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API Home Service Repair Businesses

Benefits of Remote Check Capture API integrations

Mobile Remote Deposit Capture (mRDC) solution takes the manual process of depositing paper checks for small business owners and automates it into a seamless transaction. Integrating a mRDC API automates an inefficient task into an easy process that helps businesses process funds better and faster. 

Need to get time back in the day, well not having employees taking unnecessary trips to the local bank to make manual check deposits is the first task to eliminate.  Automating this simple task is easy when you integrate a Mobile Remote Deposit Check API into your current applications. Using a cloud based mRDC API will also help with continuous communication between your various applications.



Mobile Remote Check Capture

mRDC is a convenient check deposit solution for employees remotely accepting paper checks so they’re not reliant on making local deposits or having to batch checks and mail into the home office. Mobile remote check deposits are intuitive for employees to learn and quickly start to use. It allows them to simply take a photo of a check from their checking accounts with their mobile device. API’s such as iWallet mobile check deposit includes proprietary technology that only requires the front side capture.



Benefits of Mobile Remote Check Capture API Integrations

For most businesses there are many tangible benefits of API integration are quite clear and they break down like this.



Increased productivity

Leverage powerful mobile technology into your applications by selecting the right API will save development time and enables business goals faster.

With a good API, developers can quickly implement remote check deposit function quickly. This helps to re-allocate financial resources in to other areas of the business.



Collect data in one place

Data is powerful and an essential asset in the digital economy. APIs make it easy for office managers or accounts receivables to easily access and pull daily, weekly or monthly reports from desktop.

Reporting and account reconciliation will be easier than ever. Using a mobile remote check API Like iWallet removes the manual process but more importantly it helps keep your data store in one place.



Speed up cash flow

Getting paper checks deposited in the field quickly speeds up cash flow. It also helps orphan payments for that customer that insists to send by mail their payment by check. Orphaned checks can lie around offices for days and many times are tucked into a desk waiting to be deposited.  An API is a big benefit for volume businesses that prefer to use a lockbox.  They also help large national businesses that have numerous banking relationships across multiple states.



Streamline reporting

If you’re data is being shared by your applications then it’s much easier to create robust reports that take into account all of the data sets possible. Better reporting leads to easier pattern recognition and hopefully better business decisions. Technicians have individual portals which help to keep everything organized.



Reduces risk

Remote Check Deposits helps with the reduction in lost or bad checks – requiring humans to make manual deposits at the bank inevitably results in errors. Employees can lose checks along the way or accept bad checks and not know it until it is deposited and rejected.

iWallet API includes a  bad check scan feature. All checks are automatically scanned to make sure it is not in a national database of bad check writers. If it is on list the your employees get real time notifications.



Security

The biggest concern with APIs is they can come with security issues.  Gartner 2022 report unveiled vulnerabilities in APIs which create data breaches in web applications.

To help mitigate a data breach it is important to only use a Remote Check Deposit API like iWallet which is backed TRUSTe-certified.

 iWallet comes with bank-level security and 256-bit SSL encryption. 256-bit encryption is a data/file encryption technique that uses a 256-bit key to encrypt and decrypt data or files. It is one of the most secure encryption methods, and is used in most modern encryption algorithms, protocols and technologies.

Another important certification to look for in a mRDC API is to make sure it is Verisign Trust and doesn’t sell or share customer. This seal means that you can be assured that all details are secure and the system operates using encrypted technology to keep your customers details safe.



An individual gateway

Using mobile check deposit API allows the companies to create separate portals for each employee. Individual portals allow them to deposit from anywhere and is a digital gateway in the field is a great consumer experience too.

As the technology improves, API integrations will continue to grow in popularity and become more streamlined. iWallet mobile remote check API integration makes it so your data is less flawed, more accessible  and provides increased efficiency. It’s no surprise that many companies have built their businesses around integrating the latest APIs like iWallet.

Categories
Home Service Repair Businesses

Look Out for Early Termination Fees when Selecting a New Credit Card Processor

You may have scrolled to the bottom of a user’s agreement and clicked I Agree without looking through the many pages of fine print. You’ve decided you’re fed up with high credit card processing fees and switch companies, only to find early termination fees on your last statement.  Or you have heard about ETFs, or maybe you haven’t. Yea it’s wrong, but because agreement list is so long and copy is small you may have missed it.



What is an Early Termination Fee

Early Termination Fee which is also referred to as an Early Cancellation Fee (ETF) is a charge that is assessed by merchant account provider when you terminate the credit card processing agreement before an agreed-upon end date. Early Termination Fees are described as a provider’s compensation for the expenses related to closing a merchant account and are included in the contract.

