit card:
Launch a Surcharge Program With NadapaymentsCredit card surcharge programs are legal everywhere in the U.S. except Connecticut, Massachusetts, Colorado, and Puerto Rico.
Nadapayments makes it easy to launch a surcharge program by providing payment processing, a merchant account, and a credit card reader all in one package.You’ll pay a flat rate of $35 per month, which covers all of the hardware and software you’ll need to accept credit and debit cards, digital wallets (such as Google Pay and Apple Pay), contactless payments, and more. And, you’ll be able to accept them in-person, online, or on-the-go.Nadapayments even provides the signage you need to explain the surcharge program to customers so they can understand exactly how it works — and how they can save money too by paying with cash, check, or debit card.At the end of the day, you’ll pay $0 in credit card processing fees and only 1% plus 25 cents for debit card transactions.Whether you already accept credit card payments or are just getting started, get in touch with Nadapayments today to learn how you can lower your transaction costs!
There are more than 500 million active credit card accounts in the United States, as Americans continually make more and more purchases with their credit card. As a merchant, accepting credit card payments could increase revenues. The more payment methods you offer customers, the more likely you are to increase a sale and the less likely you are to turn someone away at the register. If you currently accept credit card payments — or are considering doing so — you may have heard the term "credit card convenience fee." You may also have heard the term "credit card surcharge." People often use these terms interchangeably, even though they are different. In this article, we offer a complete guide to credit card convenience fees for small business owners. We outline what convenience fees are and how they work. We also cover why they are different from surcharges and the best ways to use these fees to your advantage.
A convenience fee is a fee levied by retailers to customers when they pay via a non-standard payment channel. One example of this would be a movie theater charging convenience fees when a customer purchases tickets via online payment instead of at the box office. Or, as another example, let's say that you own a brick-and-mortar store. A customer calls and would like to place an order over the phone, even though this is not something you normally do. You could charge a fee for the inconvenience of having to manually enter the card information, since you typically process transactions in person.Convenience fees can be applied whether the customer pays with a credit card or debit card.
Merchants can charge credit card convenience fees if they accept payment via a non-standard channel. However, credit card companies have criteria that must be met if you want to charge a convenience fee. Below is a breakdown of how each card brand treats these fees.
Visa requires merchants to meet certain criteria to charge convenience fees:
Mastercard does not have as stringent restrictions when it comes to convenience fees. Convenience fees can be charged to a customer as long as the fee is imposed on all like transactions no matter the form of payment used. For example, all online purchases would need to be subject to a convenience fee, not just those that are made with Mastercard brand credit cards.
Discover does not have an official convenience fee policy. However, it requires all cards to be treated the same, which means it's reasonable to assume the rules that apply to other credit card networks would also apply to Discover. A merchant can’t charge a fee to a Discover cardholder that it can’t charge a cardholder of a Visa, Mastercard, or American Express.
If the above criteria are met, you can charge convenience fees. However, doing so may spark customer complaints.One of the biggest issues with convenience fees arises when they are charged to customers paying online, like in the movie theater example cited above. The theater contends that the customer can call or visit the box office in person to purchase the tickets. But, if they call to make their purchase, they may face a long wait time on the telephone. They must also have access to a phone to do so, which can cost them in terms of data or minutes. If they wait until the day of the movie to visit the box office, they risk the movie being sold out. So, while businesses can charge convenience fees, it may not be in their best interest to do so. Accepting credit card transactions in-person, online, or over the phone increases the likelihood of completing a sale and should not be seen as a deterrent or inconvenience, especially with how easy it is to implement a new payment processing system (more on that in a bit).
Though somewhat similar, convenience fees and surcharges are ultimately different. Surcharges only apply when a customer pays with a credit card. This is different from convenience fees, which apply when customers use any form of electronic payment in a non-standard setting. Businesses charge surcharge fees because of high credit card processing rates. Payment processors charge a service fee for processing the transaction. This fee is around 3.5%. Merchants are often saddled with paying this fee, which comes off their bottom line. Essentially, businesses are punished for the customer using a credit card, making more money on cash transactions than they do on credit card transactions. Surcharges pass these processing fees to the consumer directly. Businesses display signage with disclaimers indicating that a customer will be charged an additional fee should they use a credit card. If they use an alternative payment method, like cash or a debit card, they are not charged the additional fee. Surcharge fees are legal in 47 states. These are the states and U.S. territories that don’t allow surcharge programs:
Surcharge fees have actually become more commonplace in recent years, with states like California, Texas, Oklahoma, and New York ruling that surcharge programs are in fact legal so long as:
If the card network allows it, you can potentially charge convenience fees to customers. However, it may not be in your best interest to do so. It can leave customers feeling frustrated, especially when paying via an alternative channel is more challenging. Since convenience fees are often flat fees, customers may question what it is they're paying for. However, surcharge programs are completely legal and much more transparent. With a surcharge program, you clearly convey to customers why you are passing processing fees along to them simply because they are using a credit card. If they choose an alternative payment method, they will not have to pay these fees. Customers also have an option to pay in whatever way is most convenient — whether that’s online, over the phone, or in person — without incurring an extra fee. Choosing your payment processor wisely can help cut down on fees for your business. For instance, Nadapayments is a payment processor solution that helps make things easier for businesses. With Nadapayments, the surcharge program is built right in, so you can start saving money and reducing your processing fees to zero.Plus, you only pay a flat fee of $35 per month. This monthly fee gets you a Wi-Fi-enabled EMV Quick Chip machine for in-person transactions, a virtual terminal for online or over-the-phone transactions, and a mobile app for on-the-go transactions. It also gives you the signage needed to implement a surcharge program.
Credit card convenience fees are fees levied against a consumer for paying via a non-standard channel. Merchants must meet rules set by credit card issuers when charging convenience fees. Convenience fees are different from surcharge fees, which exist simply to pass the cost of credit card processing to the consumer so that a business' bottom line is not impacted. If you're looking to learn more about how surcharge fees can help improve your business' bottom line, be sure to get started with Nadapayments today.
Merchants and owners of small-to-medium businesses (SMBs) are always thinking of ways to improve their bottom lines, right? Increasing revenue by cutting costs is one way of doing this.Sounds simple, right? It’s often not. As we all know, many things are easier said than done, especially in the world of smaller businesses.But what if there was a hassle-free way to increase your profit margin? And what if this method of increasing profits was risk-free, 100% legal, and simple to boot?All you have to do is adopt zero-cost credit card processing. It doesn’t matter if you operate a food truck, a boutique store, or a mom-and-pop beauty parlor. You can enjoy no-cost payment processing just by changing the way you accept payments.And your customers will thank you for offering them a choice.Let’s take a closer look at how you can start increasing your revenue by using a zero-cost credit card processing program.
Zero-cost credit card processing alleviates the pain of paying credit card processing fees, which include interchange fees.As a merchant or SMB, you likely already know that credit card processing can be a significant cost of doing business. When you accept credit card payments, transaction fees are usually assessed at up to 3.5%.With most credit card processors, this means that if your customer pays you $100, you will get just $96.50 of that money, since $3.50 goes toward processing fees. Since you will have to pay these fees on every credit card purchase, they can really add up.But if you use a credit card processor that implements a surcharge program, you can enjoy zero-cost credit card processing, meaning if your customer pays you $100, you will receive $100.
The interchange fee makes up the majority of the credit card processing fee. It goes to the financial institution that provided the card to the customer — or the issuing bank. Examples of issuing banks are:
Other parts of the overall credit card processing fee are the assessment fee, the payment processor markup fee, and any incidental fees.
Processing fees are non-negotiable. Whenever a merchant is accepting credit cards — by swiping, tapping, or dipping — the processing fees always have to be paid.But by whom?Typically, the merchant or small business owner will absorb this as an inevitable cost of doing business. But another option is to enroll in a surcharge program like the one offered by Nadapayments. This will enable you to pass on the cost of credit card processing to your customers when they want to pay with credit cards.Surcharge programs give your customers a choice. They enable people that want to use credit cards to use them, but they also encourage the use of alternate payment methods, such as debit cards or cash.
There are a lot of advantages to implementing a surcharge program:
Before you start surcharging, make sure you understand the rules. Perhaps you’ve shied away from surcharging in the past because the requirements seemed complicated. But a credit card processor like Nadapayments, which is built for surcharge programs, will make it easy.Here are the surcharge program rules to be aware of:
If you’ve been looking for a free credit card processing solution, you may have come across information about cash discount programs. These are not the same as surcharge programs. The main difference between the two programs is that surcharge programs pass on the cost of credit card processing to the customer, while cash discount programs offer small discounts to customers for not using a credit card.For example, cash discount programs are frequently seen at gas stations, where one price-per-gallon is used for credit card customers and a cheaper price-per-gallon is offered to cash customers.
Nadapayments is the best merchant services provider for any business looking to save money with a surcharge program.Nadapayments can provide you with everything you need to implement your surcharge program, including:
The Nadapayments software, included free with the terminal, will automatically apply a 3.5% surcharge to all credit card transactions — no matter how the payment is accepted.Finally, in addition to saving money on credit card fees, here are some of the other advantages to using Nadapayments as your merchant service provider:
With most credit card processors, you can expect to hand over about 3.5% of every credit card transaction, thanks to credit card processing fees. But if you use a surcharge program, you can avoid these fees, and keep 100% of the transaction.There are rules you’ll need to follow before you start surcharging, but if you use a merchant services provider that’s built for surcharge programs, like Nadapayments, the heavy lifting will be done for you.Get in touch with Nadapayments today, and start getting zero-cost credit card processing!
The costs of auto repair credit card processing can add up quickly. It’s not uncommon for repair orders to become large-ticket items for your customer, so you want to give them the option to pay with a credit card. But losing out on about 3.5% per transaction is hurting your bottom line.There is a better way though that’s a win-win.In this article, we’ll explain what you need to process credit cards in your auto repair shop, the pros and cons of accepting credit cards, and how you can eliminate credit card processing fees by implementing a surcharge program.
Credit card payment processing in the automotive industry is similar to retail credit card processing. To get started, you’ll need:
First, you’ll need a credit card machine (also known as a credit card reader or a terminal). This will allow you to swipe your customer’s card so that you can accept their payment via credit card. But for the most functionality, you’ll want a machine that will allow for EMV chip cards and contactless payments as well as debit card transactions.Next, you’ll need a merchant account. This is a type of bank account that serves as a holding tank for the money when a customer uses a credit card for payment. Once the transaction has been verified, you’ll receive the funds in your business’ bank account.Finally, you’ll need a merchant services provider, like Nadapayments, or a payment services provider. An MSP is also known as a credit card processor. It manages the interaction between your business and the customer’s credit card company. If you use Nadapayments as your MSP, you can be ready to accept credit cards in even fewer steps. Nadapayments will set up your merchant account for you and will provide you with the credit card terminal.
As we mentioned earlier, the auto repair industry often deals in high-ticket items. In fact, the average car repair costs $500-$600. But that’s just the average. It’s not unusual for repair invoices to carry a four-digit total.Oftentimes, a customer needs a car repair unexpectedly or urgently. So if they don’t have the funds available to cover the cost, they will need to use a credit card. By accepting credit cards in your auto repair business, you are providing your customers with more payment option flexibility.Plus, depending on your payment processing solution, you may be able to accept credit card payments online, via a mobile app, or over the phone. Having these options can be beneficial to your business because it can allow service technicians to accept payments from the service bays or customers to pay ahead if they need to pick up their car after-hours.However, the primary downside to accepting credit cards in your auto repair shops: credit card processing fees. With a traditional payment processor, you could be paying 3.5% or more in transaction fees. So that $500 repair order quickly becomes $482.50 after you’ve paid the fees. Let’s say you have 50 of those repair orders in one week. That’s $875 of lost profit. This can add up and quickly eat into your bottom line.But there is a way to avoid this downside — by implementing a surcharge program.
When you use a surcharge program, you’ll no longer be on the hook for credit card processing fees. Instead, your customer will cover the cost of the fees if they choose to pay with a credit card.Surcharging actually gives your customer a choice. If they wish to avoid the fees, they can pay with a different payment method, like cash, check, or debit card.In addition to saving you money on fees, a surcharge program may help your business in another way. If you’ve been paying exorbitant credit card processing fees, perhaps you felt forced to raise your pricing in order to make up the difference and increase your profit margin. But once fees are eliminated, you might be able to entice more customers to your shop with repair prices that beat the competition.
When you use a surcharge program in your business, you need to make sure you’re complying with the rules set forth by the major credit card brands (e.g., Visa, Mastercard, etc.):
If you want to begin surcharging and saving on credit card processing fees in your auto repair business, you can use Nadapayments as your merchant services provider. With Nadapayments, the surcharge program is built right in and designed to keep you in compliance with all the rules. This takes what could otherwise be a complicated process and makes it simple.With the Nadapayments Wi-Fi-enabled EMV Quick Chip terminal, you’ll be able to accept both credit and debit cards in your business as well as contactless payments, like Apple Pay or Google Pay. It will easily work with your existing point-of-sale system. Plus, it works with installment plans.The credit card machine is programmed to automatically add a 3.5% surcharge fee to the transaction when a credit card is used for payment, so you can keep 100% of the profit. If the customer chooses to use a debit card, you only have to pay 1% plus 25 cents per transaction. Here’s an example of what that would look like for your business.
As an added bonus, Nadapayments will provide you with the signage you need to keep your customers informed about the surcharge program.In addition to the credit card machine, you will have access to a virtual terminal and a mobile app, which also have the surcharge program built right in. This will allow you to accept payments online, over the phone, or on-the-go via a tablet or cellphone — like straight from the service bay or from an on-call service location.
If you want to accept credit cards in your auto repair business, the setup can be pretty easy, especially if your merchant services provider supplies the credit card machine and sets up your merchant account for. And while offering flexible payment options can be good for business, the credit card processing fees that come with it can quickly eat into your profits.However, if you implement a surcharge program, you can say goodbye to credit card processing fees while still giving your customers a choice when it comes to their payment method. But if you try to go it alone, the rules of surcharging may feel strict and complicated. This is where Nadapayments comes in. As an MSP with a built-in surcharge program, it will all happen automatically when you swipe, dip, or tap your customer’s credit card. Plus, Nadapayments has done the homework about all the surcharging rules, so you won’t have to worry about being in compliance.You know your auto repair business, and Nadapayments knows the credit card processing industry. Let us help you. Contact Nadapayments today to get started.
The world of e-commerce is growing — and fast. Traditional brick-and-mortar stores have been losing ground to e-commerce for some time now. In fact, according to the National Law Review, 2020 saw overall online sales volume rise exponentially.To keep up with these trends, the best way forward is to dive into the world of e-commerce and to take your small business online. But how do you do that?This article is your guide to online credit card processing for small businesses. We will talk about how online payments differ from retail payments, how to manage online payment processing, the fees you might expect to pay, and how to get some help with the whole process.
While retail credit card processing allows you to accept major credit cards for in-person payments, online credit card processing gives you the ability to conduct transactions over the internet. You might also hear the term “digital payments.” Online credit card payments are one type of digital payment.In some cases, your online payment processor may enable mobile credit card processing as well. This allows you to accept credit card payments in-person via a mobile app, so you don't have to be at your business location with your credit card machine.
Online credit card processing is similar to retail processing, but there are differences. For retail sales, you need physical credit card machines or point-of-sale systems (POS systems). But with online credit card processing, you need a virtual system of accepting payments.To process credit cards online, you will need:
You’ll first need a place to put your hard-earned cash. You can open a business bank account with any reputable bank. Processing fees and chargebacks, if you end up having any, will ultimately come out of this account as well.
When you receive payment from a customer via a credit card, the money is held in your merchant account before it is verified and moved to your bank account.
Payment gateways are similar to physical credit card readers. They are tools that validate your customer’s credit card payment details securely, and they also make sure that the customer has enough money to pay you. In addition to credit card payment processing, payment gateways may enable you to take other forms of payment, such as debit cards and ACH transactions. They work between your shopping cart and the bank that issued the payment method being used.
Also called a merchant services provider, a credit card processor is a provider that manages the interaction between a merchant and their accounts and the customer’s credit card company. There are many credit card processors out there. The payment processor you choose should be responsive, have great customer support, offer full PCI compliance, and be reliable.Nadapayments is one of the best credit card processing companies. For one, it makes setup easy because the merchant account and payment gateway are built right in. Plus, Nadapayments enables you to take home 100% of your credit card transactions by eliminating credit card processing fees. We’ll talk more about those fees below.
Before you decide on an online credit card processing service, it’s crucial to know how much it will cost. There are two major categories of expenses when processing credit cards online: fees and rates. But there are also other related costs to doing business online that you might incur, such as web hosting or a domain name.
Credit card processing is a complex business, and there are fees associated with each of the involved parties.The three main fees are:
Different payment processing companies offer different pricing models. These rate structures will determine how the above fees will be assessed. Here are the main rate structures you might see:
Depending on your specific business needs and your current online presence, there may be other costs associated with accepting online orders and payments, such as the following:
As a small business owner, it’s important to be able to accept credit cards online in your business. To get started, you will need a business bank account, a merchant account, a payment gateway, and a merchant services provider. In addition to credit card processing costs, you might also have other expenses, such as web hosting or shopping cart software.One of the best credit card processing solutions you can choose is Nadapayments. It’s fully PCI compliant and offers great customer support. Plus, there are no setup costs, hidden fees, or long-term contracts.Nadapayments seamlessly integrates with e-commerce websites, provides the ability to accept both debt and credit cards, and uses a surcharge program. If your customer pays with a credit card, the surcharge will be automatically applied, and you will save money on processing fees. You can even use Nadapayments' virtual terminal to take payments over the phone or to send invoices via email. Plus, you can use the app for on-the-go mobile payments.If you’re ready for cost-effective online credit card processing for your small business or startup, get in touch with Nadapayments today.
Twenty-nine percent of consumers prefer to pay with credit cards and 42% prefer to pay with debit cards, according to findings from the Federal Reserve Bank of San Francisco. If your small business isn’t accepting card payments, you could be losing business from customers who don’t want to carry cash for in-person purchases. Retail credit card processing can help your business catch up to the payment options these customers are looking for.We’ll explain what retail credit card processing is, what you’ll need to accept credit cards in your business, how much it will cost, and the best merchant services provider to use.
Retail credit card processing allows you to accept credit cards as payment in a brick-and-mortar business, such as a store or restaurant. This is different from online credit card processing, which allows you to accept credit card payments virtually.Retail credit card processing is also different from debit card processing. Though both involve the transfer of money from one bank account to another, this is accomplished through a different process. In short, debit cards use funds directly from the customer’s bank account. Credit cards, on the other hand, draw on a line of credit provided by the credit card issuing bank. The issuing bank pays your business for the purchase, and then the customer pays them back later.For this reason, credit card purchases usually cost your business more in fees than debit card purchases.
In order to process credit cards in person as retail business, a few things need to be set up.First, you’ll need a business bank account. You can set one up with the bank of your choice.You will also need a traditional merchant account, or TMA. Since it’s not secure to move money directly into or out of your business bank account, this account acts as a “holding tank.”In addition, you’ll need either a merchant services provider (MSP), like Nadapayments, or a payment service provider (PSP), like Stripe, Square, or PayPal. The MSP or PSP will be the middleman between you and the credit card issuing bank. This provider will make sure the money you make from transactions makes it into your bank account.Keep in mind, your MSP or PSP may open a merchant account for you. For example, Nadapayments handles this step for you, making it even easier for you to get ready to accept credit card payments.Setting up accounts and choosing a service provider is only part of the game, though. You’ll also need some special equipment.
When you process payments in a brick-and-mortar business, you’ll need some equipment. If you want to accept mobile payments as well, that may require different equipment (or software).For in-person payments, you’ll need a terminal device to read your customer’s credit card information. This device talks to the credit card networks and banks involved in credit card transactions. As a merchant, you can also use advanced point-of-sale systems (POS) that perform many additional functions, such as inventory management and payroll. If you use Nadapayments as your payment processor, you’ll have both a credit card machine and virtual terminal that make it simple to accept in-person transactions, online payments, and even payments through a mobile device. Our credit card terminals are Wi-Fi and EMV-capable, and they enable you to accept the following payment methods:
So how much does retail credit card processing cost? There are three categories of costs you need to be aware of. Money paid to retail credit card processors falls into one of these categories:
There are many moving parts to credit card processing, and each of the companies involved needs to make money for the service they’re providing. For example, transaction fees are levied by the card network and the issuing bank. Fees are also charged by the payment gateway and credit card processor. The major types of fees are:
The term “rates” refers to the pricing models that MSPs and PSPs charge for their services. Here are four common pricing models:
It’s important to factor in equipment expenses when considering how much retail credit card processing will cost. Some credit card processors offer free card readers. Others have equipment for sale, and other companies (like Nadapayments) rent you the necessary equipment.Base-level credit card terminals provide a keypad, a display screen, a magnetic-stripe card reader, and the ability to use chip cards (EMV). Other card readers offer wireless capabilities or are part of larger POS systems that include receipt printers, cash drawers, and other add-ons.
There is no shortage of credit card processing services to choose from. But if you’re looking for an MSP that’s easy to use and cost-effective, check out Nadapayments.If you use Nadapayments as your payment processor, you’ll have both a credit card machine and virtual terminal that make it simple to accept in-person transactions, online payments via email or an e-commerce site, and even payments through a mobile device. Nadapayments’ credit card terminal is available for only $35 per month. It’s Wi-Fi and EMV-capable, and it enables you to accept the following payment methods:
Usually, businesses must pay processing fees when accepting credit cards — typically around 3.5% of each transaction.With Nadapayments’ surcharge program, instead, the customer will cover the costs. This makes the surcharge program a very cost-effective and transparent pricing model. It enables you as the merchant to realize $100 from a $100 transaction. There are no hidden costs or fees involved. Nadapayments’ payment solution gives your customers a choice. If they want to use a credit card, they’ll pay a 3.5% surcharge. But if they want to avoid the fee, they can pay with cash or a debit card. This program actually encourages customers to use cash or a debit card.For example, here is how the same $100 purchase would work depending on if the customer paid with a credit or debit card. Credit CardDebit CardPurchase amount$100$100Fee you pay0% ($0)1% + 25 cents ($1.25)Fee customer pays3.5% ($3.50)0% ($0)Total amount customer pays$103.50$100Total amount you receive from the purchase$100$98.75And, it’s easy to keep your customers informed about the costs they might pay — or not pay. Nadapayments will provide you with the signage needed to inform your loyal customers about the surcharge program.Nadapayments is 100% legally compliant, works with credit card installment plans, and provides 24/7/365 customer support, because all clients are VIPs!
These days, it’s important to be able to accept credit cards in your business. As a merchant, you will need a business bank account, a merchant account, and a merchant services provider. And you’ll need the necessary equipment, such as a credit card terminal or a point-of-sale system.Paying for retail credit card processing is a complex business. So, be aware of the fees, rates, and equipment costs involved.You have a lot of choices when it comes to merchant service providers. One of the best choices you can make is to use Nadapayments, a leader in the payment card industry. If you’re ready for cost-effective retail credit card processing, get in touch with Nadapayments today.
When it comes to payment processing, credit cards usually grab the headlines. However, approximately 29% of all U.S. payments in 2020 were made with a debit card — and a Federal Reserve study back in 2019 found that debit cards were the most popular method amongst consumers. With almost one-third of customers using debit cards, small business owners should aim to give their customers the payment options they want and expect. The right merchant services provider will make debit card processing possible — and make it efficient and cost-effective for your business.We’ll explore what debit cards are and how they differ from credit cards, how debit card processing works, and the technology your business needs to make debit card processing as seamless as possible.
When a customer opens a checking account at a financial institution, like a bank or a credit union, they receive a debit card that allows them to withdraw cash from an ATM or make purchases.Debit cards look just like credit cards, but they're not the same. Since debit cards are tied to a bank account, money is automatically deducted from the customer's account when a purchase is made. This makes them a convenient alternative to cash or checks.So, how does this differ from a credit card? When a credit card payment is made, the customer doesn't need to have the funds immediately available in their checking account. Instead, their credit card issuer is lending them the money and paying your business for the purchase. The customer then pays the credit card issuer back later.But these aren’t the only differences between credit and debit cards. There are some differences for you — the merchant:
To the average person, debit card processing — or just about any type of payment processing — is shrouded in mystery. “What exactly happens once I swipe the card?”“What data is sent where, and why?”“What's happening between swiping the card and the payment being accepted?”This confusion is understandable. However, the process isn't all that complex — so let's examine the seven steps that occur whenever a customer makes a debit card transaction.
Fortunately for customers and merchants alike, this seven-step process only takes a few seconds to complete. Depending on which payment processing company you use, your business will receive the funds within 24-72 hours.
Unfortunately, there's no easy answer here. A variety of factors influence the precise debit card processing fees that you'll pay for any one transaction. This is largely dictated by the interchange fees — in other words, the fees paid to debit and credit card networks in order to process the transaction. Interchange fees in the U.S. differ depending on whether a customer is with a regulated or unregulated bank. For reference, regulated means that the bank holds more than $10 billion in assets, while unregulated banks hold fewer than $10 billion in assets.For regulated banks, the fees are fairly simple.However, if a customer is with an unregulated bank, then the fees might vary according to:
The right payment processing solution is worth its weight in gold for retailers and merchants.The right solution will be cost-effective and easy to use. It will also provide you with the tools you need to start processing debit card payments right away. The technology you need depends on your specific business needs.If you process in-store transactions, you’ll need a credit card machine that accepts debit cards. For a business that makes sales on the go, you’ll need to be able to take mobile payments. Lastly, if you have an e-commerce business, you’ll need to use a virtual terminal to process debit card payments online.
If you use Nadapayments as your payment processor, you’ll receive a Wi-Fi-enabled EMV Quick Chip terminal with the Nadapayments app preinstalled. Simply plug it in, and you’re ready to start accepting debit cards.But it doesn’t stop there. With Nadapayments, you’ll also be able to accept credit cards, Apple Pay, Google Pay, and contactless payments. Plus, in addition to the EMV Quick Chip terminal for in-person transactions, you’ll have access to a virtual terminal for online payments.Best of all, Nadapayments keeps it simple — debit charge transactions will only cost you 1% + $0.25. As an added bonus, if a customer chooses to pay with a credit card instead of a debit card, you won’t spend a dime on transaction fees thanks to Nadapayments’ surcharge program.
Your customers will expect to be able to use debit cards as a payment method. So you want to make sure you have the technology you need to accept them. Even though debit and credit cards may look alike, they actually work differently behind the scenes. While it's good to have an understanding of how debit card processing works, luckily your payment processor will do the heavy lifting, so you can focus on making sales and serving your customers.With Nadapayments, debit card processing is as easy as one, two, three. Plus, you’ll have a built-in surcharge program to help you save on credit card transactions. Get started today and embrace the future of debit card processing — saving you time, hassle, and of course, money.
A recent survey by Retail Consulting Partners found that 41% of retailers plan on upgrading or replacing their current point-of-sale (POS) system. Doing so could be money well-spent for small business owners. A POS system not only improves the customer experience, but it also provides business owners with data and workflows that can improve their efficiency. Additionally, the best POS systems will integrate seamlessly between brick-and-mortar stores and online platforms. They will also work with the payment processor of your choice.This article will serve as a complete guide to POS systems for small business owners, including what they are, what they’re used for, the pros and cons, and more.
A point of sale is anywhere a customer makes a purchase, such as an in-person checkout or online. A point-of-sale system is the software and hardware that makes the transaction possible. And it’s more than just a cash register. Depending on the point-of-sale software you use, the functionality may even go beyond the transaction itself — helping you manage other aspects of your business, like inventory and customer details.
POS systems are advantageous for all business owners, no matter what type of industry they're in. Not only do point-of-sale solutions allow you to process payments, but they might also allow you to:
POS solutions may even be customizable, allowing business owners to fine-tune the software to meet their needs. Imagine you operate in the restaurant industry. After years of running your restaurant, you’re looking to expand and add a food truck so that you can sell your food from anywhere.With a restaurant POS system, you could monitor your sales and inventory for both the restaurant and the food truck. Having that information would help you notice sales trends and plan your ingredient ordering for both locations.A restaurant POS system could also allow for online ordering. Customers could checkout online, and the restaurant would receive notice of the pick-up or delivery order. The customer could even pay with a gift card or sign up for a loyalty program that's built into the POS software.In summary, POS systems can include a variety of functions that allow owners to better handle their business needs.
The components of your POS system will depend on what your business needs and how you accept payments.For starters, you may pick point-of-sale software based on the type of business you have. A restaurant, a doctor’s office, and a retail store may each benefit from software built for the needs of their specific business.The POS hardware you need will also vary. For example, a retail business may need a barcode scanner, while a food truck will need to accept mobile payments on an Apple or Android smartphone or tablet.Common hardware includes:
The cost of POS systems can vary drastically. Some POS software can cost as much as $300 per month. And this doesn’t include the cost of hardware. But one of the costs you can usually count on, if you accept credit card payments, are processing fees. Credit card processing fees typically cost around 3.5% of the transaction. This may not seem like much, but these fees can add up over time, impacting your bottom line. Let's say, for example, that you run a retail store and sell a pair of jeans for $50. The cost of the jeans is $35, and it costs you $10 per pair to cover your overhead costs. This means that you're expecting to make $5 per pair of jeans sold. However, if a customer pays with a credit card, you pay a transaction fee of 3.5%, or $1.75, meaning your $5 profit drops to $3.25.
Implementing a POS system can offer benefits that cash-only alternatives don't, though there is a drawback worth considering.
The benefits of POS systems far outweigh the drawbacks.
If you have a cash-only system, you need to count everything by hand. You need to issue paper receipts and count the drawer at the end of the day. Additionally, you need to count inventory by hand. This can make for a lot of tedious and unnecessary back-office work.
No longer are customers limited to having to come to your store to complete transactions. Expanding out into online stores and mobile marketplaces allows you to build your customer base.
The more payment options a customer has when checking out, the more likely you are to complete a sale. More and more customers are carrying debit cards and credit cards instead of cash. You don't want to turn a customer away because they don't have any cash on hand. And with the latest contactless payment technology, customers can move through the checkout process even quicker. A transaction can be completed in a matter of seconds without a customer having to even swipe a card.
Business owners are constantly looking for ways to connect with their customers. A POS system allows for improved CRM by providing data about customer transactions. What is a customer most likely to buy and when? Having this information allows business owners to provide everything from targeted customer support to targeted social media and email marketing. This, in turn, improves the likelihood of recurring sales.
The only primary drawback to a POS system is that it relies on software. If there is a bug in the software or you are offline, you may have trouble completing transactions. However, even in these rare circumstances, you can still use the cash drawer to complete a sale. The benefits of POS systems far outweigh the drawbacks.
The best POS systems will let you use the payment processor of your choice. That way you can use the POS software you need to manage certain aspects of your business but still choose the credit card processor that’s right for you.For instance, if you use Nadapayments for your payment processing, it will integrate with any POS system and make it possible for you to implement a surcharge program. Remember the example from earlier where the retailer was losing $1.75 on each pair of jeans sold? That won’t happen with Nadapayments’ surcharge program. If a customer chooses to pay with a credit card, they’ll be responsible for covering the 3.5% processing fee. The customer can avoid the fee by paying with cash or a debit card instead.In addition to saving you money on transaction fees, Nadapayments offers a unified payment experience that allows you to accept payments:
Nadapayments requires nothing more than a flat monthly fee of $35. This includes the equipment and software required to accept payments, signage for the surcharge program, and integration into your POS system.
If you're looking to bring your business to the next level, you’ll want to have a POS system in place. A POS system goes beyond the cash register and allows you to run sales reports, track inventory, and manage customer data.Once you’ve picked the right POS system, you’ll need to have a payment processor, like Nadapayments, that offers a unified payment experience and saves you money. Get started with Nadapayments today.
Eighty-two percent of small businesses that fail do so because of improper cash flow, as reported by Entrepreneur. As a business owner, you should constantly be looking for ways to improve your cash flow and maximize profit. Only half of businesses make it past the five-year mark, so maximizing profit should be a concern no matter if you're a new or more established firm. If you're wondering what you can do to maximize profit, you're in luck. In this article, we provide a complete guide on how to maximize profit. We offer four tips that you can implement into your business model to ensure profit maximization.
One of the first things you can do to increase profits is to understand profit maximization and ensure that you are pricing your products and services correctly relative to the market price. To ensure profit maximization, you need to make sure that your marginal cost is equal to marginal revenue. The marginal cost is the increase in cost by producing one extra unit. Marginal revenue equals the change in your total revenue as the result of increasing sales by one extra unit. As seen in the graphic below, the marginal revenue curve should remain flat. The marginal revenue curve shows any extra earnings from increasing your level of output. Because it costs the same to make each unit, you don’t gain anything by increasing production. The marginal cost curve, on the other hand, assumes that creating more units will cost more money. The intersection point of these two is labeled as "Q." This is the price and quantity that you should be using to achieve maximum profit.
Source: Oregon State UniversityProfit maximization optimization can be tricky. Many of these analyses assume things like perfect competition and market demand. But understanding the basic principles behind profit maximization can help you better hone in on the proper price for your goods and services.
No matter if you run an e-commerce or brick-and-mortar store, you can improve profits by focusing on converting one-time clients into recurring clients. Economists have found that satisfied recurring buyers are the most valuable customers a business can have. Recurring customers:
Additionally, because you already have a relationship with recurring customers, you don't need to spend as much on variable costs, like marketing and sales. This means that your total cost relative to units of output decreases. Focusing on keeping your existing customers can improve your total profit while reducing your total costs. One way to keep customers happy and engaged is by making the buying experience as painless as possible. To do so, make sure you can accept as many payment methods as possible. Nadapayments, for instance, allows customers to pay not only with cash or debit cards but also:
The fewer hiccups customers have during the buying process, the more they are encouraged to buy.
Sales may be useful in helping you push additional units out the door, but they won't do much to improve your total revenue. Offering sales cuts into your profits and sets a lower price expectation on your products. If customers see a higher price for a product, knowing that there is a sale coming down the road discourages them from buying at that particular moment. Instead of offering sales, have free shipping deals for online purchases. Free shipping can improve profitability because it encourages more frequent orders. Similarly, brick-and-mortar stores can offer value by bundling items together at a package price rather than discounting individual products. Sales may improve your levels of output in the short run, but offering free shipping or bundled pricing will improve your quantity of output in the long run, allowing you to achieve maximum profits.
We mentioned previously that you should accept as many forms of payment as possible to improve your likelihood of converting a sale. However, one of the things you need to be mindful of when accepting credit card payments is processing fees. Processing fees are the fees required by merchant accounts and payment processors to complete the transaction. Typically, they are around 3.5% of the transaction. Let's say that you run a restaurant. The average cost of a pizza is $20. A customer comes in and purchases two, for a total of $40. The customer chooses to pay with a credit card. As a result, you now owe $1.40 in processing fees. Now, instead of $40, you earn $38.60 on the transaction. The bottom line is that processing fees cut into your profit. Fortunately, there is a solution. You can implement a surcharge program instead of absorbing the cost of processing fees. With a surcharge program, you pass along the cost of processing fees to your customers. You also incentivize them to pay with cash or a debit card. Consumers only have to pay processing fees if they elect to pay with a credit card. In the above example, if you had a surcharge program in place at your restaurant, the total cost of the transaction would be $41.40. The extra $1.40 would go toward the processing fees, and you'd be able to keep the full $40. Processing fees can add up, costing you thousands of dollars per year. If you are in a competitive market, these fees can make a difference in whether your business makes it or not. When you use Nadapayments, you receive everything you need to institute a surcharge program, including required signage.
As a business owner, you should constantly be worried about growth. Even if you have been successful in your first few years of ownership, it takes long-term growth to succeed. Remember, half of all businesses fail within their first five years. Learning how to maximize profit will help improve your bottom line. Understanding basic economic principles is a great start and will allow you to set your prices correctly. But, that alone is not enough. You should also focus on creating recurring customer relationships and not discounting your products. Additionally, you should make sure that you have the correct credit card processing in place. Having the proper hardware and software ensures that you can accept multiple forms of payment, which helps improve the customer experience. It also makes sure that you avoid paying processing fees when a customer chooses to use a credit card. If you're looking for a one-stop-shop payment solution, be sure to check out Nadapayments. Nadapayments allows you to accept all major forms of payment. It also provides you with the signage and software necessary to implement a surcharge program. Ultimately, a surcharge program can add up to 3.5% back to your bottom line. Be sure to get started today and learn more about how a surcharge program can improve your business financials.
Americans reported 271,823 cases of credit card fraud in 2019, with skimming being the most common type. Skimming occurs when thieves implant a small device into a credit card processing terminal to steal valid information. Hackers working online are also a legitimate concern if you're processing e-commerce payments. Fraud protection is essential. As many as 86% of global consumers fell victim to identity theft and fraud in 2019. As a merchant, you have a responsibility to protect your customer's information when processing transactions. Doing so can also build trust, giving your customers peace of mind knowing that you're processing their payments securely. In this article, we take you through everything you need to know about secure payment processing, including why it's important and how to get set up.
If you need to start processing secure payments, you must understand the technology behind it. Below are some of the basics.
SSL stands for "Secure Sockets Layer." An SSL protocol is a must whenever you are operating online. It allows you to encrypt information that passes through the site, such as credit card details or medical information. If you have SSL protocols in place, you'll see a padlock visible on the URL bar next to your web address. Your web address will begin with "https."
Tokenization is another technology that improves payment security. It is a form of verification that allows you to authenticate the customer without impacting the transaction in any other way. With tokenization, random strings of characters replace sensitive information, like a credit card number. If hackers were to somehow breach your website, they wouldn't get very far because the tokens would be of no use.
If you process payments online, consider having a 3D Secure authentication option. This process protects merchants when the card used for payment is not present. The system requires tokens or biometrics to authenticate information. And, once someone has been identified, the liability of the transaction shifts from the merchant to the issuing financial institution.
If you are a health care professional, you also need to concern yourself with HIPAA. HIPAA is short for the Health Insurance Portability and Accountability Act of 1996. It is a federal law that helps protect a patient's sensitive information. As a health care provider, there are a few things that you need to consider when processing payments. For one, make sure that you only provide information relevant to the credit card transaction itself. Don't offer any health information about treatment or care on the payment screen or a receipt. You should not send receipts via text or non-secure email. You also want to verify with your credit card processing company that they are HIPAA-compliant.As a merchant, you are responsible for securing all credit card data. If you are required to store any information that may contain your patient's credit card information, you must do so behind lock and key. Credit card processing companies can store this information in encrypted vaults.
If you are looking for secure payment options, look no further than Nadapayments. Nadapayments offers the payment security you need, no matter if you are a small business operating exclusively online or a health care practice accepting credit cards in-person. Nadapayments operates as a payment gateway, meaning that it:
Nadapayments is a payment processing company focused on saving you money and keeping your payments secure. It works like this: Credit card companies charge processing fees on top of every transaction. Typically, these fees are around 3%. The merchant — that’s you — is often responsible for paying these fees. However, with the Nadapayments surcharge program, you never have to pay one of these fees. Should a customer choose to use a credit card to pay, they are responsible for the additional surcharge. Nadapayments will even provide you with the necessary signage for you to display so your customers are aware of the extra fee. Not only does Nadapayments save you money on credit card surcharges, but it also processes your payments securely. Doing so can save you money on chargebacks. Chargebacks occur when a customer disputes a credit card transaction. The merchant not only needs to refund the sale but also needs to pay the chargeback fee. Below is a breakdown of how Nadapayments can protect your business when processing card payments.
If your business uses Nadapayments, you'll be provided with a fully compliant POS system to process in-store transactions. The credit card machine is:
But since Nadapayments offers a unified payment experience, you’ll also be able to process secure transactions via the virtual terminal. Not only does this allow you to accept payments online, but you can use the virtual terminal to accept payments over the phone. Whether you accept payments in-person, on the phone, or online, you’ll be able to see all your transactions in one place.Plus, both the credit card machine and the virtual terminal allow you to process credit card payments without storing payment information. Keeping sensitive information, like a cardholder's credit card number, makes you more at risk for severe data breaches.
If you offer online payments, Nadapayments gives you two ways to accept payments virtually: invoices or a “pay now” button. First, you can email an invoice directly to a customer. All they have to do is open the link and pay. Second, Nadapayments provides a secure payment link, so you can have a “pay now” button that leads to a payment form. The customer simply enters their payment amount and their credit card number.With both options, customers enjoy 100% secure payment processing with no PCI exposure. Being PCI-compliant tells your customers that you follow the general rules and conditions set forth by the payment card industry. These rules are known as the Payment Card Industry Data Security Standards (PCI DSS). The PCI Security Standards Council develops the PCI DSS in the interest of protecting both merchants and consumers. Any merchant who processes, stores, or accepts credit card data is required to be PCI-compliant. Unfortunately, reaching PCI compliance on your own can be very challenging, which is why it's best to work with a third-party credit card processing company, like Nadapayments, to help address all of your PCI issues.
Nadapayments also offers a secure mobile app that makes it possible for you to accept payments from customers who are shopping on the go. The secure app protects payment information, even if the customer is operating off a public cellphone network or an unsecured Wi-Fi network.
As a merchant, you need to be particularly concerned about protecting your customer's private information. This should be the case no matter if you operate online, in-store, or both. Though all merchants should be concerned with secure transactions and PCI compliance, those operating in the medical field need to be particularly concerned. Not only do they need to protect a customer's credit card information, but they also need to protect their sensitive medical information to maintain HIPAA compliance. Putting these measures in place can be challenging for merchants. Fortunately, Nadapayments can streamline the process. Not only will your payments be secure, but you’ll also save money on credit card processing fees.If you’re ready to get started, get in touch with us for more information!
In 2016, credit cards eclipsed cash in worldwide transactions. Additionally, the Pew Research Center found that less than a quarter of Americans make purchases with cash during the week. As a business owner, it's important that you set yourself up to accept an array of payment options. Offering different payment methods to your customers increases the likelihood of a sale. One of the areas that causes a lot of confusion is electronic payments. Electronic payments are those that are not cash and can include things like credit cards, debit cards, contactless payments, and ACH wires. In this article, we outline everything small business owners need to know about electronic payments. This complete guide will cover what electronic payments are, how electronic payment systems work, the benefits of implementing them, and tips to help you save money. By the end of this article, you’ll have a clear idea of what your business needs to do to start accepting electronic payments.
The most straightforward answer is that an electronic payment is any payment method that does not involve cash or physical currency. As mentioned, credit and debit cards are both examples of electronic payments, as are ACH wires. Other examples include:
Local businesses with brick-and-mortar stores don't necessarily need to accept electronic payments, though doing so can help them complete a sale. Imagine if you only accept cash. A customer goes to checkout, only to realize they don't have any cash on them. Your business just lost a sale from a customer who was willing to buy your product. If there is an e-commerce portion to your business, you will definitely need to accept electronic payments since you cannot use cash for online transactions.
There are many steps involved with electronic payment processing. Included are the:
When you accept electronic payments, the money passes through numerous hands before making it to your bank account.
As mentioned, electronic payments are beneficial because they increase the likelihood of completing a sale. No longer will you have to turn customers away because they do not have cash on hand. However, there are a few other benefits worth considering when deciding whether you should accept electronic payments.
Accepting electronic payments gives you the ability to operate online. This, in turn, grants you access to a much broader customer base. For instance, if you operate a local business, your customers are those who live in your town. Perhaps you get customers who come in from the town next door. But, generally speaking, your customer base is rather limited. Compare this to the internet, where your customer base is endless. You could sell your products to people on the other side of the country. Accepting online payments can introduce you to millions more potential customers. Of course, there are still benefits to brick-and-mortar stores accepting electronic payments. A recent poll found that 76% of customers carry less than $50 cash on them. Brick-and-mortar stores can expand their customer base by welcoming customers who don’t carry cash and only carry electronic forms of payment.
Should you choose to accept online payments through an e-commerce store, you will also improve the customer buying experience. No longer do customers need to go to a store to buy your product. Instead, they can complete the purchase from the comfort of their own home, with the mere click of a button. They can also shop when it suits them most, no matter if that's in the morning or at night. This also increases the likelihood of completing a sale, as it increases impulse buying.Accepting electronic payments can also improve the in-store experience for customers at brick-and-mortar retailers. It gives customers more payment options, allowing them to pay with the method that’s most convenient. Accepting electronic payments also occurs quickly, improving the customer experience.
Cash is always a one-time transaction. The customer needs to be present to complete the sale and they need to physically give you cash. Electronic payments, however, offer the ability to complete recurring transactions. With a recurring transaction, the customer enters their payment information once and agrees to be charged regularly. Examples of a recurring payment would be a monthly subscription service or a monthly gym membership. The customer only enters their payment information once, and your business gets to accept payment every month until the customer elects to cancel. This is not possible with cash-only payments.
If you're ready to begin accepting electronic payments, there are a few things to consider that can help improve the experience.
Though electronic payments can increase the chance of completing a sale, it doesn't mean that you should eliminate cash entirely. In fact, continuing to accept cash can eventually save you money. This is due to credit card processing fees. Every time you run a credit card, you owe processing fees of approximately 3.5%. These fees pay the merchant service providers and other parties needed to complete the transaction. Typically, business owners are responsible for paying these fees, which can cut into their bottom line. However, if you implement a surcharge program, the cost of processing fees are passed to the consumer. Customers can avoid paying these processing fees if they choose to pay with cash or a debit card. Again, you want to give your customers as many payment options as possible during the buying and checkout experience.
If you have a brick-and-mortar and an e-commerce store, you want to make sure that you can easily track the transactions between the two. Similarly, you want to ensure that you can track the transaction no matter what payment method was used, whether it was cash or an electronic payment. Nadapayments offers a unified payment experience. The company provides a Wi-Fi-enabled EMV Quick Chip card reader that integrates with your point-of-sale systems and a virtual terminal that can accept:
No matter if you accept payments online, on your phone, or in-store, you can track the transaction through the Nadapayments unified payment experience.
Electronic payments cause money to pass through a lot of hands. Look for a payment processor who simplifies things for business owners. Nadapayments, for instance, charges a flat fee of $35 per month. This fee includes everything you need to begin accepting electronic payments. Not only does it include the hardware and software to get you started, but it also includes access to a merchant account. Essentially, it's a one-stop shop for everything you need to begin accepting online payments.
If you're a business owner who currently only accepts cash, it's time to strongly consider expanding into electronic or online payments. Fewer people are paying with cash as credit and debit cards continue to grow. Accepting electronic payments increases the likelihood of you completing a sale. It can expand your customer base and improve the customer buying experience. It also allows you to implement subscription programs and other options that would require recurring payments, ultimately improving your cash flow. When accepting electronic payments, you want to make sure that you still offer cash as an option. If you offer cash and implement a surcharge program, you can save money on processing fees. Additionally, you want to make sure that your payment processing software works seamlessly between your brick-and-mortar and e-commerce stores. Lastly, make sure you find a payment processor who offers a unified payment experience. Nadapayments is a payment processor service that makes things easier for small business owners. Be sure to get started today to learn more.
The digital revolution is well underway, with technology embedding itself in every aspect of our lives. Unsurprisingly, payments are no different. Cash used to be king, but not anymore — going cashless is now king. According to a 2019 study, 73% of all payments happened in-person at the point of sale (POS), and the majority of those were digital payments. Plus, 60% of consumers now cite the ability to make digital payments as an important factor when deciding where to shop. Whether it's through contactless payments, virtual terminals, mobile apps, Apple Pay, or Google Pay, businesses and customers alike are flocking to join the digital ecosystem. This article will explain what digital payments are, how they can benefit your business, and how to accept digital payments.
A digital payment is a cashless payment from one bank account to another made through a point-of-sale system, on a mobile device, or online. It can also sometimes be referred to as an electronic payment. Here are the types of digital payments that can be accepted.
