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Understanding Alternatives to Typical Credit Card Merchants

Remember when we (or our parents—or our grandparents!) used phones that had cords and actually plugged into a wall? The way merchants handle credit card purchases may soon be a thing of the past, as well.

Most of us have heard of eBay’s PayPal, but that was just the tip of the iceberg. Consider the trajectory of the corded phone attached to the wall to Bluetooth technology. The way we take credit cards online is traveling through the same kind of historical shift in a comparable way.
Hold on tight; we’re zooming into the future with the way these transactions take place.
Consider some of the other alternatives and their benefits: 
This system involves having the money come right out of your checking account, but all of your account and routing numbers are encrypted. Unlike the use of a credit card, none of your account information is shared with the seller.
And get this! Noca collects a mere 25 cents per transaction!  This is an excellent solution for the person who has simple read one too many of the identity theft stories. There’s a reason these terrible tales are happening more and more; it’s easier for the bad guys to snag your information. Encrypting it is a safeguard. 
This company was one of the groundbreakers, and they are succeeding by getting their mobile payments and methods down to the lowest fees possible. Their newest idea is a $12.95 per month flat fee, with 1.7% charged for each transaction. This could be perfect for the majority of small businesses.
If you have an Android, iPad, or iPhone, Square might be the easy choice for most merchants. Square’s set price of $2.75 per swipe keeps everything clean and predictable—or you may opt for the flat monthly fee of $275 to use this service. It really all depends on how many swipes you have per month, and what your yearly sales add up to. (The $275 flat fee is good for up to $250K is sales each year.)  
Consider what your average is for monthly transactions, pick the plan that fits (with the help of their strong customer support team), and shake your head at how this new technology for swiping credit cards is changing the way we do our business. 
Remember those three-ply credit card sheets—and the swiping machine? Like the corded phone connected to the wall, say “B’bye” to that archaic method.
The old method loses about 2.5%–4% on every transaction. Many small businesses are getting by on low margins already, so these new options are great news! Taking this into consideration, along with the number of identity theft cases that we hear about, it appears that these alternatives are truly worth considering.
It’s a good day when there’s a win-win—for both the buyer and the seller!
Published: June 18, 2013

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