Your business and bottom line depend on sales. Making the most sales is possible when meeting consumers’ expectations. In today’s fast-moving world, the customer is expecting to shop and checkout at a pace that is fitting to their busy schedule. Therefore, to make sales and profit you must invest in electronic purchasing options. Retailers should be prepared to handle the preferred method of payment, taking credit cards in a secure and efficient manner and giving customers comfort and motivation to buy things.
Understanding Credit Card Processing
As Dynamic Merchants, a merchant credit card processing company, explains to its clients, “Credit card processing is a highly competitive and often confusing industry filled with many different types of rates, equipment, and systems that seem appealing at first glance. Just beneath the surface there is a lot of dialogue and negotiation that often goes unseen and unheard.” What’s important is that the credit card processing fee is not the only fee to keep in mind when considering a merchant processing company, as there are also application fees, initial cost of equipment, per-transaction fees, monthly minimums, and address verification charges as well.
In a recent interview, Dynamic Merchants company affiliate since August 2010, Michael Rochester, explains Dynamic Merchants’ goal, “To service small, medium and even large businesses with lower merchant processing rates and the ability to accept credit/debit card transactions, and electronic checks.” Dynamic Merchants does this by reducing the overall expense of taking and accepting credit cards and processing those transactions. By communicating with banks, Dynamic Merchants negotiates to receive the lowest possible rates for a retailer’s most common transactions.
How do they determine the most common transactions to negotiate for? Rochester explains that this is done through an initial business analysis and recommends, “Retailers should have at least the last month’s credit card statement handy, preferably the last three, in order to do a proper analysis because as we all know business fluxuates periodically depending on the economy. Dynamic Merchants then makes sure that it is beating not just an average transaction cost, but also whatever a retailer is paying at that current point in time.”
Putting Money Back Into Independent Retailer Business
The underlying mission, however, is to put money back into the business, allowing those using electronic payment options to grow and increase their revenue. Dynamic Merchants proposes to do this not only through the different processing solutions it offers, but also through its funding program. Rochester acknowledges, “One advantage that we have is that we also offer funding between $50,000 to $1.5 million at 0 percent APR; however, there is a finance charge, but that varies with company and industry. The way we take the payments back is simply by adding a small percentage to the merchant processing rates, with the payments being smaller on slower months.” Simply, retailers who qualify for the funding program would be able to receive immediate cash for their business needs, such as improvements and expansions, instead of waiting for credit/debit purchases to be processed and money received. Rochester continues, “The funding is based off the last three to five months of credit card transactions, ultimately qualifying the organization for the funding.”
Servicing not only independent retailers, Dynamic Merchants also services chains, such as restaurant chains or retail chains, as well as many other industries. Acknowledging the fact that businesses cannot go directly through Visa, Discovery, etc., to process electronic transactions, Rochester explains, “They have to go through a merchant processing company that handles the transactions for them. Every company is going to put a rate on top of the prime rate. Now that is where we come in and work to minimize those costs.”
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