This is the quickest, most effective, and most popular digital option. Debit and credit cards are preferred by 80% of consumers, according to a 2017 TSYS study.And debit and credit cards go beyond the traditional swipe through a credit card machine. As a business owner, you’ll want to have a credit card reader that can support the EMV chip cards as well as contactless payments.Some credit card companies, like Mastercard and Visa, are even using biometric technology to add an extra layer of security. Think of it like the Touch ID feature on some Apple phones and tablets. In order to verify the cardholder’s identity, the card’s sensor reads the customer’s fingerprint while the purchase is being made.Luckily, this latest technology is compatible with EMV-enabled credit card terminals.
E-checks are really just the digitized form of traditional checks and can be used to pay by check online. The customer just inputs their information — account number, name, authorization, routing, amount — on an online payment form. It’s a great option for small businesses because it’s far safer than receiving a check in the mail.
A mobile or digital wallet securely stores a customer’s payment details on a device or via an online service. It makes it possible for a customer to pay with their credit card without having it physically present. Mobile and digital wallets include services like Apple Pay, Google Pay, Samsung Pay, and PayPal.These types of payments can be accepted both online and in-person, if you have a card reader that supports digital wallets. Digital wallet users are an important market to capture. Four in five people, according to NerdWallet, use a mobile payment app or digital wallet. This is particularly true for people under the age of 40.
Businesses and customers alike can enjoy a wide range of benefits when using digital payment methods.
The average paper-based B2B payment cycle takes 35 days to complete. Digital payments, however, can be completed on the same day. This eliminates data errors and heightens accuracy. It also helps small business owners get paid faster. In addition, digital payments can make it easier to track inventory, monitor cash flow, budget, and gain invaluable, data-led business insights on an ongoing basis.
Digital payment methods are the lifeblood of a paper-free economy. The inevitable transition toward a cashless society will reportedly have an incredibly positive impact on the environment.
Most paper-based payment methods have higher fees and “soft costs,” such as bank fees, manpower, materials, and postage. It’s estimated that one paper invoice costs a business between $12 and $30. By accepting digital payments, you can cut the costs of paper invoicing and get paid quicker, which can increase your bottom line.
Once you’ve decided to include digital payment options in your business, you’ll need to figure out which methods of accepting them are right for you. Here are the options you’ll want to consider.
If you’re a brick-and-mortar retailer or service provider, you’ll need a credit card machine for your business. Ideally, you’ll want a machine that can swipe traditional cards, read chip-enabled cards, and accept contactless and digital wallet payments.
If you conduct business in-person but not within a shop or fixed location, then you’ll want to look into accepting credit cards on-the-go. You can turn your mobile phone or tablet into a credit card reader by using a mobile app from your credit card processor.
In an increasingly e-commerce-dominated society, having an online presence (and being able to take digital payments) is a modern-day imperative. An online store or a “Pay Now” button on your website allows you to accept payments and generate new orders 24/7. It gives customers the ability to use their debit and credit cards directly on your website.
You can even take digital payments over the phone. If your credit card processor provides a virtual terminal, a customer can give you their debit or credit card information over the phone. This can be a helpful option for customers who aren’t web-savvy or aren’t able to pay in-person.
This is a great option for a service-based business. If you already send out customer invoices, why not send them via email instead of snail mail? With emailed invoices, you can exponentially increase the speed and ease by which your customers pay for services. Instead of going through the tedious process of writing a check (and subsequently rummaging around their house for a stamp), the customer simply pays by debit or credit card.
Nadapayments makes it easy for your business to accept different types of digital payments — whether in-store, on-the-go, online, over the phone, or through emailed invoices. With Nadapayments’ Wi-Fi EMV Quick Chip machine, your customers will be able to pay with:
In addition to the credit card machine, you’ll also have access to a virtual terminal for online payments and an app for mobile transactions.The best part is Nadapayments will save your business money. Normally, credit card companies charge a fee every time a merchant processes a credit card payment.But with Nadapayments’ surcharge program, if a customer chooses to pay with a credit card, the 3.5% transaction fee is charged to the customer — not the business. A customer can still pay with cash or debit if they want to avoid the surcharge The end result? Increased profits — whether you’re a tanning salon or an auto repair shop.
Digital payments include credit cards, debit cards, e-check, and mobile wallets. By accepting these types of payments, you’re giving your customers the payment options they prefer. Plus, it expands the ways you can receive payment from your customers. Instead of relying on customers paying with cash and checks in person or by mail, you can also take payment over the phone, on the go, online, and through emailed invoices.If you’re ready to begin digitizing your payment processes, reach out to Nadapayments to get started today.
When it comes to choosing a small business credit card processing company, merchants are spoiled for choice. There are hundreds of payment processors eager to partner with your business and help you accept credit cards and debit cards.It’s understandable if you aren’t sure where to start. Selecting the right processor means researching and weighing a variety of factors like fees, payment tools, security features, technical support, reputation, and more. Many merchants feel overwhelmed with the options, but with a little preparation and know-how, you can narrow down the field and choose the perfect credit card processor for your business.We’ve put together a short guide explaining what to look for in payment processors. Keep reading for clear-cut steps to simplify your search, so you can get back to discovering new business opportunities and growing your revenue.
Payment processing is about as far as you can get from a one-size-fits-all scenario. Each processor will cater to different business types, needs, and challenges, so you’ll need to take your time and crunch some numbers to understand which partnership is best. Below, we’ll walk through four important steps to help you select a winner.
Pricing transparency is what sets the best credit card processors apart from average or poor processors. The pricing model they use will have a huge impact on your bottom line, so it’s vital to understand how they’ll charge your business.In general, most credit card processors charge an interchange fee for every credit card transaction. This is a non-negotiable fee that’s set by the major card networks (Visa, Mastercard, Discover, and American Express) and passed onto your business.Beyond the interchange fee, pricing structures vary. Here are the three most common structures:
Later, we’ll do a direct comparison of some of the most popular payment processors and discuss another lesser-known pricing structure.
It’s common to see other costs beyond credit card transaction fees. For example, if you run an online store and use a payment gateway or virtual terminal to take online payments, a processor might charge you a payment gateway fee. Processors that require long-term contracts might charge a contract cancellation or termination fee. Here are some other common charges your processor may include:
Some processors advertise a low processing fee, while sneaking hidden fees into the fine print of their service agreement. So, we highly recommend asking for a list of additional costs, both scheduled and incidental.
Another helpful step is to decide what kind of point-of-sale system (POS system) you’re going to need before you begin your search. This can dramatically reduce the number of payment processors you have to consider. For example, do you need an e-commerce payment processing solution or maybe a mobile credit card reader? Perhaps you need a payment processing company that can support online, in-store, and on-the-go payments.At the very least, your payment processor should accept all major credit and debit cards, and particularly EMV chip cards. Using EMV-ready card terminals will protect your business from fraud liability and enhance security for all your chip card transactions. You may also need solutions for prepaid cards, gift cards, or ACH payments, depending on your business type.Think about the payment methods your customers regularly reach for or ask about. Do you have young or tech-savvy customers? You might want to set up a near-field communication (NFC) solution, otherwise known as contactless payments. NFC allows your customers to pay with their digital wallets, like Apple Pay or Google Pay (formerly Android Pay), using their smartphone or smartwatch. Do you have frequent opportunities to make sales outside your physical store or office? Ask about mobile payment options so you can do business on the go.Do you accept payments over the phone? You’ll want to make sure you have a virtual terminal available to you.
You’re entering into a potentially long-term relationship with your payment processor. While the day-to-day extent of it will be accepting credit card payments, unexpected things happen. Your business may be faced with fraud attempts, cyberattacks, chargebacks, and technical issues, and when that happens, you want a credit card processor with top-notch security services and customer support.After all, 43% of cyberattacks target small businesses, and 60% of small companies close within six months of being hacked. The number of chargebacks is on the rise too, increasing at a pace of 20% each year.You can ask the following questions to understand how your potential processor approaches security and support:
Here’s a quick look at some of the best-rated credit card processing companies for small businesses. We’ll focus on the qualities that set these processors apart from the rest of the pack.
If your small business wants to cut processing costs and keep more of your revenue, Nadapayments is an excellent choice. The majority of payment processors rely on the pricing models we covered earlier — interchange, flat rate, and tiered — to shift costs onto merchants’ shoulders. By contrast, Nadapayments uses a surcharge program to provide small businesses with 100% free credit card processing, regardless of transaction volume.In addition, Nadapayments can be used to process debit and credit cards in whatever way works for you: in store, online, or on-the-go.
Preferred Merchant Services gives businesses a free credit card terminal as well as a free chip reader for on-the-go transactions. It offers tiered and interchange pricing with processing rates starting at 0.17%.
Square is best known for mobile credit card processing, offering free or low-cost credit card readers, and until recently, its flat-rate pricing structure. For high-volume, small-transaction businesses, Square’s new 2.6% + $0.10 processing rate likely isn’t the best deal available. Plus, when you key in a credit card, the rate goes up to 3.5% + $0.15 per transaction.
As a small business owner, your payment processor will have a big impact on your business, in day-to-day operations and in the long term. Choose well, and you’ll do more than just accept debit cards and credit cards. You’ll see serious cost savings, cater to a wider demographic of customers, and rest easy knowing your transactions are protected from fraud. We’ve covered four steps that will lead you toward the best small business credit card processing service, but we can save you some additional time and effort! Get in touch with us at Nadapayments to learn about our 100% free credit card processing, world-class customer support, and secure POS systems.
As many as 48 million merchants across the globe accept at least one credit card. Knowing how to accept credit card payments could be the key to increasing your profits, especially as a small business owner. By accepting credit card payments, you offer your customers multiple payment methods. The more flexibility you give your customers at checkout, the more likely you are to convert the sale.In this article, we cover everything you need to know about how to accept credit card payments, including what you need to get started and the different methods available.
To get started processing credit card payments, you will first need to follow these four basics steps:
Below is a brief breakdown of each step.
There are different options available when it comes to credit card processing. You must consider the type of credit card transactions you are going to be processing. The most obvious option is whether you operate a brick-and-mortar store. If you have a physical location, you will need a card reader that can process chip cards. The card reader should be compatible with swipe cards, chip cards, and contactless payments. You want to make sure that you can accept all major credit cards and popular payment options. The best payment processors accept:
Perhaps, however, you're a startup that does not have physical locations yet. In these cases, you don't need to worry about a physical credit card terminal. Instead, you need to process payments virtually. You can process online payments:
Fortunately, all of these options are available through payment processors. It's up to you to consider how you are going to run your business and the most likely way you are going to accept payments.
A payment processing company is a service provider that handles credit and debit card transactions between two parties, typically a merchant and a customer. The payment processing company relays card information from a customer to a business bank account. Not all payment processors are the same. The pricing can vary between companies. Some may offer you access to point-of-sale (POS) systems and virtual terminals, perhaps for an additional fee. Others operate at a flat rate and provide you access to all of their credit card processor tools. Be sure to research beforehand to find a payment processing company that best suits your business.
A merchant account is a type of bank account that is required to accept credit card transactions. No matter if you are accepting in-person or mobile payments, you will need a merchant account to process the transaction. Depending on which payment processing company you choose, you may be able to skip this step. For instance, when you use a merchant service provider like Nadapayments, the merchant account is built right in.
Now that you have your processors and merchant accounts in place, it's time to install the hardware and software required to accept payments. If you are accepting payments in-store, you'll need a physical card reader. If you’re accepting mobile payments, you'll need either a physical mobile credit card reader or an app that you can use to enter credit card information. You will also need a virtual terminal if you are collecting payments via an emailed invoice, over the phone, or online.Now is also the time to set up your point-of-sale system. The best processing companies offer POS systems to record transactions, track processing fees, monitor inventory, and produce the records necessary to file taxes at the end of the year. A POS system links all terminals together seamlessly. Setting up your POS system is easy when using Nadapayments, as the software is preinstalled and ready to go after you plug in your credit card terminal.
When learning how to take credit card payments, you must understand how processing fees work. These fees are the biggest cost for businesses when accepting credit cards. Processing fees are a type of transaction fee that credit card companies charge when you use their card. The average fee is around 3.5%. Let's say that you process $50,000 in credit card purchases each month. You owe credit card companies 3% of this, equal to $1,750. After paying processing fees, the money you earned from the sale is now $48,250. If your company pays these fees, you directly impact your bottom line. Fortunately, there are ways to cut the cost of processing fees. Retailers can do so by implementing a surcharge program. With a surcharge program, the fees are passed onto the customer. Businesses are required to display signage indicating that this process is in place. The signage must indicate that customers are not charged processing fees if they choose to make a cash or debit card payment. Implementing a surcharge program is the best way to save on costs when your business accepts credit card payments.
If you are looking for a business provider that offers everything you need to get started accepting credit card payments while also saving you money, look no further than Nadapayments. Nadapayments provides merchants with a Wi-Fi-enabled EMV Chip reader for in-person transactions, along with virtual terminals and smartphone apps for online and mobile payments as well. You receive a unified payment experience that allows you to easily track all of their transactions, no matter where they take place. The included POS system seamlessly links between in-store and mobile transactions, even if those transactions take place offline. Nadapayments accepts all major credit cards, as well as Apple Pay, Google Pay, and contactless payments. Retailers pay a flat monthly fee of only $35 per month. There are no hidden costs or setup fees. Perhaps the best part, however, is that you’ll save on processing fees thanks to Nadapayments' surcharge program. Plus, you’ll receive the signage you need for the surcharge program for free.
Knowing how to accept credit card payments can do wonders for your business. The more payment options you offer customers, the more likely you are to complete a sale. Accepting credit cards both in-store and online directly impacts your bottom line. Remember, there are a few things you need to have in place before you can begin accepting credit card payments:
Fortunately, these things are easy to come by when you use Nadapayments.Nadapayments is a service provider that offers you everything you need to accept credit card payments, including hardware and software. You can accept all major credit cards, contactless payments, and digital wallets, like Google Pay and Apple Pay. The package costs a flat rate of $35 per month. And you save on processing fees thanks to the included surcharge program. Nadapayments checks all the boxes for merchants. Be sure to get started today.
Accepting credit card payments is a must for every business, from brick-and-mortar businesses to e-commerce companies. It’s especially important as more and more customers prefer to shop online and use contactless payment options (and the COVID-19 pandemic only accelerated this trend). But accepting credit cards comes at a cost, and it isn’t always cheap or easy to understand. If you suspect you’re paying too much, or you want to start accepting credit cards for the first time, you may be wondering: What is the cheapest way to accept credit card payments?There’s no simple answer. How much you’ll ultimately pay depends on a variety of factors, like your industry, transaction volume, and payment methods. However, there are some simple strategies to lower your credit card processing costs, no matter what your unique scenario is. There are even free credit card processing options, which we’ll talk about later.Ready to save? We’ll cover the different types of payment processing fees, compare pricing models, and give you three strategies to get the cheapest credit card processing for your business.
What can make credit card processing so confusing — and expensive — is that there are many different types of providers, plans, and transaction rates. Below, we’ve broken this down into digestible sections, including helpful terminology, common fees, and pricing models. That way, you can understand how to find the cheapest way to accept credit card payments and avoid unnecessary charges.
Your credit card processing costs include a variety of fees, some negotiable and some non-negotiable. Here are four of the most common fees you’ll encounter.
The four major credit card networks — Visa, Mastercard, Discover, and American Express — charge issuing banks a fee to use their credit cards and debit cards. This fee is known as the interchange rate, and issuing banks pass this cost onto business owners like you. Rates are often between 1.3% and 3.4% for every transaction, and that’s before any other fees or markups from your payment processor. Costs vary based on:
For example, online transactions carry a higher interchange fee because it’s harder for small business owners to verify their customer’s identity and prevent fraudulent transactions.
Assessment fees, also known as network fees, are paid to the card networks each time a credit card is used.
Payment processors also have wide latitude to charge additional fees in order to make a profit and cover the risks of managing merchant accounts. (After all, they’re a business too.) However, a good payment processor will use a transparent pricing model that ensures these fees are clear. Alternatively, you can use a service like Nadapayments that will save you the headaches and number-crunching by offering free payment processing.
In some cases, there are additional costs you can expect from your processor. For instance, they may charge a monthly fee for the POS system you use, like the mobile card reader or digital shopping cart for your online store.
Credit card processing companies use a variety of payment plans to cover the above costs and offer merchants their services, each with unique pros and cons.
Flat-rate pricing charges businesses the same transaction rate for every type of transaction. You may recognize this model from payment service providers (PSPs) like Square or PayPal. While it’s easy to understand, it's also easier to charge hidden fees. For small businesses and startups with a low volume of card transactions or low average transaction value, however, this can be the cheapest way to accept credit payments.
Many industry experts and businesses regard interchange-plus pricing as the most transparent pricing option. It’s cost-effective for most businesses, regardless of industry type or size. The credit card processor simply adds their fee (typically a small percentage) on top of the interchange fee. Because of this, it’s also called “wholesale pricing,” meaning you’re only charged the mandatory fees for each transaction, plus a small processor markup.
With tiered pricing, the payment processor will create different tiers or categories for your transactions based on their risk level. Generally, there are three tiers — qualified, mid-qualified, and non-qualified — each with a different processing rate. Of the different pricing models, tiered pricing is the least transparent and the hardest to predict. It’s difficult to understand whether you’re getting a good deal on each transaction, and processors can change their rates and rules at any time.
As credit card processing fees add up, they can seriously weigh your business down. Here are some tactics that will help you save money, including a free credit card processing solution.
Credit surcharge programs allow merchants to pass their transaction fees onto their customers. At checkout, customers are presented with two options: pay with cash or debit card, or pay with credit for an additional 3.5% fee.We know what you’re thinking, “Won’t there be backlash when customers see this fee?” The first important thing to note is that customers always have a choice. They can opt to use debit or cash and avoid the fee entirely. And second, the reality is that a credit surcharge can actually be the better option for your business in the long run. Think about it: You’re being pummeled by processing costs and other expenses, so you decide to raise your prices. These new prices are higher than the amount customers would pay for processing fees, especially if you have high-cost services like plastic surgery or dentistry. Customers compare your high prices to your competitors — and walk away. With a fee-free credit card payment processor like Nadapayments, you can reclaim your revenue, and customers who pay with cash could actually save money.
If you’re happy with your current payment processor, you can try negotiating a lower payment processing rate. A great moment to do this is when your contract is up for renewal or when you’ve just closed a particularly successful sales period. Your processor won’t want to lose a valuable customer. Shop around for better merchant account quotes and ask your processor to match them, or suggest your own figure. Finding a better deal might mean moving to a different payment service provider. If so, look for one that offers transparent pricing and specializes in your industry. They should have good customer reviews, a healthy Better Business Bureau rating, and 24/7 customer support.
As we’ve talked about, certain transaction types cost more than others. Even flat-rate pricing options charge different rates for in-person payments and online payments. While you can’t control which payment methods your customers prefer day to day, you can encourage them to use less costly options. For example, you can put up friendly signage asking customers to use a debit card when possible or offer discounts for cash purchases. These simple measures can go a long way to lower processing costs.
Accepting credit cards may be the cost of doing business, but doing so doesn’t have to eat up your hard-earned revenue. Now that you have a deeper understanding of fees, merchant account providers, and pricing models, you can use the strategies we’ve covered to take control of your processing costs.But for an even more effortless way to save money, choose Nadapayments and pay “nada” on every credit card transaction. With our credit surcharge program, you take home 100% of all your credit card transactions. There are no setup fees and no commitments — just an affordable way to take payments anywhere you are.If you’re ready to save thousands of dollars every year in processing fees, get in touch with us for more information!
Are you a small business owner who operates online? If not, you may want to consider breaking into e-commerce. Revenue from e-commerce in the United States was $431.6 billion in 2020, and experts expect that number to climb to $563.4 billion by 2025. Even if you own a brick-and-mortar business, accepting online payments could expand your customer base and increase revenues. Of course, customers can’t pay cash when a transaction takes place online. There are also no physical card readers present at checkout, as there would be at a brick-and-mortar store. Merchants must have online payment processors in place. In this guide, we outline how to accept credit card payments online and its benefits.
There are primarily three ways you can begin accepting credit card payments online.
If you already have a website in place, one of the quickest ways to start accepting payments is by installing a "Pay Now" button. When a customer is ready to check out, they can click a button that says, "Pay Now." Typically, this button is located with a customer's "shopping cart" so that they can review and finalize their order before payment. When a customer selects the "Pay Now" button, they are then presented with a secure form that allows them to enter their name and payment information. Typically, the site will list the business' accepted payment options.
Another way to accept credit card payments online is by setting up an invoicing system. This is a great option for brick-and-mortar businesses that want to allow customers to pay online for in-person services.To receive payment, you send an invoice to the customer that lists the amount owed and your accepted payment methods. If the customer wishes to pay with a credit or debit card, they can select the secure link that's included with the invoice. When the customer clicks on the link, they are directed to a secure website where they can enter their payment information and complete the transaction.
Another payment processing option is to take customer payments over the phone. Even if the customer can’t go online to enter payment information, you can still process the payment online with a virtual terminal.A virtual terminal allows you to process credit card transactions without the card itself being physically present. Virtual terminals work for both online stores and taking payments over the phone.
In order to accept credit and debit card payments online, you need a merchant account and a payment gateway.A merchant account is a type of bank account that allows you to accept credit card transactions. You need a merchant account whether you are accepting credit cards in-person or online.A payment gateway is what connects your website to your payment processor. It allows you to have a secure payment form on your site so your customers can enter their credit card information.When you use a merchant service provider, like Nadapayments, the merchant account and payment gateway are built right in. So you can get started with accepting online payments in no time at all.
Though there are transaction fees, today's businesses need to accept payments online. Below are some of the primary benefits that come with doing so.
As mentioned, e-commerce is expected to grow substantially in the coming years. Learning how to accept credit card payments online can boost sales. Additionally, studies have found that customers spend more when using a credit card versus cash. Operating online also expands your customer base. You can reach customers across the country. If you are only operating a brick-and-mortar store, you are limited to the customers in your area.
As a business owner, you want the payment experience to be as easy as possible for your clients. Allowing for both credit and debit card payments gives customers a better experience because they have more flexible payment options. Furthermore, allowing customers to make purchases from the comfort of their own home, without having to visit your brick-and-mortar store, can build brand loyalty. The same can go with sending bills or invoices to customers. Let’s say you run a dental practice and invoice a patient. You can send an email invoice to the patient and allow them to pay from home, without having to mail a check or make another trip to your office.
Credit card transactions process rather quickly. As a business owner, this is useful because it increases your cash on hand. The money from a credit card transaction will often appear in your bank account within a day or two. Compare this to having to wait for a paper check, which could take days, if not longer.
Now that you know how to accept credit card payments online, you are probably curious about which credit card processor you should use. Nadapayments not only provides merchants with Wi-Fi-enabled EMV Quick Chip machines for in-person transactions but also includes access to virtual terminals and mobile apps as well. The mobile app provides merchants with a mobile point of sale system (POS system) that they can take with them anywhere, while the virtual terminal makes it possible to have “Pay Now” buttons online, send emailed invoices, and accept payments over the phone.Nadapayments accepts multiple payment methods, including:
Nadapayments offers a unified payment experience. You can easily track all of your transactions from either your in-person credit card machine or your virtual terminal — no matter how you've accepted the payment. The two systems link with one another and work seamlessly. Pricing for a Nadapayments terminal is only $35 per month. There are no hidden costs, monthly minimums, or setup fees. And, using Nadapayments can quickly pay for itself because of the money you'll save on processing fees. Businesses are required to pay processing fees whenever a customer uses a credit card. These fees are approximately 3.5% of every transaction.But with Nadapayments’ surcharge program, these costs are passed onto the customer when they choose to pay with a credit card. Customers can avoid the extra fee by choosing to pay with a debit card instead. These fees are made clear to customers when they are checking out online. Lastly, Nadapayments is entirely secure and PCI-compliant. All merchants are required to follow the Payment Card Industry Data Security Standards, in the interest of protecting both merchants and customers. Nadapayments meets all standards, which helps protect both you and your customers' sensitive information.
If you are a small business owner, you should be conducting business online. With e-commerce set to grow in the coming years, learning how to accept credit card payments online can help you grow your business. There are three primary ways to accept credit card payments online:
Nadapayments makes all three online options easy to implement. Plus, it helps merchants save money on transactions and gives customers the convenience of multiple payment options. Be sure to reach out today so you can start accepting credit card payments online.
“I wonder how to accept credit card payments on my phone.” If this is something you’ve said to yourself, you probably fall into one of the following categories:
Whatever your reason for diving into mobile payments, you’ve come to the right place. In this guide, you’ll learn how to turn your smartphone or tablet into a convenient mobile POS system in a few steps. We’ll break down what a mobile POS system can and can’t do, tips to choose the right one, steps to get started, and the benefits of using your mobile devices to accept payments. Let’s dive in.
A mobile point-of-sale (POS) system, also called an mPOS, might sound complex, but it’s just a smartphone or tablet that functions as a portable register. You’ve likely seen mobile payments in action in everyday life. Food businesses are a great example. Restaurants are increasingly providing pay-at-table options using iPads or Android tablets, and food trucks can deliver amazing eats anywhere thanks to mPOS systems.While traditional POS systems have card terminals, cash drawers, and receipt printers that limit transactions to one fixed location, mPOS systems can go where your business takes you. That’s because an mPOS system only requires three things: a mobile device, a mobile credit card reader, and a payment app. The streamlined setup means mPOS systems are inexpensive and easy to implement. (We’ll talk about other mobile payments benefits later.)Depending on the type of POS software you use, your mPOS can let you take payments on the go or manage your entire business. Your team can schedule appointments, check customer or patient profiles, monitor inventory, run reports, and more. There are plenty of payment processing options too. Most mPOS systems accept a variety of payment methods, including:
And just like a traditional POS, mPOS systems allow customers to pay in full or sign up for recurring billing options or payment plans.All in all, mobile payments are ideal for any business that needs a low-cost, flexible payment solution.
Getting a mobile point-of-sale system up and running is easy. You need to sign up with a payment processor that offers mobile payments, connect a credit card reader to your phone or tablet, and download the required payment app. Then, you’re ready to start taking payments.That said, choosing the right mobile payment processor and comparing different mPOS options — hardware and software — can be challenging. Here’s a quick overview to help you accept payments on your phone in no time.
You may not know it, but if you already accept credit cards and debit cards at your business, you have something called a merchant account. It’s a special type of business bank account that allows your customers to pay you with card, ACH payments, and more. So, setting up mobile payments could be as easy as asking your current credit card processor to add a mobile POS to your account.Not partnered with a payment processor yet? Look for a merchant service provider that will do the heavy lifting for you, has affordable pricing, and will give you the payment options you need. For example, with a provider like Nadapayments, your merchant account will be set up for you, and you’ll save money on transaction fees. Plus, you’ll have the ability to accept in-store, online, and mobile payments.
A credit card reader is the small piece of equipment your customers will use to swipe, insert, or tap their preferred payment method. Card readers can connect to your mobile phone or tablet via Bluetooth or headphone jack — whichever works best for your device. For instance, if you have an iPhone X with no audio jack, you might need to stick to Bluetooth options.Your payment processor might offer a free credit card reader when you sign up for mobile payments. Otherwise, most card readers cost $20-$50. As you comparison-shop readers, pay attention to accepted payment methods, data connection options, and compatibility.For instance, some readers take magstripe cards and EMV cards but not NFC transactions (also called contactless payments). Some readers operate on Wi-Fi or cellular data only, while others have offline options. Lastly, check that the reader is compatible with your operating system (iOS, Android, etc.).
Generally, you’ll need to use a mobile credit card reader and payment app from the same processor. Bottom line: Many credit card processing companies don’t want the liability of using another company’s subpar or faulty equipment to process payments. So, your final step is simple. Once you’ve picked a mobile payment processor and equipment, you’ll download their mobile payment app.This app is the digital hub where your team will handle credit card transactions and store card information, so you want to make sure it’s user-friendly and secure — top to bottom. This is especially important if you’re exclusively using a mobile POS to run your business, or you’ll rely on it for other tasks like invoicing, employee scheduling, or inventory. Our advice? Ask to demo the mobile app or do a trial run for a couple weeks to make sure it’s the right fit.How much you ultimately pay to accept credit card payments on your phone depends on the equipment and level of mPOS software you get. The average mobile processor is going to charge a variety of payment processing fees, such as mandatory transaction fees or monthly fees for service. But there’s an exception: Nadapayments. We offer a free credit card processing solution — called a surcharge program – that helps you hold onto your revenue and avoid unnecessary costs.
There are plenty of reasons to get excited about adding a mobile POS to your payments lineup. Here’s a snapshot of how accepting payments on your phone can give your business a boost.
Many business owners know the frustration of cramped quarters and busy countertops. For instance, space is often at a premium in health care practices like optical offices and dental offices. Mobile POS systems are handy for a variety of businesses precisely because they don’t require dedicated space. Your device and card reader are compact, lightweight, and easy to transport at a moment’s notice.
The biggest difference between an mPOS and traditional POS is portability. Mobile technology allows you to do business and provide excellent service anywhere, whether you run a brick-and-mortar or e-commerce business. Trade shows, annual conferences, community events, or pop-up stands — it’s all on the table.
Every entrepreneur knows what they could do with an extra $1,000 or $5,000 in their pocket. Where most traditional POS systems require a hefty upfront investment, mobile POS systems are inexpensive by design. The low price tag keeps startup costs under control and opens up expansion possibilities for your organization.
Looking to improve your customer satisfaction? Implement a mobile POS to free your staff from being trapped behind the register. In stores and in the field, your sales team or technicians can assist customers wherever they are, reducing checkout lines and payment delays.Another great example is health care, where privacy and comfort is paramount. You can give patients the ability to handle payment in the treatment room of your plastic surgery clinic, for instance, rather than out in the lobby. These changes add up to an unparalleled customer experience that keeps clients coming back.
You’re now ready to accept credit card payments on your phone. As we’ve discussed, a mobile POS is easy to use, inexpensive, and portable, making it a strong choice for most business types and sizes.With just a mobile device, credit card reader, and a payments app, opportunity is at your fingertips. The only disadvantage to accepting credit cards with your phone? The mobile credit card processing fees, which can add up to thousands of dollars every year. There’s a better way. With a credit surcharge program, you can get 100% of every credit card payment. Get in touch with us at Nadapayments to learn how we help you save and start taking payments on-the-go with our mobile app.
With global health care spending set to surpass $10 trillion by 2022, health care delivery is big business. However, despite the size and undoubted importance of medical care, existing health care payment systems are ineffective, inefficient, and in desperate need of changing.In fact, it’s even been suggested that as much as 35-50% of all U.S. health care spending is wasted due to poor business processes (including payment processing).This article will examine the main health care payment model that is currently in use, payment systems you can put in place in your practice, and what to look for in a payment processor.
When it comes to health services, there are various payment models. But as a health care provider, you likely use a fee-for-service (FFS) model — where you provide a specific service and then bill the patient for the price of that service.This is the common payment model for primary care physicians and other outpatient clinicians, including dentists, cosmetic surgeons, and dermatologists.Before you bill your patient, you likely submit the bill to the patient's health plan or Medicare for reimbursement. But whatever health insurance doesn't cover will have to be billed directly to the patient.It's important to choose a payment system that is both patient-friendly and benefits your practice.
Commonly, the health care industry has relied on mailed statements to seek payment. The patient would receive the statement and then send back a check for the payment amount. However, this paper-based billing is keeping you from getting paid and costing you money in the process.But by ditching the paper statements and offering modern payment methods, you can save time and money. You might even give your patient satisfaction scores a boost by focusing on your quality of care instead chasing down payments.Here are some prospective payment systems you can consider that will get you paid quicker and give your patients more flexibility.
Even if you follow a fee-for-service payment model, you can still give patients the option of paying their bill at the time of the service. Just make sure you can accept various forms of payment so that patients can pay by cash, debit, or credit card. You might even consider offering payment plans that give the patient even more flexibility. They could pay for part of the bill upfront and then receive an invoice for the rest.
You can still send invoices to your patients, but it doesn't have to mean printing off statements, stuffing them in envelopes, and paying for postage. Instead, you can send invoices by email that patients can pay for online with their debit or credit card. With this method, you'll be able to get the invoices out much quicker, and you won't have to wait for a check to make its way back through the mail.
If your credit card payment processor provides you with a virtual terminal, you can also accept debit and credit card payments over the phone. A credit card doesn't have to be physically present to use a virtual terminal. Simply take the patient's payment information over the phone and enter it into the virtual terminal.
In order to accept credit card payments and implement any of the above payment systems, you'll need to choose a payment processor.Payment processing affects how quickly, easily, and efficiently your practice is paid. It also has a significant impact on your patients’ experiences. As a result, you should partner with a high-quality payment processor that makes it as seamless as possible for patients to pay you — and for your practice to receive their payment. Let’s examine what you should look for in a payment processor.
Manual processes are time- and energy-intensive, while also being incredibly error-prone. And errors aren’t just annoying — they can actively delay when you'll be paid or even leave you open to legal issues further down the line.The best payment processors, like Nadapayments, make the end-to-end payments process as seamless as possible by offering a unified experience. With the Nadapayments POS, you can instantly see whatever’s happening on the credit card machine in your online virtual terminal, or you can even accept transactions via the virtual terminal itself (for instance, while speaking to a customer over the phone).But what if customers want to pay at a later date? With Nadapayments, medical practitioners can email invoices over to their clients that contain a clickable payment link — meaning customers can swiftly pay exactly what they owe in just a few clicks.
Flexibility is key. Health care payments are complex, so it’s important to make the process as easy as possible for both health care professionals as well as their patients. The best tools have flexibility baked into everything that they do. They provide a variety of payment options (such as in-person, online, over the phone, or using mobile devices), which in turn makes it easier for patients to use the method that works best for their financial situation.This, therefore, makes patients more likely to pay up promptly — and it could transform their overall patient experience.
As with any business partner, you want to work with payment processors that are transparent, open, and honest. This covers everything from the fees that they charge to the data security methods and standards they follow. If potential vendors seem hesitant to answer your questions or they’re unable to provide clear answers, then consider working with alternative providers.
With less manual effort required, tools like Nadapayments speed up the payment process from start to finish. You'll get paid quicker and stop spending unnecessary time, effort, and sanity on chasing late payers, depositing checks, or even sending out bills in the first place. With the extra time, you can focus on what's really important: patient care.
Nadapayments’ revolutionary surcharge program allows health care practitioners to avoid credit card fees, typically resulting in a 10% annual increase in revenue. What sort of impact would these cost savings have on your practice?
As a health care provider, you must protect their patients’ data during transactions. Fortunately, in the U.S., the Health Insurance Portability and Accountability Act of 1996 (HIPAA) stipulates common guidelines that all health care providers must follow, outlining how to keep personal health information (PHI) safe at all times.PHI encompasses everything from patients’ names, credit card numbers, and date of birth, all the way to their medical records and Medicaid insurers’ information.But while HIPAA compliance should always be a consideration, it doesn’t actually affect credit and debit card processing. Why? Well, to put it simply, your merchant services provider doesn’t actually handle sensitive patient information when it comes to credit card billing and processing. So long as you never reveal details surrounding a patient’s treatment and your processor sends customers their receipts via secured (or even encrypted) methods, then you have nothing to worry about.
Whether your practice prefers to accept in-person, online, or phone-based payments, one thing’s for certain: You need to make the payments process as easy as possible for your customers. This means working with a payment processor that speeds up the end-to-end process, eliminates as many manual steps as possible, is flexible and transparent, and ultimately saves you money. Nadapayments makes it easier than ever before for health care professionals to bill clients and get paid for their services. No matter which payment model you use or the services you provide, Nadapayments will transform your payment processing into a genuine value-driver for your health care organization — rather than an ongoing distraction.If you’re ready to offer more payment options and save money in the process, reach out to us to get started today.
Surcharge programs are increasingly in the spotlight as merchants search for ways to offset their heavy credit card processing fees. These fees — often between 1.3% and 3.4% for every credit card transaction — nibble away at revenue to the tune of thousands each year. Before business owners know it, they’re out $20,000 simply because they accept credit cards! Enter surcharge programs. Imposing a surcharge means that customers bear the financial burden if they want to pay with a credit card. But is a surcharge program right for your business? We’ve got answers. In this guide, we’ll cover everything you need to know, including:
Let’s dive in.
A surcharge, sometimes called a checkout fee or service fee, is an additional fee that merchants can tack onto a customer’s bill to cover the costs of credit card processing. Usually, merchants absorb this expense. But with a surcharge program, customers pay for the convenience of using their credit card. At checkout, your customers are presented with a choice:
That leads us to something else important: It’s only legal to add a surcharge to purchases made with a credit card. You can’t legally add an extra charge to debit card, cash, or check transactions to cover processing costs. You can only charge the stated price of your service or product. (We’ll dive deeper into surcharging rules and legality later!)
If some of this is sounding familiar, you may be thinking of cash discounting. In a cash discount program, merchants give discounts to customers who pay with cash, debit, or check instead of charging a fee to customers who pay with credit. The amount of the discount is usually equal to the merchant’s credit card processing rate, like 2.9%. The main difference is that surcharges discourage customers from paying with a card by charging a fee, while cash discounts encourage customers to pay with other methods by offering a small discount.
Businesses are frequently weighing options to lower their credit card processing expenses and to give their profits a boost. They may set a credit card minimum, raise prices, negotiate with their payment processor, or go looking for a new processor entirely. Some of those strategies work better than others. But here are three clear-cut ways surcharge programs could benefit your business:
Surcharging allows merchants to take back the revenue lost to credit card processing costs. To understand the significance of the savings, let’s look at an example. Let’s say your eyecare clinic collects most of its revenue in two ways: $460,000 from medical insurer payments and $300,000 from credit card payments. On average, your clinic pays a 4% processing rate. That means you’re losing $12,000 each year to fees. Covering those costs with a small 4% surcharge puts over $10,000 back in your pocket on an annual basis.
Surcharging programs are sometimes referred to as “free credit card processing” because they all but eliminate the expense of accepting credit cards. Beyond the daily savings, surcharges could be a lifeline to businesses struggling to stay afloat in times of economic hardship and uncertainty. For instance, small business revenue dropped 52% and payroll expenses dropped 54% in response to the COVID-19 pandemic and shutdown. Adding this small, additional cost to customers’ credit transactions can help businesses respond to a sudden lack of revenue without increasing their pricing and upsetting customers.
In industries that rely on low-price, high-volume purchases or small average order values (AOVs) — like restaurants and bars, convenience stores, and certain retailers — it can be challenging to make a profit on credit card transactions. Passing these fees along relieves financial pressure so businesses can focus on increasing purchases or raising their AOV. As you can see, there are many reasons a surcharge program could be a smart move. For many businesses, their annual savings will speak for themselves.
Yes, in most states. It all depends on where your business is located. As of early 2021, one U.S. territory and three states don’t allow credit card surcharges:
If you operate in multiple states, you can still surcharge credit transactions, but only in the states where it’s permitted. Even though credit card surcharges are legal, you may be wondering how customers will react to the additional cost. Will it make them spend less? Switch to a competitor? Accuse you of trying to overcharge them?Not really. Customers aren’t completely unfamiliar with surcharging. In the U.S., many small businesses extend lower prices to customers who are willing to pay in cash. For instance, gas stations regularly put fuel surcharges in place. As long as you’re transparent with your customers, they’ll understand that they can continue to pay with a debit card and cash or support your business with a small credit card fee.
The subject of surcharging can seem complicated, but handling it properly comes down to a few important rules.
You don’t have to navigate these rules and legal considerations alone. We’ve done our homework at Nadapayments, staying up to date with changing surcharge rules so you can experience free credit card processing with peace of mind. You can confirm that your state is eligible and get answers to other FAQs on our Rules for Surcharging page.
One of the best things about starting a surcharge program is that it’s uncomplicated. Here’s an overview of the process.
First, you’ll need to go comparison shopping for the right merchant service provider (MSP). They’ll help you open a merchant account to accept credit card payments, if you aren’t already, and then get your business set up with surcharging. Here are some qualities of a top-notch MSP:
Once you’ve found a stellar MSP, the bulk of the work is done.
The next and final step? Activate your surcharge program! At Nadapayments, we believe that your revenue belongs to you — not the credit card companies. We’ll help you select the right array of surcharging equipment and comply with all surcharging rules, while providing you with 24/7/365 customer support. There are no setup fees or hidden costs, just transparent surcharging. If you’re ready to save thousands of dollars every year in processing fees, get in touch with us today.
No matter if you run a small business or a large-scale company, you want to give your customers numerous payment options. Doing so helps ensure that you complete a sale. Failure to accept debit and credit card payments can impact your bottom line significantly. To accept debit cards and credit cards, you need to have payment processing machines. These machines include the physical card readers to chip read or swipe the credit cards themselves – or to accept tap and pay cards or Apple Pay — and the associated software to process the payment on the backend. In this article, we cover everything you need to know about credit card machines. This complete guide for businesses will cover the different types of machines available, what to consider when choosing one, and how much they cost. By the end of this article, you should have a much better idea of which credit card processor is right for your company.
Credit card machines are devices used to process debit card and credit card payments. They are also referred to as:
Credit card machines are responsible for scanning the card, authenticating it, and transmitting data to the associated processing software. During the authentication process, the terminal ensures that the card is not expired, stolen, or damaged. Doing so protects you as the merchant, ensuring that you receive funds for the transaction and do not give away your goods or services for free. Should the card be declined, you can cancel the sale. Another type of machine is a virtual terminal. A virtual terminal allows you to process credit card transactions without the card being physically present — either online or over the phone. Nadapayments offers a virtual terminal as part of its credit card processing solution.
Not all credit card readers are the same, and the one that you choose will impact the checkout experience for your customers. There are a few factors that you'll want to consider so that you can choose the processing terminal that best meets your customer's needs.Below are some of the main criteria that you should consider when choosing a credit card machine for your business.
There are different connectivity options for these terminals that merchants need to be aware of. When a transaction goes out, it connects to a host for verification, so a credit card machine will need to connect to the internet to do that. Many of today's terminals connect via a cell phone network or Wi-Fi, which means retailers can process transactions from anywhere. There are also some card readers that connect to the internet via ethernet.
Different terminals also accept credit cards in different ways. At the most basic level, your credit card terminal should have a pin pad. Customers looking to use a debit card will need to enter their four-digit PIN on a keypad to process the transaction. Next, you need to make sure that customers can swipe their cards. Every debit and credit card has a magnetic stripe on the back. Your terminal needs to be able to read this magstripe, which contains the card information and prompts the authentication process. This is required for both debit and credit card payments. Though magstripes are the minimum standard, you may also want to consider accepting EMV chip cards. Instead of swiping, customers “dip” the EMV chip into the terminal. EMV chips create a unique transaction code for each purchase and are designed to be more secure than standard magstripes. EMV cards have become more popular, but not every card has one which is why a magstripe reader is still required. Additionally, if the terminal can’t read the chip for some reason, the customer can then still swipe the card for payment. Another feature that has grown in popularity over the past few years is the ability to accept contactless payments. With contactless payments, customers don't need to swipe or insert their card. Instead, they can tap their card to the terminal. Taking this even one step further, customers don't even need to carry credit cards anymore. Instead, they can upload their information into a mobile credit card wallet, like Apple Pay or Google Pay. When it's time to pay, the customer selects which card to use and then holds their phone up to the terminal. As long as your terminal has near-field communication (NFC) technology, it will accept the payment from the mobile phone. NFC devices have exploded in popularity and could be particularly useful for health care providers, where customers may not want to put their fingers on a physical payment terminal.
Today's customers are more conscious of their personal information than ever. Security is of the utmost concern. At the very least, you need to make sure that you are PCI-compliant. PCI is short for the Payment Card Industry. The Payment Card Industry Security Standards Council sets Data Security Standards (DSS). The DSS seeks to protect both merchants and customers. All merchants who accept debit or credit card information are required to be PCI-compliant. Many of the best credit card machines and software meet these requirements, but it's worth double-checking to verify that this is indeed the case.
You’ll also want to look at which cards your machine and credit card processor will accept. Visa and Mastercard are the most widely accepted credit cards, though Discover and American Express (Amex) have made strides and become more popular over the past few years. For example, of those merchants in the United States who take credit cards, 99% now accept American Express. The total number of merchants accepting Amex in the United States grew from 3.7 million in 2014 to 10.6 million in 2019. The more options you give your customers, the more likely you are to complete a sale. For example, if you don't accept American Express and a customer only has an American Express card, you will need to cancel the sale. Ensuring that you can accept all major forms of payment is worth considering when implementing your credit card processing system. Similarly, if your business has gift cards, you'll want to make sure that you can accept and process these as well. You can usually set up credit card machines to do this.
The price of a physical credit card machine often ranges between $200 and $1,000. This does not include any software required to run transactions. However, you can find high-quality credit card processing terminals and software for as low as $35 per month.
If your business is looking for a machine that makes it easy to accept debit and credit card payments, look no further than Nadapayments. Nadapayments provides merchants with a Wi-Fi-enabled EMV Quick Chip machine for in-person transactions. The machine can accept:
Merchants also receive access to a virtual terminal that can be used for online transactions or for taking payments over the phone. In addition, the Nadapayments mobile app provides you with a mobile point-of-sale system that you can take with you anywhere. Because Nadapayments offers a unified payment experience, you’ll be able to easily track all your transactions from either the app on the credit card machine or from the virtual terminal — no matter how you accepted the payment.Pricing for a Nadapayments terminal is only $35 per month — with no hidden costs or fees. On top of that, when you use Nadapayments, you’ll save money on processing fees.Typically, businesses are required to pay processing fees whenever a customer uses a credit card. These fees are approximately 3.5% of every transaction.But with Nadapayments’ surcharge program, these costs are passed onto the customer when they choose to pay with a credit card. Customers can avoid the extra fee by choosing to pay with cash or a debit card instead.Nadapayments even provides merchants with the signage required to convey this information to customers.
As a business owner, you want to have numerous options for accepting payments. Limiting your customers to cash-only transactions can cut down on your ability to complete sales. It's important that you accept both credit and debit cards as well. To do this, you need to have a card processing terminal. There are many things to consider when it comes to choosing a credit card machine. A Wi-Fi-equipped machine allows you to complete transactions anywhere with an internet connection. EMV-equipped terminals ensure your customer's information is protected. The best credit card machine available today is through Nadapayments. Nadapayments is not only affordable, but it will save you money on your bottom line. When you sign up, you receive all of the equipment and signage you need. Getting started is simple, so get in touch with us today.
Data breaches and credit card fraud attacks have increasingly dominated the headlines, including the high-profile Yahoo, Equifax, and Blackbaud breaches. In 2020, a massive 37 billion records — like full names, addresses, credit card numbers, and Social Security numbers — were compromised, the largest number since 2005.The payments industry is fighting back against fraudsters with new tools like EMV technology. EMV cards (or “chip cards”) are more secure than traditional magnetic-stripe cards, making fraud and chargebacks much less likely. To avoid any fraud liability, merchants have to meet certain EMV requirements, whether you own a brick-and-mortar business or online store.In this guide, we’ll answer your EMV compliance questions and show you exactly how to protect your business and your card-holding customers.
EMV is an acronym that’s short for Europay, Mastercard, and Visa — the credit card networks that pioneered and implemented this secure technology. American Express and Discover, the other major U.S. card networks, are behind this push for payment security as well.EMV has actually been around for decades in other countries. Payment experts explain that the U.S. has always had a robust credit card system with plenty of anti-fraud steps, so there’s been less need for higher security measures. But with data breaches and fraud on the rise, there’s been a growing call to adopt EMV transactions.Now, EMV is a global credit card standard, using microchip technology to authenticate and secure card transactions and reduce the risk of fraud. According to EMVCo, over 80% of card-present transactions worldwide are conducted with EMV chip technology. U.S. merchants are still in the process of adopting EMV chip cards, with 63% of card-present transactions using EMV.We’ll also note that EMV cards go by several different names. They’re also referred to as:
Next, let’s go over the different ways EMV chip cards safeguard payment data from end to end.
