USPS, UPS, or FedEx: Which Shipping Carrier Is Best?

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With the holidays quickly approaching, online sellers and postal workers alike are bracing for the sudden rush of packages from the holiday buying frenzy.

USPS, UPS, and FedEx workers everywhere are pulling out their gloves and strapping on their lumbar support. Winter is coming, and they are prepared!

Merchants, on the other hand, may feel a little less ready for the holiday rush. Not only do they have to maintain inventory and process orders, but they have to navigate the complex role of fulfillment.

With three major shipping carriers to choose from, it can be difficult to know which service you should use for your shipments.

Never fear! We’ve researched the advantages and disadvantages of each of the three major shipping services, and we’ve asked merchants to tell us their own experiences with each carrier. Keep reading to learn what each shipping carrier does well and where they can improve. We hope you’ll keep this information in mind as you explore your fulfillment options.

Table of Contents

USPS

The United States Postal Service is a public shipping carrier, subsidized by taxpayers. “Neither snow nor rain nor heat nor gloom of night” will keep the postal service from delivering letters and packages to Americans’ mailboxes (though in my experience, freezing rain does the trick).

The USPS is the #1 shipping option for many merchants, especially those who ship small and light products. However, USPS is not perfect by any means. Here’s what you should keep in mind as you consider USPS for your business:

Pros

There are a lot of praises to sing about USPS. Here’s what merchants love most about the postal service:

It’s The Most Inexpensive Option For Small Packages

The USPS is, hands down, the most affordable option for merchants who ship small items. Because taxpayers subsidize much of USPS’s expenses, it is able to ship small objects (letters and bubble mailers) for incredibly low rates.

The USPS provides the cheapest shipping for many packages under two pounds, and USPS simply can’t be beat for packages under 13 ounces. Let me state it clearly:

If you’re shipping products under 13 ounces, you should use USPS.

In addition, many merchants benefit from USPS’s flat rate options through Priority Mail. For one price, you can ship products of any weight across any distance; it just has to fit into USPS’s box.

Merchants also save by utilizing USPS’s free packaging material. Priority Mail boxes are available for free, and you can even arrange to have them delivered to your place of business.

If you’re trying to cut costs, USPS may be the way to go.

It’s More Reliable Than In The Past

While in the past, USPS was infamous for misplacing packages or delaying shipments, in recent years, they have greatly improved their reliability. Here’s what Allen Walton of SpyGuy.com had to say about the USPS’s improved delivery rates:

Deliverability is pretty solid. We very rarely have lost packages. Occasionally there are hiccups in their system that make it seem like a package hasn’t moved in days, and that can sometimes cause annoying issues, but getting better tracking means way more money using UPS or FedEx, and those guys have their own tracking issues.

Dr. Eugene Emmer from RehaDesign uses USPS to ship from his store in Europe into the United States. He reports:

In 10 years, only 2 parcels have been lost. Both times, all costs were fully refunded.

If your concern is lost packages, it seems that concern is now unfounded. Merchants often state that their savings from using USPS more than covers the very few packages that go missing.

It Delivers To Mailboxes and PO Boxes

The USPS has a monopoly on mailboxes and PO boxes. They’re the only shipping service that does not have to drop off packages at customers’ doorsteps.

Zondra Wilson of Blu Skin Care lists these perks well. She says:

By far the best option when it comes to price, USPS also offers insures overnight delivery. USPS also delivers to most locations such as post office boxes, has pick-up options, a wide array of packaging (some free), and offers insurance for Priority Express mail and Priority Mail as well as tracking for various services.

Because the USPS routinely delivers across the country, it excels in getting packages to out-of-the-way destinations. According to Jim Milan of Auto Accessories Garage:

They’re definitely the king of the lightweight package, and since they try to prioritize every address equally, they’ll occasionally surprise us with how quickly they can ship something to “the middle of nowhere,” so to speak.

If you’re looking for a service that will allow you to deliver your packages along with customers’ daily mail, USPS is the only way to go.

Cons

While USPS is great for many purposes, it is by no means a perfect solution. Here are a few of the downfalls you’ll have to look out for:

There’s No Guaranteed Delivery

It’s common wisdom that if a service is cheap and good, it cannot also be fast. This holds true for USPS.

The USPS will not guarantee delivery for express shipping. Kristin Anthony, CEO of Anthony’s Ladies Apparel, shared her experience with me:

We do use UPS for all of our express packages (Next Day, 2-Day or 3-Day shipping options) because UPS guarantees delivery within those time frames and USPS will not guarantee it.