Most contracts are 3 years (36 months) and they automatically renew for additional terms or go to month-to-month until they are cancelled. The fees associated with Early Termination usually cost about $295 and $495, and can be much larger (thousands) in contracts with Liquidated Damages clauses. The potential ETF amount decreases as you approach the end of the contract gets closer.



Where You Can Find Early Termination Fee Terms

Early termination fees come into play if you want to cancel the contract during the initial contract period. ETFs are usually discussed under the section of your contract called Term and Termination, Termination, or even Early Termination Fee. They’ll cover the specifics of the circumstances you are able to cancel the agreement and when any penalties (or ETFs) are applied.



Consumer Protection Laws

You may have dealt with ETFs before; a cell phone, cable, or apartment lease for a specific  amount of months. In order to cancel your contract early you will be faced with an extra fee–the Early Termination Fee (ETF). As a consumer, the fee might be capped by laws thanks to help of consumer personal protection laws. As a small business owner (sophisticated party), you might be on the hook for more because they presumed you know better and  should read and negotiate contracts better.



Why Early Termination Fees May Exist

Sometimes an ETF is a flat fee that the processor claims it needs to recoup the cost of setting up your account and programming your equipment. Early Termination Fees effectively function as punishment for merchants who wish to cancel. The real reason is they use this as a form of merchant retention.  Credit card processors which are inconvenienced by early termination should not be passing these fees to small business owners.  And if you lease credit card terminal, portable scanners or similar equipment from a processor, the hardware is usually covered under a separate agreement which may not be affected by your processing contract.



Want to Cancel Without Charges

Sometimes you will have a small cancelation window if the credit card processor raises its price of service, such as 30 days. This disclosure will usually be included in your monthly statement. You most likely won’t be contracted directly of the changes, so be diligent to check your statements on a regular basis and watch for any price changes.

If your salesperson promised the world and delivered nothing, or they forget to tell you about the various fees you have to pay every month there may be recourse. Or if your equipment never worked correctly even after you reported it to their tech support multiple times this may help to have reason to cancel early. Make sure to document your specific situation then you talk to your salesperson or a manager to see if you can be let out of the contract early, without having to pay the ETF due to the issues incurred.

Lastly, there’s no guarantee of a resolution but try escalating the complaint to the Better Business Bureau to see if they can help with a refund if you have been charged with one.



Initial Term VS Renewal Term Considerations

Credit card processors have a difference in cancellation procedures between the “Initial Term” and the “Renewal Term”. Check your contract because some there is an ETF for the Initial Term, but not for Renewal Terms as long as the processor is properly notified within 90 days’ notice.



Want a Credit Card Processor with No ETF

Don’t settle for complicated contracts or Early Termination Fees . Fortunately, you now have options with processors that employ state of the art technology. No need to sign long contracts or purchase equipment either.  Credit card processing companies like iWallet Business are free to sign up, no long term contracts excludes ETFs.

21st century business models offer processing using a smart phone or tablet and include month-to-month billing. No complicated contracts to read; iWallet Business discloses up front “you can cancel at any time without any fees”, alieving the need to sift through the fine print.

Businesses should not be punished with unnecessary fees  that’s why it is important to do your homework and sign up with transparent companies like iWallet Business that clearly state on their home page—No contracts, No hardware, No setup cost, No cancellation fee and No daily or weekly transaction limits.

Categories
Home Service Repair Businesses

Misleading Tricks Used by Credit Card Processors

Want to switch credit card processors because you’ve been tricked or just looking to save on the hidden fees? It can be a difficult and time-consuming process for busy appliance repairs business owners to interview different processors. Between interest rates, scheduling capability and back end accounting reconciliation, the decision to switch involves complexity layers of features that can determine the future success of your business.

With thousands of different credit card processors to choose from, it is often overwhelming to really understand the options you have to choose from. On top of that the credit card processing industry can make them difficult to understand.

To help you select the best credit card processor for your appliance repair business, we’ve compiled a list of easy to understand options to help you navigate the tricks quickly.



Misleading Rate Quotes

This is rampant in the industry, especially among processors who use the tiered pricing fee models. Payment processor will advertise a low rate like 1.69% — only they don’t explain that the rate applies “qualified” charges only.

Qualified charges are purchases made using non-reward cards or debit cards. Rewards cards and business credit card purchases usually are categorized as “mid-qualified” or “non-qualified” categories, which are higher processing rates.



Hidden Pricing Tricks

Many credit card processing companies use sneaky tricks that turn into bad deals for business owners. As you shop around for credit card processing services, you may quickly realize that this is not the most honest industry.