EMV and near-field communication (NFC) often get confused because they both represent new, secure payment technologies available to merchants. However, they’re not interchangeable.EMV refers to chip cards, while NFC is a type of technology that lets people pay with their mobile devices, like smartphones and watches. It works by allowing devices to communicate with each other when they’re held close together, usually about two inches or less, which is why it’s often called a “contactless” payment solution. Apple Pay and Google Pay are two common examples of NFC apps.NFC was already on the rise, but it became even more popular during the COVID-19 pandemic, when businesses and customers were on the hunt for hands-free checkout options. It’s just as secure as EMV — transactions are encrypted using tokenization, making it virtually impossible for cybercriminals to access card information.
From a customer’s perspective, payment is simple — they insert (or “dip”) their card into the chip reader in your point-of-sale (POS) system and wait for their transaction to be completed in a few seconds.Behind the scenes, EMV technology is protecting your customer’s personal information — and by extension, your business — at every turn. As we mentioned earlier, an EMV card is a credit card or debit card with an embedded microchip. These computer chips can store more information than magnetic strips and can only be authenticated by special EMV card readers.When a customer initiates an EMV transaction, a unique, one-time-use transaction code is generated. Your small business never receives or transmits a customer’s actual card number. Even if a cybercriminal breaks into your POS system and steals EMV card information, they walk away empty-handed. They only get access to the random code created for the transaction, just a jumble of letters and numbers. Your cardholder’s actual card information is safe, encrypted, and inaccessible.
We’ve broken down the what and why of EMV technology, but how exactly does the shift toward EMV cards affect your business? Mainly, you’ve got to have a payment system with POS terminals (in-store or virtual) that accept EMV cards.The reason? The 2015 EMV Liability Shift. It used to be that if you accepted a fraudulent payment, the banks absorbed the costs. But in 2011, the major credit card companies set an October 1, 2015 deadline for merchants to start using EMV-enabled POS systems for in-person purchases. As a result, liability for fraud shifted to the party that wasn’t EMV-ready. In other words, you could be on the hook for fraudulent purchases with chip cards if you don’t meet EMV compliance requirements.There is, however, an exception for gas stations. As of early 2021, the deadline has been extended to April 2021 to accommodate the added costs and time needed to upgrade the payment terminals in their fuel pumps.Let’s look at an example. Say you own a cosmetic surgery center and a client comes in for a rhinoplasty that costs $5,409. The customer pays with a stolen or counterfeit EMV credit card. If you don’t use an EMV card reader to process the transaction, you may be responsible for the full $5,409 charge — not the credit card issuer, bank, or payment processor. That’s a hefty chunk of change for any business, but merchants offering high-cost services and products are particularly vulnerable.Before we continue, it’s important to note there’s no law or mandate that says merchants have to accept EMV transactions. There isn’t anything illegal about not using EMV-compatible card readers. However, if you don’t meet EMV compliance standards, there’s no question that your business and customers are at risk. Fraudsters don’t just go after large corporations and Fortune 500 companies. Over 40% of cyberattacks target small businesses, and 60% of small companies close within six months of being hacked.The good news is that maintaining your EMV compliance really works. Visa recently reported that merchants who accepted EMV cards saw a whopping 76% decrease in counterfeit fraud.
Customers are quickly adopting EMV cards. One poll found that 70% of U.S. credit cardholders now carry an EMV chip card. So, if you want to avoid costly fraud liability and give your customers a secure way to pay, it’s time to invest in EMV.It’s easy. All you need to do is upgrade your POS system — your credit card terminals or mobile card readers — to support EMV transactions. EMV is the gold standard for safe card processing, so most merchant services providers offer a variety of affordable payment solutions.For example, Nadapayments can get you set up with a Wi-Fi-enabled EMV terminal for as little as $35 per month. Plus, with Nadapayments’ surcharge program, you won’t pay any processing fees on credit card transactions, saving you thousands and increasing your bottom line.
Cybercriminals are constantly evolving their methods of attack, but so is the payment industry. Using EMV-compliant terminals is one of the smartest moves your business can make to ensure your data is protected 24/7/365. Ready to upgrade? Get in touch with us to learn about our EMV-ready payment solutions.
The average American spent $456 per month just on health insurance in 2020. With medical costs continuing to rise, you want to give your patients flexibility in how they pay for your services. One way is by accepting credit card payments. A medical credit card is a type of credit card offered by practices to help patients pay for health care expenses. If you're a medical provider or a health-centered business, you may find yourself wondering whether you should offer or accept these cards as forms of payment.Below, we'll explain what medical credit cards are and why they may not be your best option. We’ll also introduce you to a better credit card processing solution.
A medical credit card is a lending option designed to help cardholders pay for medical procedures and services. These cards offer promotional periods and special financing options to cardholders — such as payment plans with deferred interest charges, 0% intro APRs, or low interest rates — so cardholders don’t have to pay the entire balance of their medical bill at once. Medical credit cards are similar to regular credit cards. Prospective cardholders have to apply and have a good credit score (a minimum FICO score of 670). However, medical credit cards typically don't offer perks to cardholders like cash back or travel rewards. There are two primary medical credit card issuers:
As a health care provider, you have to sign up with these credit card issuers to be able to accept their credit card. However, before you decide to sign up, it's best to consider the whole picture.
Medical credit cards may seem like an easy way for your business to get paid for the services you provide. But there are some disadvantages that are worth considering when determining whether to accept these forms of payment.
The biggest problem with medical credit cards is that they are not widely used. As we mentioned previously, there are only two options available, CareCredit and the Wells Fargo Health Advantage card. They are not as well-known or accepted as your standard Visa, Mastercard, Discover, or American Express cards. Also, if you already accept credit cards for payment, you can’t process medical credit cards through your regular point-of-sale system. The medical credit card company provides you with a special portal that is to be used only with their cards. This means your office staff would have to learn yet another system rather than using one payment processor for all transactions.
Since these cards aren’t widely used, it’s likely your patients will need to sign up and receive approval for the card. When you decide to accept a medical credit card, you’re encouraged to sign up your patients at your practice. Your office staff is already busy, so making sales pitches and getting patients approved for a credit card is just one more thing to add to their plate.You’re looking for solutions to make your practice run more smoothly, not ones that will give you more work to do.In addition to the extra work for you, your patients may not like hearing a sales pitch when they are trying to pay their bill or schedule a procedure. Plus, your patients may not be interested in adding another credit card to their wallet, especially one with such limited usability.You're likely better off sticking with payment options that patients already know and are comfortable with.
Another disadvantage to medical credit cards is that not all procedures are covered. For instance, the Wells Fargo card is only available for:
CareCredit covers many cosmetic surgeries and procedures like Lasik. But it does not cover all emergency procedures. So, there's a chance that the lender will not cover all of the procedures that your practice offers.
When a patient uses a medical credit card to pay their bill, your medical practice will be charged a processing fee. These fees cut into your bottom line. For example, let's say that a procedure costs $10,000, and the medical credit card company charges a 3.5% processing fee. That means you owe $350. This processing fee equals less revenue in your pocket, as you’re now only making $9,650 on that procedure.
Medical credit cards can be more trouble than they're worth. Accepting regular credit cards will be more popular and convenient for your patients. Over 191 million Americans have a credit card, making it a far more widespread and available payment option. The one downside to accepting regular credit cards is that you’ll still be on the hook for processing fees. That is, of course, unless you use a surcharge program — the cheapest way to accept credit card payments. With a surcharge program, if your patient chooses to pay with a credit card, they are responsible for covering the cost of the processing fees. The patient is simply paying for the convenience of using a credit card.This gives your practice a revenue boost, allowing you to keep every penny for your services.With a surcharge program, a patient has two options:
When you use Nadapayments for your credit card processing, your surcharge program will be built right in. We’ll even make set up a breeze and provide you with the necessary signage to keep your customers informed.Plus, with Nadapayments, you can swipe credit cards in-person or accept online payments, giving you and your patients even more flexibility.
With increasing medical expenses, patients are continually looking for new ways to pay for procedures. As a health care provider, it makes sense that you would want to offer as many payment options as possible. However, one option that you may want to avoid is medical credit cards. Simply put, there are too many stipulations attached to these cards, especially when there are more straightforward and revenue-friendly options available. Instead, accepting regular credit cards and using a surcharge program is a win-win for your patients and your business. Your patients are likely already using credit cards, so they don’t need to sign up for something new. And so long as you use Nadapayments for credit card processing, you’ll keep up to 4% of every transaction, boosting your revenue. Plus, you never have to worry about hidden costs or set up fees.If you’re ready to add money back to your bottom line, get in touch with us today.
How can a credit card surcharge program boost profits at your hair loss treatment center?It’s simple math, really. Because hair loss treatment is only covered by insurance if a medical condition has caused the hair loss, many of your clients pay out of pocket. Many clients will opt to use a credit card when paying for this treatment (which can cost anywhere from $4,000 to $15,000).That means you must pay processing fees. And these fees can cost an average of 3.5% per transaction. That means paying anywhere from $140–$525 per client in processing fees. That’s ridiculous. And it’s undoubtedly hurting your business. But we have some excellent news.You can eliminate credit card processing fees at your hair loss treatment center. You just need to implement the right credit card surcharge program.
A credit card surcharge program works by adding a fee to customers’ bills each time they pay with credit. This covers the fees credit card companies charge each time a merchant processes a client’s credit card payment. Traditionally, your hair loss treatment center would’ve paid this transaction fee. With credit card surcharge fees, you can offset the impact of processing fees on your bottom line.But—you can also give your clients a choice: if they don’t want to pay with credit, they can pay with debit or cash instead. If they pay with cash, then it’s a win-win for everyone because there are no fees involved. And if they pay with debit, you have to pay a much lower fee (usually less than 1%).Credit card surcharge programs have been around for some time. If you want to set up a credit card surcharge program, you must follow specific rules (more on this later).
Think of all you’ve invested in having your hair renewal and transplant center.You’ve complete 10+ years of schooling and training. You obtained your bachelor’s degree and a four-year doctorate and slogged through residency. You also got certified by the American Board of Medical Specialties. Needless to say, you’ve invested a lot of time into your practice. You’ve also spent a great deal of money to start your hair restoration business. Besides graduating with an average of more than $200,000 in student debt, doctors can pay well more than $100,000 to open a medical practice. On top of that, hair-loss treatment centers require specific technologies and equipment. Hair restoration equipment and technology, such as restoration robotics and follicular unit extraction technology, can be quite expensive. And in addition to technology and equipment costs, you have ongoing expenses, including labor, rent, insurance, marketing, legal, and more. It all adds up, and you have a lot on the line. Considering your investment, you want to look after your finances carefully. That begins with making sure you aren’t throwing money out the window. And paying too much in credit card processing fees is letting money fly out the window. This is why you need a credit card surcharge program. It will make you more financially sustainable so that you can continue to care for your patients and provide them with the benefits of hair loss treatment.
It helps to put the impact of a credit card surcharge program into actual numbers. From nose job clinics to eye care centers, we’ve seen the financial benefits of offsetting credit card fees across all areas of the medical industry. Hair loss treatment centers can enjoy those same benefits. To get a closer look at the benefits of having a credit card surcharge program, let’s start with a realistic example. Let’s say:
After you calculate other fees, like the payment processor markup, average credit card fees can average over 3% and even reach 3.5%.
Now, your profits are $250,000. Per year, you pay $28,350 in credit card transaction fees. Imagine if you could implement a credit card surcharge program that gets rid of those processing fees. You’d make $28,350 more per year. That increases your profits from $250,000 to $278,350. That’s a salary increase of 11.3%! And all you had to do was change the way you accept payments. With that extra money on hand, think of what you could do. You could:
The point is this: That money should be in your wallet—not going to a credit card company.
Now, you may be wondering:
The short answer is yes to both questions. Credit card surcharge programs are legal in 46 states in America. You currently can’t assess credit card surcharges if you operate in Connecticut, Colorado, Kansas, or Massachusetts, but that could change soon. Our page here has the latest updates on credit card surcharge rules and regulations. Now, you may worry if surcharge programs will upset your hair loss treatment clients. The answer is no. While your patients will have to pay a surcharge for using a credit card, they can save money by paying with cash or debit. As long as you follow the rules and are honest, your customers will appreciate having options. They can choose the convenience of swiping the card or save money by paying with cash. There are some rules you must follow when using a credit card surcharge program. These help with ensuring your clients have full transparency into how you accept payments. To comply with surcharge regulations, your hair restoration and transplant business must:
As long as you follow those rules, your hair loss treatment center can enjoy the benefits of a credit card surcharge program. Over five to ten years, you could have more than $100,000 back into your wallet just by getting a surcharge program.
Your hair restoration and transplant clinic can boost profits overnight with a credit card surcharge program. Each year, you could increase your salary by 10% or more. That’s simply too good of an opportunity to pass up. At NadaPayments, we’re ready to help you implement a credit card surcharge program. Our surcharge solution is best in class with:
Our credit card surcharge program is 100% legally compliant and ready to be installed immediately. By next week, your hair loss treatment center could say goodbye to processing fees for good. Ready for NadaPayments’ credit card surcharge program? Dial +1 (929) 293-1800 or click the link below.
What if you could immediately boost profits at your medical business by 10% or more? And you don’t have to do all that much. You’re probably thinking, “I’m interested. But this isn’t possible.”Think again. We have some good news: a credit card surcharge program can boost your bottom line by double digits overnight. That’s because, with a credit card surcharge program, when clients pay for skin tightening, teeth whitening, or another cosmetic procedure, transaction fees won’t affect your bottom line. It’s like having free credit card processing. Want to learn more?In this article, you’ll get all you need to know about credit card surcharge programs for cosmetic surgery centers. Whether you specialize in skin tightening or nose jobs, your clinic can benefit from this payment strategy.
Credit card surcharge programs are legal in the vast majority of states. Merchants operating in a state where the program is legal can implement a surcharge program to get rid of credit card processing fees. However, remember surcharge programs aren’t legal everywhere. So the better question may be: what states don't have credit card surcharges? The following four states don’t allow credit card surcharges (as of early 2021):
So, is it legal to surcharge on credit cards? The answer is yes for businesses in every state except four. If you live in a state that allows surcharging, you can implement a credit card surcharge for services you offer, whether that be skin tightening or stretch mark removal.
Note; State laws on how merchants can accept payments change frequently. Check our webpage covering the rules for credit card surcharging to stay updated on the latest news regarding surcharging programs.
If you implement a credit card surcharge program, know there are rules you must follow when accepting payments for services like skin tightening. This is for fairness and transparency.
If you want to apply a surcharge to credit card payments at your cosmetic or plastic surgery center, understand there are rules and regulations to follow. Write these five down and remember to adhere to them at all times.
It’s simple math. If you avoid credit card fees of roughly 3% per transaction, you’ll save $3,000 on every $100,000 of credit card payments. That’s $30,000 per year if $1,000,000 of your revenue comes from patients swiping the card. The reality is, whether you specialize in skin tightening, teeth whitening, or another medical field, chances are a large portion of your revenue comes from credit card payments. This is for two reasons:
As a medical business owner, you have plenty of financial incentive to eliminate processing fees. To see the benefits of a credit card surcharge program, let’s do an example of a skin tightening clinic.
Say you perform intense skin tightening treatment for a client. They decide to pay for the service all at once with a credit card. The price is $2,200, just around the average cost for nonsurgical skin tightening (obviously, costs will vary based on the method used, whether it’s radiofrequency, infrared light, laser technology, etc.).If you don’t have a surcharge program in place, your clinic will eat the processing fee. That means you would only receive about $2,130 from that skin tightening treatment.
As you see in the chart above, credit card fees can average around 3% and sometimes reach 3.5% once you add in other fees.
You may think, “That’s only $60-$70 per skin tightening client. What’s the big deal?” Add up those fees over the course of a year, and you’ll see how much processing fees hurt your income.
What if you could get rid of those fees with a credit surcharge program?
Do you see the benefit of having a credit card surcharge program?
Before implementing a credit surcharge program, you may have a few questions:What should my surcharge be? Your credit card surcharge should be based on your effective rate, which is the average fee you pay per transaction. This varies for every merchant, from skin tightening clinics to breast augmentation centers. Take time to calculate this so that it’s accurate and fair. It should be around 3-3.5%. Will a surcharge program anger clients?The short answer is no. The only thing is that you must be transparent about your surcharge program. Your customers will appreciate your honesty. They’ll also like the flexibility of being able to pay conveniently with a credit card or save by paying with cash or debit. It’s a win-win scenario for you and your clients. What payment processors have credit card surcharge programs?Search for no-cost credit card processors or credit card surcharge program providers, and you’ll find plenty of companies. Some of these merchant service providers (MSPs) are better than others. Since many of these processing companies still charge a lot in the form of software and hardware fees, customer service fees, subscription charges, and more, it’s vital that you shop around and compare rates. Know you can negotiate fees with MSPs, especially if you have high revenue (most cosmetic surgery clinics have lots of revenue).
Whether you have a skin tightening clinic, rhinoplasty center, or facelift business, you can increase profits overnight with a credit card surcharge program. In fact, you could earn 10% or more per year. Just think of what you could do with that extra money in your hand. You could save more for retirement, take a nicer vacation, expand your medical business, and more. The point is this: That money belongs to you—not the credit card companies. At NadaPayments, we pride ourselves on having the best credit card surcharge program you can find. We have:
100% legally compliant, our credit card surcharge program can be set up immediately. Before next week, you can eliminate processing fees forever. And your medical business can become more profitable. Ready to implement the best credit card surcharge program? Call NadaPayments at +1 (929) 293-1800 or click the link below.
What is a credit surcharge program? And why do you, a small business owner, need it?A credit surcharge program is a strategy merchants can use to offset credit card processing fees. If the customer pays with a credit card, merchants add a fee to cover those fees. This way, transaction fees that go to the likes of Chase Bank, Visa, and others don’t end up hurting the business. Now, you may think, “What’s the big deal? Why do I need a credit surcharge program if it’s just a small fee?”Here’s why: when you actually crunch the numbers, you’ll see those fees kill your bottom line. Consider this example. You operate a rhinoplasty and plastic surgery clinic. Each year, you bring in $1,500,000 from all your procedures. To pay their bills, your patients frequently use credit cards. $750,000, or half of your revenue, comes from credit card transactions. If you pay an average fee of 3.5% on that revenue, you pay $26,250 per year just in credit card processing fees. A credit surcharge program, if used correctly, eliminates the problem of transaction fees. We’ll go over all you need to know below.
Yes, credit surcharge programs are legal. They’ve been around for some time.Most likely, you can implement a credit surcharge program at your business, whether you run a rhinoplasty center or a clothing shop. Note: credit surcharge programs are currently legal in 46 states. The only four states where credit surcharges are illegal are Colorado, Massachusetts, Kansas, and Connecticut. Rules constantly change, so stay updated by checking our page that covers all the credit surcharge program rules. Before you implement a credit surcharge program, there are few guidelines you must follow:
As long as you’re in a state that allows credit surcharge programs and your company follows the rules, you can use a surcharge solution to get rid of transaction fees. Over time, the positive effects on your company’s bottom line will be substantial.
Know that you can boost profits considerably with a credit surcharge program. But before we go through the numbers, let’s answer a few questions that you may have about implementing a credit surcharge program:
Overall, the benefits of a surcharge solution make such a program a must. The exact dollar value of a credit surcharge program varies by your type of business and how your customers prefer to pay. But every business sees a boost to their bottom line. At Nadapayments, merchants who partner with us have seen profits increase by $10,000 and more. For instance, let’s say your luxury fashion boutique does $1 million in sales per year, with $500,000 of that revenue being processed via credit card payments. If your effective rate is 3.5%, that means you pay $17,500 per year in credit card transaction fees. Eliminate those fees, and you’d have $17,500 more per year in your pocket.To give you an even better idea, look over the example below of a rhinoplasty and plastic surgery clinic.
For this example, let’s assume the following:
Congrats, you’re doing quite well. But you could be doing better. Since insurance doesn’t typically cover rhinoplasty, most of your patients pay out-of-pocket. Considering the high cost of a rhinoplasty procedure, many of your patients probably choose to set up a payment plan with automatic credit card payments. As research from the Federal Reserve research shows, as the value of a transaction increases, the more likely a customer is to use a credit card. Considering all that, here’s how much credit card fees are impacting your financials:
Now, think if you could eliminate those credit card fees completely. Your income from your rhinoplasty center would jump $25,025. If you make $200,000 per year (which is solid), your income will rise to $225,025. That’s an increase of 12.5%! You may be wondering, “Is it really that easy to boost profits by 12.5%?”The answer is yes. All you have to do to see that much more money in your pocket is implement a credit surcharge program.Just think of all that you could do with that extra $25K. You could:
The point is this: that money belongs to you—not the credit card companies. So, take the step to take home 100% of your revenue by using a surcharge solution.
Whether you have a rhinoplasty center, eCommerce store, or ice cream shop, you can boost profits overnight simply by implementing a credit surcharge program. In fact, you could earn more than $25,000 more per year. How can you pass up that opportunity?At Nadapayments, we’re ready to help you make the most out of credit surcharge programs. Our solution easily integrates with your credit card installment plan and has all the capabilities you need, including mobile, online, and virtual terminal credit card processing. Even better, we can set up your credit surcharge program in days. Before next week, you can say goodbye to credit card processing fees for good. And you can make your business more financially sustainable. Ready to enjoy all the benefits of a credit surcharge program? Contact us at +1 (929) 293-1800 or click the link below.
What if you could make 10% more from your hair removal business by making one change today? You may be wondering: is that even possible?Well, it is. You don’t even need new customers. And it won’t even take too much of your time. First, take a look at your revenue and how payments are made at your hair removal clinic. You’ll notice something: credit card transactions. With each transaction, you pay fees up to 4%! That’s ridiculous and unacceptable. Take those credit card fees away, and recalculate your profits. You’ll notice something: they’ve gone up by more than 10%! That brings us to the point of this article. We want to show you how to get free credit card processing and help your hair removal clinic earn more. In this article, we’ll tell you all your need to know about zero fee credit card processing for your hair removal salon.
Whether you’re selling hair removal devices, run a wax center, or have a laser hair removal clinic, you’ve entered a good market. The hair removal devices market size is expected to reach $3.4 billion by 2025. Hair removal services generate billions per year, as well. The point is this: there are ample opportunities to make good money. Why squander it by paying too much in credit card transaction fees?More importantly, you’re helping people. Hair removal provides many benefits. It helps avoid ingrown hairs, softens the skin, and improves appearance and confidence. Again, the point is clear: you want to continue helping clients. To do that, you need to take care of your finances. Why let credit card transaction fees hurt your finances?Additionally, you’ve made a big investment to start your hair removal business.
Simply put, you’ve worked too hard to let something like credit card fees hurt your business. Here’s what you need to know: you can get rid of credit card processing fees and increase your hair removal company’s profits by more than 10%.
Obviously, exact amounts vary among hair removal businesses. But we can say that, for most hair removal clinics, profits jump by 10% if you eliminate credit card fees. Calculate how much you pay in fees and see.To make this more clear for you, let’s do an example. Your hair removal clinic brings in $400,000 in revenue per year. After all expenses, including taxes, you have $80,000 left in profits. That’s solid and above the average beauty salon owner’s salary, which is $75,000 per year.Now, let’s say 60% of your revenue comes from credit card payments. That’s $240,000 per year subject to credit card processing fees. As research from ValuePenguin shows, credit card payment network fees can easily exceed 3%.
There are other fees involved with a credit card payment, including the interchange fee (paid to the bank) and the assessment fee (paid to the brand). You also have the payment provider markup. Add it all together, and an average credit card processing fee of 3.5% per transaction is common for hair removal business owners. So, on $240,000 worth of hair removal salon revenue, you pay 3.5% in fees. That’s a total of $8,400 in credit card processing fees per year. What if you had free credit card processing? Your profits would jump from $80,000 to $88,400. That’s an increase of 10.5%!Clearly, independent businesses like your hair removal clinic need cheap credit card processing. It will make your salon much more profitable. The good thing is that zero fee credit card processing is possible. We’ll show you how you can get it.
Follow these steps to get the best merchant service provider (MSP) for your hair removal business:
By negotiating with affordable, high-quality MSPs that offer pass-through pricing, you ensure your hair removal business gets the best possible payment processor. That will save you money and provide your clients with a better experience.
Even if your hair removal business has the best possible payment processor, you’ll still be paying credit card transaction fees. So, do you offset those fees to get to zero-fee credit card processing? Enter the credit surcharge program, your strategy to eliminate the impact of credit card fees on your finances. Here’s how it works:
Credit surcharge programs are 100% legal, thanks to the Dodd-Frank Act. Your hair removal clinic can utilize this strategy to stop the impact of processing fees and boost profits. Even better, a surcharge program will be welcomed by clients, as they can save money by paying with cash or debit card.
With a surcharge program, you give clients the convenience of using a credit card or the chance to save by paying with cash or debit. You also help your hair removal business avoid credit card fees. As you can see, credit surcharge solutions are truly win-win. At NadaPayments, we’re ready to help your hair removal clinic get free credit card processing. Our surcharge solution integrates with your credit card installment plans and only takes a day to implement. Free credit card processing is just a click away for your hair removal business. Call us at +1 (929) 293-1800 or click the link below.
“How can I avoid credit card processing fees?”That’s the $20,000 per year question. Perhaps you run a laser eye surgery center and think that credit card transaction fees are part of the cost of helping others. You know the process: pay 3–4% in fees each time your patient pays with a credit card. It’s time you see a little clearer. Did you know you can get rid of credit card processing fees? You don’t have to lose hard-earned money to the bank and payment networks like Visa and Mastercard. You can keep 100% of your revenue. Now, you may be wondering: “How much will avoiding credit card processing fees help my business?” The answer? More than you think. From dermatologist offices to laser eye surgery clinics, we regularly see medical businesses boost profits by 10% or more just by eliminating credit card transaction fees. Have your attention now? In this guide, we’ll cover how you can pay zero CC fees with better medical payment processing. With just three simple, quick steps, you can avoid credit card processing fees forever.
How can I avoid credit card processing fees?That’s the question you wish to answer for your laser eye surgery center, treatment center, pediatrician’s office, or other healthcare facilities. To avoid credit card processing fees successfully, you must know the damage. It may be more than you think. First, consider the average credit card processing fee.
In addition to the network fee, you have to pay an interchange fee to the card-issuing bank, an assessment fee to the card-issuing brand, and a processor markup to your medical payment processor. Altogether, you may pay an average of 3.5% in fees per credit card transaction. Second, let’s examine how much of your revenue comes from credit card transactions. Different medical practices vary, as what insurance covers depends on your patients, the type of healthcare service you provide, and the cost of those services. For instance, if you specialize in rhinoplasty, chances are your patients have to pay out of pocket because nose jobs are elective surgeries. Given that the cost of a nose job exceeds $5,400, many of your patients probably set up a medical payment plan and pay their monthly installments with a credit card. In such a situation, it’s possible 70% of your revenue comes from patients swiping the credit card. Now, if you brought in $800,000 per year from rhinoplasty procedures, that means $560,000 of your revenue would come from credit card payments. If you pay an average CC transaction fee of 3.5%, that means you pay $19,600 per year in fees! That’s way too much. Add up the numbers at your healthcare organization, and you’ll see you pay a lot in CC fees. You don’t have to accept this.
Think of all that you’ve invested in getting to where you are. For example, if you’ve entered the eye care field, you did four years of undergraduate study, followed by an additional four years of education and training to become a Doctor of Optometry. To pay for your education, you may have worked part-time, used hard-earned savings, and taken out student loans (optometrists graduate with an average student loan debt of $173,000). On top of that, you have startup costs associated with your laser eye surgery center, which can range from low six figures to a million-plus. Ongoing costs, which include rent, insurance, taxes, supplies, equipment, and labor, can reach $800,000 per year, according to CompHealth data. After all, specialized equipment and paying optometrists cost a lot of money. Needless to say, you have a lot at stake. So, you should be wondering, “How can I avoid credit card processing fees?” Because you shouldn’t let something like credit card fees hurt the financial sustainability of your laser eye surgery clinic. To give you extra motivation to get cheaper credit card processing, consider this example:
Imagine if you could get rid of those transaction fees. Your income would jump $12,000, from $130,000 to $151,000. That’s an increase of 16.2%! Motivated enough yet to get better healthcare credit card processing?
The medical payment processing industry still suffers from a lack of regulatory oversight. Whether you’re in laser eye surgery or addiction treatment, know there are merchant service providers who may not have fair and transparent fees and pricing structures. So, be careful and thorough when shopping for an MSP. Plenty of reputable, high-quality MSPs are ready to help your healthcare organization. You just need to do your research. When looking for an MSP, follow this process:
After doing those steps, choose the most affordable MSP.
Even if you have the best MSP, you still have to pay some CC fees. That brings us to the final tip to get rid of all your processing fees: implement a credit surcharge program. When the Dodd-Frank Act passed, it became legal for merchants to use credit surcharge programs to offset transaction fees. This includes healthcare organizations like laser eye surgery centers and pediatrician offices.How does this work exactly?At Nadapayments, for instance, we offer healthcare organizations a credit surcharge program that automatically charges patients an extra 3.5% when swiping the credit card. That eliminates the impact of processing fees from your bottom line. Now, you may be wondering: “Won’t this upset my patients?” The answer is no. As long as you have clear signage, transparent pricing, and don’t apply fees to debit card transactions (merchants still pay the fee), you’ll set clear expectations, and patients will appreciate that. Moreover, patients will enjoy the freedom to choose any payment method. They can opt for the convenience of the credit card or save 3.5% by paying with cash or debit card.In this sense, a credit surcharge program is a win-win for your healthcare organization and your patients.
How can I avoid credit card processing fees? The steps are quite simple: know how much you pay, find the best possible MSP, and then implement a credit card surcharge program. That’s your path to completely free credit card processing. At Nadapayments, we’re ready to help you get to zero-fee credit card processing with our advanced credit surcharge program. Our 100% legally compliant surcharge solution integrates with your credit card installment plans, and patients can pay at your clinic, online, and via mobile. We also offer 24/7 support so that you can get the most out of our surcharge program.Ready to boost your profits by more than $20,000 per year? We can help you set up a credit surcharge program right away. By next week, you’ll be saving 3.5% per transaction. Give us a call at +1 (929) 293-1800 or click the link below.
Whether you specialize in medical facials or tummy tucks, learning how to save money on credit card processing fees can bring your medical business great financial benefit. In fact, we’ve seen clinics increase profits by more than 10% just by learning how to avoid credit card processing fees. But how do you save money on credit card processing fees? Isn’t the 3–4% fee per transaction just part of the cost of doing business?Unfortunately, you can’t just tell Visa you’re no longer going to pay these fees. But what you can do is optimize your strategy for accepting payments. This will ensure that card transaction fees don’t impact your bottom line, allowing you to take home 100% of your revenue. In this guide, we’ll show you how to start saving money on credit card processing fees. After reading, you’ll know how to make your medical business more profitable overnight.
Whether you own a spa offering medical facials or a plastic surgery center specializing in nose jobs, it’s important to understand how credit card fees impact your bottom line. After all, since many patients’ insurance plans don’t cover such procedures, most of them will pay out of pocket (and often with plastic). Calculating this shouldn’t take too long, as long as you have numbers on hand that detail your total revenue, revenue by payment type, and effective rate (percentage of all the credit card fees you have to pay per transaction). For your reference, you should understand the different types of fees your business pays. These include:
Needless to say, these fees can add up—even if they don’t seem like that much at first glance. That’s why you’ve got to read the fine print when choosing a merchant service provider (MSP). If, for example, your healthcare clinic generates $1.5 million per year in revenue and 50% comes from credit card payments, that leaves $750,000 subject to processing fees. If your effective rate is 3.5%, you’re paying $26,250 per year in card transaction fees. That should be motivation enough to learn how to save money on credit card processing fees. Now, let’s take a look at a more specific example.
The average medical facial costs between $175 and $500. Since they take just 30 to 90 minutes, your spa could perform many medical facial treatments each day. Let’s say you perform 1,000 medical facials at your spa per year at an average cost of $400 each. That means you generate $400,000 per year from medical facials. As part of this example, let’s assume the following:
Now, imagine if you could get rid of those credit card processing fees. Your profits from medical facials would increase from $100,000 to $110,500. That’s an increase of 10.5%!
The next step in how to save money on credit card processing fees is to find a better merchant service provider (MSP). Because the medical payment processing industry has a lack of regulatory oversight, you must exercise caution and look for only the most reputable, affordable MSPs. Otherwise, you may accidentally pick an MSP who has hidden surcharges and complex fee structures.When choosing an MSP for your medical spa, do the following:
After doing all these steps, go with the MSP that offers the combination of quality and affordability you need. This way, you don’t spend too much on processing fees when clients pay for medical facials, microdermabrasion, and more.
Here’s the last step to start saving money on credit card processing fees: implement a credit surcharge program. Thanks to the Dodd-Frank Act, merchants, including your med spa, can use credit surcharge programs to avoid credit card fees. The idea is simple. When a client pays for a medical facial, stretch mark removal, or another service, you give them the option:
Now, you may be wondering: Won’t my patients get angry about having to pay a surcharge?But as long as you're transparent about how you process payments, your patients will actually appreciate being able to choose between the convenience of a credit card or saving by paying with cash and debit. For example, at Nadapayments, our surcharge program helps med spas and other healthcare clinics avoid CC fees with a solution that involves:
As you can see, a credit surcharge program is a win-win for medical businesses and their clients. You give your customers flexibility with how they pay while ensuring CC fees don’t impact your bottom line.
At Nadapayments, we’re ready to help you see how to save money on credit card processing fees. Through our surcharge program, we can help your business earn 10% or more per year. With 24/7/365 support, we’re with you every step of the way to ensure you get the most out of Nadapayments’ industry-leading surcharge solution. Even better, our solution can be implemented within days. Within a week, you could eliminate the impact of card transaction fees on revenue you get from medical facials, rhinoplasty procedures, and more. Ready for the best credit surcharge program? Dial +1 (929) 293-1800 or click the link below.
Here’s why you should focus on getting no-fee credit card processing for Invisalign monthly payments:
Starting to see how you could save?Since a large part of your success depends on you offering Invisalign to your patients, you should take a smart approach to monthly payments. After all, Invisalign aligns the teeth of your patients; shouldn’t the payment plans you offer align with your practice’s financial goals?So, let’s take a look at how you can get no-fee credit card processing and start saving thousands on patients’ monthly Invisalign payments.
We know you’re busy helping patients improve their dental health and feel more confident. Thank you for all the hard work you do!However, while you’re hard at work aligning teeth, something is happening that’s costing your practice money: Credit card processing fees are hurting your practice’s profits. You may not be concerned about shelling out a few dollars on each payment. But take a step back...Think about all the time and money you’ve invested in becoming an orthodontist. According to Colgate, it can take 10 to 11 years to get fully certified and licensed. You have four years of undergraduate school, four years of dental school, and then two to three years of residency. And you’ve not only invested a lot of time getting to where you are today—you’ve also spent a lot of money. The average dental school debt exceeds $292,000, according to NerdWallet. On top of that, you invested money to start your orthodontic practice, which can cost anywhere from $350,000 to $500,000 (or more).Given the investments you’ve made, it doesn’t make sense to let money continue to fly out the window. You should have full clarity of every expense your practice has—including credit card processing fees. While you may think paying a 3-4% fee each time your patients make a payment isn’t a big deal, it adds up. In fact, credit card processing fees on your patients’ monthly Invisalign payments could cost your practice more than $10,000 per year. Paying attention now? That kind of money could certainly help your orthodontic practice. With $10,000 more each year, you could:
The point is this: 100% of the revenue you make from Invisalign monthly payments should go to you—not credit card payment processors.
Let’s take a look at an example of two Invisalign monthly payment plans. Before we begin, for both examples, we’ll say you run an orthodontic practice that generates $1.4 million in annual revenue, which is a good deal above the industry average (nice job!). And we’ll say 50% of that revenue, or $700,000, comes from clear aligner therapy. We should also factor in that Invisalign, like braces, is covered by insurance. You can expect insurance companies to pay 50%, according to Oral-B. But considering not everyone has dental insurance, it’s possible only 20% of Invisalign revenue overall comes from health insurance company payments. The remaining $540,000 is paid out of pocket by your patients. Now, let’s assume that when your patients make Invisalign monthly payments, an average of 60% pay with credit cards. So, each year, your orthodontic practice accepts $324,000 in credit card payments. Got it? Let’s get to both examples…
Take a look at average credit card processing fees:
As you can see, you would pay a lot of fees throughout an Invisalign monthly payment plan. The average cost of Invisalign treatment is between $3,000 to $7,000. After insurance, your patient will probably have around a $200 to $250 monthly payment. If they swipe with a credit card, you could pay roughly 3–4% in fees each time. Calculate a 3.5% credit card transaction fee on $324,000, and what do you get? You get $11,340. That’s right. Each year, you pay $11,340 in credit card processing fees on Invisalign monthly payments. That’s unacceptable.
What if you didn’t have to pay credit card processing fees? What if you had free credit card processing? Well, that $11,340 would stay where it belongs: in your pocket! You’d be able to take home 100% of your revenue from Invisalign treatments and payment plans. Now, you may be thinking: That this sounds nice, but it isn’t possible. Fees are just a part of accepting credit cards.But here’s the thing: You actually don’t have to pay fees when your patients make Invisalign monthly payments with a credit card. You just have to follow two steps to get no-fee credit card processing.
How do you take home all your revenue from the Invisalign monthly payment plans you offer patients?The first step is to lower your credit card transaction fees. This means you’ll need to find the right payment processor for Invisalign monthly payments and other transactions at your orthodontic practice. Here’s how to do that:
When looking for a merchant service provider (MSP), check out their pricing structure before doing anything else. You want an MSP that offers pass-through pricing, as the charges are passed on to your orthodontic practice and are very clear. Note: Avoid tiered pricing. This pricing structure categorizes transactions into tiers, and you don’t have much clarity on how they do that. Often, you end up paying more than anticipated.
To get no-fee credit card processing, you have to know what fees you pay when patients make their Invisalign monthly payments. Here’s what you need to know.
When shopping for an MSP, eliminate the most expensive ones first.
To further narrow down your search for a quality payment processor, analyze the services each one offers. You’ll want an MSP that can not only handle your transactions smoothly, but also provide solid customer service. They should also support the following types of payments:
Furthermore, the payment processor should have excellent security systems. You want to ensure your patients’ financial and personal data is fully protected.
You should now have narrowed down to three or four payment processors that offer the best value. Once you’ve done that, start negotiating. Wait, can you really do that?Yes! Well, while you can’t tell Visa you’d prefer to pay a little less, you can negotiate the MSP markup. Since medical practices like orthodontic practices bring in healthy revenues, you may find that MSPs are willing to cut 5–10% off their markup in order to win your business. Over the course of time, that can save you thousands of dollars. After negotiating, go with the payment processor that offers the best value (a good price plus high-quality services).
We’re not quite done yet. Even with the best payment processor, you’ll still have transaction fees. So, how do you offset those to get no-fee credit card processing?The answer is a credit surcharge program. Here’s how it works:
Thanks to the Dodd-Frank Act, a credit surcharge solution is completely legal. Your orthodontic practice can use this strategy to stop the impact of transaction fees on your bottom line. You just need to provide clear signage at the door and point of sale.
Now, you may worry that a credit surcharge program would upset patients. But it won’t. With a surcharge program, you give patients the opportunity to save by paying with cash or a debit card. And you get no-fee credit card processing. It’s a win-win for everyone. At Nadapayments, our credit surcharge program adds 3.5% if your patients pay with a credit card. If they pay with cash, they save 3.5%. Even better, our surcharge solution can be set up in a day and integrates with your credit card installment plans. And everything you need to get started is free.No-fee credit card processing is within reach for your orthodontic practice. All you have to do is give us a call to get started. Dial +1 (929) 293-1800 or click the link below.
You’ve made a wise decision by offering tummy tucks at your plastic surgery center. First, you’re helping people live a higher quality of life. A tummy tuck, or abdominoplasty, tightens the stomach muscles, removes belly hang and excess skin, and eliminates abdominal creases. This not only helps patients achieve a flatter, more toned stomach, but also offers medical benefits, including improved posture and decreased back pain. Second, the tummy tuck industry is growing fast. According to market research, the body fat reduction market has reached nearly $8.5 billion. Growth rates are expected to average 12.32% through 2025. By offering tummy tucks at your plastic surgery clinic, you can capitalize on this growing demand. Now, the question is: How are your patients paying for their abdominoplasty procedure? Chances are, since tummy tucks are often elective, clients are paying out of pocket. This may not seem like something you need to worry about, but if you don’t have the proper plastic surgery payment plan for your patient, you could be losing revenue. After all, credit card payments mean your practice has to pay fees, which can get upwards of 4%! This is why the wrong plastic surgery payment plan could decrease profits by 10% or more at your tummy tuck center. You can’t allow that!In this article, we’ll show you , such as breast augmentations and nose jobs.
Think about all you’ve invested in becoming a plastic surgeon. You’ve done 10-plus years of training and education. You’ve completed a bachelor’s degree and a four-year doctor’s degree, as well as obtained a license and did a residency. You probably even did a fellowship in a subspecialty, such as aesthetic surgery. And on top of all that, you had to get board certification from an organization like the American Board of Medical Specialties. All that education and training cost you a lot of time, money, and energy. The average medical student has more than $201,000 in debt upon entering the profession, according to a NerdWallet study. In addition to your educational investment, you’ve spent money to start your plastic surgery center. On average, doctors spend at least $100,000 to open their surgical practice. Then, you have ongoing costs, including equipment, labor, rent, consultancy fees, marketing and advertising, and insurance. Expenses can run well into six figures per year, even for small practices. Needless to say, you’ve invested a lot to get here. Why waste it by having the wrong plastic surgery payment plan? Now, you may be asking: How are you offering the wrong plastic surgery payment plan? It begins with how your clients pay. If they’re using a credit card to cover their bill, it’s probably causing your profits to drop well more than 10%. Yes, credit card processing fees can eat into your income that much.Have your attention now?
Here are the average credit card processing fees by network:
So, you could pay somewhere between 1.3% and 3.4% per transaction to payment networks like Visa and Discover. In addition to the network fee, know that each credit card transaction involves other types of fees, including:
Altogether, it’s possible you pay an average of 3.5% in credit card transaction fees when a client makes a payment on their plastic surgery payment plan. Now, let’s break down how much this could cost you over a year.
First, let’s consider the average tummy tuck procedure cost. A tummy tuck costs an average of $6,092, according to the American Society of Plastic Surgeons. Given the high cost, many of your clients may choose to pay with a credit card, which leaves a good portion of your revenue subject to transaction fees. Second, let’s consider your profits. Say you earn an average net margin of 20%. That means you earn $1,218.40 per tummy tuck procedure. If you do 100 tummy tucks per year, that equates to $609,200 in revenue and $121,840 in income from that procedure. That’s solid, but you could be doing much better. To pay for their tummy tucks, the vast majority of your clients have to pay out of pocket (as tummy tucks are mostly elective). And it’s likely more than half of your clients set up a plastic surgery payment plan with recurring credit card payments. Others may clear the bill all at once by swiping their credit card. Let’s do some math to show how much you lose to credit card processing fees:
That’s way too much to be handing over in fees. What if you could eliminate credit card processing fees? You could increase your tummy tuck profits by $13,859, from $121,840 to $135,699. That’s an increase of 11.4%! Now, the question is: How do you get rid of credit card processing fees?
Here’s the good news: You can get free credit card processing on client payments for abdominoplasty procedures. You don’t need some sort of special plastic surgery payment plan. You just need the right merchant service provider and a credit surcharge program.Follow these steps:
Look for a reputable MSP that has low fees, offers high-quality equipment and software, provides good customer service, and has experience with medical credit card processing. Make sure they can provide seamless transactions with online payments, virtual terminal credit card processing, mobile credit card processing, and more. By finding the best payment provider, you ensure you don’t pay any more credit card fees than you must when your customer makes a payment for their plastic surgery payment plan. Quick tip: Negotiate the MSP markup. We’ve seen plastic surgery clinics get 5-10% off the markup, which can save hundreds per year.
Having the best MSP only gets fees lower. It doesn’t eliminate credit card fees altogether for plastic surgery payment plans. This is why you need a credit surcharge program.100% legally compliant, credit surcharge programs use fair, transparent pricing to give clients a choice: Pay with a credit card, and you’ll pay 3.5% more; or, pay with a debit card or cash, and you’ll avoid the 3.5% fee.This way, your tummy tuck clients can choose the convenience of paying with a credit card or save money by paying with cash or debit (note: with debit payments, you pay a 1% fee to $0.25). This ensures the client covers the credit card transaction fees and that your bottom line isn’t affected. Those fees are either paid by your client or avoided altogether with a cash payment. In this sense, with the best MSP and a credit surcharge program, you can take home 100% of your tummy tuck revenue. Each year, that will increase your profits by more than 10%.
At Nadapayments, we help plastic surgeons get free credit card processing at their practices through our smart surcharge program. Our credit surcharge program works with most credit card installment plans and works in-person and online. Contact us today at +1 (929) 293-1800 or click the link below to get started and finally say goodbye to credit card processing fees for good.
Have you ever looked at your monthly credit card processing bill and wished that the transaction fees would just… disappear?It’s a common wish among business owners. And when you factor in the substantial revenue a successful clinic like yours brings in, we can’t blame you.Luckily, there’s a simple way to avoid these fees—one that’s overlooked by many businesses.Fee-free credit card processing apps can save you tens of thousands of dollars that you’d otherwise pay to payment processors. Here, we’ll go over how this approach works, how much you’d save with one of these apps, and how to get one for your cosmetic surgery practice in two easy steps.
Fee-free credit card processing apps allow you to pass your transaction fees on to your customers, so you can keep the entirety of the revenue you get from nose surgeries and other cosmetic procedures.This is possible thanks to credit surcharge programs, which offer lower prices to customers that pay with cash (and it’s entirely legal and compliant, thanks to the Dodd-Frank Act).So, how does a credit surcharge program work? With one in place, your patients will be presented with two options: pay with cash as normal, or pay with credit for an additional 3.5% fee.You might already be imagining the backlash you’d get once customers see this fee, considering how expensive plastic surgery is. But the truth is, it’s actually the better option for your customers. Credit card processing fees aren’t a new issue, and many business owners have searched for a way around this for years. Their workaround? Raising their base prices to cover not only these transaction fees, but also the price of their point-of-sale systems and any additional costs of running their business. These new prices often end up being much more than the amount customers would pay if they were responsible for credit card transaction fees alone. With a fee-free credit card payment processing app in place, your patients would actually save more money than with alternative options. And if they pay with cash, they could save even more.Unsure if this system is right for you? You may change your mind when you see just how much credit card transaction fees are costing you.
For simplicity’s sake, we’ll focus on just one procedure offered at your clinic: nose surgeries, also known as rhinoplasty.According to the American Society of Plastic Surgeons, the average cost of rhinoplasty in 2019 was $5,409. However, that number doesn’t take into account additional fees, like the initial consultation, anesthesia, and postoperative medication. If you charged the 2019 average for nose surgeries and performed 10 of these procedures every month, you’d be looking at $54,090 in monthly revenue. And because these surgeries cost a lot, you can expect to pay a comparable amount in credit card processing fees, as well. But how can we be so sure?Since rhinoplasty is a high-ticket expense, most of your patients will pay for their procedure with their credit card. In fact, a 2018 Federal Reserve study supports this: as the value of a purchase goes up, consumers become much more likely to pay with credit than with cash.So, let’s crunch the numbers. Most merchant service providers (MSPs) charge anywhere between 1.3% and 3.3% of every credit card transaction they process.