If you absolutely need a package to arrive within a brief window, you’re better off going with UPS or FedEx.

Tracking Is Not Great

While USPS has improved their reliability in recent years, packages still go missing from time to time. The USPS’s less-than-perfect tracking system does not help matters when deliveries are delayed or lost.

Although Milan from the Auto Accessories Garage emphasized that pricing is an important consideration for his company, he still has a few complaints regarding the USPS’s tracking methods:

…while USPS may often be the cheapest choice, they can never guarantee a delivery date, and rarely if ever provide accurate tracking. This can be very frustrating to our customers, and frustrating for us when we can’t provide more information about a shipment.

For better tracking capabilities, you’ll have to look into more expensive alternatives.

Poor Customer Service

Merchants report that when packages do inevitably go missing, it can be difficult to have them located and to get the refund you’ve been assured. Here’s what SpyGuy.com’s Walton has to say to that:

Their customer service is garbage. Impossible to find lost packages, and they don’t make it easy for the customer to do the legwork themselves – it’s always on the business that shipped it out. When they put you on hold, it’s just a dead silence for like 30 minutes and you never know if someone will get on the line….Getting refunds is not easy. Sometimes they don’t deliver on time and the process for requesting refunds is antiquated. Really wish they would make it easy.

In order to get the affordable shipping rates USPS offers, it appears you’ll have to sacrifice a bit in terms of customer service.

The Low-Down

While the USPS is not the ideal option for every merchant (or every shipment!), it still is well worth considering as a part of your fulfillment strategy. Those super low rates for light shipments are impossible to beat.

UPS

UPS is a private shipping carrier specializing in secure, speedy delivery. eCommerce merchants love UPS for its reliability and comprehensive tracking system. However, UPS’s services tend to come at a higher price. Here are the top pros and cons of the brown van shipping service:

Pros

There’s a lot to love about this service, but here are the primary reasons online sellers choose UPS:

It Offers Guaranteed Express Shipping

If you need a package delivered ASAP, UPS is the way to go. UPS provides services like same-day delivery and next-day delivery.

Guaranteed delivery gives you the peace of mind that your packages will arrive on time, keeping your customers happy and your business moving.

It’s Affordably Priced (At Times) For Heavy Shipments

While the USPS is the cheapest option for light shipments, pricing increases dramatically for heavier shipments. If you’re shipping packages heavier than two pounds, you should take a look at UPS’s shipping rates. They may be able to deliver your packages more quickly (and securely) at a lower price.

What’s more, if you ship large volumes through UPS, you should be able to lower your rates through negotiation. You’ll have to have proof of your previous shipments, but the discounts are worth the effort.

It Provides Unbeatable Tracking

UPS offers comprehensive tracking services. Customers will be able to see where their packages are from start to finish. UPS’s detailed tracking gives your customers a sense of security, and it’s also great for you! The UPS will be able to tell you at any point exactly where packages are. It’s highly unlikely that you’ll lose a package while shipping through UPS.

Cons

While UPS is a great service in many ways, it isn’t perfect. Here are a few areas in which you’ll have to sacrifice if you ship with UPS:

It’s More Expensive

While this is not true in every case, UPS’s services can cost a bit more.  There are a few reasons for this, but two of the main culprits are the fees and surcharges that UPS adds to their base rates. These include residential surcharges, extended area surcharges, and more.

You’ll want to consider these surcharges, especially if you’re shipping internationally. as they can be rather steep.

There’s No Free Package Pickup Service

Although the USPS offers scheduled pickups free of charge, you’ll have to pay a flat rate for the same service from UPS.

One of our contributing merchants, Mark Aselstine from Uncorked Ventures, explains how this affects his business:

…our packages are pretty heavy-a standard 2 bottle shipment of wine runs about 7 pounds. Since we often have dozens to ship, we prefer to have them picked up. Fedex charges some extra amount per pound for a pickup in our area whereas UPS charges a flat fee.

In this case, UPS is actually the best option as it offers the lower pickup fee when compared to FedEx. It’s just a bummer that UPS doesn’t offer this service for free like USPS.

There Is No Free Saturday Delivery

UPS is the only carrier on this list to not offer Saturday delivery as a part of their basic services. This can slow down your shipments by up to two days. Instead, Saturday delivery is offered as a “value-added service.” You’ll have to use qualifying shipping services and pay extra to extend your delivery window one more day.