Teaser Rates, Qualified and Non-Qualified Rates

If the rate you see is good to be true, rest assured there are substantial hidden fees in the fine print. It is pretty common for credit card processors to advertise rates as low as 1.00%. Don’t fall for it because the payment processing industry has no advertising standards which is part of the problem because there is no need to disclose the assessment fees, mid-qualified and non-qualified charges.

Ever see airlines advertised one way flights for “$99”? You probably won’t pay that because by the time you get to checkout you have added in the price for a carry on, checked bag and even a reserved seat. Unlike airlines there are deceptive processors that bury hidden fees in the fine print; by the time you noticed it’s too late.



Annual Fees

Many processors will bury some of their costs through annual fees instead of being transparent and listing them upfront. These fees can range anywhere from $50-$200. They are hard to see, since processors are sneaky and charge them once a year.



Monthly Minimums

Why should you be penalized for not processing enough transactions? Sometimes it isn’t apparent but unfortunately, most small appliance repair companies soon realize that their low monthly fee isn’t so low. It is actually quite high once you add up all the misc. charges.

Some processors have “monthly minimums” on Visa/MasterCard transactions. In some cases they are called “low achiever fees” and are the total fees generated if you don’t process enough payments each month.



PCI Compliance Fees

Lots of credit card processors have started to charge monthly, quarterly and annual PCI fees. You may have seen them as “Breach Coverage” or “Security” fees.



Cancelation Fees

Most processors have cancelation fees or early termination fees. Instead of providing a good service at a good rate to keep your business, they implement long-term contracts to try and deter merchants from switching to a more affordable provider.



Understand Your Business and Payment Needs

The truth is flat rate pricing can be the cheapest for small businesses because there are no hidden fees. There is peace of mind knowing when you receive your statement you won’t have to comb through it looking for misc. charges.



Process 100% of your Transactions With a Smart Phone

Selecting a processor that includes more than just credit card payments is also very important. Many consumers still prefer to pay for services with checks. Businesses that have two or more technicians need to be able to accept all forms of payments in the field including paper checks. 

Processing transactions in the field helps save time and speeds up cash flow. Mobile apps like iWallet Business make it each for technicians to remotely deposit checks when the repair is completed. The app has built in fraud protection that instantly scans a national bad checks database which helps to mitigate accepting bad checks. With SMS-based touchless signature capture it keeps them safe from germs too.



Easy Bank Reconciliation

Business office managers and accountants will benefit from iWallet Business too. In addition to remote check processing, the app provides easy bank reconciliation via the desktop web-app. Reporting is QuickBooks compatible and integration with most scheduling apps is easy too.

If you have multiple techs, in one city or multiple states no problem. You can create unlimited sub-accounts to keep employees from seeing one another’s deposits and from viewing company bank information.

It is wise to check with multiple processing companies because not all of them work off a free app. Doesn’t make sense to purchase equipment when you can do everything from a smart phone or tablet. If you’re going to make a move, make sure you can process all forms of payments from a smart phone.

Categories
Home Service Repair Businesses

Chargebacks Don’t Need to Be a Cost of Doing Business

Every business that accepts payment by credit card may have encountered a chargeback at one time or another and some face them more often. It is important to know that businesses are not equally impacted by chargebacks. Banks and payment processors use three different categorize starting at high, medium, and down to low risk. They factor in information about your industry, ownership and other pertinent details. The cost of chargeback fee is determined by this risk assessment and the number of chargebacks that the business is allowed within a given time period.

Having chargebacks incur costly fees, jeopardize your relationship with your bank or payment processors. They will also be a waste of precious waste time and labor. Depending on the business risk category, a chargeback can end up costing up to three times the original transaction amount.

A cardholder who uses a credit card to pay their invoice is entitled to contact their bank to dispute the charge which results in a chargeback. They need a valid reason, but regardless the inconvenience to prove the chargeback is put on the merchant.



What Are Chargebacks?

A chargeback fee is a fee that businesses are expected pay when a chargeback is filed against their company. This is a mandatory fee and cannot be recovered by winning a dispute with the processor.

Any cardholder who makes a purchase using any credit card can contact their bank to dispute a charge and request a chargeback. They must have a valid reason for doing so, but the burden to prove it is a legitimate chargeback is on the small business owner, especially if the cardholder’s reason is invalid. It is up the business owner to prove that it is not valid and why.



Chargeback Costs

A typical chargeback fee can range between $20 and $100. Not to mention having to add in the loss of revenue from the repair and credit card payment processing costs. The total cost of a chargeback often more than twice the original repair amount. Having fewer chargebacks, you’ll avoid expensive fees and keep more revenue.



Can I Ignore Chargebacks?

Ignoring a chargeback is the equivalent to ignoring your customers’ issues. For every customer who files a chargeback, there could be other who have the same issue but simply never call or use your services again. The chargeback will sometimes tell you a story about a technician you can learn from.  This is most true if you get several and they are stem from the same technician.