For this example, let’s say your MSP charges you an even 3% fee. Since you made $54,090 this month, you can expect to pay $1,622.70 in credit card fees. That means that every year, you’d lose $19,472.40 to completely unnecessary fees—and that’s just from nose surgeries alone. It’s tough to consider how much more money your clinic is losing from other procedures on top of that. The worst part? You’d get much more use applying those funds to other areas of your business. What could you do with an additional $19K? Well, you could add another part-time receptionist to your team. You could upgrade your existing computer operating system or renovate your office. You could even use those funds to pay for training programs that improve your skills and allow you to charge more for your services.On the other hand, you could also use that money to pay off any lingering debt from medical school, take your partner on a nice trip to the tropics, or save for your grandchildren’s college tuition. No matter what you decide to do with the money, the point is that you have the freedom to choose. When you eliminate credit card processing fees, you free up additional funds to reach your financial goals sooner. Read on to learn how.
Getting started with a fee-free credit card payment processing app is much simpler than you might think. The process only takes two steps to complete, and if you already have a merchant account set up, you can start saving on transaction fees in as little as one business day.
Because your business is one that readily accepts credit and debit card payments, you might already have a merchant account. If that’s the case, you’re well on your way to saving thousands of dollars in revenue for your business. Go ahead and skip to the next step.But if you don’t, not to worry—let’s take a look at how to get set up with a merchant service provider (MSP).Although it’s not a difficult process, you’ll want to take some time to make sure you choose the right MSP for your business. After all, when it comes to saving your business money, you want to ensure that you find the best possible solution.Some of the most important criteria to look out for when researching MSPs include:
Of course, you’ll also want to consider the prices and fees of each provider charges. Here are four of the most common fees you’ll encounter:
However, if you want to brush up on your negotiation skills, you can save additional money by negotiating on the markup fee.How’s that possible? Markup fees are how merchant service providers make a profit on their services. However, they may decide to lower their rates to accommodate highly-profitable businesses like yours. In some cases, you can see as much as a 5–10% decrease in markup fees. Once you decide on the right MSP for your business, they’ll set you up with your new merchant account in as little as a few business days. After that, you’ll connect your merchant account to your payment processor.
Your merchant service provider and payment processor will handle most of this for you, so all you have to do is wait for them to complete their work.However, there is one important thing you must take care of: you’ll need to ensure that your merchant account and payment processor can connect seamlessly. Otherwise, you’ll still be responsible for your transaction fees.Once your MSP and payment processor complete their setup (it should take a few business days at most), you can now accept credit card transactions without paying the fees for them.Not sure where to find a trustworthy fee-free credit card payment processor? We can help.
For an effortless way to save money, choose NadaPayments and pay “nada” on every credit card transaction.Our fee-free credit card payment processing app works with most POS systems and connects to wifi, so you can process transactions anywhere—in-store, online, or on the go. You’ll also receive 24/7/365 customer service—because technology issues are something that no one wants to deal with by themselves. And if you decide that NadaPayments isn’t right for you, you can cancel your services anytime. No hard feelings, and no complicated hoops to jump through. (Promise.)If you’re ready to save thousands of dollars every year in processing fees, contact our support team by calling +1 (929) 293-1800 or click the link below.
What if there was a way to generate even more profit on breast reduction surgery and other cosmetic procedures?The great news? There is… and it’s simpler than you might think. According to the American Society of Plastic Surgeons (ASPS), breast reduction surgery ranks as one of the most expensive procedures performed today. But that hasn’t stopped people from getting them. The ASPS reveals that cosmetic surgeons performed 43,591 of these procedures in 2018 alone. And due to their high cost, chances are, most of your patients pay with their credit cards. But this puts you in a bind. Accepting thousands of dollars in credit card payments means you’re losing thousands of dollars in revenue to credit card processing fees.But imagine being able to pocket all the money you make for yourself.Luckily, you don’t just have to imagine: there’s a way to work around credit card processing fees, so you can take home 100% of your revenue. With a fee-free credit card processing app, you can boost your profits by as much as 10%. After all, you work hard for your money. You deserve to see every cent you earn. Keep reading to learn how to get rid of those annoying credit card transaction fees (completely legally!), so you can put that money to good use elsewhere in your business (or even toward a vacation—we promise not to tell).
As their name implies, fee-free credit card processing apps allow you to process credit card transactions without incurring the pesky fees that usually accompany them.But credit card companies like Visa and MasterCard won’t just let you skate by without paying them their due. So what’s the secret to avoiding those expenses?Credit surcharge programs.These programs give customers a choice: Use credit and pay an additional fee, or pay with cash and avoid the fee entirely.In both cases, you take on none of the credit card transaction fees. So, if a customer pays you $1,000 for a procedure, all of that $1,000 is yours to keep.Best of all, thanks to the Dodd-Frank Act, these programs are 100% legal and compliant. That means you’ll never have to worry about fines or lawsuits down the road.Let’s take a look at a real-life example of what a fee-free credit card processing app can do for your private plastic surgery practice.
The ASPS reports that, in 2018 alone, Americans spent more than $16.5 billion on cosmetic surgery. The industry is highly lucrative, with more and more people seeking out these procedures every year. But no profitable business is without its startup costs. The cost of higher education alone isn’t one to scoff at. NerdWallet docks the average amount of student debt for those graduating from medical school at a little over $200,000. And it isn’t until you’ve completed a residency or two and passed your board exams (which also cost several thousand dollars) that you can then open your own practice. This will put you at least another $220,000 in the red as well. As you know well, these costs quickly add up, so you’ll want to make your money back (and then some) as soon as possible. The ASPS states that the national average cost for breast reduction surgery sits at $7,655. Because of this high price tag, many of your patients may not feel comfortable paying for this procedure in cash. So, when you ask for their payment, out comes their credit card. That can take a real toll on your profits. Without a fee-free credit card processing app in place, you can expect to lose about 3% of every payment to transaction fees.
Let’s say you perform 15 breast reduction surgeries each year. If you were to charge the national average for each procedure, you’d make a cool $335,665 from breast reductions alone. But before you celebrate, you need to factor in the credit card fees. The damage? A whopping $10,069.95 loss. With all of your costs to consider, every cent lost to fees is money that you could be reinvesting into your business. Imagine what you could pay for with that $10,000+:
The list goes on and on.There’s no reason to wait around for this extra cash. You could save all of that money—or more—simply by switching to a fee-free credit card processing app like NadaPayments. Here’s how.
You can complete the entire process in two easy steps:
That’s it. It really doesn’t get easier than this. In fact, if you’ve set up a payment processor before, you’re already familiar with half of the process. Let’s break this down further. Shop for the right merchant service providerWhen considering the best MSP for your business, price is certainly a factor to take into consideration—but don’t let it be the only one!Research merchant service providers that offer reasonable fees as well as all the capabilities you need for your business—and of course, impeccable customer service. If it helps, make a list of all the things you want in your ideal MSP and compare it to the options you find.Once you’ve narrowed down your list to a few top choices, you’ll want to take a closer look at each provider’s fees, including:
While the first three fees are set in stone before you even begin discussions with your MSP, the last one isn’t. You can try negotiating on the markup fee, potentially saving you 5–10% off the original rate. What’s up with that? Well, this fee is how these companies make a profit from their services, which means that there may be some leeway in how much lower you can negotiate the fee. After all, they may be willing to offer you a lower rate in order to gain your business. Once you’ve decided which company to go with, set everything up before moving on to the final step. Implement your credit surcharge programNext, you’ll connect your fee-free credit card processing app to your merchant service provider. Most importantly, you’ll want to make sure that you can integrate the app without any issues. You don’t want to go through the effort of setting up your payment processor only to find out that your app isn’t even compatible with it!The process of linking these two can be completed in as little as one day—which means that you can start saving money on your credit card transactions as soon as tomorrow. NadaPayments, for instance, effortlessly integrates with your payment processor and website for a seamless experience from the beginning of your transaction to the end. Plus, our surcharge program saves your customers an extra 3.5% off their purchase total when they pay with cash, check, or debit card. With NadaPayments as your fee-free credit card processing app, you’re not the only one saving money on each transaction—your patients do too.
NadaPayments is the credit card processing solution you need if you want to make nada payments on every credit card transaction. Our system is a cinch to set up, even if you don’t consider yourself tech-savvy in the slightest. There are zero setup fees involved, and our app works wherever you do: In-store, online, and even when you’re out and about. Now you can take home all of the money you earn from procedures like breast reduction surgery, with only the slightest tweak to your credit card transaction process. Plus, we’ll even cover the cost of your hardware, so all you need to do is set it up. And at every step of the way, know that we’re here to lend a hand if you need it.Get started today by calling us at +1 (929) 293-1800 or by clicking the link below.
Chances are, you’re losing tens of thousands of dollars every year. The worst part? You probably don’t even realize it.Cosmetic surgery practices make hundreds of thousands of dollars a year. But this means that you’re paying an exorbitant amount in credit card processing fees, as well. In fact, for mini facelifts alone, you could be looking at a loss of about $21K a year.However, there’s a way to avoid paying these fees completely.The solution? Fee-free credit card processing apps. These apps let you stop paying tens of thousands of dollars in credit card fees every year and start taking home 100% of the revenue you earn.Here, we’ll show you everything you need to know about these lucrative programs. We’ll give you an idea of how much you can save with one, and even show you how to set one up for your plastic surgery practice. So, let’s get started!
Fee-free credit card processing apps allow you to accept credit cards without paying any of the fees you’d typically incur from traditional payment processors. How is this possible? It’s all thanks to credit surcharge programs. These programs let you offset transaction fees by giving your customers two choices: pay a small fee for using their credit card, or avoid these fees entirely by paying with cash, debit, or check. It’s that easy—and it’s completely legal, too, thanks to the Dodd-Frank Act.With a fee-free credit card processing app in place for your plastic surgery practice, you can completely eliminate credit card processing fees from your business’s expenses.But wait… Wouldn’t your patients object to paying more than they’re used to, especially if they’re regular clients of your clinic? Implementing a credit surcharge program would actually cost your customers less money than if you raised your prices to account for the costs of accepting credit card payments (which would include the hardware and software needed to accept cards, as well as credit card processing fees themselves). And because you give your customers the option to forego these fees entirely, they can save even more by paying with cash. But maybe you’re the type that isn’t swayed without cold, hard facts to back up a claim. To show you just how much you can save, we’ll break down how much transaction fees would cost you for a popular procedure performed at cosmetic surgery practices like yours.
Mini facelifts are modified versions of traditional facelift surgeries. Incisions are made in the patient’s face, and the muscle underneath is pulled tighter, resulting in a visual “lift” in the neck and jawline. Mini facelifts are considered invasive procedures requiring anesthesia—and their price reflects this. These procedures typically cost between $3,500 and $8,000, although the exact price will vary depending on the surgeon and location of the practice. So, let’s say you charge $6,000 for every mini facelift. If you performed 10 of these procedures every month, you’d make $60,000 a month—just from these operations alone. However, $6,000 isn’t chump change for many of your patients. On top of that, these surgeries aren’t covered by health insurance because they’re considered cosmetic procedures.This means that your patients will most likely pay for their mini facelifts with credit. After all, a study performed by the Federal Reserve revealed that people tend to reach for their credit cards for more expensive purchases. So, although you might make $60,000 a month from your mini facelift procedures, you’ll lose a portion of it to credit card processing fees. Merchant service providers (MSPs), the vendors that process your card transactions, typically charge anywhere between 1.3% and 3.3% for every payment made with a credit card.
Although that number seems inconsequential, the fees quickly add up for high-ticket procedures like mini facelifts. Let’s say your MSP charges you a 3% fee for every credit card transaction. When you take into account the $60,000 you make in mini facelift revenue, you’re losing about $1,800 to fees alone. That comes out to an annual loss of $21,600—and that’s not even taking into account the other procedures you’re performing.As an experienced business owner, you know that that money could be put to better use elsewhere in your cosmetic surgery practice. If you wanted to invest those funds back into your business, $21K could easily pay for malpractice insurance, hardware and software updates for your office, additional medical supplies and equipment, or even a part-time receptionist. On the other hand, you could set aside the extra money for personal use. Medical school is expensive, and if you haven’t paid off your loans yet, this money could bring down your total debt considerably. You could also use this money towards your dream home or car, or treating your family to a vacation in the tropics. With a credit surcharge program, you can say goodbye to credit card transaction fees and start putting that money to better use.Ready to get started? Keep reading to learn how to set up your own fee-free credit card processing app in two simple steps.
It only takes two easy steps to start saving money with a fee-free credit card processing app. Here’s how:
Considering the average cost of plastic surgery procedures, your business probably already accepts card payments. If this is the case, congratulations—you’ve already completed the first step! But if you don’t yet accept credit cards, no worries. Keep reading to learn how to find the right merchant service provider (MSP) for your practice.When shopping for merchant service providers, you’ll want to take a few things into consideration:
Of course, you’ll also want to keep an eye out for their fees. Here are three of the most common ones you’ll see:
If this seems like a lot to pay for every credit card transaction, you’re right. Luckily, there’s a secret way to bring down your costs in this step. Markup fees are how merchant service providers turn a profit on their services. Because they’re the ones to set these rates, your agent may be able to lower them in order to gain your business. Successful negotiations can reduce your markup fees by as much as 5–10%, saving your practice even more money.Once you have your merchant account up and running, it’s on to the next step.
In this step, your biggest priority is ensuring that your credit card processing app and your merchant account connect seamlessly. From there, your vendors will take care of most of the setup on their ends. Your main role here is acting as the liaison between the two vendors—but in some cases, even that’s not necessary.Once your app and merchant account are connected, you can begin accepting credit card payments with ease and avoid the annoying processing fees that come with them.
If you’re in search of fee-free credit card processing apps for your business, turn to NadaPayments. Credit surcharge programs can be complicated to handle on your own. That’s why we handle all of the government regulations behind the scenes. All you have to do is plug in the hardware and let the software run. On top of that, our setup process is quick, simple, and free—we’ll even throw in the hardware and software you need free of charge, too. Our app is a breeze to use, even if you don’t consider yourself especially tech-savvy. And you can take NadaPayments with you wherever you need to process credit card transactions: use it in-store, online, or on the go.Best of all, if you don’t completely love it, you can cancel your plan any time—no hard feelings (and no convoluted cancelation process to deal with, either).So, what do you say? Give NadaPayments a try today and see why business owners across the United States choose us as their fee-free credit card processing app.Call +1 (929) 293-1800 or click the link below to get started.
Every business owner knows that certain costs are inevitable. But chances are, you’re shelling out a lot of cash for something that could easily be eliminated: Credit card processing fees.Getting rid of this unnecessary cost isn’t hard. You can free yourself from the burden of paying fees on every credit card transaction you accept at your medical spa or cosmetic surgery practice in two simple steps. How? With a fee-free credit card processing app.Once you set one up for your business, you’ll no longer foot the bill when your patients pay with plastic. In one year, you can save $14K on your laser resurfacing procedures alone. Interested in learning more? We’ve got you covered. Read on to learn all about fee-free credit card processing apps and how to set one up for your medspa or cosmetic surgery practice in as little as one business day.
Let’s start with the basics first. What exactly are fee-free credit card processing apps?These payment processors help you bypass the fees that usually come with credit card transactions. They’re passed on to your customers instead, thanks to what’s called a credit surcharge program. These programs let you offset transaction fees by giving your customers two choices: pay a small fee for using their credit card, or avoid these fees entirely by paying with cash, debit, or check. So, if a customer spends $100 at your business, you get the full $100—no matter how they pay. You avoid paying credit card transaction fees and take home 100% of the money you make. Plus, it’s completely legal, thanks to the Dodd-Frank Act.At first glance, the idea sounds great. But what would your patients think? With some cosmetic procedures costing a pretty penny, they surely wouldn’t be happy paying even more for their treatments. But what if we told you that many customers actually prefer this arrangement?For many years now, business owners have looked for ways to work around the cost of accepting credit card transactions. Some of them have decided to increase their base prices to absorb the cost of these transaction fees, plus the cost of the hardware and software needed to process these payments. In most cases, this cost increase comes out to more than the fee that customers would pay through a credit surcharge program. The bottom line: Customers actually end up saving money with this method. And if they choose to pay in cash, they can save even more. Either way, you give them the choice to do so, rather than forcing a solution onto them that no one really cares for.Still unsure if fee-free credit card processing apps are right for you? That’s understandable.However, you might change your mind once you find out how much you’re actually losing to transaction fees. Let’s crunch the numbers in the next section.
For simplicity, we’ll focus on one type of treatment offered at businesses like yours: laser resurfacing. This procedure is offered at many medspas and cosmetic surgery practices to reduce the look of lines, scars, and other irregularities on the skin’s surface. However, the cost of laser resurfacing alone means that not everyone has access to this sort of treatment. The average cost of laser treatments in 2019 ranged between $1,201 and $1,963 per session, depending on what kind of laser was used. But this number doesn’t include additional fees incurred from initial consultation, anesthesia, facility costs, and post-treatment medication. On top of that, one session may not remove more stubborn issues, so patients may come in several times before they’re satisfied with their results. Ultimately, laser resurfacing is a highly lucrative offering at medspas and clinics all over the country. So, let’s say you charged $1,963 for every laser resurfacing procedure and performed 20 of them every month. You’d make $39,260. Not bad, right?But then the credit card fees kick in. Because laser resurfacing typically costs a thousand dollars at minimum, many patients use their credit cards to pay for it. A study performed by the Federal Reserve supports this: It found that people prefer to pay with credit over cash for large purchases. Merchant service providers (MSPs), the companies that process your card transactions, typically charge between 1.3% and 3.3% for every swipe of plastic.
So, if your MSP charges you 3% per transaction, you’re looking at a loss of $1,177.80 every month. In one year, that total balloons to a whopping $14,133.60.Just think about what you could do with that $14K instead.Would you put that money back into your business? Maybe you’re considering a remodel of your clinic to make it more appealing to your clients, or perhaps your marketing director has asked for an increase in your advertising budget.On the other hand, you could just as easily use that money for personal reasons. Maybe you’ve always wanted to take your partner to France, or your real dream is to become a winemaker. With an extra $14K in your pocket every year, you can reach your personal and professional goals that much quicker. Now that you know how much you’d save on laser resurfacing alone, imagine how much you’d save if you applied this line of thinking to the rest of your business. When you implement a fee-free credit card processing app, you can save tens (or maybe even hundreds) of thousands of dollars every year. If you think this could work for your business, here’s some good news: The whole process takes only two steps. Best of all, you might have already completed the first one, meaning you can start saving money even sooner than you thought. Find out how to get a fee-free credit card processing app below.
It only takes two easy steps to start saving money with a credit surcharge program. Here’s how:
Because laser resurfacing treatments cost a pretty penny, most of your patients pay with credit. This means you’re probably already working with a merchant service provider (MSP). If so, congratulations! You’re one step closer to saving thousands of dollars every year, and you didn’t even have to lift a finger. But if you don’t yet have an MSP, fear not. We’ll walk you through the process here. Your MSP has a direct impact on how your business processes transactions. Because of this, you’ll want to take extra care when deciding which one to go with. Here are some factors to consider when researching merchant service providers:
Of course, you’ll also want to consider the costs of doing business with your provider. While price shouldn’t be the only deciding factor, choosing the wrong MSP can result in higher-than-expected costs, which defeats the purpose of getting started with fee-free credit card processing in the first place.MSPs charge a variety of fees for their services, so it’s beneficial to understand them before you shop around. Here are some of the most common fees to look out for:
Here’s a tip that most people won’t tell you: Markup fees aren’t set in stone. Because MSPs are eager to work with highly profitable businesses like yours, you can potentially save even more money by negotiating on their fees. In fact, we’ve seen successful negotiations bring this fee down by as much as 5–10%.Once you find the right provider, you’ll set up your merchant account following their instructions. This process takes about a few business days to complete, on average. After you finish this step, you’ve done the majority of the legwork: The final step is much easier and involves very little work on your part.
This step involves more cooperation between your MSP and payment processor than anything else and should only take about one business day.However, you’ll want to make sure of one thing: That your merchant account and payment processor connect seamlessly. Otherwise, all of your hard work will be for nothing. Once setup is complete, you can now accept credit card payments with ease—no more throwing away money on unnecessary processing fees. You can now start saving even more money and make great strides towards your financial goals.
Our goal at Nadapayments is to make payment processing as simple and affordable as possible. When you choose us as your fee-free credit card processing app, we’ll take the reins on all things payment processing so you can focus on the things that matter most to your business. Our software and guidelines adhere to government regulations, so you’re always compliant with the latest changes in legislation. Our payment processing technology also interfaces seamlessly with most point-of-sale systems, ensuring that your precious time isn’t wasted. Even better? There are no setup costs. We offer free 24/7/365 support every step of the way, even after you’re all set up. We’ll even send you the necessary equipment free of charge so you can start saving money immediately. And if you decide you don’t like what we offer, no problem. Simply let us know you’d like to cancel your services, and we’ll take care of it immediately. No cancellation fees, and no hard feelings. To get started, contact our support team by calling +1 (929) 293-1800 or click the link below.
If you had an extra $13K in revenue coming into your business every year, what would you do with it? Would you play it smart and reinvest it in your business? Or would you use it to improve your quality of life instead? Maybe you have credit card debt or medical school loans to pay off, or you’ve been planning a trip to Europe with your family in the near future. What if we told you that there really was a way to bring in this much additional money—and that it only takes minimal effort on your part?Well, you’re in luck, because there is.The secret to your newfound wealth? Fee-free credit card processing apps.Maybe you’ve never heard of them. In fact, most business owners haven’t. But these nifty programs help you avoid paying thousands of dollars each month in credit card processing fees, so you can pocket that money and do what you want with it instead.Keep reading to learn what fee-free credit card processing apps are and how you can hook your Fraxel laser business up with one in two easy steps. So, without further ado, let’s dive in!
Before we get into the nitty-gritty of things, let’s start at the beginning. What exactly are fee-free credit card processing apps?In short, these apps eliminate the burden of paying hefty credit card transaction fees so you can take home 100% of your credit card revenue. Best of all, it’s completely legal, thanks to the Dodd-Frank Act passed in 2010.So, how does it work?Fee-free credit card processing apps work using what’s called a surcharge program. As its name suggests, a credit surcharge program involves having your clients cover payment processing fees, allowing you to offset the transaction fees you’d normally owe on credit card payments. So, let’s say a client is paying for Fraxel laser treatment. By using a fee-free credit card processing app and a surcharge program, you will:
But how do you explain this to your customers? Surely, your clients won’t like this new system, will they?Chances are, they’ll actually prefer it. In many cases, business owners looking to avoid losing money to credit card transaction fees will actually increase their prices to account for this loss in revenue. What customers don’t know is that these new prices are often much higher than the amount they’d pay with credit surcharge programs.With one of these programs in place, your customers actually save money by paying only the transaction fee. And by paying with cash, they can save even more. Still not convinced that fee-free credit card processing apps are right for you? Let’s break down how much you’ll save by implementing one.
For our purposes, let’s focus on how much money you’re losing from just one type of treatment offered at your medspa or clinic. Although the cost for Fraxel laser procedures can vary between $500 and $5,000 per treatment, you can expect to pay about $1,500 on average per session in a New York City-based clinic. And because these procedures typically require multiple visits to fully correct scarring, texture, and pigmentation, you’ll probably see several of your clients a few times a year before they’re satisfied with their results. So, if you charged $1,500 per treatment and met with 25 patients every month, you’d make $37,500 in recurring monthly revenue. But here’s where those credit card transaction fees come in.A Federal Reserve study shows that, time and again, people would rather pay for expensive purchases with credit instead of cash. So, because Fraxel laser treatments are considered high-ticket purchases, most people will pay for these procedures with their credit cards. Most merchant service providers (MSPs) will charge you an additional 1.3–3% for every credit card purchase you process. For this example, let’s say your MSP charges you an even 3% in credit card transaction fees.
That means that every month, you’ll pay $1,125 in processing fees. In one year, you can expect to pay a whopping $13,500 in fees on Fraxel laser procedures alone. That’s outrageous.You’ve already imagined what you’d do with an extra $13K in revenue. With a fee-free credit card processing app in place, those goals suddenly become much more attainable. Now that you know what fee-free credit card processing apps are (and how much you and your business stand to gain by implementing one), let’s take a look at how to set one up for your business. (Hint: It’s much easier than you think. So easy, in fact, that you can complete it in as little as one business day.)
No hoops to jump through here—it really only takes two steps and a few days to eliminate credit card processing fees and start saving your business thousands of dollars.
Sound familiar? That’s because it is! Merchant service providers handle the credit and debit card transactions for every merchant (business). We mentioned them earlier—they’re the ones charging you an additional 1.3–3% for every credit card purchase you processIf your business accepts credit card payments, you’re probably working with an MSP already. That’s great! It means you’re one step closer to implementing fee-free credit card processing.But if you don’t have one yet, don’t worry. Let’s take a look at how you can get started with an MSP.Finding the right MSP for your business isn’t difficult, but you’ll want to make sure that you choose the right one for your medspa or clinic. The biggest point of contention for most business owners? Pricing. Merchant service providers tack on a variety of fees to their service offerings; choosing the wrong one can result in higher-than-anticipated costs. You should opt for pass-through pricing, which allows you to see what your fees will be, instead of tiered pricing. Tiered pricing organizes transactions into categories and charges you accordingly. And because you can’t always predict which category a transaction will fall into, you can end up paying much more than expected.While you shop around for MSPs with pass-through pricing, you’ll want to take a look at what they charge for these fees in particular:
You might be thinking, “But wait… I thought you were supposed to help me save money!” And you’re right. We’ll let you in on a little secret: you can reduce your MSP’s markup fees, if you’re willing to engage in some negotiation.Markup fees are how merchant service providers make money on their offerings. But they may be willing to lower their markup rate in order to gain the business of a successful medspa or clinic like yours. In fact, we’ve seen businesses secure discounts up to 5–10%. Not bad, right? However, it’s not enough to choose an MSP based on cost alone. To get the best value for both you and your customers, you should take the following into account as well:
Once you find the MSP that’s right for your Fraxel laser business, they’ll walk you through the setup process. And in just a few business days, you’ll be able to accept card transactions and connect your merchant account to a fee-free credit card processing app (and, most importantly, start saving thousands).
Thankfully, this step requires less involvement from you and relies more on collaboration between your MSP and processing app provider instead. Your only responsibility lies in making sure that your fee-free credit card processing app is compatible with your merchant service provider. Once you get the go-ahead from your credit card processing app vendor, you’re now ready to accept credit card transactions without the burden of paying unnecessary processing fees.
Choosing a fee-free credit card processing app like Nadapayments allows you to increase your revenue substantially without putting in an equivalent amount of effort. But that’s just one of the benefits you get from working with a company like ours.Our payment processing solution integrates seamlessly with most POS systems, so there’s no need to go back and forth with your MSP to try and figure things out. Our terminals connect to Wi-Fi as well, so you can process payments anywhere there’s a Wi-Fi connection—in person or online. The setup process is simple (and 100% free), but if you’re having some trouble, our customer support team is here to help you 24/7/365. And if you decide you don’t like what we have to offer, you can cancel your service anytime. Ready to start taking home 100% of what you earn?Get in touch with one of our support specialists and experience our VIP service for yourself by calling +1 (929) 293-1800, or click the link below to start your setup process today.
There are many unavoidable costs that come with running a dermabrasion business: taxes, equipment, rent for your office space, payroll… the list goes on.But there are also many fees that aren’t necessary at all. One of the biggest of these is credit card processing fees. As they add up, credit card processing fees can seriously weigh your business down.Luckily, it’s easy to get rid of these fees and start taking home 100% of the revenue you earn from procedures like dermabrasion, microneedling, and more.The secret? A fee-free credit card processing app. Once you’ve eliminated credit card processing fees, you could start bringing in tens of thousands of dollars in additional revenue each year—all in a few simple steps. Here we’ll break down what exactly these apps are and how to set yourself up with one in as little as one business day. So, let’s get started!
First and foremost, what exactly is a fee-free credit card processing app?In short, it’s a 100% legal way of saving money on your credit card transactions, making it the savvy business owner’s solution to eliminating those frustrating fees. Technically speaking, fee-free credit card processing apps implement what’s called a credit surcharge program, which allows you to bypass the fees that usually come with credit transactions.Here’s how it works: when you implement a fee-free credit card processing app, your clients will have two options to choose from when paying for their services. They can pay with credit and incur a 3.5% fee, or they can choose to pay with cash, debit card, or check and avoid fees entirely.You may be wondering: Wouldn’t implementing a credit surcharge program and charging a 3.5% fee upset my clients? In reality, this isn’t the case. Many customers may actually prefer a credit surcharge program over traditional pricing structures (which may include the fees you’d usually have to pay for credit card transactions). They’ll also have the option to save money by paying with cash, debit, or check, and will appreciate your business’ transparency around payment options.
Let’s first take a look at how much money you’re really losing to credit card processing fees each year.The American Society of Plastic Surgeons (ASPS) placed the average cost of dermabrasion at $1,296 in 2019. However, that only covers the cost of the procedure itself. When you factor in additional expenses (like anesthetics and operating room costs), that total can easily come out to $4,000 or more.Because dermabrasion is a cosmetic procedure, it’s not typically covered by medical insurance. For better or worse, your clients will likely have to pay out of pocket for it. And because of its high sticker price, many of those clients won’t feel comfortable paying for dermabrasion with cash or debit. In fact, a study conducted by the Federal Reserve revealed that, the higher the cost of a purchase goes up, the more likely a person is to reach for their credit card to cover it.Here’s where those credit card fees come in. While credit card fees will vary between payment networks, you can expect to shell out anywhere from 1.3% to 3.30% for every credit card purchase.
So, let’s say you perform 15 dermabrasion procedures a month at $3,000 each. You’ll easily make $45,000 in just one month. But if credit card processors charged you 3% on every transaction paid for with a credit card, you’d lose $1,350 a month. In one year alone, you’d lose $16,200 of revenue. And that’s not even counting the money lost from the other services you perform too. Think about what you could do with an extra 16 grand.For one, you could take that money and put it back into your business. $16,200 could easily pay for an office renovation, medical supplies and equipment, additional employees, or malpractice insurance. Of course, you could just as easily spend that money on yourself and your family: you could pay for the home remodel you’ve always wanted, send your children or grandchildren to school, contribute to your retirement fund, or buy your dream car. When you don’t have to pay thousands of dollars in unnecessary fees every month, the opportunities are endless.
So you’ve decided to make the switch to fee-free credit card transactions. Where do you start?First, you’ll need to find the right merchant service provider (MSP), which handles all of your debit and credit card transactions. Given the price of dermabrasion procedures, chances are you already have one set up! But if you don’t, the process is relatively simple and takes a few business days (at most) to complete. Start by doing some research and creating a list of potential providers. You’ll want to keep an eye out for ones that specialize in medical businesses—especially if you accept insurance for some of your procedures. These MSPs are already up-to-speed on healthcare best practices and can help you with your most pressing transaction questions from day one. When looking for an MSP, you can gain some insight into pricing by taking a look at the following fees:
While you can’t negotiate with banks or payment networks, you may be able to score a deal by negotiating the MSP markup—we’ve seen practices get 5–10% off! Generally, however, you won’t want to automatically opt for the cheapest MSP. You should make sure they have all the features you need, including 24/7 customer service and the latest in payment processing hardware (such as mobile credit card processing, virtual terminal credit card processing, and contactless or chip payments).Now for the second step: once you get set up with your new merchant service provider, next you’ll need to find the best fee-free credit card processing app. As you look into different companies, make sure to choose one that integrates with your current MSP. Linking your merchant service provider with your new fee-free credit card processing app won’t take too long. In most cases, the process takes about one business day. This is great news, as it means you’ll be able to start saving money on credit card processing fees as soon as possible.
Eliminating credit card processing fees is one of the easiest things you can do to start increasing your revenue almost immediately. When you work with Nadapayments, you can rest assured that our services are completely above-board. Our surcharge program is 100% legal and compliant, thanks to the Dodd-Frank Act.And when you choose us, you get much more than just the money you save on credit card fees. Setup with Nadapayments is quick, painless, and completely free. You get 24/7/365 customer service, and we’ll even throw in the hardware you need for your transactions at no additional cost to you. And the best part? Our surcharge solution seamlessly integrates with your existing payment processing system and works on the go, in-store, and online.So, what are you waiting for?Get in touch by calling us at +1 (929) 293-1800, or click the link below to get started with your new credit card processing app.
There’s a secret way to save your company thousands of dollars every year—one that most business owners know nothing about. Here, we’ll tell you how to cash in on these hidden revenue gold mines... and how to do it in as little as one business day.More than half of the adult population carries stretch marks on their body, and yet so many of us still feel self-conscious about them. Because of this, laser stretch mark removal is a hugely popular procedure at many medical spas. This treatment can easily earn your business tens of thousands of dollars every year. But here’s the thing: you could be earning even more if credit card transaction fees didn’t eat up so much of your revenues. Enter: fee-free credit card processing apps.With one of these programs set up for your business, you can take 100% of your stretch mark removal revenue home in one or two simple steps. Keep reading to learn what a fee-free credit card processing app is, how to get one set up at your medspa, and how it can save you tens of thousands of dollars a year.
So what are fee-free credit card processing apps? The answer’s in the name.These apps allow you to circumvent credit card processing fees. And, thanks to credit surcharge programs and the Dodd-Frank Act, they’re a 100% legal way to save your business money. But where do these fees go? Surely credit card companies won’t let you off the hook for them. When your patients pay for their stretch mark removal procedures, you’ll offer them two options:
Either way, you no longer have to pay credit card transaction fees. It’s now up to the customer to decide whether or not they want to pay it—and if they don’t, they save some money on their end.But are fee-free credit card processing apps really worth it? Let’s break down how much you can save by implementing one at your medical spa.
Laser stretch mark removals aren’t cheap. There are two main types of procedures, both costing over a thousand dollars on average. The American Society for Aesthetic Plastic Surgery (ASAPS) states that non-ablative procedures average at about $1,410, while ablative laser treatments cost about $2,681. Of course, this doesn’t include additional costs like the consultation fee, anesthesia, and lab fees. The Federal Reserve found that people prefer to pay with credit for larger purchases (which laser stretch mark removals certainly qualify as). So, because these procedures can get pricey, many of your patients likely swipe their plastic instead of using cash or debit. So, let’s say you charge the national average ($2,681) for ablative laser treatments. These procedures can be done in as little as an hour and a half, so you find you’re able to conduct 15 of these treatments every month. After crunching the numbers, you realize you make $40,215 a month just from ablative laser treatments alone. But here come the credit card processing fees. These fees typically range between 1.3–3.3% of every credit card transaction your medspa processes. For our purposes, let’s say your merchant service provider (MSP) has set your rate at an even 3%.
While 3% may seem small, that means you’re losing $1,206.45 to fees every month. That’s a painful $14,477.40 lost every year. Just think about all the things you could do with that money instead. If you wanted to be practical and reinvest these funds into your business, you could renovate your medspa to make it more appealing for your patients. You could update your office’s software or buy more medical supplies. You could even increase your marketing budget to bring in even more customers. Of course, you could always use that money for personal reasons, like paying down long-standing debt, treating yourself to a luxury purchase, or taking your family on vacation.But without a fee-free credit card processing app in place, you’ll continue to lose tens of thousands of dollars every year. If you want to stop throwing that money away, read on to learn how to start saving your medspa some money—potentially as soon as the next business day.
This insanely simple process only takes two steps. After you’re done, you’ll be well on your way to that new office remodel, family vacation, or whatever financial goal you’ve set for yourself. Best of all, if you already have a merchant service provider, you’re already halfway there. If you don’t, no worries—let’s go over how to find a merchant service provider.Finding the right MSP for your medical spa’s needs involves doing a little research and comparing your options. Your list of things to look for in your ideal provider should include:
You’ll also want to look at the fees they charge you, including:
While the first three of these fees are pretty much set in stone, many merchant service providers are willing to adjust their markup fees to accommodate your business. Successful negotiations can easily save you 5–10% off the proposed rate. Not bad, right?Once you’ve set everything up with your MSP, you’ll want to turn your attention to your fee-free credit card processing app. This is a much easier process. The most important thing to keep in mind is to find an app that integrates seamlessly with your MSP. You don’t want to go through the hassle of finding the right one, only to discover they don’t match up at all.Because most of the work in this step takes place between your merchant service provider and your credit card processing app company, it will require minimal effort on your part. Setup can take as little as one business day to complete, and after it’s done, your medspa can process every credit card transaction while incurring none of their fees. But that’s not all. When you work with NadaPayments, you get a whole host of additional benefits on top of that.
Nadapayments is built on the premise of saving you as much money as possible.Not only do you save in credit card processing fees, but you also don’t have to worry about setup fees or the cost of your hardware and software. In fact, we’ll give you everything you need to get started with your credit surcharge program for free. Take your app anywhere you need to process a transaction—in-store, online, or on the go—so you can save on credit card fees anywhere. Plus, we offer 24/7/365 customer service, because let’s face it: Not all of us are as tech-savvy as we claim to be. But we can only say so much. Get started today and find out for yourself why businesses all over the country have chosen Nadapayments. Sign up for your very own fee-free credit card processing app by calling +1 (929) 293-1800 or clicking the link below.
Why should your orthodontic practice focus on what braces payment plan you offer?In short, because braces account for nearly 50% of revenues at orthodontic practices. That means that if you’re like the average orthodontic practice and bring in around $1.1 million in revenue, about $550,000 of that comes from braces alone. Clearly, a large part of your financial success (and the orthodontic industry’s in general) depends on offering braces to patients. That’s why when it comes to providing your patients with braces, you have to take the best possible approach to payments. After all, braces set your patients up for long-term success—shouldn’t they do the same for you? Because braces are such a big investment, your patients—and your business—depend on it.
We do understand that you're busy. And as an orthodontist, you’re doing important work. You take extra care to properly align and straighten your patient’s teeth and improve their dental health. From the initial consultation and X-rays to putting on the braces and doing checkups, you’re helping people live healthier, happier lives. But while you’ve been busy improving your patients’ oral health, you may not have realized something: Credit card processing fees are killing your orthodontic practice’s profits from braces. You may not be worried. After all, you only owe 3% on each payment in a braces payment plan. But it adds up much more than you might think. In fact, credit card processing fees could actually be costing you more than $10,000 per year. Got your attention now? Let’s take a look at why you need free credit card processing software and a better braces payment plan for your patients. Ultimately, we’ll show you how you can earn much, much more from the application of dental braces.
First, answer this question: How much does an orthodontist make?Not sure off the top of your head? According to ZipRecruiter, the average salary for an orthodontist is $290,000. Considering that the average orthodontic practice brings in around $1.1 million in revenue, that means that you achieve net margins around 26%. That’s a solid income. However, you could be doing even better with a smarter braces payment plan in place.
Let’s examine a couple more questions: How do your patients pay for their braces payment plans? Does insurance cover them?For those with insurance, dental plans usually cover around 50% of the cost of braces, according to Oral-B. However, not everyone has dental insurance, and most health plans don’t cover orthodontic services for those over 18 years old. So, it’s possible that only 20% of your revenue from braces comes from health insurance plans. The remaining 80% is paid for out of pocket. And of that 80%, most patients probably sign up for payment plans.
Exactly how much of your revenue comes from credit card payments? Let’s take a closer look at the numbers:
It’s in this $286,000 in credit card payments that you’re losing money on braces payments plans. But how? Well, when a customer swipes their plastic each month to pay off their braces payment plan, you don’t get 100% of that revenue. The credit card companies get a sizable chunk of that payment. The following chart from ValuePenguin details the average card processing fees charged by different networks:
Source: ValuePenguin
After adding in the merchant service provider (MSP) markup, it’s possible that you’re paying an average of 3.5% in credit card processing fees per transaction. Let’s do the math: If $286,00 of your revenue comes from credit card payments, then you’re paying $10,010 in credit card fees each year. That’s money that could be going toward payroll, equipment, marketing, or even your retirement fund.Luckily, you don't have to keep throwing that money away. Let’s take a look at how you can implement a braces payment plan that’s not only more profitable for your practice, but also more convenient for your patients.
As mentioned above, once you add in the markup assessed by the merchant service provider (MSP), your average credit card transaction fee for a braces payment plan could be as high as 3–4%. This is why your orthodontic practice should shop around for the best payment processor available. You don’t want to simply find the cheapest one—you want one that offers low pricing and quality services. So, what services should you look for?Since many patients may go online to manage their braces payment plans, your payment system will need virtual terminal credit card processing. The actual hardware should have chip and contactless capabilities, as well.Of course, while you won’t need the same kind of speed as retail stores, your credit card system should operate efficiently. You don’t want something to stall when other patients are waiting. Finally, the payment system you choose should be designed for medical credit card processing. They’ll be able to accept debit cards associated with health savings accounts (HSA) and flexible savings accounts (FSA).
There are four types of fees you’ll pay when a patient swipes the card for their braces payment plan. These are:
When you set up a braces payment plan for a patient, and then the patient pays with a credit card, you’re not going to get 100% of that revenue. 3% or more will have been snagged by the time the payment reaches your account. As you shop for an MSP, narrow down your choices to those who offer low, transparent pricing. You should opt for pass-through pricing, which allows you to see what your fees will be, instead of tiered pricing. Tiered pricing organizes transactions into categories, and you often end up paying more than expected. Filter your selection down to the best three MSPs for your orthodontic practice. Then, you can move onto the next step.
What? You can negotiate pricing on credit card processing fees? Well, somewhat…You can’t negotiate the network fee, assessment fee, or interchange fee. You can, however, negotiate the MSP markup and ask for discounts on things like hardware fees and subscription costs. And if you have good revenue (which, as an orthodontist, you likely do), chances are the MSP will be willing to drop 5–10% off their markup. Over time, that simple negotiation could save you thousands of dollars. How amazing is that? Now, even with the best possible MSP and a discount on their markup, you’ll still have to pay credit card transaction fees. But there’s a way to completely eliminate those fees and start taking home 100% of your revenue from braces payment plans. Let’s take a look at this simple yet powerful strategy now.
Want to get rid of credit card transaction fees forever? Enter the credit surcharge program—a payment strategy that businesses can use to offset transaction fees. Here’s how it works:
You do this by:
At your orthodontic practice, a credit surcharge program gives braces patients the chance for savings by paying with cash or debit card. If they want the convenience of the credit card, they can pay that way as well. There’s just a 3.5% surcharge. It’s as simple as that. And because of this simple strategy, your orthodontic practice could take home $10,000+ more in revenue each year.
With the right MSP and a credit surcharge program, you can increase your orthodontic practice’s profits and keep all of the revenue you earn from braces payment plans. All you have to do is take action with a few easy steps. With our credit surcharge program at Nadapayments, you can get free credit card processing set up within one day. We don’t charge any fees and work with your credit card installment plans.Want to get started? Call us at +1 (929) 293-1800 or click the link below. We’re ready to help your orthodontic practice stop losing money to unnecessary fees.
Whether you’re a cosmetic dermatologist, plastic surgeon, or cosmetic dentist, medical payment processing can be a headache. Your priority is to provide top-notch medical care to your patients; details like how you process payments can be easily overlooked. That’s perfectly understandable. However, it’s really worth it to take a portion of your day to review your medical payment processing software. Here’s why: The wrong credit card processing system could affect your practice’s financial sustainability.How so? Well, chances are, you’re paying 3% or more in fees on each credit card transaction (along with other charges). That means you’re letting credit card fees cut into your medical practice’s pocketbooks.Furthermore, given the sensitive nature of healthcare services, protecting patient data is of the utmost importance. Partner with the wrong medical payment processing provider, and you risk losing everything. Simply put, you should view medical payment processing as a vital component of running a successful healthcare practice. In this guide, we’ll cover how using better healthcare payment processing can make your practice more secure and profitable. We’ll also discuss how to implement the best credit card processing for your medical practice in a few easy steps. Let’s get started.
If you’re a cosmetic dermatologist, here’s why you should search for better medical payment processing:
As you can see, you’ve put it all on the line to become a cosmetic dermatologist. Why lose your hard-earned money just because you don’t have the right medical payment processing? But just how much money are you losing? Let’s take a look.
To continue with the above example, let’s say:
Since cosmetic dermatology procedures typically aren't medically necessary, insurance companies usually don’t cover them. That means your patients pay out of pocket for your services. So, how exactly do your clients pay? Well, considering that your services as a cosmetic dermatologist range in price from $75 (for services like microdermabrasion) to $2,500+ for Thermage, the chances are that your clients prefer to pay in installments and with a credit card. As research from the Federal Reserve notes, credit card usage rates increase as price does. Therefore, it’s possible that as much as 60% of your revenue comes from credit card transactions. That’s $720,000 from clients swiping plastic! This is why your medical payment processing system is so important: You’re paying fees on all of that $720,000.Take a look at average credit card processing fees below:
Add in what you pay your medical payment processing provider, and the transaction fees you’re paying probably reach 3.5%, on average. Paying a 3.5% fee on that $720,000 means forking over $25,200 per year in transaction fees! That’s unacceptable. Just think what would happen if you got free credit card processing. Your salary would jump $25,200 (7.2%, in this example). You may be thinking, “Free credit card processing? That’s impossible!” But that couldn’t be further from the truth. There’s actually a strategy you use—and it’s easier than you might think.
Let’s face it. Not all medical payment processing companies are good. Given the lack of regulatory oversight in the payments industry, merchant service providers (MSPs) can be vague about their fee and pricing structures. And that usually leads to you paying more. But the good news is that there are plenty of good merchant service providers out there. You just have to do your research and choose them carefully. When shopping for a medical payment processing provider, follow the process below. It will help you narrow your selection down to only the best processors for your practice.
There are two types of pricing for credit card processing:
With tiered pricing, credit card payments are separated into tiers. You (the merchant) pay more for ‘unqualified’ rates and ‘mid-qualified’ rates, while ‘qualified’ rates are the cheapest. The problem with tiered pricing is that it’s hard to predict how a transaction will be classified (and, as a result, what you’ll pay). Too often, transactions fall within the more expensive tiers, meaning you’ll pay more. With pass-through pricing, you’re billed by the medical payment processor based on a fixed fee, plus a markup. It’s way more transparent, and almost always cheaper. So, the first step to finding the right payment processor is to avoid those that offer tiered pricing. Opt instead for medical payment processing companies that use pass-through pricing.
Pricing isn’t everything, however. You can’t just go with the most affordable medical payment processing system. You need a processor with flexible software that enables your patients to make payments in a variety of ways. Your medical payment processor should offer these types of payment methods:
By giving your clients convenience, you ensure that you get your revenue faster. In addition to pass-through pricing and top-of-the-line features, you’ll want a medical payment processor with excellent data security. Whether you’re a cosmetic dermatologist or a plastic surgeon, the services you provide your patients with should be kept private, and personal and financial data shouldn’t be vulnerable. Confidentiality isn’t just important to your clients—getting hacked could be devastating to your business. Furthermore, you should look for providers whose software can be upgraded. This way, you don’t have to continuously buy new hardware, and payments can be processed in as efficiently as possible at all times. After reviewing a list of medical payment processors with these criteria in mind, eliminate those that don’t meet your needs. Then, move on to the next step.
You’ll pay the following fees for medical payment processing:
Since your list of processing companies already includes only those with the capabilities you need, you’ll have to examine each company’s total fees and narrow it down to the three best processors for your practice. Then, you can get in touch with them and negotiate!