The Low-Down

UPS is a great carrier for larger shipments. While it isn’t as inexpensive as USPS, UPS tends to be a bit faster and its tracking capabilities are much better.

FedEx

I’m going to be honest: From what I’ve seen and heard from online sellers, FedEx isn’t too different from UPS. I know I’m going to get loads of protests about this in the comment section below, but in my opinion, the two are pretty similar.

Merchants often cite location as their main reason for choosing FedEx over UPS. However, your experience may prove quite different. Regardless, here’s our list of what FedEx does well and where it could improve:

Pros

As a private shipping carrier, FedEx has many of the same advantages that UPS does, including a great tracking system and speedier delivery. Here’s what you can expect from FedEx:

A Precise Tracking System

FedEx offers customers a robust tracking system. You can view your shipment’s progress every step of the way. You can also use FedEx’s delivery manager to hold packages at a FedEx office or schedule delivery for a specific time. Watch FedEx’s Ways to Track video to learn more.

Saturday Delivery

Unlike UPS, FedEx offers Saturday delivery as a part of their basic shipping packages. Mark Tyrol, president of Battic Door Energy Conservation Products, names Saturday delivery as one of the reasons he chooses FedEx for shipments:

For most other orders we use FedEx. FedEx delivers on Saturdays so some items shipped mid-week that would arrive on Mondays via UPS arrive the Saturday before via FedEx. So we use FedEx for these shipments.

Delivering products just two days earlier through FedEx can make a huge impact on customer satisfaction.

Negotiable Pricing

If you’re shipping large volumes of packages through FedEx, you may be able to negotiate for lower shipping rates. You may find that FedEx offers competitive rates for packages up to 50 pounds.

Cons

Of course, as you consider FedEx, you’ll have to also keep in mind its downsides. Here are a few of the most notable:

Higher Shipping Rates

Due to the highly variable nature of shipping costs, it’s impossible to label one carrier as definitely more expensive than another. However, from what I’ve seen with sample calculations, it appears that FedEx often charges more than its competitors. Of course, this won’t be true in every case (especially for merchants who negotiate their rates), but it does appear to be a trend.

No Free Package Pickup Service

Like UPS, FedEx does not offer a free package pickup service. That does not mean, however, that you cannot schedule a package pickup. You’ll just have to pay a fee.

Fewer Offices

There are over 1,900 FedEx Offices worldwide. In comparison, UPS provides over 5,000 UPS Stores. Merchants should be able to find a FedEx Office nearby; however, it’s probable that office won’t be quite as convenient as UPS.

The Low-Down

FedEx is an excellent option for merchants who are looking for fast, dependable shipping. As always, you should compare shipping rates with UPS and USPS to make sure you’re getting the best service for your money.

Finding The Perfect Balance

As you choose shipping carriers for you business, it’s important that you don’t limit yourself to just one shipping provider. Most merchants use a mix of two or even three services to offer customers the fastest, cheapest shipping every time.

You may, for example, choose to ship light packages with the USPS and heavy packages with UPS. Or you may ship everything through the USPS, with the exception of expedited shipments, which you send through FedEx. It all depends on your business model, your average order weight, and your shipping destinations.

Are you already successfully shipping with one or more of these carriers? Let us know in the comments which carriers you prefer and why. We love to hear from you!

Liz Hull

Liz is a recent college graduate living in Washington state. As of late, she can often be found haunting eCommerce forums and waiting on hold with customer service representatives. When she’s free, Liz loves to rock climb, watch Spanish dramas, and read poorly-written young adult novels.

Liz Hull

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Shopify versus. Volusion Ecommerce Platform Comparison

Shopify and Volusion are two best-known “hosted” ecommerce platforms on the web.

Ecommerce options exist on the spectrum of convenience and control. Both Shopify and Volusion are right in the center of the spectrum simply because they bundle all of the technical areas of a web-based store – hosting, speed, security, inventory, shopping cart software and payment processing – and bundle it right into a single monthly cost. This contrasts with solutions like WordPress + Woocommerce in which you buy, operate and keep each bit from the store but additionally have true 100% control of your site.

Ecommerce Real Estate Tradeoffs

But just like a self-located ecommerce website, Shopify and Volusion also bundle in your website in your domain in which you have full charge of product, prices and customer experience. So unlike managing a store on Etsy, eBay or Amazon . com – you control the build, design and content of the store.