Fight Chargebacks or Not?

Some merchants believe that fighting a chargeback will give them a bad reputation when it actually gives small businesses a competitive advantage over others who ignore them. When you fight a chargeback, you will be reclaiming revenue from work performed that would otherwise be lost. Another benefit is you gain deep insights into potential problems your customers are having.

There are exceptions where people make fraudulent claims such as the work wasn’t performed to their standards. Situations like this, you should most definitely fight back against the fraudulent chargeback. If the work was completed and the customer was happy at the time the invoice was paid, they should not get away defrauding you.



Tips to help prevent Chargebacks

This can be an easy fix for common problems. Use clear identifiers on credit card statements. Sometimes the name of your appliance repair business isn’t the same as the name on your merchant account. When the customer sees a name they don’t recognize they will call their bank to ask for a chargeback. Make sure the name that appears on credit card statements won’t confuse your customers.

Have your technicians quote realistic estimates and not make any claims that they can’t back up. Misleading customers leads to distrust with causes dissatisfaction, two feelings that lead to chargebacks.

Be honest about your products. So many chargebacks could be prevented by merchants trying harder to manage customer expectations, rather than trying to boost sales with big, unrealistic promises. Be candid and truthful so that you don’t lose your customers’ trust.



Best Payment Option to Avoid Chargebacks

With chargeback fees and processing fees going up it may be time to consider accepting checks for payment. Using a payment app to manage all forms of payments in the field will save time and help cash flow. iWallet Business is modern touchless payment processing app that  allows remote check deposit, enabling your technicians to remotely deposit checks instantly from a smart phone or tablet.

Making mobile check deposits in the field will reduce chargeback fees, streamline deposits and it works well with businesses that have more than two technicians. iWallet Business integrates with most scheduling apps and offers unlimited sub-accounts so each employee has a private portal. Accounting loves it because the app offers easy account reconciliation via the desktop web-app. With bank-level security backed by Wells Fargo and Fifth Third Banks, mobile check deposit is a great way to get faster cash flow while reducing chargeback fees. 

Categories
Home Service Repair Businesses

Know Your Options if You’re Dropped by Square or Authorize.net

Square and Authorize.net are third-party vendor payment solutions that may be doing your credit card and payment processing options. Many small appliance repair businesses like yours rely on credit card processors like these to provide your customers with convenient payment methods.

But then suddenly you’ll get a message that Square or Authorize.net has stopped your payment processing.  It may come without warning.

Consider this scenario: You are a well-established appliance repair business with devoted and loyal customers. But you also have a high number of chargebacks (payments made with credit or debit cards) and returned checks. Chargebacks are forced reversals of credit card transactions and initiated by the cardholder and executed by the issuing card bank. If you get a lot of these, financial institutions may label your business as high risk and processors like Square or Authorize.net can suspend and/or revoke your account at any time.

One way to help prevent chargebacks is to accept checks in the field and remotely deposit them at the time of repair. Your appliance repair business is not at the mercy of Square or Authorize.net or any other credit card processors if you shift.

Luckily, there are payments processing apps like iWallet that make it simple to remotely deposit checks into your business account. Small business owners like you will find iWallet Business is easy to use and will simplify all your business’s transactions.



Who uses mobile check deposits

Mobile check deposit is for appliance repair business with two or more technician. It offers technicians the easiest way to accept checks for payment in the field. And all employees can have individual portals created where they simply snap/scan a photograph or scan the front of the check and transmit it electronically to your business bank account. Remote check deposits put the funds in your account fast without anyone having to visit a branch or ATM.



How remote check deposits works

To use remote check deposit your technicians upload the customer’s check. This is a safe and an easy way to make remote deposits in the filed from a smart phone or tablet. Remote deposit capture allows for the substitution of a digital form of a check for a paper one. Having the ability to accept paper checks including corporate checks, consumer checks, cashier’s checks, and money orders electronically deposit them from a mobile device is a safe way to get paid for work performed.

Expensive scanners are not needed anymore.  Remote deposits can be done with most smart phones or tablets.  By scanning the front image of a check you get the finds deposited faster with fewer errors. After scanning, it a good idea to keep the paper check until it clears in the event your bank needs to see a better image, and they may even require a paper copy.



Funds availability

Another great advantage of remote check deposits is — every hour — is banking hour. You will benefit from not worrying if your employees will make it to the bank before closing. You also don’t have to worry about them losing checks in their truck if they keep and send to the office weekly.

Many times, the bank makes funds available within one business day. If you currently batch and deposit weekly no you will receive funds faster and improve your working capital. The sooner you get those funds, the sooner you can invest them to build your business or earn interest on your income.