Wait, what exactly can you negotiate? While you can’t tell a medical payment processor that you’d rather not pay the interchange fee or network fee (Bank of America and Visa want their money, after all), you can get a discount on the processor markup. We’ve seen medical practices get 5–10% off the processor markup. Over time, that can save your practice tens of thousands of dollars. After negotiations, go with the most affordable payment processor who provides all the capabilities and services you need. Now, you may be thinking, “I’m still paying medical payment processing fees. Where does the free credit card processing come in?”There’s just one thing left to do…
Thanks to the Dodd-Frank Act, you can implement a credit surcharge program completely legally. As its name suggests, a credit surcharge program involves having your clients cover payment processing fees. With Nadapayments’ credit surcharge program, for example, clients at your cosmetic dermatology office would pay an extra 3.5% if paying with a credit card. This would offset the impact of credit card fees on your business.You may be wondering, “Won’t this upset my clients?”Actually, it won’t. This is because you’ll give them the option to pay with cash or a debit card and save money by not paying a fee. This way, they have the option of saving money or the convenience of swiping their plastic. Of course, you want to be transparent about your surcharge program. At Nadapayments, we set up cosmetic dermatologists, plastic surgeons, and others with clear signage at their doors and points of sale. This tells clients right away about the opportunity to save by paying with cash or debit. With a surcharge solution, your bottom line won’t feel the impact of medical payment processing fees. As a result, you’ll have completely free credit card processing. How wonderful is that?
At Nadapayments, we’re ready to help you get rid of healthcare credit card processing fees for good. Our surcharge solution integrates seamlessly with your credit card installment plan. And we can get you up and running—and taking home more of your revenue—within just one day. Whether you’re a cosmetic dermatologist, plastic surgeon, or cosmetic dentist, the time to take control of patient payments is now. Call us at +1 (929) 293-1800 or click the link below. We’re ready to help you take home 100% of your revenue.
How much does an optometry practice make? It’s a question you may wonder while opening or managing your own optometry practice. According to data from Indeed, the average optometrist’s income in the USA is $121,050. A study of optometry practice finances also revealed the average office brings in more than $2 million per year in revenue from more than 4,100 patients. Clearly, you’ve picked a great profession. Running your own optometry practice can be highly lucrative. You also fill the huge demand for optometrists: over 200 million Americans use a vision-correction device, all of whom need to see an optometrist regularly. But most importantly, your work in diagnosing, treating, and managing visual injuries and diseases can help improve the lives of countless people.But when you’re busy helping improve others’ health, it can become difficult to pay attention to your practice’s finances. After all, why concern yourself with credit card processing fees when you have 10 patients to see today? While it may seem like an unnecessary effort, it’s truly worth it to take the time to implement a cheaper (or free) credit card processing system. Doing so could bring your business tens of thousands of dollars more per year.Interested now?Here’s some even better news: setting up fee-free credit card processing actually doesn’t take that long, and the benefits are enormous. Let’s dig a little deeper into how you can get free credit card processing at your optometry practice—and how doing so can start saving your business thousands.
Let’s start by answering these two questions:
We can answer the first question with an example. Let’s say your optometry practice generates $2 million in revenue each year (about the industry average). A majority of your revenue probably comes from private insurance, Medicare, and Medicaid payments. But a sizable portion, perhaps 25%, could come from out-of-pocket expenses. Among that $500,000, you could expect 60% of that revenue to come from credit card transactions. That leaves $300,000 in revenue subject to credit card processing fees. If you look at the table below detailing average transaction fees, you’ll see that you could easily pay more than 3% per transaction.
Add in the fees assessed by the payment processor, and you could end up paying 4% on average. If that’s the case, your optometry practice will hand over $12,000 per year in credit card transaction fees. That’s way too much! So, let’s go back to the question: How much does an optometry practice make with traditional credit card processing? If your practice brings in $2 million in revenue at a 10% net margin, you’ll make $200,000 per year. But you’ll also have forfeited $12,000 in fees. Why would you just give that money away? Now, let’s answer the second question: How much does an optometry practice make with free credit card processing?If your practice had exactly the same revenue and margins with no credit card transaction fees, you would make $212,000 per year—$12,000 more! That’s a salary increase of 6%. And all you had to do was eliminate credit card processing fees. Just think of what you could do with that extra money. You could:
Now, you may be asking yourself: How do I implement free credit card processing at my optometry practice? Unfortunately, you can’t just tell Visa or American Express that you’re no longer going to pay them. It doesn’t work like that. However, there is a strategy for getting fee-free credit card processing that’s almost as easy (and perfectly legal). Let’s take a look at the steps for getting started.
The payment processing industry remains plagued with merchant service providers who don’t have your best interests in mind. They aren’t transparent with pricing and charge unnecessary fees. Not only is that frustrating, it also hurts your business’ financial sustainability.So, although you’re busy, it pays (literally!) to pay attention to your choice of merchant service provider (MSP). While some aren’t so great, there are plenty of good MSPs out there to choose from. When looking for an MSP that provides services to medical businesses like your optometry practice, you can gain some clarity on their pricing by examining the following fees:
As you shop for MSPs, pay careful attention to the above fees. Get a good estimate on how much your optometry practice will pay in fees per transaction and overall each month. It’s important that you don’t automatically choose the cheapest payment processor. You’ll also want to make sure that the processing company has reliable customer service and that their system offers the functionality you need, including:
Also keep in mind that while you can’t negotiate fees with banks, Visa, or card brands, you can negotiate the MSRP markup. We’ve seen medical practices get 5–10% off the MSP markup, so don’t miss out on the chance to save money. Once you’ve seen the best offers from a few quality MSPs, go with the company that offers the best value to your business. This will put your optometry practice in the best position to get free credit card processing. After that, you can move on to step 2!
Want to end credit card processing fees once and for all? Then you’ll need to implement a credit surcharge program at your optometry practice. As its name suggests, a credit surcharge program involves having the customer cover the credit card processing fee. It’s 100% legal and compliant (thanks to the Dodd-Frank Act) and gives businesses like your optometry practice the chance to eliminate the impact of transaction fees on your bottom line. A credit surcharge program would give your patients the opportunity to save money by paying for out-of-pocket costs in cash. They’d still have the convenience of paying with a credit card, but would pay a bit more to cover that processing fee. Now, you may be wondering: How exactly does this work? At NadaPayments, our credit surcharge program does the following for optometry practices:
Some businesses wonder if implementing a credit surcharge program will upset their customers. Luckily, this isn’t the case. In fact, many patients may prefer your credit surcharge program instead of traditional pricing structures. After all, they’ll have the option to save money and will appreciate your practice’s transparency when it comes to payment. Moreover, by using a credit surcharge program, your optometry practice won’t take a hit from credit card processing fees. The daily savings you get from a credit surcharge program will more than speak for themselves. And over the months and years, those savings will really add up. A credit surcharge program will not only help you build a financially sustainable optometry practice, but you’ll also reap the rewards personally. Bringing in an additional 6% or more of your annual income will open up a lot more possibilities for your business.
You have the opportunity to increase your profits by tens of thousands of dollars each year. All you need to do is find a better MSP and utilize a surcharge program. At NadaPayments, we can help you start eliminating credit card processing fees today. We can take your credit card processing bill to nada. On top of that, we don’t charge any setup fees. Our surcharge solution easily integrates with your existing payment system and works on the go, in-store, and online. And it only takes a day to get set up! Ready to get started?Call us at +1 (929) 293-1800 or click the link below. We’re ready to help you take home 100% of your optometry practice’s revenue.
Credit card processing fees may seem minor. It’s easy to see that 3% fee and think, “That’s not too bad. I get to keep most of the money I make!”But here’s the thing: Those “tiny” fees quickly add up. Credit card processing fees can suck a surprising amount of revenue out of your business—tens of thousands of dollars, in fact.There’s a way around it, though. And it’s one that most people don’t even know about.You can start taking home 100% of your nose job revenue with a fee-free credit card processing app. Once you set yours up, you can start saving money as soon as tomorrow. Here, we’ll explain everything you need to know about fee-free credit card processing apps. We’ll even show you how to get started in just two easy steps.
These payment processing apps help you avoid paying fees for every credit card transaction that your plastic surgery business processes. How? By taking advantage of what’s called a credit surcharge program. This allows you to pass credit card fees onto your clients—a completely legal and compliant practice, thanks to the Dodd-Frank Act.How does it work?When you implement a credit surcharge program, your patients will be presented with a choice the next time they pay for a cosmetic procedure: Either pay with credit and incur an additional 3.5% fee, or pay with cash or debit to avoid paying the fee entirely. You might be thinking, “Well, that’s not going to work. My patients wouldn’t be happy knowing I’m charging them more for every procedure.”But it all comes down to transparency. Most credit surcharge programs require you to set up a sign or placard explaining how it works, so customers are aware of it before ever swiping their cards. And in most cases, this 3.5% charge is less than what your customers would pay if you raised your prices to account for your credit card fees. Additionally, your clients will appreciate having the choice to save money by paying with cash or debit card.In a nutshell, credit surcharge programs benefit both you and your clients. So how would this play out in real life? Let’s break it down.
A nose job (also known as rhinoplasty) can run a patient anywhere from $5,000 to $10,000, depending on how much work is required during the procedure. According to the American Society of Plastic Surgeons, the average price of a nose job in 2019 was $5,409, without taking into account additional expenses like anesthesia and operating room costs. So, if you charged the national average for every rhinoplasty and performed ten of these procedures every month, you’d bring in a cool $54,090 in just one month. Not too shabby!But here’s where you’ll need to factor in those credit card processing fees.These fees can range from 1.3% to 3.30% of each total transaction, but for our purposes, let’s say that you charge your patients 3% for every credit card purchase.
And because of the high average cost of rhinoplasty procedures (and the fact that they’re often not covered by insurance), most patients will opt to pay with their credit cards. So, how much will credit card processing fees cost you? A whopping $1,622.70 a month (or $19,472.40 a year). Ouch.Think about what you could do with an extra $20,000 a year.Every business incurs monthly expenses, so if you wanted to be practical, you could use that money towards your own plastic surgery clinic. $20,000 would easily cover the cost of medical supplies, new surgical equipment and technology, office renovations, additional staff, or payroll for quite some time.Of course, you could also use that money for personal expenses—like paying down debt on your car or house, starting or contributing to a college fund for your kids or grandchildren, or even donating a portion to a good cause.Without credit card processing fees eating into your hard-earned revenue, you have the freedom to spend your money how you see fit.Now that you know how much money you stand to gain from fee-free credit card processing apps, here’s how to set one up for your own business.
Before you can implement a credit surcharge program, you’ll need to partner with the right merchant service provider (MSP). These companies handle your credit and debit card transactions (for a fee). But here’s some good news: Because nose jobs are such high-ticket procedures, the chances are that you already work with an MSP. And if you do, you’ll be able to get your fee-free credit card processing app that much sooner.Don’t worry if you don’t—we’ll go over some tips to help you find one here.The process starts with finding the right MSP for your business. Some must-have features they should offer include superb customer service, experience working with medical practices, and additional features like contactless payments and mobile credit card processing to make every transaction easier. You’ll also want to take a look at your MSP’s rates to make sure they’re priced fairly. Some fees to look out for include:
What most people don’t know about MSP markup fees is that you can potentially negotiate a lower rate, allowing your business to save even more money. We’ve even seen some medical practices get 5–10% off the processor markup.Why? These fees are how merchant service providers make their profit. But because you’re the owner of a successful plastic surgery clinic, chances are they’ll be willing to make some pricing adjustments in order to earn your business.Once you’ve found the right MSP, it’ll take a few business days at most to set everything up for the next step.
The most important thing to keep in mind during this step is to find a credit card processing app that works with your MSP. After that, this step is an easy one. Most of the work will be done by your MSP and credit card processing app provider, which makes setup a breeze—even if you don’t consider yourself tech-savvy.You’ll find that this will take up just a few hours of your own time, as well as one business day for your app provider to set everything up on their end.Once they inform you that your credit surcharge program has been set up, you’re good to go. Your business is now ready to accept credit card payments without incurring tens of thousands of dollars in unnecessary fees.
As you can see, you have nothing to lose and everything to gain by implementing a fee-free credit card processing app for your nose job business. But with NadaPayments’ surcharge program, you get even more benefits, including:
Best of all, you’ll get your hardware and software free of charge, so there’s literally no cost to set up your surcharge program.As a keen business owner, you can already tell that this is a great deal for you. So what’s holding you back?Get started with your fee-free credit card processing app by calling +1 (929) 293-1800 or clicking the link below.
You don’t want to waste money, right? Whether you run a liquor store, red light therapy clinic, or travel agency, you probably take steps to reduce expenses, such as cutting supply costs and optimizing business processes. After all, that’s how you boost margins and earn more profits. But chances are, you’ve overlooked one thing:Credit card processing fees.Before you say credit card transaction fees are just part of the game, hear us out. Because the truth is…You don’t have to pay these fees. You can get free credit card processing. And free card processing means taking home 100% of your revenue. It doesn’t take long to get started. All you need are the right tools and the right strategy. In this article, we’ll show you how you can get a zero cost credit card processing app and boost your profits by more than 10%. Yes, you read that right—more than 10%.
Zero fee credit card processing apps can accept credit card payments without assessing fees. They’re easy to set up and can be installed on terminals, mobile devices, or online point-of-sale systems. Let’s say you’ve gotten started with a fee-free credit card processing app. In your next transaction, if a customer pays you $100, you’ll make $100. It’s that simple. Not having to pay fees means taking home every dollar you make. But what happens to those fees? There’s no way Visa, MasterCard, Discover, and others are processing payments for free, right?That’s true.Instead, free credit card processing apps use what’s called a credit surcharge program. 100% legal and compliant thanks to the Dodd-Frank Act, credit surcharge programs achieve zero-cost credit card transactions by:
Now that you know what a fee-free credit card processing app is and how it works, let’s dig into why you need one. Whether you own a red light therapy clinic, a hardware store, or a restaurant, you can benefit greatly from a free credit card processing app.
Let’s say you own a red light therapy clinic. First off, congrats! You’ve entered a booming field. The red light therapy market is growing at nearly 5% annually and is expected to reach $1 billion by 2025. More importantly, your services are also helping people. As one WebMD article notes, red light therapy may help promote healing in muscle tissues, skin, and other parts of the body. Now, we know you’ve taken on risk to become a business owner. It can easily cost $150,000 to $300,000 to open a tanning salon, health and wellness center, or similar clinic where red light therapy is offered. Aside from startup costs, you also face ongoing expenses, such as staff, marketing, equipment, and insurance costs. You’ve invested a lot into providing red light therapy to your clientele. You can’t afford to let money fly out the window. But here’s the thing:You’re losing precious profits each time one of your clients swipes a credit card. You may think it’s just 3% per transaction. What’s the big deal? Butlet’s analyze the numbers…Red light therapy or LED light therapy costs between $25 to $85 per session. If you offer package deals, a client may sign up for 10 sessions at once. This can end up costing a pretty penny, so there’s a good chance your customer is using a credit card. After all, as Federal Reserve research shows, credit card usage rates rise as transaction values rise. For this example, let’s say your business generates $300,000 per year in revenue and 60% of that revenue comes from credit cards. Let’s also assume you pay an average of 3.8% in fees per credit card transaction, which is possible once you add on the payment processor markup (see the average fees per network below).
In this case, $180,000 of your revenue is subject to payment processing fees of 3.8%. That means that each year, you pay $6,840 in credit card fees. If you earn profits of $68,000 per year on that current revenue of $300,000, that means you’re losing more than 10% of your potential profits, completely unnecessarily. By using a fee-free credit card processing app, you could earn $6,840 more per year—a salary increase of 10.05%.All you have to do is take the time to get started with fee-free credit card processing.
Getting a free credit card processing app is a two-step process. It involves:
It’s that easy. So, how do you find the best MSP? First, you’ll want to search for payment processors that not only offer transparent, affordable pricing, but also have solid services and advanced capabilities. Whether you’re running a grocery store, a jewelry shop, or a red light therapy clinic, you want to find a payment processor that can handle transactions quickly and across multiple channels, from in-person payments to virtual terminal credit card processing. As you search for the right MSP, compare each one’s pricing and quality of services. Narrow your list down to the top three for your business. Then, analyze the following fees in detail:
With the addition of the MSP markup, you may feel that some of these fees are arbitrary. But here’s the good news: You can negotiate those fees! We’ve seen merchants get 5–10% off that MSP markup. That can save you thousands of dollars over time. So, after analyzing the fees, see if you can reduce the markup. Following those talks, go with the MSP that offers you the best value overall. Once you’ve found your MSP, it’s time for the fun part: Eliminating credit card processing fees for good. As mentioned above, it’s easy to get started with a fee-free credit card processing app. Most of them, such as our app at NadaPayments, integrate seamlessly with credit card installment plans. As you shop for a fee-free credit card processing app, make sure the surcharge solution can be successfully installed within your payment system.Once you’ve chosen the right one, a fee-free credit card processing app can be integrated into your payment system within one day. In less than 24 hours, you can finally get rid of transaction fees for good. Even better, your customers can avoid paying transaction fees by choosing to pay with cash or a debit card. This is what makes a surcharge program a win-win for everyone: It’s a fee-free credit card processing solution that boosts profits for merchants and helps customers save money.
You now know that no matter your business, you can boost your profits by more than 10% just by getting a fee-free credit card processing app.You also know that integrating most surcharge programs and free card processing apps into existing payment systems is a breeze. And, as mentioned earlier, surcharge programs are 100% legal. So, what’s stopping you?In reality: Nothing! You’re all set to get started with fee-free credit card processing. At NadaPayments, we’re ready to help you reduce your credit card processing bill to “nada.” We don’t charge any setup fees, and our app works in store, online, and on the go. We get your surcharge program up and running in no time, so you can start taking home 100% of your revenue. Want to get started? Contact us at +1 (929) 293-1800 or click the link below.
Perhaps you run your own golf course and think credit card processing fees are just par for the course. You know the drill: pay 3-4% in fees on each transaction and go on with your day.
Think again. Did you know that you can completely eliminate credit card processing fees? That’s right—you don’t have to give your hard-earned dollars to a payment network and bank. You can kee 100% of your revenue. You may be thinking, So what? It’s just 3%. Why bother? In reality, learning how to offset credit card processing fees will boost your profits more than you might think. While paying 3.5% on one transaction may not seem like a lot, these fees really add up over time (we’ll show you just how much they can add up down below). Why just throw that money away? With so much competition out there—especially in the eyecare, retail, and hospitality industries—margins can already be slim. Keeping as much revenue in your business’ pockets as possible can boost your profits by more than 10%. Got your attention now? In this article, we’ll show you how to offset credit card processing fees—no matter what industry you’re in. Whether you own an eyecare clinic or food truck, you can get rid of transaction fees, earn more money, and get on a path to a better financial future.So, let’s get to it!
There’s a lot of advice out there on how to offset credit card processing fees. You could do any of the following to help reduce the financial impact of transaction fees on your business:
Many of these tips are time-consuming. And, ultimately, some just work better than others. In this article, we’ll outline a two-step strategy (involving a combination of some of the above tips) to offset your credit card processing fees quickly and easily.
We’ll let the numbers speak for themselves.Let’s say your company generates $500,000 per year in revenue. Your net margin is 10%, which is considered average for a new business. That means that you, as the owner, bring in $50,000 each year. According to data from Statista, credit cards are used for 40% of payments. That’s more than any other form of payment, including cash and debit card!
So, let’s assume that your customers’ credit card usage rates are roughly on par with the national average. In this example, that means that your business processes $200,000 in credit card payments each year. That leaves all that money subject to transaction fees. On that $200,000, you could pay as low as 1.29% or higher than 3.30% in fees, according to data from the Motley Fool. (See chart below.)
Note that this fee chart also doesn’t include the fee charged by your merchant service provider (MSP). The payment processing company charges for hardware, software, customer service, online account services, and more. Altogether, you could easily pay near 4% in average credit card processing fees. So, let’s return to the example. Let’s say you pay an average of 3.5% in fees on that $200,000 in revenue. Do the math, and you’ll see you’re paying $7,000 per year in payment processing fees. Why continue to lose out on that much money? Now, imagine what it would be like with free credit card processing. Your income would jump from $50,000 to $57,000. That’s a salary increase of 14%! And all you have to do is take the time to implement zero-cost credit card processing.
If you have your own eyecare clinic, congratulations! You’ve entered a wonderful field—one that helps change people’s lives. We know you’re busy helping your patients improve their quality of life. But it’s more than worth it to spend a few minutes analyzing how your business accepts payments. Learning how to offset credit card processing fees can benefit your eyecare practice immensely. Think back to all that you’ve done to enter the eyecare field and start your own practice. You likely started with four years of undergraduate study, followed by four more years of study to become a Doctor of Optometry. In order to fund your studies, you may have worked part-time and taken out student loans (the average optometry student loan debt is $173,000).Then, after completing your studies, you invested even more time and money into starting your practice. This isn’t cheap by any means: startup costs for a private practice range from $100,000 to $1 million. And now, you’ve got ongoing expenses to manage. According to a report from CompHealth, the cost of running a small private medical practice can easily exceed $800,000 per year. Employees, especially optometrists, will cost you a lot of money. Equipment, supplies, rent, taxes, and insurance add up too. The point is this: You’ve put in too much time and capital to not make the most of your investment. If you haven’t started saving money by offsetting credit card processing fees, now is the time to do so.
To understand why you must offset credit card processing fees, consider this example:
Now, imagine if you could offset or even eliminate those fees. Your income would jump from $120,000 to $132,000. That’s an increase of $12,000 per year! Just think of all that you could do with 10% more in salary. You could:
Looking forward to getting started? Let’s take a look at our two-step process for offsetting credit card processing fees.
No matter what business you run, you can’t be in business with a bad payment processor. And trust us, there are plenty of bad payment processors out there. The reality is that some merchant service providers, or MSPs, are deliberately vague and complex when structuring their fees. When shopping for an MSP, always read the fine print and make sure you’re aware of all the charges they impose, especially the following:
When discussing fees with an MSP, you should have a clear idea of how much you’ll pay per transaction and per month. There should be no surprises. Another thing to remember is that these fees aren’t set in stone. While you can’t negotiate the interchange fee, network fee, or assessment fee, you can negotiate the MSP markup. For instance, we’ve seen eyecare practices get 5–10% discounts on MSP markups. This has helped these companies save thousands of dollars over the years. So, negotiate that pricing! If your business has a lot of volume and revenue, getting the MSP markup down a little shouldn’t be too difficult. While deciding on an MSP, don’t automatically opt for the cheapest one. Cheaper MSPs may not offer the quality hardware or reliable customer service you need. Go for the MSP that provides the best value: The one that offers all the services you need, as well as a good pricing structure. Once you’ve chosen the right MSP for your business, you’re ready to move on to step two.
100% legal and compliant, credit surcharge programs allow businesses to accept credit card payments without having to pay fees. A surcharge solution does this by:
Surcharge solutions can typically be integrated into your existing credit card processing system. For instance, the NadaPayments app works seamlessly with many credit card payment processors.With no technical barriers and plenty of financial incentives, what’s holding you back?
No matter what kind of business you own, understand that you have the opportunity to increase your profits by more than 10%. All you have to do is partner with a great MSP and implement a surcharge program. At NadaPayments, we can help you begin offsetting credit card processing fees today, bringing your credit card processing bill down to “nada.” We don’t charge any setup fees and our solution works in store, online, and on the go. Want to get started? Call us at +1 (929) 293-1800 or click the link below.
It’s a known fact that increasing your company’s profits usually requires putting in an equal amount of work to see results. If you’re looking to bring some extra revenue into your dermal filler business, you’re likely anticipating hours of carefully-calculated work.But what you may not know is that there’s one effortless way to generate more revenue for your business—and you can implement it in a matter of days.According to the American Society of Plastic Surgeons (ASPS), 2.6 million dermal filler injections were performed in 2018, making it the second-most popular minimally-invasive cosmetic procedure. (Only Botox injections outperformed it, with 7.4 million injections.) You can reasonably expect to perform many more dermal filler procedures in the years ahead. But no matter how successful your business is, one often-overlooked cost eats up tens of thousands of dollars in revenue every year. The culprit? Credit card transaction fees. Luckily, you don’t have to continue losing money on each transaction. With a fee-free credit card processing app, you can increase your bottom line with minimal time and effort.Here, we’ll show you exactly how much you’re losing out on in credit card processing fees—and, more importantly, how to start taking home 100% of your revenue in two easy steps.
By offering dermal fillers, you’re providing your clients with one of the most in-demand cosmetic procedures on the market. According to the Aesthetic Society, hyaluronic acid dermal filler injections were the second-most popular nonsurgical aesthetic procedure in 2019, with total national spending on the procedure over $468 million. That’s great news—especially given the small fortune you’ve spent to get to where you are today.First, you invested in your education. By the time you finished medical school, you likely spent anywhere from $150,224 to $248,920. opening a medical spa or cosmetic surgery practice is another investment in itself, with startup costs for a med spa ranging from $700,000 to $1,000,000 (not to mention the hard work you put in to get started). And you probably didn’t turn a profit right away, either. Like most other small businesses, you can expect to make a profit starting at around the three-year mark. Along with the cost of equipment, renting your office space, and payroll, you can’t afford to spend money carelessly. Credit card processing fees are not only expensive—they’re also entirely avoidable. Why pay unnecessary fees when you’ve got so many more important costs to consider?
Let’s take a look at the numbers. According to 2019 statistics from the ASPS, soft tissue fillers can cost anywhere from $652 to $2,163 per injection. And because most patients will require two to four of these injections to achieve the youthful look they want, the total cost of each session is usually even higher than this. So, let’s say a patient received four Juvederm Ultra injections at $652 each. This would come out to $2,608 per procedure. And because these minimally-invasive procedures take as little as 15 minutes to complete, you can do several of them in a day.If you see 10 dermal filler patients every week, you’d make $104,320 a month and $1,251,840 in a year. And that’s not counting the other procedures you’re doing on a daily basis.How would credit card fees stack up against your revenue? Much more than you might think.Typical transaction fees start at 1.3% but can easily soar to rates of 3% or higher. Although this number sounds small, the costs seriously add up.
A study from the Federal Reserve also shows that people are more likely to reach for their credit card for more expensive purchases. Because of the high sticker price of some dermal filler sessions, many of your clients are pulling out the plastic to pay for their visits.So, let’s say 60% of your patients pay with credit. With a 3% credit card processing fee on each of these transactions, you could expect to lose $1,877.76 every month just from dermal fillers alone. That’s a staggering $22,533.12 every year. Wouldn’t you rather spend that money elsewhere? If were to reinvest that money into your business instead, $22,000 could get you:
You could even increase your marketing budget to bring in more customers or put that money toward a college fund for your children or grandchildren. As you can see, when you don’t give your hard-earned money away to credit card companies, a world of options opens up to you.Now that you understand the true cost of credit card transactions, let’s take a look at how you can stop paying processing fees for good and start using the money you earn as you see fit.The best part? Because this process can take as little as 24 hours to complete, you could start saving money by the next business day.
You can start taking home 100% of your revenue in two easy steps. The best part? If you’re already accepting credit card transactions, the chances are that you’ve already completed the first (and most time-intensive) step.First, you’ll start by finding the right merchant service provider (MSP). You’ll want to look for providers that offer all the features you need, 24/7 customer service, and, of course, competitive prices. The best ones are those that specialize in the medical industry, as they’re the most knowledgeable on the guidelines and best practices for your business.While doing your research, you’ll want to keep in mind the different fees that merchant service providers will charge you for doing business with them, including:
Unfortunately, there’s nothing you can do about your interchange, network, and assessment fees, as these rates are controlled by the companies your provider works with. But the good news is that you can negotiate with your MSP for a lower markup rate. These fees are how merchant service providers turn a profit, which is why they’re sometimes able to lower your rate by 5–10%.And because medical spas and cosmetic surgery clinics can bring in upwards of $1 million in revenue every year, they’ll be willing to do more to gain your business.
Once you enable credit card transactions with your merchant service provider, you’ll want to look for a fee-free credit card processing app. These programs allow you to bypass the fees that come with every swipe of your patients’ plastic. But what happens to these fees? Fee-free credit card processing apps allow you to give your patients the option of paying with cash for no fee or paying with a card for a small fee. Here’s how it works: when the time comes to pay for their dermal filler procedures, your patients have the option to use their credit card and pay an additional 3.5% fee to cover the transaction. If they choose to pay with cash, debit, or check instead, they can forego these fees entirely and save money on their procedure. Best of all, this money doesn’t come out of your bottom line like it used to.Sound too good to be true? Thankfully, it’s not. This practice is 100% legal and compliant, thanks to the Dodd-Frank Act. And when you work with a fee-free credit card processing app like NadaPayments, you won’t have to pay for your hardware, software, or setup. This means you have absolutely nothing to lose—and tens of thousands of dollars to gain.Contact us at +1 (929) 293-1800 or click the link below to get NadaPayments set up for your cosmetic surgery clinic or med spa.
Want your auto body shop to make more money? You probably answered yes. Who doesn’t want to make more money? Here’s the amazing thing: This money-saving strategy is so easy. You don’t have to bring in any new clients. You don’t even have to charge more. All you have to do is get the best credit card processing out there for automotive businesses. So, the question is: How can you get the best credit card processing? As the owner of an auto body shop, car dealership, car wash, or towing service, this question may not have even crossed your mind. But it should have! For far too many small business owners, credit card fees dig into profit margins and affect financial wellbeing. If you’ve been paying 3% or more per transaction in processing fees, you’re probably losing hundreds—if not thousands—of dollars per month. Have we gotten your attention now? In this guide about automotive credit card processing, we’ll discuss how you can eliminate credit card processing fees and take home 100% of your revenue. Read it, take action, and get your auto business on the path to greater prosperity.
You know your auto business better than anyone. And you understand the amount of capital and work you’ve put in to launch and run it. You probably spent a good deal of money opening your auto body shop. According to small business experts, average startup costs for an auto body shop hover around $50,000, with the main expenses including your diagnostic machine, rental/mortgage fees, vehicle lift, tool sets, and insurance costs. Aside from that, you have to face ongoing expenses. From labor and equipment maintenance to rent and insurance, you most likely spend tens of thousands per month to run your auto body shop. Beyond the money, you’ve worked hard to give your clients the best possible service and ensure that your company continues to run successfully. From the early mornings to the late nights, you’ve given it your all to fulfill your dreams of being your own boss and doing something you love. Considering that, it only makes sense to protect your investment. That begins with handling your money well and taking steps to increase your auto repair shop’s profit margins. This is precisely why you should pay attention to how you process payments. Because having the right automotive credit card processing can increase profit margins and make your business more financially sustainable. That’s what you want, right?
Here’s the good news: You operate in a thriving industry. The automotive repair and maintenance service market is projected to reach $810 billion by 2026 (up from $516 billion in 2018).That presents a huge opportunity for continued success and growth. And as you know, in order for that to happen, you need to take care of your clients, strategize your business’ development, and watch your money carefully. This is where you have to think about your credit card processing. It’s one of the biggest keys to increasing your shop’s profit margin. You may be asking, “How so?”First, picture this scenario:
Overall, you’ve paid $63 in card processing fees on a total bill of $1,800.Now, you may think that’s not too bad. If you make a gross profit of 28% (the auto repair industry average), you’ll have made $504 on the transaction. You’re right—it’s not bad. But you could be doing better. Let’s take a step back and do a quick calculation:
Those credit card fees are eating up 12.5% of your profits. That’s ridiculous!So, how does this work out over a whole year for your auto body shop?Let’s say you generate $700,000 per year in revenue, and $400,000 of that revenue is paid with credit cards. According to ValuePenguin, average credit card processing fees can easily hit 3%.
So, of that $400,000 of credit card revenue, you’ll end up sacrificing $12,000 in fees. That much can easily kill your shop’s margins. Clearly, if you want to increase your profits, you’ll have to address credit card processing fees. If you were to completely eliminate credit card transaction fees, you could boost your profits by more than $10,000 per year. Just think about what that $10,000 could do: Not only would it increase your personal income, it would also put your shop in a better financial position.
Now that you’re motivated to find the best credit card processing for your small business, let’s take a look at the first step in doing so: Shopping for a reliable, low-cost merchant service provider (MSP). Most importantly, you’ll need to find an MSP with the right capabilities. After all, auto repair centers (especially those that offer towing) have multiple points of service. You’ll need an MSP that offers speed and reliability, as well as:
In addition, you’ll want to find a payment processor that uses pass-through pricing (not tiered pricing). Here’s why:
That said, you can’t just opt for any MSP that offers pass-through pricing. You need an MSP that provides great services at a low cost. That means that if you want to get the best automotive credit card processing, you’ll need to read the fine print. Here’s what to keep in mind when shopping for automotive credit card processing companies:
When you’ve done your research on the different payment solutions for your auto body shop, you’ll want to narrow down to three low-cost, high-quality MSPs. From there, attempt to negotiate the MSP markup. While other fees aren’t negotiable (for instance, you can’t tell Visa you’re simply not going to pay them as much), it’s common for merchants to get a 5–10% discount on the MSP markup. So, it can never hurt to ask!
Having the best credit card processing solution is the first step to eliminating credit card processing fees. However, if you want to increase your auto repair shop’s profit margins even further, consider implementing a surcharge program, as well.With a credit card surcharge program, the idea is simple: You sell $100 and see $100 in your business account. That’s right: You take home 100% of your revenue. So, how does it work? With a surcharge program, you give customers a choice: Pay with cash, debit card, or check and get the standard price, or swipe a credit card, and pay extra to cover the processing fee. By doing this, you give customers an option. You can save money by paying with cash, debit card, or check. Or, they can go with the convenience of swiping their card. As an added bonus, you get the benefit of not having credit card transaction fees eat into your bottom line. Yes, you read that right. With a surcharge solution, you can completely eliminate credit card fees from your expenses. That enables you to increase your auto repair shop’s profit margin and, ultimately, run a more successful business. Considering a surcharge program is 100% legally compliant and works with credit card installment plans, it makes perfect sense to add a surcharge solution to your credit card processing strategy.
At NadaPayments, we’re ready to help you implement a surcharge solution and increase your auto repair shop’s profit margin. We’ve done our homework and know all the rules of the game. Partner with us at NadaPayments and start taking home 100% of your revenue. With us, you’ll have the freedom to focus more on serving your clients and building your business. Contact us at +1 (929) 293-1800 or click the link below.
Have you looked at your financial statements lately?As a small business owner, you’re probably always thinking of ways to boost profit margins. That means cutting costs and increasing revenue, right?It sounds easy enough. But as you also know, many things in business are easier said than done. What if we told you that there was a simple, risk-free (and 100% legal) way to immediately increase your profits? Of course that would be intriguing. But you may be thinking: Again, easier said than done. As it turns out, it’s not! All you need is to do is change how you accept payments. Whether you have your own veterinary clinic, run a fashion boutique, or operate a food truck, you can get zero-cost credit card processing by implementing a new payment system.Even better: Your customers will thank you for it. So, let’s dive deeper into how you can get zero-cost credit card processing and start seeing your revenue increase.
Consider this scenario: You’re a veterinarian. You have your own clinic that brings in $700,000 a year (the average for an animal hospital or vet clinic, according to the American Veterinary Medical Association). After paying your staff and covering rent, utilities, and equipment expenses, you have a net profit of $100,000 for yourself, which puts you slightly above the median average for veterinary salary. You may think: I’m doing just fine as a vet. And you’d be correct! But you could also be earning much more…Now, the average cost of a vet office visit can run anywhere from less than $40 to more than $300, depending on the reason for the visit. If it’s for an annual physical exam or just one or two vaccines, it won’t be too much. If it’s for surgery or a blood test, however, it could cost much more.Given the cost of many trips to the vet, your customers are more likely to pay with a credit card (according to Federal Reserve research, credit card usage rates increase as transaction values increase). And if credit cards are used for 40% of everyday retail transactions, it’s possible that as many as half of your clients pay with plastic. So, out of that $700,000 in veterinary revenue, as much as $350,000 may be left subject to credit card transaction fees (if 50% of your revenue comes from credit cards). To see how much that decreases your income, we need to calculate the cost of veterinary clinic credit card processing fees. According to data collected by the Motley Fool, you’ll pay anywhere from 1.29% to 3.30%—plus a per-transaction fee.
And your credit card transaction fees don’t end there. The payment processing company will also charge you for hardware, software, and other services. All told, you could be paying more than 3% per transaction for your veterinary credit card processing system. If you pay an average of just 3.5% in processing fees on that $350,000 in revenue at your vet clinic, that’s $12,250 lost each year! That’s a lot of money to pay just for credit card processing. Now, imagine that you have totally free credit card processing. If this were the case, you would have $12,250 more each year. That’s a salary increase of 12.25%!You read that right. By getting zero-cost credit card processing, you could increase your profits by more than 10%.Think of all that you could do with that extra money:
The point is this: With the best credit card processing, you can put money back into your wallet (or your business). The money you make should be yours—not the credit card company’s.
No traditional merchant service provider (MSP) is going to offer zero-cost credit card processing. If they did, they would lose money and, eventually, go out of business. So, you have to look elsewhere for free payment processing. Fortunately, we know the best strategy for doing so. First, you’ll want to research and identify good merchant service providers. The ideal MSP will have experience with small businesses, charge minimal fees, and provide the hardware and software capabilities your business needs. You’ll want to make sure that the MSPs you’re researching provide mobile credit card processing, PIN debit card processing, and all types of e-commerce credit card processing. From there, filter out any payment processing companies that use a tiered-pricing model. While tiered pricing may make transactions appear cheaper at first glance, you won’t necessarily know how each transaction will be categorized. All too often, purchases are marked as ‘non-qualified’ or ‘mid-qualified,’ meaning you’ll pay higher fees. Instead of dealing with tiered pricing, opt for pass-through pricing. Under this model, businesses pay a fixed fee, plus an MSP markup. It’s much more transparent—and almost always cheaper. Once you’ve narrowed down your research, select your top three MSPs. Then, compare the following:
Now, you may think there’s no way to get rid of these credit card transaction fees. The truth is: There isn’t. You’ll still have to pay the interchange, network, and assessment fees. You can, however, negotiate the MSP markup. We regularly see business owners get 5–10% off payment processor’s fees. That could save you hundreds, if not thousands, of dollars per year. It may be even easier for you to negotiate the MSP markup if your business generates a certain amount of revenue. For instance, if your veterinary clinic brings in $1,000,000 in revenue each year, you can leverage that high revenue to get a better deal with your payment system provider. After negotiating the markup, go with the credit card processor that will bring the most value to your business. In many cases, this is the cheapest MSP. Keep in mind, however, that if you complete many transactions each day, you’ll want to make sure that the processing system has the speed you need. Once you’ve found the right MSP, you’re ready for the next step: Implementing a solution that will deliver zero-cost credit card processing.
You may be wondering: What’s a surcharge solution?In short, it’s your path to taking home 100% of your revenue. Whether your credit card processing system is for a restaurant or a veterinary clinic, a surcharge program allows you to completely eliminate transaction fees. So, how does it work? Your customers still have the option to pay with a credit card, debit card, cash, or check. However, if they pay with a credit card, they’ll have to cover the processing fees. So, if a customer pays you $100, you’ll see all $100 at the end of the day.To help you better understand this, take a look at how we implement our surcharge solution at NadaPayments:
Now, let’s revisit the vet clinic example. Let’s say you perform a surgery on a dog that costs $1,000. By using a veterinary credit card processing system with an integrated surcharge program, you’ll save $35 in transaction fees. How awesome is that?
Surcharge programs are 100% legal and work seamlessly with credit card installment plans. No matter your business, signing up for a surcharge program will allow you to start taking home 100% of your revenue. At NadaPayments, we’re ready to help you get started right away. We’ll get you set up in no time so that you can focus on what matters: Running your business. Contact us at +1 (929) 293-1800 or click the link below.
Could lower credit card processing fees boost your profits from chemical peel treatments? The short answer is yes! But is looking for a way to accept payments even worth it? Your dermatology clinic or medical spa must prioritize your patients. That’s a busy and honorable job. After all, by offering chemical peels, you’re improving lives. As the American Society of Plastic Surgeons notes, chemical peels can improve acne scars, wrinkles, sun damage, and irregular skin pigmentation.Before you say forget changing payment systems, hear us out. Because you have to stay financially viable to keep helping clients. And the truth is credit card processing fees are probably eating way too much into your revenue. Let’s discuss what you can do.
First, think of all you’ve done to get here. To become a dermatologist or plastic surgeon and perform chemical peels, you had to go to school and train. You may even have debt to pay off (average student debt approaches $200,000, according to NerdWallet data). To open a medical spa or cosmetic dermatology clinic, you spent a lot of money too. Startup costs for a medical spa average well into six figures, with some owners spending $1 million. You certainly want to see a return on that investment.Second, you offer chemical peels to help people look and feel better. It’s a good thing to do. You also can reap the benefits of the fast-growing chemical peel market, which eclipsed $2.1 billion globally in 2018. Statista estimates chemical peel revenue to exceed $3 billion by 2025. As an aesthetics professional, you can profit from this boom. So, you’ve made an investment to give yourself opportunity. Why let credit card processing fees risk your profitability and sustainability? The damage credit card fees are doing to your business may be more than you think...
Since chemical peels are considered aesthetics treatments, insurance doesn’t cover your clients. That means all your chemical peel revenue comes from out-of-pocket payments. Now, the average cost of a chemical peel is $669, according to the American Society of Plastic Surgeons. Given that it’s such a high expense, chances are a good portion of your clients swipe a credit card to pay for the treatment. As consumer research from the Federal Reserve shows, credit cards are more commonly used with purchases from $50-$100 or more. Look at the average transaction value of various credit card brands.
Source: Statista
Knowing this, it’s fully possible 50% of your chemical peel revenue comes from credit cards. If you do 1,500 chemical peels per year at an average cost of $670, that equates to $1,005,000 in revenue from the treatment. That’s great! If you have net margins of 15%, you earn $150,750 in profits from chemical peel treatments. But you could do much better.Consider that half of that revenue came via credit card. That’s $502,500. On that chemical peel revenue, you pay the following fees:
Source: Motley Fool
Once you account for processor markups, you probably pay around 3% per transaction. In the example we’re discussing here, that means you’d pay $15,075 in credit card processing fees per year. Do we have your attention now?Clearly, you stand to gain a lot with lower credit card processing fees. Imagine if you could eliminate those fees altogether... Your profits would jump from $150,750 to $165,825. That’s an increase of 10%!The only question remains: How do you get lower credit card processing fees?
Ideally, you want a payment processor that offers low credit card processing fees along with the capabilities you need. To get that, you must learn how to find the best merchant service provider (MSP).To start, check the MSP’s pricing model. They’ll either offer tiered pricing or pass-through pricing. Go with pass-through pricing! Here’s why:
Once you have a list of viable MSPs with pass-through pricing, examine the following fees:
As you can see, processor fees get complicated. But why? While reputable MSPs will offer transparency with their fee structures, the fact is the industry remains unregulated. There may be fees you overlook or don’t calculate. That could add to the cost of having a payment system. Thoroughly examine each MSP’s fee structure. Calculate how much you’ll pay each year in fees for chemical pee revenue. Then, make a shortlist of potential payment systems to purchase. Finally, negotiate. Leverage your high revenue as a medical spa to get lower credit card processing fees. Payment processors may offer surprisingly lower credit card processing fees to get your business. Just note: Only the processor markup can be negotiated (not the interchange and assessment fees). Many businesses have been known to get 5-10% knocked off the markup. So why not try it?
How does a cash discount program get you lower credit card processing fees? Well, the cash discount concept is simple yet smart. You give your chemical peel clients a choice: pay for the chemical peel treatment in cash or pay a surcharge for using a credit card. You still give your chemical peel clients still have the convenience of swiping the plastic. But they can save if they pay in cash. At NadaPayments, for instance, our cash discount program saves cash-paying customers 3.95%. Completely legal and compliant, thanks to the Dodd-Frank Act, a cash discount program ensures your spa or dermatology clinic can take 100% of your chemical peel revenue. With that extra revenue, you can expand your business, save more, or take a longer vacation. Sounds nice, right? If you’d like to learn more, contact us at NadaPayments. We’re ready to help get you lower credit card processing fees through a cash discount program. Give us a call 1 (929) 293-1800 or click the link below.
How can you make more from permanent makeup services? Here’s the secret: Get the best credit card processing for salons. Yes, it’s that simple. Before you say it’s not worth the time and effort, and you’ll still have to pay credit card transaction fees anyway, here us out. Because if you can actually stop paying credit card processing fees, you could boost your salon’s profits by more than 10%.Got your attention? The fact is you’ve invested a lot to become an entrepreneur in the permanent makeup space. Starting a permanent makeup salon costs between $100,000 to $500,000, according to Sage, an accounting software company. You also have ongoing costs, such as license fees, labor, equipment, marketing, and insurance. Simply put, you shouldn’t let money fly out the window! By handling your finances well, you can live your dream as a highly successful salon owner. So, stop paying too much in credit card processing fees!In this guide, we’ll show you how you can take home 100% of your revenue from permanent makeup services like microblading. After reading, you’ll be ready to take your business to the next level.
You work in a growing field. The permanent makeup field is part of the beauty and aesthetics market, which is expected to exceed $26.5 billion in value by 2024. If you have a good marketing strategy and do good work (which we know you do), you most likely get a decent amount of permanent makeup clients. That’s great! Now, think about this question: How many of your permanent makeup clients pay with a credit card? Probably a good portion, right? Credit cards are used for 44% of transactions, according to Statista. Since the average cost of permanent makeup services is around $800, your clients are more likely to use a credit card. And as Federal Reserve research shows, credit card usage rates increase as transaction values increase. Considering that permanent makeup application is a high-value transaction, a higher percentage of your customers will pay with a credit card. 50-60% of your revenue could come from credit card transactions. If you have to pay fees on more than half your permanent makeup revenue, you stand to gain a lot from eliminating those expenses. It literally pays to pay attention to your salon’s credit card processing. So, why do credit card processing fees at your salon matter? Because lowering them could improve the financial health of your business greatly.
With the best credit card processing for salons, you can boost your profits by 10% or more. First, understand you probably pay 3% or more in fees per transaction. Take a look at average network fees below. That doesn’t even include the merchant service provider markup.
So, how can you increase profits by more than 10% at your salon? Let’s do an example so you can get a clear idea of what you stand to gain.
Here’s what you could make if you get rid of credit card processing fees. Let’s say:
What if you could pay $0 in fees instead of $14,616? Your permanent makeup salon profits would jump from $87,000 to $101,616. That’s an increase of 16.8% in profits!Imagine what you could do with that extra money. You could expand your studio’s business, take a nicer vacation, put more money away for retirement, buy a bigger house, and more. The point is this: That money deserves to be in your pocket. Here’s the good news: By getting the best credit card processing for salons, you can get stop paying those fees. In the next two sections, we’ll explain how this is done.
The first step to free credit card processing is finding the best merchant service provider (MSP). To do that, you must understand how fees work. You should begin by looking for MSPs with pass-through pricing. This pricing model is more transparent and typically more affordable than tiered pricing. With tiered pricing, many transactions end up in the higher fee range, and you won’t notice that until you look at the bill. With pass-through pricing, you pay set rates and don’t have to worry about what “tier” the transaction is. Additionally, know there are three credit card transaction fees you have to pay:
You also have to pay the MSP markup. That’s how the card processing company makes money. That fee is usually collected as a per-transaction fee, a monthly fee, software fee, hardware fee, and/or other sorts of charges. To get the best credit card processing for your salon, you should look for MSPs with the lowest fees, of course. You want good customer support and quality hardware and software too. Narrow down your choices to two or three. Then, it’s time for the fun part: Negotiation!Wait! You can negotiate credit card processing fees. So, what can you negotiate? Well, you can’t tell Mastercard you’re going to pay 5% less. But you can negotiate a discount on MSP fees. In fact, we’ve seen permanent makeup studios get 5-10% off the MSP markup. It’s that simple. By understanding fee structures, shopping for the best MSP, and negotiating the markup, your permanent makeup salon can save thousands per year.
The second step to getting the best credit card processing for your salon is implementing a cash discount program. A cash discount program can complement your MSP and enable you to keep all your permanent makeup revenue. How does this work? As the name implies, your permanent makeup clients who pay with cash get a discount. At NadaPayments, for instance, our cash discount program gives clients up to 3.95% off their bill. The client still has the option to pay with a credit card. However, they’ll pay the non-discount price (which includes the cost of processing the credit card). By offering a cash discount, you ensure your salon doesn’t lose any revenue to credit card transaction fees. And you still offer your customers the convenience of choosing their payment method.Now, you may wonder: Is this legal? Yes, it is! Thanks to the Dodd-Frank Act, merchants can give discounts for cash payments. This gives you the opportunity to eliminate credit card processing fees. Interested to learn more? At NadaPayments, we’re ready to help permanent makeup salons get the best credit card processing. Call us at +1 (929) 293-1800 or click the link below.