Even if this area of the spectrum has lots of tradeoffs – services like Shopify and Volusion are a great choice for many storeowners. Therefore the question becomes – Shopify versus. Volusion?

I’ve reviewed Shopify here and Volusion here. I’ve used both like a customer so that as an advisor to customers of both.

Both are excellent companies by having an excellent product. And like several my other ecommerce and hosting reviews, there’s no such factor being an absolute “best” – there’s only the best choice for you personally according to your circumstances, goals and sources.

Here’s how Shopify comes even close to Volusion across 6 variables that many customers take a look at – and what you need to consider with Shopify versus. Volusion.

Skip to conclusion here.

Aside – I built a Buzzfeed style quiz for ecommerce platforms that grades the standards together with your goals. You should check out the quiz here.

Also, a fast disclosure – I receive referral charges from companies pointed out on this web site. All data and opinions derive from my experience like a having to pay customer or consultant to some having to pay customer.

Cost

Ahh – cost. It’s both simplest and many complex method to compare two products.

Rapid story on cost is the fact that both Shopify and Volusion work on a regular monthly cost structure having a ~2 week free trial offer. They likewise have a really similar “sticker” cost with tiers at ~$29/mo and ~$79/mo or more.

Shopify Pricing for Shopify Review (2016)

Volusion Pricing

That stated, their plan structure is simply different enough to create a direct comparison a little difficult.

The primary tradeoff originates from charges.

And you will find 3 various kinds of charges to think about.

First is the monthly store fee. This fee may be the “sticker” cost. Both Volusion and Shopify are usually exactly the same. Volusion is slightly cheaper, they also don’t include each and every feature on lower tiers that Shopify does.

Second is the store transaction fee. Shopify doesn’t charge transaction fees if you are using their charge card processor. Otherwise, their transaction charges are identical.

Third is the charge card processing charges. If you are using a third party processor like Authorize.internet, PayPal or Stripe – then you’ll pay anything they charge. If you are using Volusion, you’ll need to use a third party processor. If you are using Shopify, you should use Shopify payments for just two.9% + $.30 – about industry average.

If you are considering using a third party processor (ie, for cost or staying with your present provider), then Volusion is going to be comparable – or perhaps slightly less expensive than Shopify each month.

If you’re available to going “all in” ‘with Shopify, then you’ll save a lot of profit charges based on your revenue level.

In either case – cost isn’t the deciding factor for Shopify versus. Volusion. Rather, I’d take a look at additional factors.

Customer Care

Customer care is among the most undervalued advantages of choosing a located ecommerce platform.

The entire charge of a self-located ecommerce website is wonderful until it will get hacked and you’re having to pay $$$ to some developer or you are within the WordPress forums wishing someone points you within the right direction.

Both Volusion and Shopify have customer care included in their monthly cost. You obtain access to a variety of channels on – from phone to talk to forums to email tickets.

All customer care is customized since both operate on proprietary platforms.

At register – both of them come with an “onboarding” sequence along with a consultant to assist with any issues.

Volusion Onboarding

I’ve had good encounters with and you will find a few variations that I’ve observed –

  • Volusion has more thorough and instructive DIY education. They’ve videos and screenshots for small changes around the Dashboard whereas Shopify may have text instructions.Volusion Support
  • Volusion results in as increasing numbers of beginner-friendly because of onboarding and high consultant walk-throughs
  • Shopify has more thorough and instructive content on running your overall business. They invest considerable time and sources in situation studies, lengthy-form guides, tutorials, and helping your company succeed beyond just applying a brand new feature.
  • Shopify also offers a far more well-developed network of third party developers and marketers who focus on Shopify. They’re also known as “Shopify Experts.” It isn’t effortlessly, but it’s a much better beginning point for advanced help than the usual Google or UpWork search.
  • Shopify has *many* more integrations along with other 3rd parties along with other platforms. And frequently, individuals other platforms will really provide support for that Shopify integrations. This really is crucial for labeling providers, fulfillment providers, bookkeepers, etcShopify Integrations

Overall, I’d state that beginners will probably find Volusion’s support system to become less daunting. However a growing store will probably find Shopify’s support system to become handier. Quite simply, Shopify has a little more of the learning curve to understand their system, but once you understand it – that you can do more by using it.

