California Business - Volume 3, Issue 1 - Northern California - 17

BUSINESS
INSIDER

PROCESSING CREDIT CARDS
How to enhance sales with merchant services

M

erchant services affect the majority of companies - more than 90 percent of online
purchases use credit cards.
"If you're not sure if merchant services is
the right fit for your company, think about what your competitors are doing. If you don't accept cards today, then
prospective customers may be going to other businesses,"
says Jan Mitrovich, manager for Treasury Management at
California Bank & Trust.
Here are some additional insights from Mitrovich
about how to understand merchant processing services
and costs.
How	do	you	know	if	your	company	is	using	merchant	
services	correctly?
Every company should consider where it's doing business
and how it's transacting with customers. Examine whether
you are effectively leveraging all your channels for sales
opportunities. You may have a storefront that does terminal credit card processing. However, other payment
options, including Web-based and e-commerce, may be
worth considering.
How much of your sales efforts need to be in the field,
such as industry shows? A mobile solution can extend your
customer outreach while providing convenience to your
customers.
The merchant services environment is continually
changing. There are varying degrees of complexity, from
processing basic transactions through a card reader to
merchants that need multiple payment channels, gift and
loyalty card programs, check verification services and more.
What's	important	to	know	when	getting	a	
merchant	account?
The processing transaction fee can turn off businesses,
but they must consider the value proposition of expanding their customer base by accepting more transactions.
Depending upon the transaction type and how it is
processed, fees will vary, which gets confusing. Merchant
processors also don't always present the statement information and pricing in the same fashion. It's common for
business owners to think a quoted rate is the all-in cost.
Be aware of hidden fees. For example, only some
organizations do pass-through pricing for the interchange
fees. A discount rate doesn't necessarily compare apples to
apples, so a more important question is, 'What is the cost

of the service?'
You also need to understand and educate your employees on the associated responsibilities and risks as a
merchant processor, such as protecting customers' sensitive data. Validation of payment card industry compliance
is an important step to ensure credit card data is being
protected. Data breach coverage can protect merchants
from the cost associated with a data breach, which can easily run $35,000 or more.
What	additional	factors	help	determine	which	provider	
is	the	best	fit?
One differentiator is customer service. Banks typically
have a higher level of customer service, like 24/7 call support, than independent sales organizations.
You also need to consider whether to lease or buy
equipment. The industry is moving toward chip-enabled
cards that will require companies to change equipment
during the next few years. Take the time to understand
your options and pricing structure, as well as if any equipment is proprietary.
Finally, cut-off times for transactions and settlements
can be a game changer. Settlement time frames differ,
anywhere from next day to 30 days, depending upon the
vendor. *
Jan Mitrovich is senior vice president and manager for
Treasury Management for California Bank & Trust. Contact her at (619) 446-2232 or jan.mitrovich@calbt.com.

California Business * 17



California Business - Volume 3, Issue 1 - Northern California

Table of Contents for the Digital Edition of California Business - Volume 3, Issue 1 - Northern California

Table of Contents
California Business - Volume 3, Issue 1 - Northern California - Cover1
California Business - Volume 3, Issue 1 - Northern California - Cover2
California Business - Volume 3, Issue 1 - Northern California - Table of Contents
California Business - Volume 3, Issue 1 - Northern California - 4
California Business - Volume 3, Issue 1 - Northern California - 5
California Business - Volume 3, Issue 1 - Northern California - 6
California Business - Volume 3, Issue 1 - Northern California - 7
California Business - Volume 3, Issue 1 - Northern California - 8
California Business - Volume 3, Issue 1 - Northern California - 9
California Business - Volume 3, Issue 1 - Northern California - 10
California Business - Volume 3, Issue 1 - Northern California - 11
California Business - Volume 3, Issue 1 - Northern California - 12
California Business - Volume 3, Issue 1 - Northern California - 13
California Business - Volume 3, Issue 1 - Northern California - 14
California Business - Volume 3, Issue 1 - Northern California - 15
California Business - Volume 3, Issue 1 - Northern California - 16
California Business - Volume 3, Issue 1 - Northern California - 17
California Business - Volume 3, Issue 1 - Northern California - 18
California Business - Volume 3, Issue 1 - Northern California - 19
California Business - Volume 3, Issue 1 - Northern California - 20
California Business - Volume 3, Issue 1 - Northern California - 21
California Business - Volume 3, Issue 1 - Northern California - 22
California Business - Volume 3, Issue 1 - Northern California - Cover3
California Business - Volume 3, Issue 1 - Northern California - Cover4
https://www.nxtbook.com/nxtbooks/wise/calbusiness_nc_2013spring
https://www.nxtbookmedia.com