Credit card transaction fees aren’t cheap. Do you know how much you pay?If you offer cosmetic dental procedures, you probably should know. Because dental insurance typically doesn’t cover cosmetic services. That means your patients are paying out of pocket, making it likely that credit card processing fees take a noticeable chunk out of your revenue. You may think this is just the reality of doing business. But the truth is this: You don’t have to pay credit card processing fees. Here’s why you should care about dental credit card processing fees and how your dentistry can stop paying them.
You’ve made a good decision to offer cosmetic dentistry services at your practice. Most importantly, you can boost the oral health and confidence of many people. You can improve lives and literally help people smile brighter. Also, the market is truly great. As research shows, the cosmetic dentistry market already nears $20 billion and is expected to eclipse $32 billion by 2026. With solid growth and incredible revenue, you can help people and earn good money. To get to where you are, you’ve made a massive investment in yourself. You attended dental school for four years, did countless hours of training, and obtained a license in your state. Getting started also costs you a lot of money. After all, dental school tuition is expensive. That’s why, according to the American Student Dental Association, the average debt of a dental school graduate exceeds $285,000. In addition to education expenses, you made a big investment to start your practice. As a Bank of America report notes, opening a dentist office costs between $350,000-$500,000.On top of all that, you have to care for patients and manage the office and staff every day. With so much on your plate, it can be hard to pay attention to how you process credit card transactions. But you should take some time to make sure you have the best possible point of sale system and strategy. Without the best credit card processing for dentists, you're losing money for no good reason. Here’s why: If you earn a good deal of revenue from cosmetic dental procedures, such as dental implants and teeth whitening, credit card processing fees definitely eat at your margins. If you can get rid of those fees, you stand to gain a lot. In fact, you could boost your profits by more than 5-10% (or even more). That equals a better return on your investment and the opportunity for your dentistry to enjoy greater success.Motivated yet?
Cosmetic dentistry involves a lot of different procedures, from dental bonding and dental crowns to inlays and onlays. Prices for these services vary from under $100 to more than $5,000.Considering the high cost of services, it’s very possible 50% or more of your revenue comes from credit card transactions. As data from the Federal Reserve shows, the higher the purchase, the more likely people are to use credit cards. The chart below shows the average transaction value of various credit cards.
Source: Statista
So, a significant portion of your revenue is subject to credit card transaction fees. But how much do you actually pay in credit card transactions? According to industry data, you probably pay 3%+ per transaction. The chart below details fees for each credit card. Add in the merchant service provider (MSP) markup, and you’ll get to 3%+ on average.
Source: ValuePenguin
That may not seem like a lot. But if you do thorough analysis of your finances, you’ll see it is. This makes it even more crucial you have the best credit card processing for dentists. So that you have a better idea of how much dental credit card processing fees affect your practice’s finances, let’s do an example with actual numbers. Let’s say your practice offers all types of cosmetic dental procedures and achieves the following revenues and margins:
Now, imagine you could eliminate those credit card transaction fees. Your profits would jump from $216,000 to $231,120. That’s an increase of 7%! And all you had to do was get the best credit card processing for dentists. Now, think of all you could do with that extra money. You could improve benefits for staff, save more for retirement, add to your children’s college funds, take a vacation, and more. As you can see, you can benefit tremendously from not paying credit card transaction fees. But how do you eliminate those fees? Isn’t it impossible? It’s actually not. By taking two steps today, your cosmetic dental practice can stop paying credit card processing fees.
You need two things from your merchant service provider (MSP):
So, you must shop for an MSP. Fee structures can get confusing, as many MSPs aren’t as transparent as they should be and the industry remains unregulated. Moreover, they know dental practices are busy places, and therefore may not inspect the fine print! Be sure to look for all potential fees and ask the MSP questions so you’re clear on how much you’ll pay per transaction. As you shop for a credit card processor, check pricing models. Some offer pass-through pricing and others offer tiered pricing. Only opt for those with pass-through pricing because credit card transaction fees are more transparent with this model. You know what you pay with pass-through pricing. Tiered pricing often results in business owners paying high fees for mid- and non-qualified transactions. Once you have a list of MSPs with pass-through pricing, compare their fees. Look at the following:
Processor markup charges can get confusing, as MSPs may assess extra fees through monthly subscriptions, same day funding fees, online funding charges, and more. After you’ve gathered all the data on those fees, crunch the numbers. Narrow down your selection to a few MSPs with the lowest credit card transaction fees! Then, you get to the fun part: Negotiation!Yes, you can negotiate how much you pay in credit card transaction fees. While you can’t negotiate interchange fees and assessment fees, you can negotiate the MSRP markup costs. We’ve regularly seen business owners get a 5-10% discount on MSP fees. Lastly, choose the best MSP for your cosmetic dentistry. That should be a processor with low fees and good services.
What’s a cash discount program? Like it sounds, a cash discount program offers cosmetic dental clients a discount for paying in cash. At NadaPayments, for example, our cash discount gives patients 3.95% off.But how does that eliminate credit card transaction fees? It’s simple! When clients take care of their bill, you can offer them a discount for paying in cash or have them pay a slightly higher price for using a credit card. The slight markup covers the credit card transaction fees, ensuring your bottom line doesn’t take a hit. The passing of the Dodd-Frank Act makes cash discount programs completely legal and compliant for cosmetic dental practices. That gives you a strategy for taking home 100% of your cosmetic dental revenue! Interested in learning more? Feel free to contact us at NadaPayments. We’re ready to help you boost your profits with a cash discount program. Call us at 1 (929) 293-1800 or click the link below.
What’s the best credit card processing for therapists?It’s a question you may not have pondered a lot. After all, your first priority is to help your patients live well. But you are a business owner. And as a business owner, you must handle your finances well. That’s how you ensure sustainability. That’s how you ensure you can continue helping your patients. Handling your finances well begins with keeping as much revenue as possible from your therapy sessions. Your therapy practice has ongoing expenses, such as liability insurance, office rent, website maintenance, continuing education, and referral fees. These are necessary, but could be reduced a little over time. But did you know you have a way to save lots of money immediately? All you have to do is change how you accept payments. By implementing the best credit card processing system at your therapy practice, you can boost your income by thousands, if not $10K+, per year. Got your attention? Let’s dig a little deeper…
You may think: What’s the big deal? We’re just talking about a few percentage points in fees. That’s true. But it adds up. These credit card processing fees eat into your therapy practice’s profits. There are many reasons why you should care about this. First, you spent more than six to nine years or more in school to obtain your Master’s degree or PhD. That’s a massive investment in time and energy. But you did it, and your efforts will benefit lots of people. Second, it’s not just a time commitment that you made, but also a financial commitment. The average doctor of psychology, for instance, graduates with a debt load of $200,000. Additionally, to start your private therapy practice, you spent money and time developing a business plan, finding an office, hiring assistants, and more. Depending on how you run your therapy clinic, that investment could have been anywhere from a few thousand dollars to more than $50,000. Third, you have ongoing expenses and there’s simply no reason to spend more than you have to on something like credit card processing. By paying those fees, you’re letting money fly out the window. As you can see, you have a lot on the line. That’s why you need to eliminate credit card processing fees. That money can go towards protecting your investment.
Here’s the good news: You work in a growing and important field. The behavioral therapy market has been growing at an annual rate of 8.2%. As long as you market your services well and set up referrals with primary care providers, you should have a steady flow of clients. Now, that brings us to accepting payment. Let’s first break down how much therapy costs, as fees can vary. Therapy sessions cost anywhere from $75 to $200 or more, according to Healthline. How much you charge depends on your location, your specialty, your experience, and whether or not you accept health insurance. For example, if you specialize in sleep therapy, your services may cost a lot more. Since most of your patients suffer from insomnia, sleep apnea, restless leg syndrome, and other sleep disorders, therapy probably includes a polysomnogram (overnight sleep study). During a polysomnogram, medical equipment is used to monitor brain activity, breathing, heart rate, nasal airflow, and muscle movements. Given all that’s involved, a polysomnogram can cost a lot of money (from $600 to $5,000). Health insurance will cover a good portion of that, but chances are some patients will have a high out-of-pocket expense. Why would that matter to your revenue at your sleep therapy clinic?Well, credit cards have the highest usage rate for consumer payments, with a 40% share of payments.
As transaction values increase, Federal Reserve research finds credit card usage rates increase as well. So, more than 50% of your clients could pay with a credit card. Now, imagine this scenario:
That leaves 40% of your sleep therapy revenue subject to credit card transaction fees. These fees can easily exceed 3% per transaction. That adds up over time and kills your bottom line.But you don’t have to pay these fees. There is a solution for all therapists. You can get free credit card processing.
Let’s continue with the example of a sleep therapist. And let’s say the sleep therapist treats 60 patients per year at an average cost of $1,500. That equates to $900,000 in revenue per year. Like the example in the above section, let’s assume 40% of that revenue comes from credit card transactions. The sleep therapist also uses one of the following merchant service providers, paying an average credit card fee of 3.25% per transaction:
That means the sleep therapist pays a 3.25% fee to the merchant service provider on $360,000 worth of revenue. That’s $11,200 per year in credit card transaction fees.How much would eliminating credit card processing fees increase the sleep therapist’s salary? Well, let’s say, after accounting for equipment, labor, insurance, marketing, legal, and other expenses, the sleep therapy clinic has net margins of 10%. The sleep therapist earns $90,000 per year. That’s quite solid. But if the sleep therapist got rid of credit card transaction fees, her income would jump from $90,000 to $101,700 per year. That’s a salary increase of 13%!Imagine what you could do with a salary increase of 13%. You could get more resources for your patients and expand your therapy clinic. Or, you could use the money for yourself. Save more for retirement, buy a nicer house, or take a better vacation. The choice is yours! The bigger point is this: That’s your money. It deserves to be in your wallet. And you don’t have to waste it on credit card transaction fees.
The first step to getting free credit card processing is finding the merchant service provider (MSP) that provides the best value. Ideally, you want an MSP with low fees, quality service, and reliable hardware and software. You may even want mobile credit card processing and virtual terminal processing capabilities. To find the best MSP for your therapy clinic, follow these steps:
Now that you know the processing for getting the best credit card processing for therapists, let’s get to the next step: Ensuring you don’t lose any revenue when patients pay with a credit card.
Whether you’re a sleep therapist, psychologist, or addiction specialist, know this: You can still accept credit cards and avoid processing fees.How can you do that? You already know the first step: Get the most affordable credit card processor possible. Here’s the second step: Use a cash discount program. As the name suggests, you give your patients a discount for paying with cash. At NadaPayments, our cash discount program gives therapy patients a discount of up to 3.95%. Your patients can still pay with a credit card, but they save when they pay with cash. Even better, how your therapy patients pay doesn’t matter. Your revenue remains the same, as the credit card price Now, you may be wondering: Is this legal? Yes! It is, thanks to the Dodd-Frank Act. You can give discounts based on payment method. Interested in learning more? At NadaPayments, we’re ready to help your therapy clinic get free credit card processing. That way, you can focus more on what matters: helping your patients. Contact us at +1 (929) 293-1800 or click the link below.
Every dollar matters, especially when you run a business like a tanning salon. The tanning salon industry has enjoyed an average growth rate of 7.5% from 2014-2019, according to IBISWorld, a market research firm. And more than 35% of American adults say they have used a tanning bed. So, you’ve made a smart choice by starting a tanning salon. Not only can you earn solid money, but you can help people improve their appearance and self-confidence. But to keep those tanning booths in operation, you must manage the business well. And you must find ways to increase your tanning salon’s profits. You may think that’s easier said than done. Guess what? It’s not.With just one simple change in how you do things, you can increase your tanning salon’s profits by 10%. All you have to do is eliminate credit card processing fees.In this article, we’ll discuss why and how you can do that:
First, let’s look over your finances. So, how much does the average tanning salon make?Market data shows the tanning salons earn profits of around $65,000 per year. Depending on your location and size of your operation, you may earn more or less than that. The average tanning booth or bed generates roughly $15,000-$20,000 in revenue per year. Now, how much does it cost to start a tanning salon?According to Palm Beach Tan, tanning salon startup costs often exceed $400,000. That amount includes expenses for tanning booths, salon construction, insurance, labor, POS systems, marketing and advertising, and more. The point is this: You’ve made a big investment to start a tanning salon. As the owner, you can’t afford to lose tanning booth revenue to expenditures like credit card processing fees. Sure, you could do employ other strategies to increase your tanning salon’s profits, such as:
However, none of these are a sure bet. Eliminating credit card processing fees is a sure bet to increase your tanning salon’s profits.
Every small business, from tanning salons to botox clinics to e-commerce shops, should make the effort to reduce credit card transaction fees. Because the fact is this: These fees kill your bottom line!Just look at the average credit card processing fees below. On every credit card transaction, you pay between 2.40% and 3.15% in fees, depending on the payment network. And that doesn’t even include the merchant service provider fees.
You may think that it’s just 3% or so. No big deal, right? But it is a big deal, especially when you consider your operating costs, margins, and how much tanning booth revenue comes from credit card transactions. If your tanning booth customers pay like the average consumer, 40% of your customers will swipe the credit card.
Considering that credit card usage rates increase as transaction values increase, it’s possible 60% of your tanning booth revenue comes via credit card transactions. Many of your higher paying customers will swipe the plastic. To give you a clear idea of how much you could increase tanning salon profits, let’s do an example. Let’s say:
And let’s say:
If you pay an average of 3.5% in processing fees, that means:
Now, imagine if you could wipe away that $7,350 in fees overnight. This is what would happen:
Think of all that you could when you don’t have to pay credit card fees on tanning booth revenue. You could expand your business, save more for retirement, take a nice vacation, and more. The important thing is you’ll have more money back in your pocket. And that should make you jump for joy!Need any more motivation to start looking for the best credit card processing? Because you can take home 100% of your tanning booth revenue.
Your tanning salon business depends on you finding the best merchant service provider (MSP). To do that, follow our guide on finding the best credit card processing. Do these three steps:
After doing these three steps, it should be clear which MSP is the best for your tanning salon business. Of course, you’ll still have to pay some credit card processing fees. But you got them as low as possible. Even better, you still have another strategy to employ. And this is what will get you free credit card processing...
Did you know you can offer tanning booth clients discounts for paying in cash?Thanks to the Dodd-Frank Act, cash discount programs are legal. And they can help you get free credit card processing. So, how does it work?At NadaPayments, our cash discount program would give your tanning booth clients up to 3.95% off for paying in cash. They can still use a credit card, as our program works with most MSPs. However, they’ll have to pay the non-discounted price, which accounts for credit card processing fees. This ensures your revenue doesn’t take a hit from credit card processing fees.As you can see, a cash discount program still offers your tanning booth clients the convenience of using their preferred payment. But they can also save money by paying with cash. Even better, you can guarantee you take home 100% of your tanning booth revenue. Interested in a cash discount program? At NadaPayments, we can help tanning salon owners get the best credit card processing. Contact us at +1 (929) 293-1800 or click the link below.
Offer breast augmentation at your plastic surgery center? You’ve made a wise choice. Most importantly, you can help people. As a WebMD article notes, breast augmentation has the potential to improve body image, self-esteem, and sexual satisfaction. Those benefits can even motivate one to live a happier, healthier lifestyle. Second, offering breast implants is a good way for plastic surgery centers to boost revenue. Breast augmentation is the most common cosmetic surgery, with nearly 350,000 operations performed in America each year. The breast augmentation market reached $2.6 billion in 2018 and is expected to exceed $4.3 billion by 2026, according to a MarketWatch report. To ensure your plastic surgery center has the success it should, you must learn about medical credit card processing. You may not realize it, but credit card fees are eating into your revenue.Before you say it’s just 3-4% on the transaction, consider this: Choosing the wrong medical credit card processing company can decrease your profits by 5-10% (or even more). Does that get your attention? Know it doesn’t have to be this way. You can eliminate credit card processing fees at your medical practice, make more money, and keep your business running smoothly (which means you can help more people!). In this article, we’ll show you all you need to know about how to get the cheapest credit card processing for your plastic surgery center.
You probably accept payments for breast implants in numerous ways, including:
In-person credit card payments should cost you the least for breast augmentation payments. According to CreditDonkey, you’ll pay between 1.5%-2.9% plus a markup to the merchant service provider (MSP). For online credit card processing, average fees range around 2.9% plus $0.30 per transaction. Fees are more than in-person medical credit card processing to account for the higher likelihood of fraud with online payments. For over-the-phone and potentially online payments, you’ll use virtual terminal credit card processing (where the customer or you type in the card information). MSPs usually charge more for the convenience and added security needed to process these online payments. Here’s an example of average fees from a few major vendors:
In addition to those fees, you have to factor in initial equipment costs and any ongoing expenses, such as software fees. For example, Square, though transparent with their pricing, does charge $60 per month for their point-of-sale hardware.
Now that you know what medical credit card processing fees you pay per transaction, let’s dig a little deeper. How much do these fees decrease your profits from breast augmentation procedures?
You know you’re probably paying about 3%-4% per transaction for medical credit card processing. If someone pays their full breast augmentation bill with a credit card, that’s a lot of money that’s slipping away. After all, the average cost of breast augmentation surgery nears $3,900, according to the American Society of Plastic Surgeons. If you charge a patient $4,000 and they pay with a credit card, that could mean you pay $120+ in medical credit card processing fees. That’s alarming. But you may ask: How many patients pay for breast augmentation with a credit card?Obviously, some pay with a check, debit card, or cash. But since breast augmentation costs a lot and some patients may have payment plans, it’s possible a significant portion of your revenue comes from credit card payments. For consumers, credit cards are the most common payment method for purchases. They make up 40% of transactions, according to Statista.
Moreover, as a Federal Reserve study states, credit card usage increases as transaction values increase. Considering breast implants are a large transaction, your plastic surgery center likely processes a higher percentage of credit card transactions than average. So, you could have 60% of your breast augmentation revenue come from credit card transactions. That’s half your revenue subject to medical credit card processing fees. Chances are such fees affect your plastic surgery center’s finance greatly...
To give an idea of how much medical credit card processing fees affect your plastic surgery center, let’s do an example. Let’s say you do 400 breast augmentations per year at an average cost of $4,000. That’s $1.6 million in revenue from breast augmentation. Not bad, right? But consider the following:
Over a decade, you could put $336,000 back into your pocket—just by eliminating medical credit card processing fees. That’s a lot more money. And you could use that to expand your business, save more for retirement, pay for your child’s college, take nicer vacations, and more. Need any more motivation to get better medical credit card processing?
First, educate yourself about medical credit card processing. That means understanding the fees you pay and the types of pricing models.Here’s what you need to know:You have to pay three types of credit card transaction fees:
There are two types of MSP pricing models:
Many medical practices opt for pass-through pricing as it provides pricing transparency and simplicity, and is often more affordable. At your plastic surgery center, consider MSPs that offer the pass-through pricing model.So, how do you find the cheapest medical credit card processing and take home more of your breast augmentation revenue? Here’s what should do:
How can you take home all your 100% of your breast augmentation revenue? After all, even with the cheapest medical credit card processing, you still pay fees when patients pay for their breast augmentation. That’s true.But we have a solution…Implement a cash discount program, and eliminate medical credit card processing fees altogether. With a cash discount program, you give your breast augmentation patients a discount for paying in cash. At NadaPayments, for instance, our system offers patients a discount of up to 3.95%. For a $4,000 breast augmentation, that’s savings of $158.When you make that offer, your patients will be enticed, and more likely to pay with cash. And if they don’t pay in cash, you charge the non-discounted price (which accounts for credit card transaction fees). What a cash discount program gives you is essentially free credit card processing at your plastic surgery center. You can stop paying fees and earn more income from breast augmentation procedures.Want to learn more? We’re ready to help your plastic surgery center eliminate medical credit card processing fees. Contact us at +1 (929) 293-1800 or click the link below.
Can sole proprietors accept credit card payments? The answer is absolutely yes. But you have to be aware of payment processing fees. Because they’ll hurt your bottom line. For instance, let’s say you’re a professional organizer. You’ve undergone lots of training and spent money marketing your services. You even got a mobile credit card processor to make payments easier for your clients. But after getting a steady flow of clients, you discover one thing: You’re not earning as much as you’d like as a sole proprietor. To earn more, you could increase your prices, but that may lead to fewer clients. Fortunately, there is another option. You could get rid of credit card processing fees. In fact, if you stopped those fees, you could boost your profits as a professional organizer by $2,000 to $5,000 per year. Yes, you read that right! But wait! How can you eliminate credit card processing fees?In this article, we’ll show you how self-employed individuals can get free credit card processing and begin earning more (and living better).
Let’s go back to the example of the professional organizer. Let’s say you’re a sole proprietor and do good business tidying and arranging offices, homes, and retail spaces. Each year, you see roughly 200 clients and earn an average of $500 per client. That means you have revenue of $100,000 per year. After expenses, you have $60,000 left as your own income. That’s about 15% more than the average salary of a professional organizer (PayScale).You have all the reason to be happy with that sort of pay. However, you could be doing much better as a professional organizer. And all you have to do is stop paying credit card transaction fees...As consumer data from Statista shows, 40% of people prefer to swipe the plastic.
Moreover, credit card usage rates increase as the value of the transaction goes up, according to Federal Reserve research. So, if you accept credit cards for your professional organization services, it’s possible 60% of your revenue comes from credit card transactions.If you have $100,000 in revenue from your professional organizer services, that means $60,000 is subject to fees! So, how much are credit card processing fees?
After adding in the merchant service provider markup, chances are you’ll pay more than 3% on average. If you pay an average fee of 4% on average across that $60,000 in revenue, that means you pay $2,400 in fees! Now, imagine if you could make that $2,400 in fees go away. Poof! It’s gone…Your income would jump from $60,000 to $62,400. That’s a salary increase of 4%! And all you had to do was get better credit card processing. Think of all that you could do with that extra $2,400. You could save more for retirement, take a nicer vacation, or put money away for your child’s education. You could even expand your business and achieve greater success as a professional organizer. The point is this: You earned that money. You don’t have to give 3% or more to payment processing companies. You can take home 100% of your revenue!Motivated to look for better credit card processing for sole proprietors yet? Let’s discuss how self-employed people can get the best credit card processing. Here’s the good news: It’s not that complicated. It actually involves two easy steps...
To find the best merchant service provider (MSP) for professional organizers, tutors, artists, and other self-employed workers, do the following:
After doing all that, you should know which payment processing company to choose. There are many good credit card processing companies that serve sole proprietors. You just have to shop for the best ones and negotiate!
Now, you may think: Even with the best credit card processing for sole proprietors, I still have to pay fees. So, how can I get rid of payment processing fees altogether? Here’s how to close the gap: Implement a cash discount program. As the term suggests, cash discount programs give clients a discount for paying in cash. For instance, if you’re a professional organizer and use NadaPayments’ cash discount program, your clients could get up to 3.95% off by paying in cash. If they pay with a card for your professional organization services, they pay the standard price (which accounts for payment processing fees). Since the credit card price offsets fees, this means you don’t lose any money to payment processing fees as a professional organizer. Thanks to the Dodd-Frank Act, sole proprietors can implement cash discount programs. It’s completely legal! And it’s quite easy to do. Interested in a cash discount program? At NadaPayments, we’re ready to help sole proprietors get the best credit card processing. Contact us at +1 (929) 293-1800 or click the link below.
Does your cosmetic institute or medical spa offer microdermabrasion? If so, you’ve made an excellent choice. As market research shows, the industry should enjoy average annual growth of 8.6% through 2026. By that time, the market will reach $650 million in market size.As the owner of a spa or salon, you undoubtedly want to tap into that market. First of all, as the American Society of Plastic Surgeons notes, by offering microdermabrasion, you can help patients exfoliate the skin, reduce wrinkles, eliminate enlarged pores, and treat acne and scars. You’re doing a good thing. You can help people treat skin issues and give them more confidence. Second, you can make good money. And that will benefit your medical spa or salon. Of course, to get the most financial benefit from microdermabrasion treatments, you need to handle your finances well. That begins with ensuring you don’t waste money on unnecessary expenses. If you look closely at your balance sheet, you may see that you waste money on something you don’t want to be: credit card processing fees! Now, you may think there’s no way to stop that. Think again!Read on—we’ll teach you why you should care about microdermabrasion credit card processing fees and how you can take home 100% of your microdermabrasion revenue.
If you look at average credit card processing fees, you may think: What’s the big deal? It’s just 1.43-3.5% per transaction.
Source: ValuePenguin
Well, it’s not that simple. Chances are you pay more than the credit card processing fee rates listed above. That’s because merchant service providers (MSPs) charge markups in the form of monthly subscriptions, hardware fees, and other services. Still, even if you pay 3-4% in credit card processing fees per transaction, what’s the big deal? Well, consider what you’ve sacrificed to get here. To offer microdermabrasion and run your own medical spa, you’re either a professional dermatologist or plastic surgeon. So you’ve put in a lot of work and money to get to where you are. Remember the investment you’ve made in yourself. After all, starting a medical spa easily costs six figures, and could even near $1 million. That doesn’t even account for the student debt you’ve taken on to become a dermatologist or plastic surgeon (according to NerdWallet research, average medical student debt nears $200,000).Moreover, you have ongoing expenses at your medical spa. That includes technician salaries, insurance, rent, equipment, and more. The point is this: You’ve put it on the line to offer microdermabrasion and become an entrepreneur in the cosmetics industry. Don’t let money slip away unnecessarily…
Since microdermabrasion is almost always considered cosmetic, it’s not covered by insurance. Most of your clients will pay out-of-pocket. Considering the average cost of a microdermabrasion treatment ranges from $75-$200+, your clients are more likely to pay with a credit card. As research from Statista shows, credit cards are most often used for transactions around the price of microdermabrasion treatments.
Source: Statista
Given the data, it’s possible a good portion of your microdermabrasion revenue comes via credit card transactions. If you haven’t yet, calculate the numbers. So that you can more clearly see how credit card processing fees impact your business, let’s say 50% of your microdermabrasion revenue is from credit cards.And let’s say your medical spa does 2,000 microdermabrasion treatments per year. Clients pay an average of $150 per microdermabrasion treatment. That means you generate $300,000 per year in microdermabrasion revenue. Now, think about this:
Obviously, you can’t let that happen. To maximize your revenue from microdermabrasion, you must eliminate credit card processing fees.Just think: If you eliminate that $6,000 per year you pay in credit card processing fees, your microdermabrasion revenues would increase from $45,000 to $51,000. That’s a profit increase of 13.3%!Now, you may wonder: Can I really eliminate all credit card processing fees? The answer is yes. Yes, you can!
By hiring the right payment processor, you can ensure you take home more of your microdermabrasion revenue. When looking at third-party credit card processors, examine the following:
For your medical spa, choose the payment processor that offers the best combination of low fees and quality processing. Also, check to ensure they don’t assess additional fees, like cancellation fees. Because if a transaction is canceled, you shouldn’t have to pay credit card processing fees. Additionally, look out for rate increases in the contract with your MSP. Credit card processing fees are a percentage of each transaction, and therefore do not correlate with inflation. Credit card processing fees should remain the same, regardless of how much the dollar is worth. Make sure of this when hiring an MSP for your dermabrasion clinic. To summarize, look for the credit card processor that offers efficient credit card processing and low fees. And don’t be afraid to negotiate the MSP markup. Many business owners have been able to get 5-10% off the processor markup.
Obviously, you can’t eliminate credit card processing fees just by finding the cheapest processor. You need an additional strategy. Enter the cash discount program—your strategy to ensure you never lose money to credit card processing fees. As the name implies, your microdermabrasion clients get a discount for paying in cash. With NadaPayments’ cash discount program, that discount equals 3.95%. If they pay with a credit card, they pay a markup fee to offset the credit card processing fees. In this sense, the cash discount program benefits both the spa owner and client. The client can still pay with a credit card—just at an additional cost. If they want to save money, they can pay in cash. And, in the end, the salon owner can ensure they collect the right amount of revenue. Worried about whether you can really offer this? The good news is this: The cash discount program is 100% legal and compliant.Want to learn more? At NadaPayments, we can help your medical spa or clinic take home 100% of their microdermabrasion revenue. Just call us at +1 (929) 293-1800 or click the link below to message us.
It’s smart business to offer electrolysis hair removal at your salon or spa. As the only FDA-endorsed hair removal method, electrolysis has become increasingly popular. Market research predicts a 17% growth rate through 2025. By providing electrolysis treatment to clients, you can not only profit from this multi-billion market, but you can also help clients become more comfortable, confident, and healthy. Electrolysis is a permanent hair removal solution that enables your clients to finally get rid of unwanted hair growth. Of course, to ensure your business can continue electrolysis treatments well into the future, you must take care of finances. That means analyzing every unnecessary expense. For instance, have you looked at your electrolysis credit card processing fees? Sure, you may only pay 3-4% per transaction, but those fees cost your business more than you think. By getting the cheapest credit card processing possible, you can increase your hair removal clinic profits by 10% or more. In this article, we’ll detail why you should pay attention to credit card processing fees, and teach you how to take home 100% of your electrolysis revenue.
You’ve made quite the investment to become an electrologist. As cosmetology experts note, you have to undergo training and get certification in most states to become an electrology professional. This can take months of your time and typically costs more than $10,000.For example, in Michigan, you must do 400 hours of an electrology education program or six-month apprenticeship. Then you must pass an exam to get certification. In addition to education and training requirements, you have to spend a lot of money to start your own medical spa or electrolysis hair removal clinic. When you include equipment, legal fees, office supplies, and more, startup costs often exceed $100,000. That doesn’t even include ongoing expenses, such as technician salaries, marketing, insurance, and rent. Simply put, you’ve invested a lot of time and money to become an entrepreneur in the hair removal industry. Don’t reduce your chances of success by not paying attention to your payment processing system. Take steps to get the cheapest credit card processing you can. As research finds, you may lose more than 3% of your electrolysis revenue to fees, even with the best credit card processing apps.
Source: ValuePenguin
You may still think: It’s only about 3%. What’s the big deal? Avoid that line of thought. Because these electrolysis credit card processing fees decrease your profits more than you think.
So you can understand what you stand to gain, let’s go through an example. First, remember that most insurance doesn’t cover electrolysis hair removal, as it’s an elective treatment. So your clients will pay out-of-pocket. As consumer surveys find, a good portion of your clients will pay with a credit card (34%).
Source: NerdWallet
While a little more than one-in-three of your clients will pay for electrolysis treatment with a credit card, chances are your revenue from credit card transactions will be a bit higher. After all, credit cards account for more than 55% of the total value of card payments, according to Federal Reserve research. Research indicates clients are more likely to pay for higher-value purchases with a credit card. And electrolysis is a high-value transaction, with the average cost often exceeding $100 per session. Most patients will also sign up for multiple treatments, making the final price much higher. For the purpose of this example, let’s say 50% of your electrolysis revenue comes from credit card transactions. Let’s also say the average customer spends $150 per session, and you do 2,000 electrolysis treatments per year. That means you generate $300,000 per year from electrolysis treatments. Now, consider the following:
As you can see, it pays to pay attention to credit card processing fees. Because you can—and should—take home more of your electrolysis revenue. The good news is you have solutions. Follow the two steps below!
As an electrology professional, you’re busy. But as we’ve shown, you can benefit from doing your research and shopping for the best credit card processing. Here’s what you need to know:
So, at your electrolysis and hair removal salon, educate yourself about credit card processing. When analyzing third-party credit card processors, ask about:
Know you can negotiate certain fees too, such as the payment processor markups. Many business owners have been known to knock 5-10% of the markup fees. Leverage your position here. To summarize, read through all the fine print when choosing an MSP for your medical spa or electrolysis salon. Opt for the best yet cheapest credit card processing possible. You want a quality payment processor that doesn’t overcharge you. They exist, but you have to do the legwork to find them. Once you do that, you’ll be in a position to take home 100% of your electrolysis revenue. Just follow step two!
As the name suggests, a cash discount program gives your electrolysis clients a discount for paying in cash. At NadaPayments, that discount is 3.95%. Don’t worry—if your electrolysis clients still want the convenience of swiping the credit card, they can do that. But they’ll pay a markup to offset credit card processing fees. A cash discount program automatically ensures free credit card processing. That’s because you take home 100% of your electrolysis revenue on every transaction, regardless of if cash or credit is used. In this sense, a cash discount program benefits both you and your electrolysis clients. It’s also 100% legal and compliant.Interested to learn more? At NadaPayments, we can help your electrolysis clinic implement a cash discount program. Call us to learn how you can eliminate credit card processing fees. Our phone lines are always open at +1 (929) 293-1800. Or click the link below to message us.
Why does having the best mobile credit card processing matter? Well, if you work as an independent house painter, HVAC specialist, or in another role where you go to clients, you have to accept payments away from your office or workplace. To make payments easy, you probably have a mobile credit card processor, in addition to accepting cash and checks. Mobile credit card processing offers convenience for your clients. It also ensures you can get paid, even if a customer doesn’t have the cash on them. They can just swipe the card!There’s just one problem…Each time you swipe the card on your mobile credit card processor, you’re letting money fly out the window. You may think you have to pay those credit card processing fees, that it’s just part of the game. Want to know a secret? You don’t have to pay those credit card transaction fees. In this article, we’ll show you why you should pay attention to those fees, how to shop for the best mobile credit processing, and ultimately how to get free credit card processing. Read on!
Picture this: You’re a house painter. Since you run your own operation and manage a team, you bring in $230,000 in revenue from your house painting operation. Your net margins are 30%, which is considered good in the house painting industry. That means you make $69,000 in profits per year—a good deal above the national average salary for house painters. You may think: I’m doing quite well as a house painter. You are! But you could do even better…Now, the average cost to paint a house is nearly $2,900, according to Home Advisor. Given the high cost, many homeowners probably don’t pay you in cash (that’s a lot of cash to have on hand). They most likely write a check or swipe the credit card. Given that Statista data shows credit cards are the preferred payment method for 40% of purchases, and that Federal Reserve research finds that credit card usage increases as transactions values increase, it’s possible 50-60% of your revenue comes via credit card transactions. So, out of that $230,000 in house painting revenue, you could have left $138,000 subject to credit card processing fees (if 60% of your revenue came from credit cards). To understand how much that dents your salary as a house painter, first understand how much mobile credit card processing fees are. According to CreditDonkey, you’ll pay between 2.4-3% or more for even the best mobile credit card processing. After adding in other fees, such as monthly software fees and same-day funding fees, you could pay almost 4%. That’s a lot to pay just to accept payment. To give you a clearer picture, take a look at what Square charges business owners.
Square is transparent with pricing, which is good. But you still have software fees, hardware costs, and per transaction fee of $0.10 (on top of the 2.5%). Fees are higher if you have to key in the payment. Now, let’s go back to the house painter example. Here’s how much credit card processing fees are costing you in this scenario:
Whether you’re an independent house painter, tow truck driver, or car mechanic, it pays to pay attention to credit card processing fees. By getting the best mobile credit card processing for contractors, you could put more money back into your wallet. Think of what you could do with that extra money. You could save more for retirement, take a nicer vacation, put cash aside for your kid’s college, and more. The point is this: You don’t have to lose money to card transaction fees! It’s your money, and you deserve to keep it. Motivated to take action? Let’s discuss how you can get the best mobile credit card processing for contractors.
Know this: Finding the best mobile credit card processing isn’t as simple as looking at percentage fees. Since merchant service providers (MSPs) operate within an underregulated credit card processing industry, many MSPs actually charge more than what they advertise on the surface. They do that through hidden fees and complex pricing structures. Because of this, it’s vital that you not only read the fine print, but also educate yourself about mobile credit card processing for contractors. Begin with learning about the various fees you pay and the pricing models MSPs use. Let’s break it down for you: First, you pay several kinds of credit card transaction fees:
Second, your MSP could use one of these two pricing models:
Whether you’re a house painter or repair worker, pass-through pricing offers more simplicity and transparency. You know what you’ll pay, and it’s most likely lower than tiered pricing structures you’ll find. So, how do you get the best mobile credit card processing and take home 100% of your revenue as a house painter or contractor? Start by following these steps:
Having the best mobile credit card processing as a house painter, HVAC specialist, or other independent contractor consists of one more step: Implementing a strategy to eliminate fees altogether. Enter the cash discount program. As the name would suggest, a cash discount program involves giving customers who pay in cash a discount. At NadaPayments, for example, our cash discount program for house painters gives customers a discount of up to 3.95%. On a house painting job worth $3,000, that’s a discount of $118.50. Surely that would convince many customers to pay in cash. If your customer still decides to use a credit card, the’ll just pay the full price of $3,000. Since that price already accounts for card processing fees, you’ll receive full revenue from your work as a house painter.You may be asking yourself: Are you allowed to give cash discounts? The answer is yes. A cash discount is 100% legal and compliant, thanks to the Dodd-Frank Act. Interested to learn more? At NadaPayments, we’re ready to help contractors get the best mobile credit card processing with a cash discount program. Call us at +1 (929) 293-1800 or click the link below.
Offer teeth whitening at your dental clinic?You’ve made a good choice. Because this a solid market. After all, 99.2% of people think a good smile is an important personal asset. And the teeth whitening market should enjoy steady growth of near 5% annually through 2024, according to market research. At your dental office, teeth whitening can boost your revenue. That’s great, because you probably have a lot of expenses. As Bank of America data shows, you may have spent as much as $500,000 to start your dental practice. You also potentially have student loans (dental students graduate with an average of $285,000 in debt).So, you certainly want to capitalize on that extra revenue as much as you can. That begins with not losing money to unnecessary expenses, such as credit card processing fees. But how can you do that? And does paying 3% per transaction really matter that much? The short answer is: You can eliminate credit card processing fees at your dental clinic. And yes, it does matter. Because taking home 100% of your revenue from teeth whitening could boost your profits by double digits. This article details what you must know about credit card processing and how you can get cheap credit card processing.
First, you have to consider average credit card processing fees with each network. Credit card networks charge anywhere from 1.43% to 3.5% per transaction.
Source: ValuePenguin
Now, you may think it’s as simple as paying a set percentage for each teeth whitening payment. Not so fast. If you talked with other dentists who run their own practice, you’d probably discover a more complex situation. Not only can exact credit card processing fees vary depending on your merchant service provider (MSP), but also many MSPs have multi-tiered plans, complicated fee structures, and various surcharges. Fees also vary with different types of payment. For instance, with popular MSPs, you’ll get pricing transparency and competitive rates. However, you’ll also pay a monthly fee and higher rates for certain types of payment. To make money, your MSP will also charge a markup in some way, such as through software subscriptions or monthly fees. This can easily push credit card fees for your teeth whitening services past 3.5%.Why do MSPs do this? The honest answer is because they can. They know dentists are extremely busy, and may overlook credit card processing fees. Don’t do this—because it’s costing you lots of money!While you can’t control what MSPs charge, you can control who you use as your credit card processor. Don’t let your MSP bite off a big chunk of your profits from teeth whitening. Take time to find good yet cheap credit card processing.
Teeth whitening costs an average of $650, according to Bankrate. Teeth whitening can exceed $1,000 in certain cases. Given that this is a high-value transaction, your clients are more likely to pay with a credit card. As a consumer study from the Federal Reserve notes, “as transaction values increase, there is increased use of debit and credit cards.”Also, since teeth whitening is considered cosmetic treatment, it’s typically not covered by dental insurance. That means your patients must make an out-of-pocket payment. Chances are they won’t pay you $600 in cash. Instead, they’ll write a check or swipe the credit card.
For purchases exceeding $100, like teeth whitening, the credit card is just as likely to be chosen as check or debit, and more than twice as likely as cash to be used.
Considering the data, it’s reasonable to assume 30-40% of your teeth whitening revenue could come from credit card transactions. That leaves 30-40% of your revenue subject to credit card processing fees.
Consider this example: You take care of 3 teeth whitening patients per day, bringing in $2,000 in revenue each day. You offer teeth whitening 320 days per year. That means teeth whitening brings in $640,000 in annual revenue for your dental clinic. After all expenses, your net margin on that revenue is 15%. That means you earn $96,000 in income from teeth whitening, which is solid. But you can make a lot more with cheap credit card processing. Let’s break it down:
Clearly, it pays to pay attention to credit card processing fees. Your bottom line is on the line. And you want it to be much higher, right?
You don’t have to pay credit card processing fees each time you do a teeth whitening treatment. You can greatly reduce and even eliminate the cost altogether. First, make sure to partner with an MSP that offers cheap credit card processing. Do your research and align with those that provide the service you need at the lowest possible price.Know you can negotiate certain fees with your MSP. While you can’t haggle about the interchange fee (paid to the card bank) or the assessment fee (paid to the card brand), you can negotiate the credit card processor markup. For teeth whitening transactions, your dental office may be able to negotiate 5-10% off the processor markup.Second, implement a cash discount program—the way you can take home 100% of your teeth whitening revenue. As the name suggests, a cash discount program involves giving discounts to patients who pay in cash. Now, don’t worry—your teeth whitening clients can still pay with a credit card. But with a cash discount program, your clients have the option to choose the most convenient and affordable payment method. They can pay with cash and get a lower price, or use a credit card and pay a markup fee. That way, you can offset credit card processing fees. A cash discount program gives you the best of both worlds. You eliminate the impact of credit card processing fees to your bottom line. And your teeth whitening clients can enjoy a discount by paying in cash. Want to learn more? At NadaPayments, we can set up a cash discount program for your dental office. Contact us at +1 (929) 293-1800 or click the link below.
The incredible growth of the tattoo removal industry mirrors the growth of the tattoo market. As more people get inked up, more folks decide to remove tattoos for a variety of reasons, from poor artwork to a change in lifestyle. So, it’s no surprise the tattoo removal market has been growing at more than 15% per year. By 2023, the global market is expected to exceed $4.7 billion. By offering tattoo removal at your medical spa or dermatology clinic, you can profit from this booming market! Not only have you made a good financial choice, but you can also help people remove unwanted tattoos and move on with their life. You’re doing a good thing. However, to continue serving clients, you must take care of your finances. That means making sure you don’t lose money unnecessarily. One way to keep more of your revenue is to stop credit card processing fees. Now, you may think: That’s impossible. You just pay the 3% or so and deal with it.Think again! There is a solution. In this article, we’ll show you how much you lose to credit card processing fees and how you can eliminate those fees and take home 100% of your revenue.
As an article in Mayo Clinic notes, tattoo removal is a delicate task suited for professional dermatologists and skin surgeons. Chances are you’ve put in a lot of work to get to this point. So, remember the investment you’ve made to become a dermatologist and business owner. According to market research, it can cost $500,000 or more to start a dermatology practice and offer tattoo removal. On top of that, you’ve spent time and money on education, training, certifications, regulatory compliance, and more. You also have ongoing expenses, such as labor, insurance, and equipment. It isn’t cheap to offer tattoo removal. You may even still have student debt to consider (average medical student debt nears $200,000, according to NerdWallet). You get the point: You don’t need to lose money to credit card processing fees. You’ve worked too hard and sacrificed too much. Here’s an overview of how much you pay in credit card processing fees for your tattoo removal treatment:
Source: ValuePenguin
After payment processor markups, you’ll probably pay more than 3% per transaction, regardless of the card network.
You still may think: It’s just 3-4%. That doesn’t matter. Well, you could ignore it and continue accepting credit card payments as you do now. But you would be missing an opportunity to boost your tattoo removal profits by double digits. Yes, you can boost tattoo removal profits by double digits by removing credit card processing fees.Now, do we have your attention? Let us explain more.
Let’s do a little exercise. The average cost of a tattoo removal treatment is around $460, according to a Glamour report. Since it’s a cosmetic procedure, it’s most likely not covered by insurance. Most of your patients will pay out of pocket. Tattoo removal is a high-value transaction too. As Federal Reserve research has found, consumers are more likely to use credit cards for larger purchases.
Source: Federal Reserve
Credit card spending continues to climb rapidly, especially in comparison to checks and electronic transfers.
Knowing this, it’s possible 60% of your tattoo removal revenue comes from credit card transactions. For each transaction, let’s say you pay an average fee of 3.5%, after accounting for processor markups such as monthly fees and hardware fees. Now, consider the following example:
Imagine if you could eliminate those credit card processing fees. Your tattoo removal profits would jump from $50,000 to $60,500. That’s a salary increase of 21%!As you can see, getting rid of credit card processing fees can boost your margins and enable you to take home more of your tattoo removal revenue. Think about what you could do with that extra $10,500 per year. You could:
Are you motivated to eliminate credit card processing fees now?
What you must do is shop for the best merchant service provider (MSP). When you analyze MSPs, understand the following fees and what’s negotiable.
Additionally, look for other fees, like account closure fees, voided transaction fees, and chargeback fees (which happen when a client disputes the transaction). These can make the cost of using a certain payment processor much higher, but you can negotiate these fees before signing a contract.You should also opt for pass-through pricing instead of a tiered pricing model. With pass-through pricing, you pay a fixed interchange fee as well as a variable fee and markup (based on card brand and MSP). Pass-through pricing is almost always cheaper and it avoids complex fee structures, which typically lead to you paying the highest amount possible.Finally, know the competition in payment processing gets intense. As a dermatology practice or medical spa offering tattoo removal, you don’t have to settle for what an MSP says, especially since your revenue is probably higher than the average small business. Use that leverage to negotiate the best and cheapest credit card processing possible.
Even with the cheapest credit card processing possible, you still have to pay fees. How do you avoid them completely? We have the solution: A cash discount program. With a cash discount program, you give tattoo removal clients a discount for paying in cash. If they want to pay with a credit card, you still offer that convenience through your payment processor. It’s just that they’ll pay a markup (which offsets the credit card fees). This way, you get the best of both worlds. Your customers can save money by paying with cash or conveniently swipe the plastic. And you don’t take an unnecessary financial hit from credit card processing fees. Interested? Talk with us at NadaPayments! We’re available anytime at +1 (929) 293-1800 or click the link below to leave a message.
Offer dental implants at your practice? You’ve made an excellent decision. First, you’re helping people with tooth-related diseases and decay. Dental implants give them a natural look and increase confidence. And, as the University of Illinois at Chicago College of Dentistry notes, dental implants prevent bone loss and restore jawbone structure. Second, the dental implant market has boomed, given the benefits. Through 2026, the market is expected to have a growth rate of 7.9%. It will be an $8+ billion market by 2026. It makes economic sense to get involved in the procedure. Clearly, offering dental implants can boost your revenue. However, as you accept payments for the procedure, you may find something eating into your profits: dental credit card processing fees!You may think you can’t stop the 3-4% in fees. Nobody will offer free dental credit card processing, right? Think again. You have a solution to eliminate dental credit card processing fees. And you should implement it—because it could increase your profits by double digits!
You may think: It’s just 3%. What’s the big deal? Here’s the thing: You’ve made a big investment to become a dentist and start your practice (congrats on your achievements!). After all, school leaves the average graduate with more than $285,000 in debt. And launching a dental clinic and implant center can cost $500,000 or even more, according to Bank of America data.To achieve professional success, you must take care of the financial aspect of running a dentistry. One way you can increase your margins immediately is by eliminating dental credit card processing fees. Just look at how you pay each time a patient swipes the credit card for a dental implant bill:
As you can see, merchant service providers (MSPs) have complex fee structures. In addition to the interchange fee (the fee paid between banks for card-based transactions), you’re often responsible for a variety of other fees and surcharges, such as online reporting fees and annual fees. All these fees add up. A survey of dental implant centers would probably reveal that many pay an average of 4% per transaction (or more).
