ACH Payment

What is ACH Payment? A Complete Guide for Merchants

Knowing the ins and outs of how money flows in your business is one of the keys to growth. The devil is in the details, and small changes can have dramatic effects on your profits over the long term.  Let’s go! Understanding ACH payments is one of those details. Any business or merchant who conducts sales online or in any repeating capacity may benefit from supporting ACH, and today we’re going to cover the what, why, and how of ACH payments. What Does ACH Payment Stand For? ACH payments stem from what’s called the Automated Clearing House, and they function like checks without the paper. If you’ve ever been billed by monthly auto-drafts or use a direct deposit system of sorts, you’re already using ACH. Here’s the official definition ACH: “ACH is a computer-based clearing and settlement facility established to process the exchange of electronic transactions between participating depository institutions.”*…

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Chargeback Fee

Chargeback Fees Explained + 7 Tips for Prevention

Chargebacks are painful and expensive. Billions of dollars are lost in chargebacks by businesses every year, and in 2017, the average dollar in chargebacks cost merchants $2.40. That means for $500 in chargebacks, you could be paying up to $1,200 in fees! Now expand that number over every chargeback and multiple years in business, and it’s easy to see why this is a big issue for many businesses. Chargeback costs include: The immediate revenue of the lost sale. The possibility of forfeited merchandise. The non-refundable chargeback fee charged by your acquiring bank. Your bank charges these fees due to the administrative costs of reversing the transaction. You also risk your business reputation and ability to accept credit card payments when incurring chargebacks fees. If you rack of a high amount in a short period of time, credit card networks may temporarily block you or your bank may restrict certain financial…

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Signs of Credit Card Fraud

22 Signs of Credit Card Fraud & How to Protect Your Business From Harm

Even though you shouldn’t have to deal with it, credit card fraud is something that all business owners have to suffer from. And the bigger you get, the more you’ll have to deal with it. There are ways to reduce credit card fraud, but you’ll never be able to get rid of it completely. When fighting back against credit card fraud, your first plan should be to be able to recognize credit card red flags and have processes set in place for each. Your POS and/or online gateway should take care of most automatic flags, but it’s good to be aware of them so you can customize your responses if need be. Who does credit card fraud affect? Unfortunately, no one entirely escapes from credit card fraud, BUT there are some industries who are victimized much more frequently than other industries. If you have a business in or sell any…

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Gift Cards for Your Small Business

Gift Cards for Small Business: Why & How to Get Started

The blog below has everything you need to begin accepting and growing your business with gift cards. From choosing what type to various marketing ideas, you’ll walk away confident about how to best approach gift cards. Gift cards are useful for all businesses Gift cards are a win-win for both small businesses and customers. They provide a more thoughtful gift avenue than cash for consumers, and for businesses they help bring in new and repeat customers while fighting back against lull periods (I’m looking at you post-Christmas). Think about it. Every customer that walks into your shop or goes online searching for a gift card and doesn’t find one takes that business elsewhere and doesn’t spread the word about your business. You lose both short-term and long-term cash potential. This can really add up over time. Gift cards double as both a marketing and revenue tool simultaneously, so if you…

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Payment Reversal Explained

Payment Reversal Explained + 10 Ways to Avoid Them

If you’ve been in business longer than a month, you’ve probably experienced a payment reversal of some kind. Certain payment reversals (I’m looking at you, chargebacks), are so prevalent that business owners have to budget them into their expenses every month. The frequency of payment reversals is tied to an interesting intersection of technology, law, and product/market type. If your online store doesn’t do a good job with its descriptions, you may deal with more payment reversals. Or if your product is expensive and highly bespoke (think high-end mattresses or musical instruments), returns may be more common. Some payment reversals are just normal business. Others can be exploitations of fraudulent customers, but the burden of payment reversals is often placed on businesses. The major credit card networks (Mastercard, Visa, etc.) have more incentive to favor their customers, and it’s up to you to fight back when appropriate. The more systems…

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