Is remote check deposits safe?

Thanks to 21st century technology mobile check deposits are safe and using an app like iWallet Business offers additional layers of check security. The app automatically scans every check through a national database of bad check writers. If the check numbers match any in the database, the check is declined in real time.  This fraud protection helps to mitigate potential issues.

Your business moves fast – and your funds should too. iWallet is the easiest and fastest way to process payments, The app offers 256-bit SSL encryption , so you can rest assure and process all payments securely.

Categories
Mobile Check Processing Payment Processing Technology Small business tools

Digital Payment Processing Era

As a business owner, you should be looking for ways to streamline all your payment processing options. This helps technicians get on to the next appointment faster and will help you get paid quicker.

Payment processing has gone from coins and paper money to plastic credit cards and now — to a smartphone. People now use their smartphones daily to perform everyday tasks, including shopping for goods and paying for services.

The universal adoption of smartphones has contributed to the growing trend of mobile payments. Customers are always looking for easier ways to use their phones for everything. That’s why you should equip your technicians with the most convenient and reliable payment processing options to ensure your customers have a positive experience.

The number of consumers using digital wallets is expected to double to 4.4 billion globally by 20251 Since most consumers have already adapted to using some sort of a digital wallet on their smartphone, why not process all forms of payments with a smart phone too.

Modern Payment Platform

Most people carry their mobile phones around with them throughout the day, so wouldn’t it be beneficial for your technicians to use the same device to process payments on the spot.

iWallet Business an all-in-one app for technicians to easily process credit card and checks in the field using their smart phone. It is a simplified, secure and personalized app that is designed to be flexible by offering different payment processing options from a smart phone.

With technicians on the move, they need an app with different payment options. iWallet Business can accept all major credit, debit cards and make remote check deposits from a smart phone.

Improve Your Defenses With On The Go Remote Check Deposits

Having the ability to accept checks in the field can help prevent chargebacks. A chargeback is a transaction that is disputed by the cardholder which can happen for a variety reasons, most often it is from fraud or an unhappy customer. When a chargeback occurs, the bank refunds the cardholder for the full transaction amount. You, the business owner is responsible for paying the chargeback fee, regardless of whether the chargeback was for.

Some businesses like stores can help combat these fee/charges with refund policies; however with appliance repair businesses it is much harder. Once a repair is done and the new part is installed you can’t go back. Having the ability to accept checks in the field and remotely deposit them will help prevent chargeback fees.

Accepting checks actually offers an added level of security for you since your technicians can quickly and seamlessly upload and deposit them remotely from a smart phone into their individual sub accounts. Implementing remote check deposit with iWallet Business, the funds are deposited into the company business checking account.  

Having the ability to use remote check deposits with also alleviate the stress of having employees take time out of their day to drop checks off at the office or deposit them at local bank. All of which frees up their time to help more customers and prevent losing checks along the way.

A Better Way to Manage Your Business

For many small appliance repair businesses, keeping track of all expenses for accounting and tax purposes is very demanding. Using iWallet Business helps to keep record of all transactions in one place. The app can be also be integrated with existing software to record transaction details automatically.

Adopting remote payment processing for your small business can help improve cash flow and save time. Using the app to help automate accounting tasks can help to eliminate the need for manual data entry. At the end of the day it helps you cut down on paperwork like processing stacks of invoices or taking time to have someone go the bank and make manual check deposits.

Using a remote mobile payment app reduces human error in financial reporting and frees up plenty of time to help you focus on growing your company. iWallet Business all-in-one payment processing app with remote check deposit offers technicians the best way to manage all their payments from a mobile phone.

If you want your small business to grow, remote payment processing is essential to your success.

Categories
Credit Card Processing Home Service Repair Businesses Mobile Check Processing Payment Processing Technology Small business tools

Payment Apps for Business

Appliance repair companies with two or multiple technicians in the field use a variety of credit card processing equipment but that’s not necessary with todays advanced technology. Did you know that your appliance business can accept all forms of payments for services from a smartphone using an app.

With the world moving to smartphones it only makes sense to move ALL your payments to remote payments too. Knowing the ins and outs will help you compare the many different features you have at your fingertips.

What are the processing rates for each app. Do they use interchange plus, flat rate and do they allow you to surcharge? You’ll also need to be able to determine what you need to stream line reporting or if the app exports needed accounting data.

Common Types of Payment Apps

Zelle

Zelle works well for very small or family appliance repair companies. The app has been adopted by many national banks and works by having the money move within minutes, directly into your bank account associated with your profile.