Now, not all of your revenue is subject to dental credit card processing fees. Some patients pay with insurance. Others pay with a check or cash. But a significant portion still does. Consider that dental implants are a high-value transaction. As data from the American Academy of Implant Dentistry, dental implants costs between $3,000 and $4,500. Since the price is high, your patients are more likely to swipe their credit card. As research from the Federal Reserve shows, as transaction values increase, so too does the use of credit cards. For transactions over $100, about 20% use a credit card. To get a picture of how much revenue you lose from dental credit card processing fees, let’s do an example. Let’s say you do 200 dental implant procedures per year at an average cost of $4,000. That equates to $800,000 in dental implant revenue. And let’s say 30% of your dental implant revenue comes from credit card transactions.
That means each year you pay $9,600 in dental credit processing fees. And that’s just for one service you offer. How much do you pay in total?Now, if your net margins on dental implants are 10%, you make $80,000 from the procedure. That’s pretty solid, right? Well, think if you could eliminate that $9,600 you pay in dental credit card processing fees. Your dental implant profits would jump from $80,000 to $89,600. That’s an increase of 12%!You get the point. Paying dental credit card processing fees cuts into your bottom line. But it doesn’t have to be this way. You can have free credit card processing.
Merchant service providers (MSPs) know dentists are busy. That’s why many simply charge as much as they can. Because they know dentists don’t have time to analyze software fees, chargeback fees, assessment fees (paid to card brand), etc. If you truly want to eliminate dental credit card processing fees, you have to shop for the cheapest credit card processing possible. Of course, you still want the point-of-sale (POS) system to meet your needs. But don’t pay more than you should. Here are the steps to take to find the best credit card processing:
Don’t just trust what you read about dental credit card processing services on review sites. Go over all the fine print to get an accurate idea of how you’ll pay. This includes looking at different fees for payment types. For instance, payment processors charge more for manually entered virtual terminal payments.
Many merchant service providers offer lower plans with lower fees for dental clinics with a higher volume of transactions. Since you earn lots of revenue from dental implants, you can seek out better plans. Shop around.
Dental credit card processing is a competitive business. Make companies earn your business by offering lower rates. You can negotiate certain fees.
While you can’t negotiate fees charged by credit card companies, such as the interchange fees and assessment fees, you can negotiate the processor markup.
The key here is getting the MSP to be transparent. Ask what their interchange and assessment fees are so you know how much the markup is. Then negotiate. Typically, you can get 5-10% off this markup, which could save you thousands per year.
Now, you know how to get the cheapest credit card processing. But you’ll still pay fees to that payment processor, of course.How do you close the gap and take home 100% of your revenue from dental implants? Here’s the answer: Change how you accept payments. Enter the cash discount program. As the name suggests, a cash discount program rewards your patients for paying in cash. With NadaPayments’ cash discount program, paying in cash gives customers a 3.95% discount. But what if they still want to pay with a credit card? Your customers still have the convenience of swiping the plastic. It’s just that they won’t get the cash discount. This allows you to offset dental credit card processing fees. In this sense, a cash discount program offers a win-win for your dental implant center and your patients. You can take home 100% of your dental implant revenue. And your patients can save money by paying with cash. Want to learn more? At NadaPayments, we can set up a cash discount program in one day for your dental implant center. Click the link below or call us at +1 (929) 293-1800.
Do you know what Steph Curry and Cristiano Ronaldo have in common? Besides being world-class athletes, both have used cryotherapy for years. They say it’s key to a fast recovery. The cryotherapy craze has now gone mainstream. Everyday folks are now entering the -200 degree chamber. According to market research, cryotherapy and cryosurgery market will grow by 6.9% per year through 2023, giving the industry a total revenue of $2.65 billion. If you offer cryotherapy at your physical therapy clinic or health and wellness center, you’ve made the right choice. You can benefit from the boom. More importantly, you can help people. As an article in Healthline notes, benefits of whole-body cryotherapy abound include the potential to speed up the healing process and reduce migraine symptoms, chronic pain, and arthritic pain. It may even help prevent dementia and treat dermatitis, low-risk tumors, hemorrhoids, and other conditions. In addition to helping your clients, you must take care of your physical therapy business. That means ensuring you don’t unnecessarily lose revenue. You may have noticed you pay around 3% in credit card processing fees, but perhaps you shrugged it off as not a big deal. Don’t do that! Because that 3% could decrease your profit margins by double digits. Yes, you read that right.So, what can you do? Here’s what you should know about credit card processing and how your cryotherapy business can eliminate those fees.
Opening a cryotherapy center isn’t cheap, considering the cost of a cryotherapy chamber. Cryo Centers of America, an industry leader, estimates it costs between $150,000 and $200,000 to open a cryotherapy center. If you offer cryotherapy as an additional service at a medical spa, you have other costs too. You also have ongoing expenses, such as insurance, staff, equipment maintenance, and supplies. Simply put, you don’t need to spend thousands of dollars each year in credit card processing fees.But chances are you probably do. That’s why you need the cheapest credit card processing possible. It will make your business more profitable and sustainable.
First, consider the average fees of each payment network:
Source: Motley Fool
As you can see, you probably pay around 3% on each transaction. But it could be more.
A survey of cryotherapy centers would probably reveal more complex fee structures. It’s not as simple as a flat fee per transaction.
Some merchant service providers have multi-tiered plans, monthly subscription fees, and different rates for different types of payment. And don’t forget about hardware and software costs. For instance, if you use Shopify as your merchant service provider (MSP), below is what you pay in credit card processing fees. See how fees differ for online and offline payments, and how monthly rates vary by tier.
Basic (left) costs $29/month
Standard (middle) costs $79/month
Advanced (right) costs $299/month
If you want to find the cheapest credit card processing possible, you must analyze everything in the MSP’s pricing plans. While companies like Shopify offer transparency, not all MSPs do.
Now that you understand the importance of getting the cheapest credit card processing, learn what to look out for when researching MSPs. First, check the total fee. This is the sum of the following:
Note: The processor markup may be charged in a variety of ways. It could be a markup on each transaction fee or a monthly or annual subscription fee. Your cryotherapy center can potentially negotiate 5-10% off this amount. Your MSP may charge early termination fees or account closure fees. Also, check for chargeback fees, which occur when a customer disputes a charge, and voided transaction fees.Second, understand MSP pricing models. You have two options
If you want the cheapest credit card processing for your cryotherapy center, opt for pass-through pricing. It offers transparency and affordability that you don’t always get with tiered pricing.
To show you how much your cryotherapy business can save with the cheapest credit card processing, let’s do an exercise. Imagine the following scenario:
That leaves 60% of your cryotherapy revenue subject to credit card processing fees. How much money could you waste on fees then? A lot. Consider this:
What if you could eliminate paying those credit card processing fees? Your cryotherapy profits would increase from $96,000 to $118,320. That’s a salary increase of 23.3%!Need any more motivation to look for the cheapest credit card processing? Because with more revenue from cryotherapy back into your pocket, you could expand the business, save more for retirement, spend more on entertainment, buy a bigger house, and more!
You should look for the best payment processors. You don’t want to spend too much on fees. But did you know you can do even more? There’s another way to reduce how much your cryotherapy center pays in processing fees? It’s called a cash discount program. This system gives discounts to clients for paying in cash. They can still pay with a credit card, but you’ll offset the processing fees via a markup. This way, you take home 100% of your cryotherapy revenue. The Dodd-Frank Wall Street Reform and Consumer Protection Act makes cash discount program completely legal. Even better, it’s not just you saving money. Your cryotherapy patients save by paying with cash. In short, a cash discount program gives you free credit card processing. Like to learn more?At NadaPayments, we can help your cryotherapy clinic implement a cash discount program. Contact us at +1 (929) 293-1800 or click the link below.
If you offer Botox injections at your primary care practice or medical spa, you’ve made a good decision. First and foremost, you get to help people. As the Mayo Clinic notes, Botox injections can reduce facial wrinkles and even treat conditions like lazy eye, excessive sweating, and neck spasms. Second, the Botox market has enjoyed consistent growth. Expert research predicts an annual growth rate of 13.3% through 2024, with the market expected to reach $8.5 billion in annual revenue. As a business owner, it makes sense to ride this wave. To ensure consistent success, you must execute properly. After all, you’ve invested a lot to offer Botox injections. It costs between $700K and $1 million to open a medical spa, according to industry experts. And you have ongoing costs, such as insurance, Botox training, staff, and supplies and equipment.One area where you don’t want to lose money is payment processing. Because credit card processing fees eat into your bottom line more than you think…In fact, choosing the wrong credit card payment provider could decrease your margins by more than 10%. That’s insane! But it doesn’t have to be this way. You can eliminate credit card processing fees. And you can take home 100% of your revenue from Botox. Here’s what you should ask yourself and what you need to do:
The answer depends on the card network and your merchant service provider (MSP). At your medical spa, expect fees to average between 1.43%-3.5%.The chart below details averages by card network:
Source: ValuePenguin
A survey of medical spas that offer Botox would probably reveal more complex fee structures. It’s not just a flat fee per transaction. Some MSPs have monthly subscription fees, multi-tiered plans, and different fees for online and offline payment. You also have hardware and software fees. You must examine everything when comparing credit card processing companies. For example, if you look at Square’s pricing, you’ll see a monthly software fee and an initial hardware fee, on top of a fee for every transaction. If you have to manually key in a card number, you’ll pay a higher fee as well.
While many MSPs like Square provide fee transparency, you still have to read over all the potential costs of credit card processing. Even worse, some credit card processing companies confuse medical spa owners with unnecessarily complex fee structures. If you’re too busy and choose any MSP, you could end up paying much more in fees.
To get the lowest credit card processing fees, first thoroughly compare credit card processing companies. You have a busy schedule, but making time to ensure the best deal here will put your business in a better financial position. First, educate yourself about all the credit card processing fees involved. You pay a total fee, which is the sum of the interchange fee (paid to the card-issuing bank), assessment fee (paid to the card-issuing brand), and processor markup (what the MSP makes). Second, understand the pricing models:
So, select pass-through pricing for the transparency and affordability. But before you do so, know you can negotiate other credit card fees.For example, the MSP markup is often negotiable. Many merchants report being to knock as much as 10% of the markup fee. You also want to negotiate other fees that may arise, especially those you pay for transactions that are voided or later refunded. After you’ve done your research and negotiations, choose the MSP that offers the best combination of low fees, good service, and advanced technology.
Your Botox center receives payments from a mix of checks, cash, debit cards, and credit cards. You may think paying 3% for credit card processing isn’t a big deal, but it actually amounts to a lot of money. First, remember Botox costs between $300 and $600 per treatment, according to Medical Economics. This is a high-value purchase for your clients. As Federal Reserve research shows, people use credit cards more for larger transactions.If customer payments at your Botox clinic mirror recent trends, chances are you processed more credit card payments this year than last year.
Source: Federal Reserve
For Botox, a good portion of your clients probably make payment with a credit card. It could even account for 60%-70% of your revenue. That means you pay credit card processing fees on a majority of your revenue. And that decreases your profits more than you think. To give you a better picture, look over the example below:
That sort of income is great. But money has been left on the table. Let’s continue the example:
Imagine if you could get rid of that $33,264 in credit card fees. Your income would rise from $216,000 to $249,264. That’s a salary increase of 15.4%!Over ten years, that could mean $332,640 back into your pocket. With that money, you could expand your Botox center, retire early, go on more vacations, and/or buy a nicer house. Need any more motivation to pay attention to credit card fees?
The numbers show you should still offer card payments. But that doesn’t mean you have to pay all those credit card fees. Your Botox clinic could incentivize clients to pay in cash. How do you do that? Implement a cash discount program.As the name suggests, you offer discounts for paying in cash. You still accept credit card payments, just at a markup to offset credit card fees. Thanks to the Dodd-Frank Wall Street Reform and Consumer Protection Act, a cash discount program is completely legal. Even better, it’s a win-win for you and your Botox clients. What you essentially get is free credit card processing. You can’t beat that!Want to learn more? We’re ready to help your Botox clinic get the cheapest credit card processing possible. Call us at +1 (929) 293-1800 or click the link below.
Global e-commerce sales brought in $3.914 trillion worldwide in 2020. With massive companies like Amazon and Alibaba in the space, competition is tough and margins are thin. Amazon owns 39% of all U.S. e-commerce sales, while Alibaba owns 58.2% of e-commerce sales in China.This is exactly why e-commerce credit card processing is so important for online business owners. As experts note, turning a profit in e-commerce is hard. Small business retailers must execute properly in the online marketplace to compete with the "bigger fish" like Amazon. That begins with taking care of your customers and making the shopping experience seamless. You can start by making sure the checkout experience is straightforward. You'll need to integrate an e-commerce platform to do so. You can’t just choose any merchant service provider (MSP) and integrate the solution with your platform. You have to partner with an e-commerce credit card processing company that works to ensure your bottom line. In this article, you'll find a complete guide to e-commerce credit card processors that you can integrate into your online store. We'll walk you through how to process e-commerce payments, the different payment methods you can offer customers, and the fees associated with doing so. We also provide you with the best credit card payment processing service for online transactions.
For e-commerce credit card processing, many companies get a merchant account — a type of bank account that enables you to accept online payments. You have to apply for a merchant account with a bank or processing company. Most merchant account providers allow you to accept credit and debit cards. They also support most card networks, such as Visa, Mastercard, Discover, and American Express. Fees usually include:
Long story short, it can get expensive. Additionally, a merchant account uses a payment gateway — a service that connects your e-commerce store with your payment processor. It ensures a secure financial network for the customer. A payment gateway checks the validity of cards, determines the customer’s issuing bank, encrypts numbers, and authorizes (or declines) transactions.E-commerce credit card processing can get complex. Third-party payment processors, such as Nadapayments, have become more popular because they aggregate the whole process into one platform. It makes life easier for you and your clients. Third-party MSPs streamline e-commerce credit card processing by:
Since third-party payment processors have become increasingly popular, it's important to understand how their fees work. While these solutions simplify the task of accepting payments, a lot still goes on to make sure funds transfer securely and efficiently. The first thing you need to know is your effective rate, otherwise known as your total fee. This rate takes into account everything and includes all fees plus the markup you pay your payment processor. Contained within your effective rates are individual e-commerce credit card processing fees:
As the merchant, you may have some wiggle room when it comes to negotiating fees. While interchange and assessment fees aren’t that negotiable, ask about voided transaction fees and about reducing fees when you have to refund a customer. Payment processing companies typically don’t need to charge fees in such instances.
Pricing structures can vary between processing providers. But e-commerce credit card processing fees usually exceed in-person card processing fees. MSPs charge more because of the higher risk of fraud with online payment. Below is the pricing structure that major payment processors use for their processing fees:
Third-party e-commerce credit card processing services often apply an additional monthly subscription cost. These can add up to an extra $300-$600 per year. While these transaction fees may not seem like much, they can cut into your profits and your bottom line.
Credit cards are the most popular payment option, beating out debit cards and PayPal. Furthermore, customers who do use a credit card tend to spend more. As an online merchant, lowering your e-commerce credit card processing fees is crucial to greater success. Consider this example:
The $24,750 comes off your bottom line. However, the best e-commerce credit card processors allow you to waive processing fees entirely, instead passing them onto the consumer.
Nadapayments is a service that saves you 100% in processing fees, meaning the service can quickly pay for itself. The company's surcharge program passes processing fees on to consumers, allowing you to keep 100% of your revenue every time a customer pays with a credit card. Customers can avoid the extra fee by choosing to pay with a debit card instead. These fees are made clear to customers when they are checking out online.Nadapayments will provide you with a virtual terminal and a mobile payment app. Plus, for in-store transactions, they offer Wi-Fi-enabled EMV Quick Chip card readers.You’ll also receive a hosted payment link, which can be used to add a “Pay Now” button on your website. When customers click on the link, they are directed to a secure payment form where they can enter their payment amount and card number. Nadapayments also allows you to send emailed invoices and accept payments over the phone. Due to its unified payment experience, you can easily track all of your transactions from either your in-person credit card machine or your virtual terminal — no matter how you've accepted the payment. The two systems link with one another and work seamlessly. A terminal only costs $35 per month. This is a flat fee, making it attractive for anyone, including low-volume merchants. There are no hidden costs, monthly minimums, or setup fees.Nadapayments accepts multiple payment methods, including:
Nadapayments is entirely secure and PCI-compliant. PCI compliance is required for all merchants, who must follow the Payment Card Industry Data Security Standards. Nadapayments meets all standards, which helps protect both you and your customers' sensitive information. Lastly, you’ll receive exceptional customer support, available 24/7/365.
Whether you're an established online merchant or a startup looking to break into a new industry, you should be paying attention to your e-commerce credit card processor. Not all processors are created the same. The pricing model offered by your processing company can have a significant impact on your bottom line in the long run. If you're looking for the best way to improve your bottom line, be sure to choose Nadapayments. Nadapayments is an e-commerce credit card processor that provides you with everything you need to start processing online transactions.It also is affordable, costing a mere $35 per month. You pass processing fees onto the customer whenever they pay with a credit card, impacting your bottom line by as much as 3.5%. Reach out to us to learn more and get started today.
As a small business owner, you want to provide customers with as many buying options as possible. If you are venturing into e-commerce or conduct business over the phone, you want to make sure you set up a virtual terminal. A virtual terminal is used for payment processing and is required if you plan to accept credit or debit card payments. When comparing pricing models for different credit card processors, you need to be mindful of credit card transaction fees. These fees are required by payment processors to use their services. Being mindful of transaction fees could result in thousands more in your bank account at the end of the year. Here’s what you need to know about implementing the best virtual terminal credit processing system while saving on credit card transaction fees.
Virtual terminals are web applications that give you the ability to process payments without a card reader (aka a card-not-present transaction). The cardholders simply type in their card information and the payment is processed. On a screen, virtual terminal credit card processing looks like this:
Source: Bill.com
A variety of businesses can benefit from virtual terminal credit card processing, especially those that do business over the phone and internet. Industries where virtual terminal credit card processing is most used include:
No matter what type of business you have, if you plan on accepting credit card payments without having the card present physically, then you'll need to have a virtual terminal.
Although virtual terminal credit card processing may not cost you much upfront (if anything), you’ll pay a per-transaction fee. Your total fee (or effective rate) comes from the following fees:
The average credit card processing fees are around 3.5%. However, the fees for virtual terminal credit card processing may not even end there, as there may be hidden additional fees. You may pay a monthly fee. Many MSPs have complex multi-tiered pricing that is heavily influenced by your transaction volume, so you may also have to pay surcharges if you do not have enough transactions each month. On top of all that, you may have to pay fees even if the sale is voided or refunded. Ask your credit card processing company to waive voided transaction fees and chargebacks. Otherwise, you're paying fees without actually receiving any revenue.
Usually, businesses pay lower rates on in-person transactions than they do on virtual transactions. Fees can vary depending on the type of card presented at checkout. The amount you pay for in-person processing fees depends on the credit card network the customer uses. Here are some examples:
However, as seen in the example below, the rates for virtual terminal processing are much higher.MSPAverage Virtual Terminal Credit Card Processing FeesSquare3.5% + 15¢ per transactionPayPal3.1% + $0.30 Shopify2.9% + $0.30As you can see, virtual terminal credit card processing will cost you more than point-of-sale (POS) credit card processing, even if you get a good deal with your MSP. This is because:
Now, you may think that virtual credit card transaction fees aren't that much, right? It's only around 3.5% of every transaction. While this may seem true, it helps to look at the big picture.
Instead of looking at the individual transaction amount, it helps to look at the big picture and see the total dollar amount you stand to lose from credit card processing fees. First, as a TSYS U.S. Consumer Payment Study found, credit cards are the most popular form of payment at businesses that typically use virtual terminal credit card processing, like e-commerce stores and travel sites:
If you run an online clothing store or a boutique hotel, you could use virtual terminal credit card processing for nearly half of your transactions. As data from the U.S. Federal Reserve shows, non-cash transactions have a value of $112 per transaction, versus just $22 for cash transactions.
Given the numbers, 60-70% of your revenue could come from virtual terminal credit card processing, especially if you don’t do many in-person transactions. Now, let’s figure out how much you could be paying in fees. As an example, let’s say you run a small motel and your revenue is $2 million per year, among which:
So, that means you pay 3.3% on $1.3 million per year. That’s $42,900 per year in virtual terminal credit card processing fees!If your net margin is on par with hotel industry averages of around 17% (according to New York University), then you make $340,000 per year from the motel. That may be good enough. But if you eliminated virtual terminal credit card processing fees, you could make $42,900 more per year. That’s a profit increase of 12.6%! You definitely want that, right? All you have to do is figure out how to eliminate credit card processing fees.
If you have a virtual terminal and POS credit card processing system, you can greatly reduce fees with a surcharge program. Here’s how it works:
So, how do you avoid credit card processing fees? Well, the price structure incentivizes the use of a debit card.With a surcharge program, which is 100% compliant and legal thanks to a 2011 FTC ruling, you can take home 100% of your revenue whenever a customer pays with a credit card. If the customer pays with a debit card, you’ll only pay 1% + $0.25, which is much less than what most processors charge. With a surcharge program, you can boost profits by double digits.
If you are looking for an all-encompassing payment solution, be sure to look no further than Nadapayments. With Nadapayments, you receive everything you need to start processing credit card payments. Not only do you receive a Wi-Fi-enabled EMV Quick Chip machine, but you also receive a virtual terminal to process payments online or over the phone. There is also a mobile app, allowing you to process payments on the go.The system can accept major credit card brands and other payment methods including:
Perhaps best of all, business owners receive flat-rate pricing. The cost of using Nadapayments is a flat fee of $35 per month — there are no hidden service fees or surprises. The reason costs are so low is because of the company's surcharge program. With the surcharge program, credit card transaction fees are passed to the consumer. The consumer can avoid the fees by paying with cash or a debit card. Nadapayments even provides merchants with the signage required to convey this information to customers.
Incorporating a virtual terminal into your business could be a wise decision, allowing you to reach new customers online or over the phone.When comparing virtual terminals, you should be particularly mindful of credit card transaction fees. These fees can be higher on virtual terminals than for in-store transactions. Fortunately, there are payment processors like Nadapayments who not only provide the virtual terminal but offer a surcharge program. So you can say goodbye to fees and hello to higher revenues. If you're looking for a unified payment experience that will save you money, be sure to get started with Nadapayments today.
Chiropractors have to undergo rigorous training to enter their profession. As the Bureau of Labor Statistics notes, chiropractors must obtain a Doctor of Chiropractic (DC) degree, which takes four years to complete. They also require proper licensing and must pass the National Board of Chiropractic Examiners (NBCE) exam. Getting that education comes with a high cost, too. The average chiropractor goes into the field with more than $100,000 in debt, according to a survey of chiropractic students at Palmer College of Chiropractic. Expenses don’t stop there. As Tory Robson, DC and chiropractic consultant, states, chiropractor debt goes beyond student loans and includes practice loans (X-ray machines aren’t cheap). Debt can become the “unspoken killer” for chiropractors.With back-breakingly high loans and expenses, financial stress can easily impact chiropractors. The last thing a chiropractor should have to worry about is a dishonest merchant service provider (MSP). Unfortunately, MSPs often overcharge chiropractors for their chiropractor credit card processing fees. It doesn’t have to be this way. Here’s how chiropractors can lower those credit card processing fees and keep more money in their hands.
The average credit card processing rate ranges from 1.5-2.9%, if you’re accepting one of the four major cards—Visa, Discover, Mastercard, or American Express. If what you pay is on the higher end of this range, it’s probably not for a good reason. A survey of most chiropractic practice credit card processing fees would typically show that many chiropractors are on multi-tiered plans. These plans come loaded with hidden fees and complex surcharges and could cost chiropractors thousands of dollars per year. Why does this happen to chiropractors?The unfortunate reality is that merchant service providers (MSPs) understand chiropractors bring in more revenue per customer than many other businesses. MSPs also know chiropractors may not have the time to research and shop for lower fees. And they charge more just because they can. While it may not seem like a big deal to pay an extra 1% or so on each bill, it adds up. The average chiropractic practice bills nearly $620,000 and collects almost $450,000 per year, according to a Chiropractic Economics survey. That means paying 1% too much in credit card processing fees can cost you $4,500 per year!Note: To calculate what you pay in chiropractor credit card processing fees, divide the monthly credit card processing fees on your MSP billing statement by the total monthly amount of your credit card payments. Now, if you own a chiropractic practice, you know the business aspect of your job is important. Increasing your margins means you can pay yourself and your associates more. And you have two ways to do that:
Reducing credit card processing fees, which are persistent, is actually one of the easiest, quickest ways to lower your expenses (and boost your margins). To make certain you’re not paying ridiculously high chiropractor credit card processing fees, here’s what you must consider
As a chiropractor, accepting credit cards makes sense for your bottom line.After all, many patients want to pay with a credit card. A 2018 TSYS survey found that 26% of consumers prefer to use credit cards for purchases, which makes credit cards more popular than cash but less popular than debit cards. For higher-value purchases, credit cards remain a preferred method of payment, given their consumer protections. The average chiropractic visit costs between $30-$200 with insurance, and around $125 per visit without insurance. This makes chiropractic services a larger-than-normal purchase most of the time, and therefore means your patients are more likely to use a credit card.
Your patients will want to get out that credit cardSource: The Federal Reserve Bank of Boston and Experian
Also, consider that out-of-pocket medical payments have risen by 29% since 2015, according to a Black Book survey. After insurance (if applicable), chances are your patients will have to make an out-of-pocket payment. And there’s a high likelihood they’ll want to use a card to do so.
At NadaPayments, we get asked a lot about HIPAA compliance, as medical practices only want to use HIPAA-compliant credit card processors. This makes sense, considering you want to follow HIPAA regulations when handling sensitive patient information like their credit card data. But here’s the thing: HIPAA-compliant credit card processors don’t really exist. Payment processing falls outside the scope of HIPAA requirements and isn’t something you need to worry about when considering a payments processor. With that said, you should take precautions by:
As long as you take proper precautions, you don’t have to find a HIPAA-compliant merchant service provider.
Third-party credit card processing has largely gone unregulated, and that’s made the industry opaque. This makes it easy for MSPs to act unethically and charge higher chiropractor credit card processing fees (just because they can). To avoid being tricked and paying higher fees, ask the following:
For chiropractic patients, paying with a health savings account (HSA), health reimbursement account (HRA), or flexible spending account (FSA) is common. If you’d like to accept these cards, let your MSP know the correct classification.In the merchant category codes (MCC), you’ll find that the code for chiropractors: 8041.
It depends. But it can definitely be a lot.In the example below, we take the average annual revenue of a chiropractic practice, assume 60% of payments are made with a credit card and use credit card processing fees of 2.9%. Here’s how much you’ll spend over 30 years:
Look at what you stand to gain if you can eliminate those credit card processing fees at your chiropractic service.
If you make around an average salary for a chiropractor, you can increase your yearly income by 3-6% if you keep just a portion of your savings from fees for yourself.
Overall, just think about what an extra $323,640 would get you:
Fortunately, there is a better way—one that allows you to keep accepting card payments.
With a cash discount program, you can not only prevent credit card fees from eating into your profits, but you can also avoid becoming a cash-only chiropractic practice (your patients don’t want that). Through a cash discount program, specialized merchant service providers set up your chiropractic practice with a unique credit card surcharge program. It’s 100% legal and compliant, and empowers your patients to select a payment method that’s convenient and affordable for them. Want to learn more about a cash discount program? Learn how we can set one up for you in less than a week. Click the button below or call +1 (929) 293-1800.
You’ve entered a booming industry. Within the beauty and aesthetics field, microblading is the fastest-growing non-invasive treatment, according to the American Medical Spa Association. As a microblading artist, you have a chance to do something you love and enjoy financial success. So you want to make the most of your investment. After all, launching your own salon has costs. Sage, an accounting software company, estimates that starting a beauty salon costs between $100,000 and $500,000. And on top of your initial investment, you have ongoing expenses, such as insurance, labor, equipment upgrades, marketing, and more. Don’t forget about credit card payment processing, either. An ill-advised choice here can decrease your profit margins by double digits in the long run.As a business owner, it’s important to learn about how you can reduce your credit card processing fees. It will make your microblading business more profitable and more sustainable. Let’s go over the questions you should ask yourself first. Then, we’ll discuss how you can take home 100% of your revenue.
What your microblading salon pays in credit card processing fees can vary. The following chart shows averages for each card network. Fees range from 1.43–3.5%:
Source: ValuePenguin
A survey of microblading artists that run their own salon would probably show they pay more than just a flat fee per transaction. Certain merchant service providers (MSPs) may have monthly subscription fees, pricing variations, and multi-tiered plans. You have to look closely to see exactly what you’re paying. For instance, if you look at Shopify’s pricing, you’ll see monthly subscription plans for basic, standard, and advanced accounts. You’ll even see different fee structures for in-person and online credit card payments, as well as an additional fee for using other payment providers.
Basic (left); Standard (middle); Advanced (right)
While many payment providers like Shopify provide fee transparency, you should analyze everything to understand what you’ll pay.Even worse, some MSPs know you’re busy and make fee structures unnecessarily complex. To avoid getting a bad deal, you have to do more research on your end.As a business owner, finding time to shop for the best MSP can be difficult. But remember the right MSP is crucial to business success. After all, those credit card processing fees can cost your microblading business tens of thousands of dollars per year.
Revenue at your microblading salon comes from a mix of cash, debit cards, and credit cards. But how much comes from credit card transactions? Probably more than you think. First, consider the average microblading cost: $400. It’s a high-value transaction. As research from the Federal Reserve shows, credit cards are more commonly used for larger transactions, while cash is most common for small transactions. Look at the average value of a credit card transaction:
Source: Statista
For microblading and other permanent makeup services, a good portion of your clientele probably pays with a credit card. In fact, it’s possible 60–70% of your microblading revenue comes from credit card transactions. So, a significant portion of your revenue is subject to credit card processing fees. But how much is it costing you in profits?Consider the following example:
An income of $76,800 may be good for you, considering it exceeds the average household income in the United States. But if you look at what you pay in credit card processing fees, you may discover a lot of money was left on the table:
Now, think if you can eliminate that $13,824 in fees. Your income would jump from $76,800 to $90,624 per year. That’s a salary increase of 18% year after year.Clearly, it pays to pay attention to credit card processing fees. Over a decade working as a microblading artist, it could mean more than $130,000 back into your pocket.Think of what you could do with that extra income. Save more for retirement, buy a bigger house, give to charity, take a better vacation, and more!
Know this: You don’t have to pay credit card processing fees! You can take home 100% of your microblading revenue. How do you find the cheapest credit processing?First, learn about how credit card payment processing fees work. The total fee you pay comes from the following individual fees:
When you choose for a pricing model, avoid tiered pricing, as it complicates things. Opt for pass-through pricing. This itemizes all your fees when they’re passed on to your microblading business.Also, know you can negotiate markup fees. There’s no reason to pay all those extra fees, and typically you can cut 5–10% off what your MSP initially requests.Furthermore, if you have to refund one of your microblading clients, you still may have to pay transaction fees. See if your MSP can reduce those in such cases. If a transaction is canceled, you may still be subject to fees, though your MSP should waive these (insist on it).Other MSPs may implement rate increases because of “inflation”. Find another MSP if they try to pull this fast one on you. Credit card processing fees are a percentage of the transaction, and therefore naturally rise with your revenue.
Now you know everything you need to about credit card processing fees and how to reduce them. But did you know you can avoid them altogether? To take home 100% of your microblading revenue, employ a cash discount program. A cash discount program, combined with affordable MSP, offers you the cheapest credit card processing possible. You eliminate credit card processing fees by offering your microblading clients a choice: Pay in cash for standard pricing OR pay with a credit card at a markup. That way, you get 100% of your revenue no matter how your customer pays. And your customers get the option to save money with a cash payment. It’s a win-win for everyone. Want to learn more? Stop the bleeding today and eliminate credit card processing fees. Give us a call at +1 (929) 293-1800 or click the link below:
Spending more than $100,000 to open a store is common, according to retail consultants. But depending on your industry and location, your initial costs could be much, much higher. That's why it's important not to overlook credit card processing apps to save as much as possible on your expenses.What can you do to ensure you take home more of your revenue? Well, you could consider abandoning large, clunky point-of-sale (POS) systems. Experts estimate the average initial cost of a POS system at around $1,200, and that doesn’t include ongoing fees you pay for each transaction. By comparison, credit card processing apps are more nimble, affordable ways to accept payments. They can put your business in a better position. To optimize the value a credit card processing app delivers to your company, you must choose the right solution and implement wise payment processing strategies.
Point-of-sale systems can get expensive and don’t offer the simplicity that mobile credit card processing apps do. With the ability to function on a smartphone or tablet, credit card processing apps bring mobile payments to physical stores and mobile businesses, such as food trucks, tutoring services, and cleaning companies. The convenience of having a small, lightweight mobile card reader can’t be understated. Many of your customers pay with a credit card, so you should have the latest, most convenient processor. According to a NerdWallet survey, credit cards are preferred for 34% of purchases. Add in debit cards (44%), and you’ll see that 78% of consumers prefer to pay with plastic.
The percentage of credit card transactions at your business could be more or less. But note that larger purchases are more likely to be paid with a credit card. Federal Reserve data shows the average non-cash transaction value exceeds the average cash transaction by $90 ($112 vs $22).
Even in only 34% of your transactions involve a credit card, 60-70% of your revenue could come via credit card transactions. Clearly, how you accept payments is vital to your success. Because you don’t want to lose money to hardware costs, transaction fees, and monthly subscription plans. Enter the credit card processing app—a mobile point-of-sale (mPOS) system that offers a more affordable and efficient alternative to legacy POS systems. Offer your customers payment convenience, and save on operating expenses.
Also called mobile credit card readers, a credit card processing app can initiate a transaction by:
Note: Most mobile credit card processing apps have the ability to accept all three types of payment. Check before signing up. Once the merchant collects the customer’s data, the customer’s credit card network contacts the card-issuing bank. For instance, Visa would contact Chase Bank if the client swipes with a Chase Visa card. The issuing bank authorizes the transaction (or declines it if it appears fraudulent or funds aren’t available). Once approved, the credit card network notifies the payment processor.
In terms of upfront costs, a credit card processing app will cost less than a traditional POS system. The hardware is much cheaper. Here’s what you pay with three of the top popular credit card processing app providers: Credit Card Processing AppHardware CostsTransaction FeeMonthly SubscriptionSquare$492.75%$0ShopifyFree with subscriptionFrom 2.7%From $29PayPalFrom $24.992.7%$0Note: Credit card processing apps can have different fees for how the transaction is completed. For example, keying in credit card information has higher fees than a swipe, contactless, or chip payment. Check the entire list of fees when shopping for a credit card processing app.
When shopping for a mobile point-of-sale system (mPOS), see what credit card networks the system supports and what types of payment it accepts (swipe, chip, and/or contactless). Additionally, compare:
Finally, look at what other tools you can integrate with the credit card processing app. For instance, if your mPOS integrates with Salesforce, you can have a single, connected view of your customers. This will enable you to make CRM processes more relevant and personalized.
Due to heavy competition and high costs, net margins for physical retailers and restaurants are already slim. According to New York University research, net margins in retail range from 1.9% (general) to 12.11% (restaurants). With such margins in mind, consider the 2.75% transaction fee you pay to use a credit card processing app. Those fees are directly hurting your bottom line! Think about this scenario:
Now, what if you had a way to eliminate mPOS fees? In the example above, your profits would rise from $80,000 to $118,500. That’s an increase of 32.5%!This should give you plenty of motivation to lower your credit card processing app fees. Thankfully, you have a solution.
What if you could avoid credit card processing fees and still accept credit cards?When you pair your mobile POS system with a cash discount program, you can.A cash discount program is what it sounds like: Your customers can save money by paying with cash. It’s a 100% legal and compliant strategy to take home 100% of your revenue. Most cash discount programs, such as NadaPayments, integrate with credit card processing apps. You can empower customers to choose the most affordable and convenient method of payment. And you won’t lose any money to transaction fees. If your business utilizes a credit card processing app, and you’d like to learn more about how a cash discount program can benefit you, give us a call at +1 (929) 293-1800 or click the link below.
A recent poll of American consumers found that more than 60% of Americans preferred paying with a credit or debit card. As a business owner, accepting credit and debit cards in addition to cash offers numerous payment options to customers, increasing the likelihood of completing a sale. However, if you accept credit card transactions, then you need to pay processing fees. Credit card processing fees take money off your bottom line. This is the case no matter what type of business you have. No matter if you are a brick-and-mortar retailer or an e-commerce business taking online payments, the bottom line remains the same — if you accept credit cards, you owe fees to your credit card processing company. Here’s the thing — credit card processing fees for merchants don’t seem that high at a glance, but they add up over time. The fees average around 3.5%. For every $1,000 transaction, you would owe $35 in fees. Let’s go on a journey and explore what this means for your business, how much you’ll end up paying over time, and what you can do to stop the bleeding and enjoy FREE credit card processing.
If you’re using one of the four major credit card networks — Visa, Discover, Mastercard, or American Express (Amex) — you’re likely paying anywhere from 1.5–2.9% in credit card processing fees.And unless you’re going through a trusted merchant services provider like Preferred Merchant Services, your average credit card processing fees are probably closer to 2.9% per transaction.As it turns out, calculating credit card processing fees for merchants is pretty complicated. Not only are you charged a transaction fee, which is assessed each time you run a transaction, you are also charged scheduled fees with flat-rate pricing that show up on monthly statements. Furthermore, you are charged incidental fees, which occur when there is a chargeback or a return. Additionally, there are multiple parties involved in a single credit card swipe. These include:
Your hard-earned money changes a lot of hands before it arrives back in your wallet.
The multiple parties who touch a transaction are responsible for interchange fees. Interchange fees are one portion of processing fees. Interchange fees are charged by card networks to merchants for their services, and average out to around 1.81% for credit cards and 0.3% for debit cards. The rest of the credit card or debit card processing fee comes from adjustments and markups between the card issuer, payment gateway, and card processor.“But do I have to know all this?” you might complain. “I mean … 3% isn’t that high.”Keep this point in mind as we continue through this article. Sure, 3% may not seem that high now, but there are lower rates available.
Debit card processing fees are charged by the same major credit card networks.In actuality, debit card processing is fairly complex. Depending on whether the debit card was issued by a major bank with over $10 billion in assets (these are called “regulated” debit cards) or a minor bank with less than that (these are called “exempt” debit cards), fees can vary quite a bit.While debit card processing fees are lower than credit card processing fees, 42% of all non-cash payments are made with debit cards. So these fees still make up a big portion of all your payments.
Starting a small business is no small task. Doing so can mean razor-thin margins, minimal room for error, and a low likelihood of success. According to the Small Business Administration (SBA), 20% of small business owners fail in their first year, 30% fail in the second year, 50% fail after five years, and 70% of all small business owners fail by their 10th year in business. With odds like that stacked against business owners, it pays to know how to stop the bleeding.Additionally, a CBInsights analysis of 101 startups found that small businesses fail for the following reasons:
Two of the top 9 reasons for small business failure are expense related
With findings like that, it pays to pay attention to your expenses — and keep them as low as possible. HIgher rates and hidden fees may not seem like much at the time, but they can cut into your bottom line, especially if you face periods of low sales volume. Fees play a significant role in whether your business is successful in the long run.
Let's take a closer look at a pricing model to demonstrate just how much processing costs your small business over time. Since we can’t calculate how many transactions you’ll have over the lifetime of a business, we won’t factor in transaction fees — we’re only going to consider percentage fees. For our model, we'll use a flat fee of 2.9% for credit card transactions and .05% for debit card transactions. With all that in mind, let’s try to calculate how much you pay per year in card processing fees:# of years in business:30 yearsAnnual income:$250,000.0030-year income total:$7,500,000.00% of credit card payments:0.33 (33%)In-store credit card processing fee (% only):0.029 (2.9%)% of debit card payments:0.44 (44%)In-store debit card processing fee (% only):0.005 (0.05%)Processing fees per year:$2,942.50Processing fees over 30 years:$88,275.00You can more clearly see the impact these fees have when looking at a large transaction amount. In the example, a business owner charging $250,000 per year in transactions will lose $2,942.50 per year to processing fees and as much as $88,275 over 30 years. Whatever the dollar amount is that you pay from processing fees, one thing remains the same — there is no recouping these losses. Instead of paying the additional fees that processors charge for credit and debit transactions, you could reinvest that money back into your business.
Paying money in processing fees cuts into your bottom line and prevents you from reinvesting in your business. Here are just a few ideas for how you could use that hard-earned money instead:
If you're curious just how much you're paying in credit card processing fees each year, be sure to contact your payment processor or look into your point-of-sale system. Both of these should be able to tell you what percentage of your transactions are going to processing fees.
Fortunately, there are ways for you to reduce credit card processing fees. You can do so thanks to a surcharge program. A surcharge program passes the credit card processing fees to the customer when they choose to use a credit card instead of cash or a debit card.For instance, let's say you have a $10 transaction. Your business pays 3.5% in processing fees. Without a surcharge program, you pay $0.35 in processing fees, meaning you actually collect $9.65 from the transaction. With a surcharge program, the cardholder pays $10.35 for the transaction, and your business collects the full $10.
Many small business owners accept debit and credit card processing fees as a given. They don't think twice about the fact they are paying higher fees than necessary. Instead, they just consider processing fees as something required to conduct business. Unfortunately, these fees add up over time. Three percent may not seem like much in the short run, but it adds up in the long run. These fees can cost business owners thousands. When you consider that 70% of small businesses fail within 10 years, business owners should not be taking that 3% for granted. Implementing a surcharge program is an effective way to eliminate processing fees. Surcharge programs pass the cost of these fees onto the consumer. They can avoid these fees by paying with cash or debit instead. The best way to implement a surcharge program is through Nadapayments. Nadapayments eliminates the interchange rate, providing you with a one-stop-shop to process debit and credit card payments. You’ll receive hardware for card-present transactions and software for processing online transactions. Nadapayments also provides the signage required to implement a surcharge program.Business owners pay a flat monthly fee of $35 for the service, regardless of their transaction volume. There are no hidden account fees or cancellation fees. Nadapayments is also secure, practicing full PCI compliance. Be sure to reach out to learn more and get started today.
Have you ever considered accepting online credit card processing? If not, you should.You’ve invested a lot as an entrepreneur. You may even put in well more than 40 hours per week, which many entrepreneurs tend to do in the early stages.You certainly don’t want to lose money for no good reason. But you already are when you accept credit card payments.Even if your customers pay on your website, online credit card processing fees can eat at your profits. You may think it’s the cost of doing business, and in some ways it is. Depending on your industry, location, and strategy, startup costs could range from as little as a few thousand dollars to well into six figures (or much, much more). Additionally, business owners have monthly business expenses, such as rent, utilities, advertising, and employee wages to consider.But you should know something: You can eliminate online credit card processing fees from your expense sheet.It just requires a different approach to how you have been accepting credit card payments.
You don’t pay one fee to your merchant service provider (MSP). Numerous fees combine for an effective rate. The effective rate includes all the fees, including MSP markup fees (they have to make money!). Website credit card processing fees include:
It doesn’t end there. You may also pay cancellation fees when a transaction is voided. When a customer wants a refund, you may not get fees back when you refund them. Your MSP could even implement rate increases, which doesn’t make sense since they make a percentage of the transaction. For charges like cancellation fees, negotiate with your MSP. They should waive these. If they don’t, look for alternative providers. As you can see, online credit card processing fees get complex. Even worse, many MSPs put merchants on confusing multi-tiered plans that come with hidden surcharges and monthly fees. Why do MSPs do this to clients? Because they can. They know you’re busy running your business, and don’t have the time to investigate how website payment processing fees work. You simply pay for the convenience your MSP offers you customers, and focus on the business. It’s time to change that. Calculate how much you’re losing to online credit card processing fees. It should shock you. And it will motivate you to take action.
Website credit card processing usually cost merchants more than offline payments. The average is around 2.9% plus $0.30 per transaction, versus 1.5%-2.9% for in-person processing. Why does website credit card processing cost more? Well, MSPs charge higher markups. And the likelihood of fraud pushes online credit card processing fees higher. Here’s what you’re paying for online credit card processing with the big providers:Stripe
So, Stripe, PayPal, and Square all have online credit card processing fees of around 2.9% plus $0.30 per transaction. If the average transaction at your e-commerce store is $100, you’ll pay $3.20 in online credit card processing fees to your MSP. (2.9% + $0.30). That may not seem like much, but it adds up. In fact, your business could increase profits by double digits by eliminating credit card processing fees (because it boosts margins!).
To know what you stand to gain from eliminating online credit card processing fees, you have to know how much you’re losing right now. Obviously, this is different for every online business. But credit cards are the preferred method of payment for 42% of online transactions, according to Statista.
Clearly, since credit cards are the preferred method of payment for online shoppers, you have to accept them. Now, you may think that 42% of transaction equates to 42% of your revenue coming from credit card transactions. It doesn’t. Statista research shows credit cards are used for high-value purchases:
Compare that to cash transactions. The Federal Reserve finds cash is more popular with smaller transactions (55% of all payments under $10 are made with cash).Even if less than half your transactions are completed with credit cards, it’s possible two-thirds of your revenue comes via online credit card payment. That means website credit card processing fees could take a significant portion of your revenue. You should work to prevent that bleeding.
Let’s quantify this. Using an average transaction value of $100, you’ll pay $3.20 per transaction for online credit card processing.Now, let’s say you do 10,000 transactions per year and your annual revenue is $1,000,000. That means:
That’s insane. If your net margin is 10%, you make $100,000 per year as a business owner. That’s nice, considering it’s well above the average US salary.But you’re leaving a lot on the table. If you found a way to get rid of website credit card processing fees, you could earn $32,000 more. That’s a salary increase of 32%!Over a decade, that could mean $320,000 back into your pocket. That’s money you can use to expand your business, buy a bigger house, give to charity, and retire early.In short, it’s money you should make an effort to keep (and not give to your MSP). Easier said than done, right?In this case, it’s easily said and easily done.
As an e-commerce business owner, you don’t have to pay ridiculous online credit card processing fees. You just need a smarter strategy, one where you can still accept credit cards but avoid the processing fees. Enter a cash discount program—the solution your e-commerce business needs. With a cash discount program, you empower your customers to pay in a manner that’s most affordable and convenient for them. And you have a process in place to ensure you don’t lose money to online credit card processing fees. 100% legal and compliant, cash discount programs can enable you to take home 100% of your revenue. Want free online credit card processing at your e-commerce business? We can set one up within a week. Contact NadaPayments at +1 (929) 293-1800 or click the link below.
Running a laser hair removal clinic can be very lucrative. In fact, the hair removal business is already a multibillion-dollar industry. Through 2025, the global laser hair removal market is expected to have a 17% compound annual growth rate (CAGR), according to a MarketWatch report. The last thing you need are unnecessary expenses that eat into your hard-earned profits.As the owner of a laser hair removal salon, you certainly want to reap the rewards of your industry’s growth. After all, you’ve made a big investment:
Clearly, running a laser hair removal clinic and waxing salon can cost you well into six figures upfront. And it cost you well over $10,000 per month to run (and potentially much, much more). That brings up the question: Have you looked at the credit card processing fees at your laser hair removal clinic? Do that, and ask yourself: Why do I have to pay these fees? Want to know a secret? You don’t.Here’s how you can reduce credit card fees and boost revenue for your laser hair removal salon:
What you’re paying in credit card processing fees may differ from other waxing salons and laser hair removal clinics. As the chart from ValuePenguin shows below, your payment processing rates could be as low as 1.43% or as much as 3.5%.
If you talked to other laser hair removal clinic operators, you’d probably discover a more complex situation. It’s not as simple as a set rate per transaction. For example, some merchant service providers (MSPs) may include complicated surcharges and multi-tiered plans. And what laser hair removal clinics actually pay in credit card processing fees could greatly exceed 3.5%—the highest fee rate that American Express charges. Why do MSPs do this?The honest answer is because they can. Many owners don’t have time to shop for lower fees. Moreover, the credit card processing industry lacks regulations, and MSPs know laser hair removal clinics have a busy schedule. They set high fees and rake in the money as long as they can without the clinic noticing. Don’t let this happen to you.Make the issue a priority at your laser hair removal business. Because credit card processing fees don’t just nip at your profits. They bite off a big chunk.
