Retail Credit Card Payment Processing.
Processing Credit Cards in a Card Present Environment.
Retail credit card processing in a retail environment typically means the cardholder and the credit card are both present at the time of payment. These transactions are the lowest on the security scale meaning they are typically more secure than payments taken over the phone or over the internet. This also results in the lowest rates that can be applied to credit card transactions. There is also a physical interaction with some type of credit card reader or terminal meaning the card is present at the time of payment. Keying the same card into the same terminal emulates a phone or mail order meaning less security and a higher rate.
Point of Sale applications can also come into play with retail payment processing. One common point of sale system is the touch screen systems at so many restaurant locations. The system holds all the menu items and options and the wait staff interact with the system to input orders. The order then flows to the kitchen where it is prepared. During this time refills of drinks, more appetizers can be added to the order until the meal is complete. At the end, the point of sale system tallies up all the items and submits a total amount to be charged onto the credit card. The card is then swiped, or dipped (in the case of EMV chip cards) and the order is charged to the card. In certain industries a ‘tip adjust’ is made to the transaction to allow for increasing the amount of the total to the total including a tip.
Reconciliation once the money has flowed is an issue for most businesses. Typically an order number is submitted with the payment and that flows through the payment gateway. This makes interpreting payments to their respective payment details on the deposit side into the bank account and back to the point of sale device. The device can be as simple as a cash register, a payment terminal, or a full blown point of sale.
In today’s world, payment options have expanded to include EMV chip cards as well as NFC options. Using your smartphone as a ‘digital wallet’ means you can simply tap the terminal to make your payment. Having payment options that your customers prefer can be a great way to increase revenue and make your business more competitive in the marketplace.
If you own a retail business be cautious of monthly fees regarding terminals. Many merchant service providers have merchants sign lengthy contracts on terminals and credit card readers. These contracts, once expired are also automatically renewed resulting in even higher costs. Credit card readers start at about $10 and a well equipped terminal can be had for around $100-$200, a one time payment that gives you ownership. Others will charge a $25-$75 a month and more for about 3-4 years. Again, if the merchant isn’t on top of the contract and it expires, it will automatically renew for another 3-4 years. At National Transaction Corporation we provide all hardware at wholesale rates to our merchants. You pay what we pay.
Other payment options in the retail industry include EBT cards, Gift Cards, Loyalty Rewards programs and Electronic Check Services. These extend options to customers and can also corral the funds to only your business in the case of Gift Cards and Loyalty Rewards. These methods are also secured by the fact that they can only be used at a single business, unlike credit cards.
Security is always a concern when it comes to financial payment transactions. NTC offers a suite of PCI DSS tools to make sure your network is secure. These tools also carry an insurance plan to help pay expenses in the event of a security breach. This guarantees security for the business as well as the cardholder.
- National Transaction Corporation
- February 19, 2023 | 2023-02-19