The downsides of using Zelle are it only works if your current bank currently offers it.  If you have more than two technicians it won’t allow for sub accounts so everyone making deposit access the same account.  Savvy business owners also need to easily recap deposits at the end of day or week. If you have a healthy business and more than two technicians, deposits get combined making it harder to reconcile.

Zelle also doesn’t offer remote check uploads. It is just an app to send funds.  It is free for customers to send however you will need to check with Zelle to see what they will specifically charge your business.

Venmo

Venmo was originally created for friends to send or receive money quickly. It has feature like splitting bills and adding fun notes which helped it to catch on quickly with Gen X and Y’s.

The app now allows for business to accept payments.  You can add a business profile to a personal profile easily. There is no monthly fee however be aware there is a low seller transaction fee of 1.9% + $0.10 on business profiles (fee can change & other fees may apply).

It’s pretty easy to create a business profile if you have an existing Venmo login.  This will allow you to track personal transactions separately from business. You can accept payments virtually through their app with a unique QR code which is a secure simple way to pay.

Venmo has a couple of downsides.  The app doesn’t allow for remote check uploads and like Zelle. If you have several technicians it doesn’t offer sub accounts so all deposit go directly into one account.

iWallet Business

iWallet Business is a revolutionary app that’s designed to process credit cards and accept checks in the field. Using iWallet Business gives your technicians the freedom to essentially accept all forms of credit cards and also make remote check uploads in the field (including corporate checks, consumer checks, cashier’s checks and money orders). This sets it apart from the other two apps.

It is easy and free to download iWallet Business for both android and iPhone. The app supports accounting functions needed to run a successful business and includes QuickBooks integrations for accounting. Sign up and account approvals are fast. The app includes bank level security and has a QR code touchless processing feature to keep your employees and customers safe from germs.

The key feature is iWallet Business is one of the only a few business apps that converts paper checks into electronic transactions. This allows businesses to receive funds faster and improve working capital. It works by selecting the check icon at bottom of app, using a smart phone camera your technician can upload checks directly into individual accounts. Individual sub accounts keep every technicians business private and easy to reconcile at the end of the day/week.

If your technicians want to get a little extra for their good work, iWallet offers a tipping option. In the app tap “Tipping” and turn the toggle on.

With all these three apps, you can optimize the speed of invoice collection. The only caveat is if you want to keep all customers happy you need to accept all forms of payments.  Look for remote check uploads to convert all forms of paper checks into electronic transactions. This will set your business apart while saving time by not having to run them to make bank deposit at a local branch.

Categories
Home Service Repair Businesses Mobile Check Processing Payment Processing Technology Small business tools

The Importance to Accept Checks in The Field

In a world where technology is advancing, should your appliance repair business go cashless…probably not since checks are one of the oldest forms of payment.  

While more and more people are using e-wallet to pay for goods and services, savvy appliance repair business owners shouldn’t alienate customers by not accepting paper checks.  Eliminating checks has the potential to result with negative reviews because customers who still prefer to pay for repairs by check will be forced to use another repair company.

In todays world you need to cater to all homeowners to prevent losing business. Much of the older generation doesn’t use smartphones the way Gen X does, which is why they still prefer to pay for services using paper checks. Boomers and seniors haven’t adopted technology at the same rate and still carry traditional wallets and write checks.

There are many reasons why you should offer a variety of payment accommodations for every customer. Some people with high balances stay away from charging on their cards so they don’t incur additional credit card finance charges.

And, checks are less attractive to thieves than credit cards because they aren’t easy assessable and cannot be cashed by just anyone. For thieves this can be hassle to get bank routing numbers, account info, print the checks than try to cash without proper ID. Checking account numbers are not on the black market like credit cards numbers.

Using an app to accept all forms of payments is the future of growing a successful business.  Keep in mind that not all processing apps are created equal; most, like Venmo/Paypal only process credit cards or transfer money.

Most traditional processing apps entail higher costs to cover the processing fees. Even with negotiated low credit card processing rates, business owners spend a fortune each year on transaction fees.

Business owners will pay more in credit card processing fees if they only accept credit cards. Yea, you can build the credit card fees into your repair prices but do you want to run the risk losing business because your repair fees are higher? Not the smartest business decision.

There are far more pros for accepting checks in the field than not, which is why a lot of appliance repairs businesses still prefer to accept checks.

Do you really want to wait and don’t wait batch the weekly and make mass deposit at bank. Cash flow is increased because with mobile check deposits the funds are available in a few days (actual time varies by bank and if check is written from local account vs out of state). Waiting can be risky because a check/checks can get lost or misplaced along the way. 

There is also the risk that funds aren’t in the account if you wait. Than you need to deal with having to get in touch with the customer and either get another check or ask for a credit card.

