By Jimmy Carter | Platinum Payment Processing
Every dollar your business spends accepting payments affects what you keep from a sale. That makes offers for “zero-cost processing,” “0% processing” and “free equipment” worth a closer look.
For some businesses, a properly structured program can reduce the processing expense they absorb. The decision deserves more than a headline, though. You need to understand what your customers will pay, which costs remain with your business and how the program will work at checkout.
That is where a conversation with Platinum Payment Processing should begin. Our free merchant analysis gives you a starting point for reviewing your current costs and discussing options suited to the way your business accepts payments.
Before choosing a program, understand what you are being offered. These terms describe different arrangements:
- Credit-card surcharging adds a disclosed charge to an eligible credit-card transaction, subject to applicable requirements.
- Cash discounting gives a reduction from the standard price when a customer pays with cash.
- Dual pricing displays separate cash and card prices so customers can see their choices before paying.
The way prices are displayed and charges are applied matters. Adding a fee at checkout does not become a cash discount simply because someone calls it one. Visa describes a cash discount as a reduction from the standard price. Visa rules and guidance.
When you speak with Platinum, bring the offer you are considering alongside your current statements. That gives the discussion a practical focus: what would change for your business, what would change for your customers and whether the proposed arrangement makes financial sense.
The number that matters is what your business keeps.
A “0%” headline does not, by itself, establish that your entire payment setup will cost nothing. Depending on the agreement, a business may still have debit-processing expenses, monthly charges, software subscriptions, equipment costs or fees associated with refunds and disputes.
Ask for a complete written explanation of those costs. Equipment deserves the same attention: who owns it, what conditions apply and what happens if you close the account?
Platinum’s merchant analysis is a useful first step because it starts with your actual processing situation. Your sales volume, average transaction size, payment mix and separate software or equipment bills all belong in the comparison.
The goal is to identify a program that improves your economics and fits your operation. If a different pricing arrangement deserves consideration, it should be part of that discussion too.
Your customers and staff need a clear checkout experience.
Consider an auto-repair customer reviewing a substantial invoice or a retail customer comparing payment options at the counter. Both should understand the amount they will pay before completing the transaction.
Before launching a program, work through the details:
- How will prices appear on estimates, invoices, signs and online checkout pages?
- How will debit and prepaid cards be handled?
- What will customers see on their receipts?
- How will staff explain the available payment choices?
- What happens when a payment is refunded?
These details also affect the requirements you must follow. Visa and Mastercard prohibit surcharges on their debit and prepaid cards. Their credit-card surcharge programs have notification, disclosure and other requirements, and applicable laws must also be considered. Visa merchant surcharge guidance, Mastercard merchant surcharge rules.
Bring those questions to Platinum before committing to a program. Confirm the available options, supported equipment and implementation requirements for your particular business rather than assuming an advertised offer applies to every location or payment channel.
Start with Platinum before you sign.
Choosing a processing program affects your margins, your staff and your customer relationships. Give that decision the attention it deserves.
Talk with Platinum Payment Processing about your current costs, the offers you have received and what you want to improve. Start with recent merchant statements and any proposed pricing or equipment agreements, using Platinum’s approved submission process for documents.
Request your free merchant analysis from Platinum Payment Processing to discuss whether a cash-discount, dual-pricing or eligible surcharge program makes sense for your business.
Program availability, costs and potential savings depend on your business, applicable requirements and the written terms of the proposed arrangement.