Only you can figure out the exact numbers here. To get a better idea, look at consumer research. You’ll see a significant portion of your revenue comes via credit card payments. First, the 2018 TSYS US Consumer Payment Study found credit card has been the preferred payment method for 26-35% of transactions since 2013:
Second, as data from Statista shows, the average value of a credit card transaction is quite high across all brands:
People swipe the credit card more for larger transactions. This makes sense, given the consumer protections credit cards offer. Even though debit cards account for a higher percentage of transactions (54% to 26%), credit card purchases account for nearly 53.5% of total card spending, versus 46.5% for debit (Barron’s research). Now, consider the average cost of treatments at your laser hair removal clinic.
As you know, most of your clients spend a good deal of money. Considering what the research says, a good portion of your clients undoubtedly pay with a credit card. If you offer discounts for multiple treatments, such as a 20% discount per waxing session if you buy 10 at once, then it’s even more likely a customer will use a credit card at your waxing clinic. And these will be some of your largest client bills.Knowing all this, it’s possible 60-70% of your laser hair removal clinic’s revenue comes from credit card transactions. This makes it all the more crucial to stop unnecessary payment processing fees.
Let’s see how much more money could be in your pocket. If your laser hair removal clinic generates $800,000 per year in revenue with a net margin of 10%, you earn $80,000 for yourself as the owner. You may be perfectly satisfied with $80,000 per year. But you could easily earn more without even increasing your revenue. Because what if you’re paying 3% in credit card processing fees at your laser hair removal clinic? Considering the treatments you offer, credit card payment could be how you receive 65% of your revenue. The could mean the following:
That’s insane!Now, what if you eliminated those credit card processing fees? Well, in this example, your income as the owner of a laser hair removal clinic would jump from $80,000 to $95,600 overnight. That’s a salary increase of 19.5%!Evidently, it pays to pay attention to what your MSP charges. Over a decade of doing business, it could mean more than $150,000 back into your wallet. Think of what you could do with that money:
The point is: You don’t have to pay ridiculous fees to your MSP. By taking steps to get rid of credit card payment processing fees at your laser hair removal clinic, you can get the money you deserve.
You don’t simply pay one fee to your merchant service provider. You pay several fees:
Combined, these make up your total fees. But it doesn’t end there…In addition to your total fee, you could pay cancellation fees on transactions, though your MSP should waive this (do ask!). You may also not get fees back even when you issue a client a refund (discuss this with your MSP). Even worse, your MSP may implement rate increases due to “inflation”. Don’t agree with this. Because credit card processing fees at your laser hair removal clinic are a percentage of each transaction—and therefore naturally rise with your prices.Even though running a laser hair removal and waxing treatment business gets busy, take the time to figure out how you can avoid payment processing fees. Your efforts will prove worthwhile. Because what you pay your MSP each day, month, and year is not only excessive, it’s also unnecessary.
A cash discount program gives you the best of both worlds. You can decrease payment processing fees at your laser hair removal clinic and waxing salon. And you can still accept credit cards. How does that work? Well, a cash discount program empowers your clients to choose the most convenient and affordable payment tool. The program utilizes a surcharge structure designed to reduce credit card transaction fees as much as possible. The best thing about a cash discount program is that it’s a win-win. As the operator of the laser hair removal clinic, you increase margins. And your customers save money. And don’t worry, a cash discount program is also 100% legal and compliant. Want to learn more about how your laser hair removal clinic can benefit from a cash discount program? At NadaPayments, we can tell you all about it and set one up for within a week. Call +1 (929) 293-1800 or click the link below.
You’ve made a big investment to become an acupuncturist. But you never expected to pay all these acupuncture practice credit card processing fees.To become a board-certified acupuncture and Oriental medicine (AOM) practitioner, you have to first complete a 3- or 4-year master’s degree. Then, you must pass a national certification exam and apply for state licensure. Once you set up a practice, which costs money, you’ll have a range of expenses to cover. Average overhead costs for medical practices, including acupuncture practices, range between 60% and 70% of gross revenues, according to industry research.From student loan payments to insurance premiums to acupuncture office expenses, you may feel like you continually have your wallet open. And that you can’t entirely focus on what matters: Running a successful acupuncture practice and helping your patients live healthier, more fulfilling lives. Here’s the good news: You can quickly reduce any financial stress or anxiety you may be experiencing. Take a look at your acupuncture credit card payment processing fees and ask yourself: Do I really have to pay such high fees to my merchant service provider (MSP)?The short answer is: You don’t! Here’s how acupuncturists can lower their payment processing fees and keep more cash for their practice.
Average credit card payment processing rates for acupuncture practices can vary. The chart below shows average rates by network, according to research from ValuePenguin.
A survey of acupuncturists who run their own practice would probably reveal more complex fee structures than a set rate per transactions. Certain merchant service providers (MSPs) may have acupuncturists on multi-tiered plans, with monthly fees and hidden surcharges. Why do MSPs do this to acupuncturists? Most acupuncturists focus on caring for their patients and improving their treatment services. Shopping for lower fees is difficult to make time for. So, MSPs charge what they can—for as long as they can. While paying a small fee per transaction may not seem like a big deal, it could actually cost your acupuncture office thousands of dollars per year.
First, let’s consider what percentage of your acupuncture office’s revenue comes from credit card transactions. The Federal Reserve Bank finds that credit cards are used for 21% of transactions overall. This number has been rising in recent years.
Moreover, credit cards are more common with larger transactions. 26% of consumers use credit cards for purchases between $50-$99 (the typical purchase at an acupuncture clinic).
If patients have a larger transaction, they’re simply more likely to use a credit card. Keep this in mind! Fees for an acupuncture session typically range from $75–$95, but may be more or less at your practice. Some patients may have insurance that covers acupuncture treatment as well, but they’ll still have a deductible to meet and/or copay. So, a good portion of your patients will opt to pay with a credit card.Additionally, many acupuncture patients like to prepay for multiple visits (because there’s a discount). If a patient signs up for 10 sessions at a cost of $600, the chances of swiping a credit card are even higher. Given that your largest patient bills may be paid with a credit card, it’s possible that 50–60% of your revenue could come from credit card transactions. After all, the average value of a noncash transaction is $112, compared to $22 for a cash transaction.
Let’s put this into real numbers. If your acupuncture clinic brings in $220,000 per year in revenue and you have a total of $130,000 in expenses, you have $90,000 in gross income for yourself. You may be satisfied with that. $90,000 per year slightly exceeds the average income for acupuncturists, according to the Bureau of Labor and Statistics. But what if you’re paying a whopping 3% in total fees to your MSP? Considering the service you provide, 60% of your revenue could come from credit card transactions. That means the following:
As you can see, it pays to take a closer look at what your MSP charges you for each transaction. Over a decade, it could put $40,000 or more back into your pocket. Just think of what you could do with all that extra money! You could:
The reality is: You deserve that money you’re earning as a professional acupuncturist. The MSP doesn’t. And you should take steps to eliminate those fees you’re paying.
As an acupuncturist, you’re busy. So you undoubtedly want a hassle-free way to eliminate these credit card fees at your acupuncture clinic. Before you shop for the best credit card processing providers, understand the industry lacks regulations. Third-party credit card processors can charge high fees without repercussions. And they can implement opaque fee structures. To avoid high acupuncture payment processing fees, ask your MSP about:
What if there was a way to still accept credit cards and reduce processing fees?Yes, there is! It’s called a cash discount program.A cash discount program utilizes a unique credit card fee structure that empowers patients to select the most affordable and convenient payment method. The surcharge structure is designed to reduce your processing fees as much as possible. Cash discount programs are 100% legal and compliant, and ensure you can optimize savings on acupuncture payment processing fees. It’s a win-win for both you, the acupuncturist, and your patients. Wish to learn more about how a cash discount program can benefit your acupuncture clinic? At NadaPayments, we can set one up for you in just a few days. Click the link below or call +1 (929) 293-1800. We’re ready to help you.
According to The Journal of the American Medical Association (JAMA), surgeons report the highest rates of stress of all medical professionals. Not to mention surgeons undergo some of the most rigorous and expensive training. According to the American College of Surgeons, a typical surgery graduate has over $220,000 in debt. The last thing a surgeon needs to worry about is a dishonest merchant services provider (MSP) who is overcharging them for their surgical practice credit card processing fees.Yet this is very often the case. MSPs know that surgeons make much more than their average customer, and are more than happy to charge a little bit more for their services. MSPs are also keenly aware that surgeons generally have zero downtime to properly research how credit card processing fees work, and what is and isn’t a fair rate.
If you’re accepting one of the four major credit card networks—Visa, Mastercard, American Express, or Discover—then you’re paying somewhere between 1.5–2.9% in credit card processing fees. For a while, Amex members who owned healthcare businesses were paying as much as 3.5%, but rates have gone down.If you’re paying almost 3% for your credit card processing rates, there’s no good reason for it. The only reason you’d be paying that much is if you agreed to a multi-tiered plan riddled with hidden fees and complex surcharges. Cosmetic and plastic surgeons could be paying an extra $500 to $1,000 extra per month in extraneous credit card processing fees.The average cosmetic surgery practice has a profit margin of 30%, which means expenses are about 70% of all revenue. In this type of business, lowering extraneous or unnecessary expenses should be a priority. Fortunately, credit card processing fees are one of the easiest expenses to reduce.
According to the American Society of Plastic Surgeons, 1.78 million surgical cosmetic procedures were performed in the U.S. in 2016, totaling over $8 billion in billable revenue. That’s an average cost of $4,494.38 per procedure.Just look at the prices below for some of the most popular cosmetic procedures in the U.S.:TOP 5 COSMETIC SURGERIES, COSTSWomen1. Liposuction, $3,3472. Breast augmentation, $3,990 (silicone)3. Tummy tuck, $5,9354. Breast lift, $4,7645. Eyelid surgery, $3,216Men1. Liposuction, $3,3472. Nose surgery, $5,0673. Eyelid surgery, $3,2164. Breast reduction, $3,7795. Facelift, $7,503Source: American Society for Aesthetic Plastic Surgery, 2016.Simply put, cosmetic procedures like plastic surgery are very expensive and typically not covered by insurance. And as decades of consumer surveys and studies have shown us time and again, Americans make expensive purchases with credit cards.Most cosmetic and plastic surgery patients will pay with either a healthcare credit card or a regular credit card. Others may pay with a home equity line of credit (HELOC) or another personal loan. Very few people can afford to pay in cash.That being said...a surprising number of wealthy patients prefer to pay with credit cards as well, according to TSYS. This makes sense—the more money you have, the less likely you are to want to pay for it out of your investments, and the more likely you are to be confident you can pay it back.
Keep in mind that 81.63% of dental patients paid with credit cards. Seeing as how cosmetic procedures are generally more expensive than dental procedures, let us assume that at least 80% of cosmetic surgery / plastic surgery patients pay with credit cards, too.Merchant services providers know this, which is why they’re so eager for your business. Whether your patients pay with their own cards or are covered by insurance—which typically reimburses surgeons with virtual credit card payments—you’re going to need a reliable MSP.
The merchant services industry is full of confusing terms and jargon that they know you don’t understand and won’t bother learning. These are the most common ones:Effective rate: The average of all fees you must pay per transaction, including your MSP’s markup, which is how they make money.Pass-through rate: This refers to both fixed interchange fees the MSP must pay to the card-issuing bank, as well as assessment fees the MSP must pay to the card brand. Interchange fees: These are the fees paid to the card-issuing bank.Assessment fees: These are the fees paid to the card brand.The best way to compare quotes from different MSPs is to find the best credit card processing rates for your practice is by looking at the ‘effective rate’ and to ask for ‘pass-through pricing’. As a reminder, the pass-through rate includes fixed fees an MSP pays to banks and card brands.Here’s what most MSPs won’t explain to you. As the customer, you can either choose to have your MSP bill you these fees at no extra cost (hence, pass-through pricing) or you can choose to have your MSP pay the pass-through fees as a courtesy on your behalf.If you choose the latter option, thinking it will be more convenient, you will likely be overcharged for the convenience of having your MSP pay the pass-through fees on your behalf.Another way MSPs will try to foist a higher rate on you is by only quoting you their markup rate, and counting on the fact that you don’t know enough about credit card processing to also ask for the pass-through rates. This makes their fees seem much lower than everyone else’s, when the exact opposite may be true.
How is it possible for an industry like credit card processing to be so opaque? Because it’s legal. Credit card processing by third parties is largely unregulated, so the majority of MSPs out there are incentivized to be less than ethical.Finding an honest MSP for your credit card processing isn’t impossible, but it’s not as easy as calling the first number that shows up in your search results. Before you decide on your MSP, ask them for the following in good faith:
You may have some patients who want to use their health savings account (HSA), health reimbursement account (HRA), or flexible spending account (FSA) to pay for their cosmetic procedure. If you want to accept these types of cards, you’ll need to let your processor know the correct classification.You can find your correct classification code in the merchant category codes (MCC), which designates your business type. For cosmetic and plastic surgeons, the correct MCC is 8011.
According to the Bureau of Labor Statistics (BLS), the 2018 median pay for physicians and surgeons was $208,000. But as of May 31, 2019, Salary.com reports that plastic reconstructive surgeons made an annual median wage of $385,367.Note that this refers to the median salary (i.e., profit before taxes), not revenue. We can use the aforementioned profit margin of the average surgical practice (30%) to extrapolate the average revenue of surgical practices: $1,284,557.We can also assume that the average surgical practice accepts most of its payments (80%) via patient credit cards or through public or private insurance.With these assumptions, let’s see how much the average plastic surgeon/cosmetic surgeon paid to their credit card processor in 2019 on the higher end—as well as how much they’d pay over a 30-year career, assuming revenue does not increase (in other words, these are very conservative estimates):# of years in business:30 yearsAnnual revenue:$1,284,557.0030-year total revenue:$38,536,710.00% of credit card payments:80.00%Average credit card processing rate:0.029 (2.9%)Processing fees in 2019:$29,801.72Processing fees over 30 years:$894,051.67Here’s some perspective. In 2017, the median home price in the U.S. was $199,200, which means your surgical practice credit card processing fees over 30 years would add up to almost five single-family homes.In other words, if the average surgical practice overhead is as high as 70% and only had $385,367 in profits, that means that the average 30-year credit card processing total for surgical practices is higher than TWO ENTIRE YEARS of your take-home profits.Fortunately, there is a better option that doesn’t force you to pay the processing fee for credit card payments. In fact, done right, you can accept card and cash payments while enjoying 100% of your profits.
With a cash discount program, you don’t have to deal with irritating credit card processing fees that scalp your profits or become a cash-only surgeon.Simply put, a cash discount program is a type of credit card surcharge program that specialized merchant services providers can help set up for your surgical practice. The best part? It’s 100% legal and compliant.If you’d like to learn more about a cash discount program and how we can help you set one up in less than a week, just click the button below or call +1 (929) 293-1800:
Whether you accept mobile credit card payments or terminal credit card payments, card payments are the most common type of payment method (aside from cold, hard cash) around the world. Which is why mobile credit card processing is very important for your profit margins.How common? Well, back in 2013, ValuePenguin conducted a worldwide survey and found the following:
In the U.S. alone:
Discover comes in 1st place while American Express comes in 4th place
With numbers like these, it’s no wonder that credit card payments persist in 2019 and will likely dominate transactions for many more years, even with the rise of alternatives like PayPal and Square.
Credit card payments have changed drastically in the 21st century. Today, online credit card processing and mobile credit card processing (also called phone credit card processing by some) are taking up a big chunk of the global pie.In fact, most businesses that conduct any type of business online are expected to accept online and mobile credit card payments, regardless of whether customers will actually pay via credit card online.According to an oft-cited 2017 study conducted by TSYS, in which 1,000 consumers were polled:
While those percentages may not seem high, they have to be taken into context. This study was conducted back in 2017 with 1,000 people, and mobile credit card payments have only gone up since then.And according to a more recent study done by the Bureau of Economy Analysis, $14.2 trillion was spent worldwide by consumers in just the fourth quarter of 2018. At the same time:
*Keep in mind that online rent and car payments transacted via credit card count towards this number.
Mobile payment adoption is expected to rise well into 2020 and beyond
In a 2015 survey, the U.S. government found that 28 percent of smartphone users and 22 percent of all mobile phone users had made mobile payments in the previous year (2014). As you can see, these percentages have gone way up in the four years since.Additionally, the mobile payments industry is booming. Mobile payments hit $37 billion in 2015, and are expected to eclipse $808 billion by the end of 2019, according to Business Insider.Although it’s difficult to get exact numbers for the number of American consumers who paid for consumer goods via mobile credit card payments in 2018, it’s easy to guess that current trends will continue.With the popularity of well-known mobile credit card processing solutions like Square and ROAMPay, it’s safe to say that mobile credit card payments are on the rise, and will only continue to increase every year.In short, is your business expected to accept mobile credit card payments in 2019? Absolutely.But, surprisingly enough, a study by JP Morgan Chase found that, on average, only 36 percent of merchants currently accept digital wallet payments (56 percent of large businesses accept mobile wallets, while 25 percent of small businesses accept them).So if you accept mobile credit card processing, you’re ahead of 44–75% of your competitors.
Despite what most business owners may think, phone credit card payments have actually been around in one form or another since the 1990s. They just didn’t take off until the 21st century.Today, there are four major types of ‘mobile’ credit card processing:
Beyond these four major types of mobile credit card payments, there are also several variations on each type**:
**As you can see, most apps exist for one particular type of payment: mobile app wallets. But mPOS is a close second and QR codes are still popular. Depending on the part of the world you’re in, near-field communication is also a very popular mobile card payment method.
There’s no need to get into the nitty-gritty of the different types of mobile payment methods, as that kind of categorization isn’t clear cut and new forms of mobile payment are springing into existence each year. The important takeaway is that mobile payments are extremely popular—especially in Asia—and are certainly here to stay. With the incredible popularity of AliPay, PayPal, and Apple Pay, among others, the United Nations predicts that mobile payments will overtake credit card payments as the preferred way to pay online in 2019.This is a bit misleading because mobile payments are more a method of payment rather than a source of payment (ultimately funding still comes from a credit card or a bank account directly). It would probably be more accurate to say that various mobile payment methods, which still rely heavily on credit card processing, are becoming the most popular form of online payment.Either way, business owners who do not accept mobile credit card processing do so at their own peril.
For any merchant thinking about accepting mobile credit card payments, iPhones are an obvious consideration.In the third quarter of 2018, Statista found that iPhones still dominated 12 percent to 18 percent of the global smartphone market. In the U.S., a Kantar report revealed that iPhones still own 32.8% of the smartphone market:
iOS is slowly taking back some market share from market-leading Android
For anyone looking to implement iPhone payments, the best iPhone credit card processing solutions (aside from Apple Pay, which is NFC) are listed here (as ranked by cardpaymentoptions.com):
But to be honest, iPhones aren’t the force they once were. In recent years, another phone has become the undisputed king of mobile OS’s...
According to Statista, the Android OS began to dominate the mobile device market in the fourth quarter of 2010, when it surpassed the now all-but-forgotten Symbian OS as the leading mobile OS worldwide. Android’s dominance over the global market pie has continued unchallenged ever since:
Android has remained completely unthreatened atop its perch since Q1 2011
In the U.S., Android’s accounted for 61% of all mobile OS’s in the third quarter of 2018, according to the same report by Kantar that detailed iOS’s rankings. There is no sign of any letdown when it comes to Android’s undisputed reign as the heavyweight champ of the mobile OS arena—if anything, the market share of all of Android’s competitors continues to fluctuate or simply decrease on a yearly basis.Needless to say, any business owner looking to accept mobile credit card payments absolutely needs to make sure that their solution is Android-friendly. According to FitSmallBusiness, the best Android credit card processing solutions are:
Typically, simple credit card readers for Android (swipe only) are free of charge, while readers that accept all cards can cost anywhere from $29 to $60.
Regardless of whether you want to implement iPhone credit card processing, Android credit card processing, or all phone credit card processing, there is some consensus on the overall best mobile credit card processing solutions for 2019.According to FitSmallBusiness, the 6 best mobile credit card processing options in 2019 are:
According to Fundera, the 5 best mobile credit card readers are:
Although there are some differences of opinion between the two reviewers, it seems the following mobile credit card processing solutions are shared:
†Note that these are subjective rankings, and your own experiences may vary.
It’s safe to say that mobile credit card payments are here to stay. Not only do they make life easier and purchases more convenient for consumers (and let’s never forget that convenience is king), they also lead to more sales for merchants. It’s a win-win situation.The only downside to mobile credit card processing? You can’t work your way around it. There’s no way to bypass the sizable cut—up to 3.5% per transaction—that mobile credit card processing takes out of your hard-earned profits.Fortunately, for the vast majority of brick-and-mortar small businesses still accept most of their payments via in-person or terminal credit card processing, there is a better way to accept credit card payments. With a cash discount program, you can bypass nearly all of your credit card processing fees while still accepting credit card payments from your customers in a store.If you’d like to learn more about a cash discount program and how we can help you set one up in less than a week, just click the button below or call +1 (929) 293-1800:
If you own a medical practice or clinic of any kind—whether you’re a doctor, dentist, or specialist—you need to accept credit card payments. That's why it’s important to understand medical practice credit card processing.Doctors and healthcare practitioners are professional service providers who process and accept payments differently than most other retailers. For example, although doctors run in-person businesses, they accept a large percentage of payments over the phone and online. Additionally, insurance companies may often pay medical practices using credit cards.Over the past several years, doctor’s expenses have shot up while insurance company payments have decreased. In fact, recent estimates indicated that the average medical practice overhead is between 60–70%. With numbers like that, the last thing you need to worry when you’re trying to make and save money are high credit card processing fees.Here’s the thing: if you’re running a medical practice of any kind and accepting credit card payments, there’s a very good chance you’re overpaying. That’s because merchant services providers know that, unlike restaurants and other retailers, medical practice transactions are much more valuable on average, and they want to capitalize on your high-value transactions by upping their rates.With doctors too busy dealing with patient paperwork to diligently review their billing statements, these types of merchant services providers often get away with this, too. On average, medical practices may often be spending well over $1,000 per month on credit card processing fees. But, if they look more closely at their statements, they’ll realize they’re significantly overpaying.
If you’re accepting one of the four major credit card networks, then you’re paying somewhere between 1.5–2.9% in credit card processing fees. Note that American Express card rates can go as high as 3.5%.More specifically, the average interchange rates for each of the four major credit card networks are:
How can you use this information? Simple. If you signed up for a merchant services provider without doing too much due diligence (or if you suspect for any reason that you’re being overcharged), simply divide the monthly credit card processing fees on your merchant service provider’s billing statement by your total credit card payments per month.If that number is well above the aforementioned ranges, you’re in a bad business relationship. It would be in your best interest to find another merchant services provider as soon as possible.
In 2017, payment processor TSYS surveyed over 1,000 consumers to see how they preferred to pay for things. The overall findings were that:
Debit cards are the preferred method of payment for smaller, day-to-day purchases, while credit cards are the preferred payment method for larger, one-off purchases—like annual checkups or regular visits to the doctor.Yet a 2010 study by the American Medical Association found that up to a third of medical practices (33%) did not accept credit card payments at the time. That is a really high percentage in a field where the vast majority of payments—from both patients and insurance companies—arrives in the form of a credit card payment.Additionally, a Blackbook 2017 Revenue Cycle Management survey discovered that the average patient deductible and maximum out-of-pocket payments have increased by 29.4% since 2015. Which, in practice, means that more patients are paying out of pocket for their visits, and medical practices are responsible for collecting those payments (usually via credit cards).Finally, in the same survey, 71% of patients indicated that mobile payment options and billing alerts improved their satisfaction with their provider. And 95% of patients agreed they would pay online with a credit card if the provider had a website that offered the option.With that kind of consensus from patients, having a medical practice but not accepting credit card payments doesn’t make much business sense.
As a quick aside, many medical practices have asked us whether we are HIPAA-compliant, and only want to work with HIPAA-compliant credit card processors. Here’s the thing—there really is no such thing as a HIPAA-compliant credit card processor, because basic processing generally falls outside the scope of HIPAA requirements and isn’t something you actually need to worry about.This is because medical practices are ‘covered entities’ that must work with HIPAA-compliant third-party service providers when handling sensitive patient information. But when it comes to just credit card billing and processing, your merchant services provider doesn’t actually count as a business associate that handles sensitive patient information.In other words, your practice should not provide protected health information (PHI) to your payments processor. Don’t enter details about a patients’ treatment in online payment forms. Generally speaking, you should leave comment boxes blank and only provide the absolutely essential information necessary for your processor to handle the payment.On the flip side, your processor should not be sending receipts to patients via unsecured methods, such as text or unencrypted email.As long as you can check these boxes, your merchant services provider doesn’t have to be HIPAA-compliant for you to work with them.
As another aside, you may have some patients who want to use their health savings account (HSA), health reimbursement account (HRA), or flexible spending account (FSA) to pay for visits. If you want to accept these cards, you can. But you’ll need to let your processor know the correct classification.We’re referring to merchant category codes (MCC), which designate your business type. You can only accept HSA and FSA cards if you’re assigned a healthcare MCC. The following list of MCCs includes specialists and general practitioners as well as dental and optometry practices:
If you aren’t sure what the right MCC for your medical practice should be, don’t worry. Just ask your merchant services provider to locate the correct code for you, do some simple due diligence, and you’ll be all set to accept HSA and FSA card payments.
According to the 2019 Merritt Hawkins Physician Inpatient/Outpatient Revenue Survey, which is conducted every 3 years, specialist physicians made the most on average while primary care physicians made the least. No surprise there. But physician revenues have jumped tremendously since 2016 when the last survey was conducted:
The average physician had $2.38 million in revenue in 2019
Primary care physicians made $2.13 million in revenue, while specialists made $2.45 million in revenue, on average. Physicians as a whole made $2.38 million in revenue on average—53% more than they made in 2016, just 3 years prior.
Pediatricians make the least, on average, while cardiovascular surgeons make the most
Merritt Hawkins also gave breakdowns by specialty. Cardiovascular surgeons brought in the most revenue in 2019, with $3.7 million on average. Pediatricians were on the other end of the spectrum, bringing in just $1.61 million in revenue on average.Let’s use the overall physician average of $2.38 million in revenue before expenses. While we don’t know the percentage of those payments that were made with credit cards, we can safely assume that it was at least 36% of all transactions, if not more. This is the accepted average percentage of all payments made via credit card at restaurants in the U.S.We can assume that the average medical practice will accept more than that in credit card payments, but it doesn’t hurt to be conservative in our estimates.With these assumptions, let’s see how much the average medical practice paid to their credit card processor in 2019—as well as how much they’d pay over a 30-year career, assuming revenue does not increase (which it will because of inflation):# of years in business:30 yearsAnnual revenue:$2,380,000.0030-year total revenue:$71,400,000.00% of credit card payments:0.36 (36%)Average credit card processing fee:0.029 (2.9%)Processing fees in 2019:$24,847.20Processing fees over 30 years:$745,416.00As you can see, those card processing fees really add up. In 2017, the median home price in the U.S. was $199,200, which means your medical practice credit card processing fees over 30 years would add up to nearly four one-family homes. That’s crazy.Put another way, if the average medical practice overhead is as high as 70%, that means that in 2019, the average medical practice only had $714,000 in profits. Which means that your 30-year credit card processing total could be as high or higher than an entire year of your take-home profits. That’s unacceptable.
It’s safe to say that, with recent developments in healthcare insurance, more and more patients will be paying with credit cards at your medical practice over the years. So not only will your percentage of credit card payments likely rise over time, patients are increasingly expecting in-person, over-the-phone, and online credit card payment options from their providers.Fortunately, whether you already accept credit cards or don’t, there is a better way. With a cash discount program, you can bypass nearly all of your card processing fees while accepting cash, debit card, and credit card payments.Simply put, a cash discount program is a type of credit card surcharge program that certain merchant services providers can help you set up for your medical practice. The best part? It’s 100% legal and compliant.If you’d like to learn more about a cash discount program and how we can help you set one up in less than a week, just click the button below or call +1 (929) 293-1800:
If you’re a restaurant owner, no one needs to tell you how competitive the food industry can be. The average restaurant profit margin sits somewhere between 3 to 5 percent. (Coincidentally, that’s also how high most restaurant credit card processing rates are…)This means that if your restaurant pulls in $1 million per year, you’d be lucky to pocket $30,000 to $50,000 of that yourself. Perhaps that’s why over 60% of all restaurants close within their first three years of business.Despite this staggeringly sobering statistic, there are a lot of restaurants out there. In 2018, there were over 660,000 restaurants in the United States. And those were only the ones they could count. Little hole-in-the-walls, restaurants-within-stores, and little known mom-and-pop shops included, there are probably over a million restaurants in the United States and counting.What do all of these restaurants have in common? Most of their customers pay with credit cards ($1 pizza shops not included). And in an industry that’s already struggling for profits, credit card processing fees really add up. That’s why understanding restaurant credit card processing is so important.
Back in 2013, ValuePenguin conducted a worldwide survey and found that in the U.S. alone:
*Keep in mind that there is a crossover between merchants who accept more than one card.There are only 28.8 million small businesses in the U.S. according to the U.S. Small Business Administration, which means that more than 30% of all business owners in the U.S. accept the four major cards as payment.With numbers like these, even with the rise of alternatives like PayPal and Square, credit card payments will continue to be the dominant form of non-cash payment around the country.Now, onto the million-dollar question—how many of your restaurant patrons are paying with credit cards? And what do your restaurant credit card processing fees look like?
In 2017, payment processor TSYS conducted a survey of over 1,000 consumers to see how they paid depending on where they were spending the money. The overall findings were that:
Debit cards are the preferred method of payment for smaller, day-to-day purchases, while credit cards are the preferred payment method for larger, one-off purchases.So, when you consider that debit cards are used for smaller purchases and credit cards are used for larger purchases, it turns out that credit card and debit card purchases are fairly equivalent.Dine-in restaurants accept 75% of all payments through credit cards and debit cards.When it comes to business types, restaurants (dine-in and fast food) see a higher percentage of both debit and credit card payments than most other business types, excluding supermarkets. Notably, dine-in restaurants (with higher bills) have a fairly low percentage of cash-paying customers (just 19%), while fast-food restaurants had a very high percentage of cash-paying customers (up to 39%).Now that you know how many of your patrons are paying you with credit cards and debit cards, it’s time to figure out how much you’re losing in profits to processing fees.
If you’re accepting one of the four major credit card networks, then you’re paying somewhere between 1.5–2.9% in credit card processing fees.
Your hard-earned money changes a lot of hands before it arrives back in your wallet.As you can see, there are several parties involved in a single credit card swipe:
While 2.9% may not seem high, just imagine how annoyed you’d be if you found out your tax rate just increased by 2.9%. When it comes down to it, the net result really isn’t all that much different (but more on this later).
Let’s not forget about debit cards, which make up 39% of all payments at dine-in restaurants and 36% of all payments at fast food restaurants. Debit cards are the most popular payment method for restaurant customers as a whole, so it pays to understand how much you’re losing in profit each time a debit card gets swiped at your establishment.Debit card processing fees are charged by the same major credit card networks, and work out to 0.05% plus 21 cents and a 1-cent fraud-prevention adjustment per transaction, if eligible. Thankfully, this is a nearly negligible percentage fee compared to credit card processing rates.In other words, if the same number of patrons at your restaurant spent an equal amount of money using credit cards and debit cards over the course of an entire year, your restaurant credit card processing fees would be 58x higher than your debit card processing fees.Whether you accept payment via credit card or debit card, card processing fees are largely unavoidable or non-negotiable because of interchange fees. Which is why a lot of restaurants, especially in urban areas, only accept cash payments—it’s the only easy way around paying the processing fee.There’s an even better way to accept both credit card payments and cash payments at your restaurant, but we’ll get to this in a little bit...
According to the National Restaurant Association, the U.S. restaurant industry pulled in $799 billion in revenue in 2018. If there were 660,000 restaurants in the United States om 2018, as previously established, then that means that the average restaurant in the United States $1.21 million*.*This is the mean, not the median (which is probably considerably lower).Using this revenue figure as a sample, and the credit card and debit card processing percentages reported by TSYS as a benchmark, we can do some simple math to arrive at the average restaurant credit card processing fees and the average restaurant debit card processing fees in 2018.Let’s review the data from the TSYS study. As many as 36% of dine-in restaurant customers pay with a credit card, while 39% pay with debit cards. Assuming you own a dine-in restaurant that makes $1.21 million per year, your revenue breaks down in the following manner:
No matter who you are, $12,000 is a hefty chunk of change. What about your debit card processing fees?
Fortunately, because of the 58x difference explained earlier, your debit card processing fees are basically negligible.But let’s go back to that credit card processing bill of over $12,000.00. Keep in mind that’s for just one year in business. Assuming you stay in business for another 30 years, here’s how much you might end up paying in credit card processing fees even if you never increase your revenue:# of years in business:30 yearsAnnual revenue:$1,210,000.0030-year total revenue:$36,300,000.00% of credit card payments:0.36 (33%)In-store credit card processing fee (% only):0.029 (2.9%)% of debit card payments:0.44 (39%)In-store debit card processing fee (% only):0.005 (0.05%)Processing fees over 30 years:$386,050.50As you can see, those card processing fees really add up. In 2017, the median home price in the U.S. was $199,200, which means your restaurant credit card processing fees and debit card processing fees over 30 years would add up to basically two entire one-family houses.And in an industry where the average profit margins are 3–5%? That’s crazy. That basically means that your 2.9% credit card processing fee could be taking out 100% of your profits on the lower end, and over half of your profits on the higher end of that range.
It’s safe to say that restaurant credit card processing isn’t going anywhere anytime soon. Not only does accepting credit cards get you more revenue, but it also makes your customers’ lives easier and their dining experiences more convenient and enjoyable, which you can’t put a price on. But those credit card processing fees are just too damn high for restaurants to sustain.Fortunately, for the vast majority of brick-and-mortar small businesses that accept credit card and debit card payments via terminal credit card processing, there is a better way. With a cash discount program, you can bypass nearly all of your card processing fees while accepting cash, debit, and credit.If you’d like to learn more about a cash discount program and how we can help you set one up in less than a week, just click the button below or call +1 (929) 293-1800:
Dentists have a lot to juggle on their plates every day, and a lot of bills to pay, too (including dental credit card processing). According to the American Student Dental Association (ASDA), the average dental school graduate in 2017 has over $239,895 in debt, and 30% of graduates have over $300,000 in debt.If that wasn’t bad enough, half of all dentists report that high levels of stress negatively impacts their practice, according to the British Dental Journal (BDJ).The last thing dentists need to worry about is having a dishonest merchant services provider who is overcharging them for their dental credit card processing fees.Unfortunately, this is very often the case. Most healthcare practitioners, including dentists, make much more than the average business owner, but also have less time to investigate the nuances of how credit card processing fees work, and what’s a fair rate (and what’s not).
If you’re accepting one of the four major credit card networks—Visa, Mastercard, American Express, or Discover—then you’re paying somewhere between 1.5–2.9% in credit card processing fees. If you’re paying on the higher end of that range, chances are it’s not for a good reason.A survey of most dental practice credit card processing fees would turn up predictable results: many dentists are likely on multi-tiered plans, loaded with hidden and complex fees and surcharges. In fact, dental practices may often be spending $300 to $500 extra per month on extraneous credit card processing fees.On top of that, the average dental practice has a profit margin of 40%, which means expenses are generally around 60% of all revenue (if not higher). In this type of business setup, lowering expenses by all means possible should be a priority, especially as your practice continues to grow. Credit card processing fees, which are persistent, are one of the easiest fees to reduce. Simply put, if you own a dental practice, it’s important to understand the unique considerations facing your business. And it’s doubly important to make sure that you aren’t paying outrageously high dental credit card processing fees. Here’s what you need to consider.
The best way to compare quotes from different MSPs to find the best dental credit card processing rates is by looking at the ‘effective rate’ under what’s called ‘pass-through pricing’. First, some definitions:
The problem with the pass-through rate (which includes interchange and assessment fees) is that these fees are non-negotiable because they are passed on from your patients to your MSP every single time they swipe a credit card.But here’s where things get tricky. As the customer, you can either choose for your MSP to bill you these fees at no extra cost (hence, pass-through pricing) or you can choose to have your MSP pay the interchange fees as a courtesy on your behalf.If you choose the latter thinking it will be more convenient or simpler on your end, you will most likely be overcharged for the convenience of having your MSP pay the interchange or assessment fees on your behalf.Dishonest MSPs will only give you a quote for their markup rate, omitting the pass-through pricing rates entirely. As a result, dentists who don’t have time to read the fine print will think their effective rate is much lower than it actually is. In reality, the number they’re seeing in their contract does not include the pass-through rates paid to banks and card brands.
You may be wondering how it’s possible for an industry like credit card processing, which is ubiquitous and integral to modern living, to be so opaque and dishonest. Frankly, it’s all fair game. Credit card processing by third parties is a largely unregulated industry, so most MSPs are actually incentivized to be less than ethical.Finding an honest MSP for your dental credit card processing isn’t impossible, but it’s definitely not as easy as calling up the first processor who shows up in your search results. So before you decide on your MSP, ask them for the following in good faith:
As a quick aside, many dental practices have asked whether their MSP is HIPAA-compliant, and only want to work with HIPAA-compliant MSPs. But there really is no such thing as a HIPAA-compliant MSP, because basic processing generally falls outside the scope of HIPAA requirements completely.Essentially, dental practices are ‘covered entities’ that must work with HIPAA-compliant third-party service providers when handling ‘sensitive’ patient information. But when it comes to simple credit card billing and processing, your MSP doesn’t need to count as a HIPAA-compliant associate, because patient payment information isn’t classified as ‘sensitive’ by HIPAA.This also means that your dental practice should not be providing protected health information (PHI) to your MSP under any circumstances. Don’t enter details about a patients’ treatment in online payment forms. Leave comment boxes blank. Provide the essential information necessary for your processor to handle the payment, and nothing else.As long as you can check this box, your merchant services provider doesn’t have to be HIPAA-compliant for you to work with them.
You may also very rarely have some patients who want to use their health savings account (HSA), health reimbursement account (HRA), or flexible spending account (FSA) to pay for visits. If you want to accept these cards, you’ll need to let your processor know the correct classification.We’re referring to merchant category codes (MCC), which designate your business type. The following list of MCCs includes specialists and general practitioners as well as dental and optometry practices. For dentists, the correct MCC is 8021.
According to the Bureau of Labor Statistics (BLS), dentists make a median salary or income of $151,440. Those in the bottom quartile made less than $104,800, while those in the top quartile made over $208,000.
The average dentist had a median salary of $151,440 in 2017
Note that these numbers refer to average salaries (i.e., profit before taxes), not revenues. We can use the aforementioned profit margin of the average dental practice (40%) to extrapolate the average revenue of dental practices: $378,600.We can also assume that the average dental practice accepts most of its payments via patient credit cards or through public or private insurance, which often pays dentists using plastic or virtual credit cards as well.This is borne out by a recent finding that looked at data from across 12,500 dental practices in the U.S. In 2016, 18.37% of dental patients paid with cash. The rest (81.63%) paid with credit cards.With these assumptions, let’s see how much the average dentist paid to their credit card processor in 2019 on the higher end—as well as how much they’d pay over a 30-year career, assuming revenue does not increase (in other words, this is a very conservative expense estimate):# of years in business:30 yearsAnnual revenue:$378,600.0030-year total revenue:$11,358,000.00% of credit card payments:81.63%Average credit card processing fee:0.029 (2.9%)Processing fees in 2019:$8,926.48Processing fees over 30 years:$268,874.53Wow, those card processing fees really add up. In 2017, the median home price in the U.S. was $199,200, which means your medical practice credit card processing fees over 30 years would add up to well over a single family home. That’s crazy.Put another way, if the average dental practice overhead is as high as 60% and the average dental practice only had $151,440 in profits, that means that the average 30-year credit card processing total for dental practices is almost as high as TWO ENTIRE YEARS of your take-home profits. That’s unacceptable.
With a continued push by insurance providers to reimburse doctors and dentists with virtual or plastic credit card payments, your percentage of credit card payments will likely rise over time, even if you demand that more patients pay with cash. And more patients are increasingly expecting in-person, over-the-phone, and online credit card payment options from their dentists.Fortunately, whether you already accept credit cards or don’t, there is a better way that signing up with an MSP for dental credit card processing. Like eliminating those fees entirely. With a cash discount program, you don’t have to just suck it up and deal with dental credit card processing fees or become a cash-only dentist. Simply put, a cash discount program is a type of credit card surcharge program that certain merchant services providers can help you set up for your medical practice. The best part? It’s 100% legal and compliant.If you’d like to learn more about a cash discount program and how we can help you set one up in less than a week, just click the button below or call +1 (929) 293-1800:
For a small business just getting started out, finding the best credit card processing for your small business might seem like a Herculean task. You’ll very quickly discover that not only are there so many options to choose from, the way merchants charge for credit card processing is not at all easy to understand or transparent.You may be considering just going with PayPal or Square to handle all your credit card transactions, just to make things easier for yourself. But what’s easier often isn’t what’s best. PayPal and Square definitely don’t offer competitive rates. In fact, their rates are some of the worst in the business.When you think about it, getting hit with a 3% fee each time a customer buys something from you can really add up over the course of a year. For example, if your business brings in $200,000 per year in credit card transactions through Square, that’s about $6,000 eaten away by fees. Those fees are too damn high!Your business deserves better than that (and so do you). So if you have a moment, allow us to explain how you can go about finding the best credit card processing for your small business, no matter what you do or how big your company is.Read on to find out how you can even enjoy FREE credit card processing for your small business…
The most important thing you should know is that you shouldn’t just trust the credit card review websites that pop up when you type “How do I get the best credit card processing rates for small business” into Google—especially if you’re a small business.Nearly all of these websites are just paid affiliates who are being reimbursed by the merchants they’re ‘vetting’. In other words, they don’t have your best interests in mind—and the information they’re putting out there is often straight up inaccurate and can be downright dishonest.You’re much better off looking for a local merchant services provider who is hungry and actively building up their own customer base. They’ll be much more willing to negotiate and offer you the best rate they possibly can.
Many small business owners aren’t that great at marketing themselves or their business when it comes to finding the best credit card processing merchant for their business. But when you consider the fact that your merchant services provider may never actually meet you (or see your business) in person, it pays to act like your business is much bigger than it actually is.Now, we don’t mean lying about how many customers you have or anything like that. That’s not even necessary. We just mean acting like the boss that you are and demanding the best possible credit card processing rates for small business.What a lot of small business owners don’t realize is that merchant services providers will be more willing to offer a lower rate to a business owner if they insist on it. The merchant services industry is extremely competitive, and merchants will often be willing to negotiate. But you need to act like a big business, first. Don’t just accept the first offer you’re given.
Most small business owners don’t realize that they don’t need to have millions or even tens of thousands in credit card transactions each month to get better deals from merchants.In fact, just a few thousand dollars a month processed via credit cards is enough to get you a lower rate than the one you’re probably paying right now.Think about it: merchant services providers aren’t actively servicing your account when you become their client. Once you’re in, you’re in. They make money off your transactions no matter what their profit margins are. So it’s always in their interest to sign you up.That being said, when you factor in customer support, most merchant services providers won’t want to deal with the hassle of a micro-account that always wants to negotiate. If your processing volume per month is under four figures, you’re probably better off going with a flat rate processor like Square.
Interchange fees and assessments (which are charged directly by credit card companies) aren’t flexible. But the merchant processor’s profit markup is.Typically, you can negotiate anywhere from 5–10% of the asking price without much a problem. That’s just basic business negotiation, which you should feel comfortable with. You can also get an even lower rate if you’re a fairly experienced negotiator and if your volume is higher.If you’re confused by all of this, just follow these steps:
There are two main types of pricing models for merchant services providers: tiered and interchange pass-through. Ask for interchange pass-through pricing. Here’s why:Tiered pricing is needlessly complex and often expensive (for you). It results in expensive mid and non-qualified surcharges. But it helps processors generate higher returns on smaller businesses.Interchange pass-through pricing, on the other hand, doesn’t have surcharges or any pricing tiers. It’s a lot easier to understand—and it helps you save a lot more money. Also, make sure you specifically ask for interchange plus with true pass-through to get the best deal possible.
At the end of the day, credit card processing for small business can actually be very competitive. Most local merchant services providers who aren’t big enough to go national mostly service small- to mid-size businesses anyway. If you’re a small business, you’re exactly the type of client they’re looking for.But small business owners who run in-person, brick-and-mortar businesses (think boutique shop, restaurant, retail, salon/spa, etc.) have another option they may not even know about—cash discount programs.This is when you offer your customers a choice: either they can pay the listed price for an item in cash—or they can pay a surcharge with a credit card. Either way, you get 100% of the sale price and make the same profit.If you’re interested in learning more about how to set up a cash discount program legally and efficiently, Nadapayments can help you do it in just one week flat.
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Ever heard of a cash discount program? Over the years, I’ve figured out countless ‘hacks’ and shortcuts that help me lower my expenses and save a ton of money. Some of these tactics are universal, like hiring better people and using time management software.Others are a bit more...niche.For example, if you run a business that accepts credit card payments, you probably never questioned the process. A customer walks in, swipes his or her card, and you get paid. Simple. Easy. Done.But there’s a far better way to accept payments from your customers that you may not have heard about called a cash discount program.
Let’s get the obvious out of the way, first: every single time a customer swipes a credit card, you are losing money.The amount you’re losing can vary, but it’s usually between 1.5 – 2.9% for in-person transactions. Keyed-in transactions (i.e., online transactions) can have processing fees as high as 3.5% to offset the higher risk. These numbers really add up over thousands of transactions and countless years in business.You may already know all this and have accepted there’s nothing you can do about it.Except there is.
As it turns out, if you accept credit card payments, you can greatly reduce your processing fees by implementing a little something called a cash discount program.A cash discount program is exactly what it sounds like—your customers could be paying less for their purchases if they pay in cash rather than card.Before 2011, if your business accepted credit card payments, you couldn’t offer cash discounts. One price per item was the way of things—which meant that business owners accepting credit card payments would always make more money when customers paid in cash.But most customers preferred to pay with credit card due to convenience...and because they didn’t have to eat the fee. You did.This all changed in 2011, with an FTC ruling that businesses could accept credit card payments and still legally offer cash discounts (i.e., two prices per item).In practice, here’s what that looks like:
Surprisingly, although this ruling was passed years ago, most business owners who accept credit cards don’t know about it. They’re still doing things the traditional way and eating the processing fees more often than not.But why should they keep doing things the traditional way when there’s a much better way?
In my example above, the business owner (let’s call him Joe) who offers a cash discount program loses no money at all on the $10 item because the processing fee is now voluntarily paid by the customer. With traditional credit card processing, Joe would lose $0.30 on the high end.But that’s just for one $10 item. What happens over the course of an entire year?Assume Joe runs a dine-in restaurant—one of the lowest-margin businesses—and could make up to $1,000,000 per year in revenue from all meals sold (based on their menu prices).Let’s take another look at our two scenarios, using established payment method statistics:
The most important part to remember here is that Joe has already paid all the other expenses out of his revenue. That $25,000 he lost out in is not lost revenue, it’s lost profit that’s gone forever.
The craziest part about cash discount programs is that they really have no drawbacks to the business owner or the customer. Compared to traditional credit card processing, cash discounts are a win-win situation for everyone involved.If you’re a business owner who runs a brick-and-mortar operation that accepts in-person credit card payments, maybe it’s time you considered offering a cash discount program. Your profit margins will thank you.