Accepting Checks Reduces overhead

No processing fees with mobile check deposits using an app like iWallet Business. The app offers credit card processing and remote check deposits. The convenience of using the app is there is no equipment to buy and you can accept checks and remotely deposit check in the field in addition to credit or debit cards.

Decrease Fraud Risk

Checks are safer to upload through a smart phone instead of waiting for technicians to mail them to home office so they don’t  run the risk of losing along the way. iWallet Business App scans checks through a national data base of bad check writers. If the check is flagged as bad, it will catch it in real time. More importantly since your employee is still with the customer this will gives the opportunity to ask for another form of payment.

Prevent Stop Payments

When customers write a check to pay for the repair and you wait to deposit later, you run a big risk of having a stop payment on the check. If customers are not satisfied with the work performed and complain, credit card payments can/will be disputed.  Most credit card companies side on the customer and this will cause the amount to be debited from your account. The funds are returned to the customer without recourse. This is yet another reason why accepting checks is a great option.

Check Guarantee is an added level of check safety, in the event the check bounces. This is good for small or large repairs companies that have a history of customers who bounce checks.

Keys to Accept Check for Payments

Verify the check is written for the right amount. The amount written out should be the same as numerical numbers. Only accept the total amount due. Make sure your technicians verify the following before uploading.

  • Complete name of customer
  • Payee name (you or your business)
  • Correct date
  • Bank ID numbers including account and ABA routing numbers
  • Dollar amount
  • Signature

Don’t waste your time thinking checks are a thing the past, they aren’t! Accepting checks for payment in the field with iWallet Business could set you apart from other repair companies. It is a useful financial processing tool for small to mid-size appliance repair businesses. Accepting checks helps to attract more customers and using iWallet to remotely deposit them can provide a level of security while helping to save with overhead fees.

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Credit Card Processing Interchange Plus Small business tools

The Importance to Compare Different Payment Pricing to see Which Models is Best to Achieve Your Goals.

Payment innovation has evolved and customers are using credit cards for payments more and more because it’s convenient.

But do you know what Interchange Plus, Fixed rate, Cash Discounting and Surcharge Pricing means? If not it this should help you to understand the different pricing models.

Payment Pricing Models

When it comes to credit cards, there are lots of cards your customers will use. Reward cards, platinum cards, student cards, no-fee cards, low-fee cards and travel cards, and each type comes with a different rate for processing. This is a fee that the merchant pays every time someone uses that card.

Every credit card brand (e.g. Visa, MasterCard, Discover) has a published, percentage-based on the interchange fee that they charge every time their cardholders uses their credit card – the cost of authorizing the charge.

Effective Rate

The effective rate is what you are being charged. The best way to know your effective rate is to take a recent statement, look at your fees, than divide that number by how much you processed in credit card sales.

The problem with traditional pricing models is they can hide the interchange cost which allows them to charge a markup. Processors consolidate a variety of rates into a smaller numbers; essentially “round up” to the highest rate in each tier. This makes monthly statements easy to read and makes it hard to see what the real rate the transactions are charged. It also allows the possibility of paying higher rates!

Interchange Plus

Interchange plus, also referred to as “cost plus” pricing, is straightforward pricing. Using cost plus pricing is transparent because it is more difficult to have hidden fees. With this pricing, processors take all the bank fees, card brand fees and pass them to the business owner, then add their markup fee (i.e 20%). You can check out all the interchange rates as they are published by Visa and MasterCard.

With interchange pricing, the business owner pays the non-negotiable interchange fee for the type of credit card and the payment processor markup. The markup is calculated by adding the interchange fee, a basis point mark-up and a per-transaction fee charged by the payment processor.

By showing you the actual interchange costs, interchange-plus pricing allows you to easily see what the markup is. This encourages processors to set reasonable markups plus this transparency helps ensure you are getting the best rates.

Fixed Rate Pricing

The fixed rate model, aka “flat rate” is simple which why it is appealing to appliance repair business owners.  If you want to know your real operating costs, paying a flat rate for processing will make the most sense because there are no hidden fees.

Fixed rate is easy to understand and can result in bottom line savings. Business owners can easily calculate credit card processing fees since the rate is the same each month, no matter what type of card or transaction method is used.

Apps like iWallet Business offer a consistent low flat rate which is why it lots of appliance repair business owners are switching to this. For budgeting you know what to expect—2.3% processing for businesses that process over one million per year and 2.5% for under.  

Cash Discounting

A true cash discount program gives the customer a discount for cash payments and avoids additional costs. This model passes the cost of acceptance back to customers who choose to pay with a credit card or debit card.

Giving discounts for cash is legal in all of the 50 states and is well received by the customer. Cash discounting has been around for decades and gaining in popularity. Gas stations have used cash discounts for many years. Paying with cash costs the customer a little less per gallon than paying with a credit card. There are a handful of specific rules to follow to stay compliant, be sure to work with a provider that will help you navigate these rules.

Surcharge Pricing

A surcharge program is a type of credit card processing where you charge the consumer an additional fee “surcharge” on top of the cost of service to cover the merchant processing cost. Surcharge programs are currently legal in almost all 50 states.

A surcharge program recoups merchant service fees that are charged when the customer presents a credit card as payment. A surcharge program doesn’t feel as good to the customer because it adds the additional fee at checkout.

Selecting the best option for your business Paying with a credit card is convenient and fast, but the processing rate differs on each credit card with effects your fees. On top of that monthly fees are determined by the card types, and merchant fees are added on top of the actual cost. It can be hard to decide between the different programs so be sure to consider the many before implementing a new program into your operations. Learning the different terms and how they can help your bottom line and potentially keep more money in your bank account.

Categories
Credit Card Processing Interchange Plus Payment Processing Technology

Compare Your Credit Card Processing Fees to See If You Can Save Money

The rates that you pay will vary depending on the processor and the pricing model of your individual payment processer.  

If you’re considering a new credit card processor, here’s valuable information to help you compare your options so you won’t be misled.

What is Your Savings Potential?

Check your most recent statement to what you are currently paying. If you process over 1m annually and are paying more than 2.5% this may be a good time to push back on your current provided and ask for a fee reduction.

Or it may make more sense to explore other competitive options to learn how you can save on fees. If you have the tools and education, your decision to stay with current processor or move will be easier.

Interchange Plus

Interchange-plus is a pricing model where credit card processors break down the fees that go to the bank or credit card issuer and their markup. There are two components — the interchange fee determined by the card networks and a markup set by the credit card processing company.

The transaction fees that the merchant’s bank account must pay whenever a customer uses a credit/debit card for payment. The fees are paid to the card-issuing bank to pay handling costs, bad debt costs, fraud and the risk involved in the payment approval.

What you need to understand is that there are hundreds of interchange categories – all with different rates. Different categories apply to different transactions, but the processor doesn’t control when they apply. In any given month, multiple interchange rates will appear on your statement; however these rates are the same no matter which processor you use.

Interchange –is the fee that comes directly from the card networks like Visa and Mastercard.  Payment processors have no control on these rates, and are required to pay.

Plus – The “plus” is the markup that your credit card processor is charging on top of the interchange fee. This is the percentage fee and a transaction cost.

Generally, interchange-plus pricing is more favorable for small businesses compared other with pricing models such as This is because interchange-plus is not only more transparent, but businesses usually end up paying lower processing costs with this model.

Here’s how interchange-plus stacks up compared with other common pricing models.

Tiered Pricing

Tiered pricing is probably the most common credit card processing model because it simplifies your fees by breaking them down into three main tiers — qualified, mid-qualified and non-qualified.

Qualified Rates –Transactions that fall under this category have lower fees attached to them,

Mid-Qualified – Is the percentage rate charged whenever they accept a credit card that does not qualify for the lowest rate

Non-Qualified –These transactions will charge your higher rates for.

The nature of a transaction will determine the category in which it belongs. Debit cards and non-reward credit card transactions typically fall under the qualified rate, while transactions involving corporate cards, higher rewards cards, and card-not-present transactions would be under the non-qualified category.

Since your transactions are categorized into 3 tiers, the tiered model makes your statement easier to read. The major downside is the tiered pricing model lacks transparency when it comes to your fee breakdown.

Blended Pricing

Blended rates are bundled so that the merchant is paying one overall cost each month which includes a percentage of the transaction total plus a flat fee. This pricing model is used by Square, Stripe and PayPal and the rate might be 2.6% plus 10 cents for in-person transactions. There is no clear way to determine what you are paying becasue fees are charged at an equal and unchanged rate month-to-month.

Flat Rate

Flat Rate pricing means that the credit card processor is charging one flat rate for all credit card transactions, regardless of the fluctuating interchange rate. This model is designed to cover all aspects of your processing in one cost.

Don’t Forget Hidden Fees

Be sure to read the contract because sometimes there are hidden fees that add up.

Cancellation Fee – Many processors use contracts with cancellation fees. They know that once you sign that contract, which are usually three years, you’ll have to pay to get out of it.

Processing equipment – Companies like Square, Cover and require the purchase of card readers or POS equipment.

If you want to take more money to the bank by saving on processing fees you should consider iWallet Business App. iWallet has two flat rate processing plans; one for under 1m and 1 for over 1m. No fees to sign up, no equipment to purchase and you can cancel anytime for free.  Understanding what is the best payment processing will help you save money. Do your processing research and select the best pricing model for your business needs.

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