Customer Focus

Shopify and Volusion both serve companies that vary from really small retailers selling niche products to multi-billion dollar brands. Have enterprise plans (I authored about Shopify Plus here) plus they have customer care teams educated to help absolute beginners.

That stated – there’s a significant difference between your companies when it comes to sources and mission. Shopify did an Dpo in 2015 to be a perfectly-funded public company. Their platform should serve all retail companies both on and offline – however with an emphasis on startups or online-first companies that are looking to grow offline.

Shopify runs their very own payment processing service as well as has their very own Point-of-Purchase (POS) system to ensure that small offline retailers sell offline an internet-based from inside exactly the same system. These were the first one to unveil “buyable buttons” on Pinterest and Facebook to ensure that retailers could sell inventory directly anywhere online – not only from customers who examined through the merchant’s website.

Shopify’s backend (which I’ll cover within the next section) reflects this focus. These products / orders / customers / inventory area is outside of the “website” area. The concept is your website is just one of numerous sales channels. You are able to certainly run your site as the only sales funnel in Shopify – however the choices to sell elsewhere happen to be built-in.

Volusions’s focus appears to become more about stores with an existing large offline operation – and want to grow online (almost overturn of Shopify).

That’s not necessarily a bad or perhaps a good factor – it’s only a choice. Their backend and terminology is centered on the storeowner that has a current retail business and requires to create it on the internet. There is a robust inventory system having a concentrate on the operations of the ecommerce store as opposed to the marketing of the ecommerce store. They’ve straightforward functionality to create on team people to handle listings and inventory.

Volusion Admin Control

Both Volusion and Shopify are fantastic platforms for startups to enterprise. However, Shopify’s focus is on getting an extensive platform that is useful for any kind of store. Volusions’s focus helps existing storeowners sell better – and manage across channels.

User-ambiance & Onboarding

Associated with Customer Focus would be the problems with user-ambiance and “onboarding” (ie, obtaining a new customer for an active storeowner).

Both Volusion and Shopify have excellent onboarding processes and user-friendly management areas.

The primary difference is when each backend is structured. Volusion includes a single Dashboard in which you manage everything – your product or service, inventory, websites, settings, billing, etc.

Volusion Dashboard

Shopify breaks out products/customers/orders as well as your website into separate areas. Furthermore, Shopify has their very own lingo.

For instance, rather of “product categories” – Shopify has “Collections.” Rather of a “website” – Shopify has “Online Store” that is among your “Sales Channels.”

Shopify Backend

To have an absolute beginner, it requires a couple of more minutes to determine Shopify’s lingo and structure when compared with Volusion. That stated, once Shopify’s lingo clicks, it will provide a little more versatility for daily operations. Shopify’s inventory setup, their product filtering and template editor are faster and much more versatile – when you figure them out.

For those who have never operate a website before and just possess a promising small to mid-size product collection, then Volusion will probably be preferable than Shopify.

If you would like more lengthy-term versatility, you’ll likely appreciate Shopify’s system more when you tackle the training curve.

Method of Features

Both Shopify and Volusion have the majority of the tools (marketing, Search engine optimization, inventory, order, etc) a web-based store will have to be effective. They differ though in the way the each approach adding additional features.

Shopify takes the “platform” approach. They’ve essential features that storeowners will require built-in. However for features that does not all storeowners need – they concentrate on ensuring storeowners can also add feature extensions for their store when needed. There is a large and active Application Store that does not has only well-known extensions (ie, MailChimp) but additionally lots of indie apps for each situation (ie, apps for worldwide tax and shipping features).

Shopify Apps

Shopify’s template editing language, Liquid, also enables developers to include features straight to an outlet if required. Shopify also offers a good “CMS” to handle non-product content (ie, blogs, pages, etc).

Shopify Blog Post

Volusion comes with an Application Store for extensions too. However, Volusion includes a bigger concentrate on building plenty of features straight into their software to ensure that there’s you don’t need to add extra time.

For instance, take selling on Amazon . com or importing your Amazon . com listings for your store. Both Shopify and Volusion could make these functions happen.

Volusion builds the feature to their backend. Should you not require the feature, it adds some clutter and technically enables you to “pay” for something aren’t using. However if you simply require it, it’s already there also it simply works.

Volusion Amazon Integration

Shopify doesn’t have it built-in. However, they are doing come with an application extension (produced by Shopify, readily available for free) that you could supplment your store if you are an Amazon . com seller.

That stated – the switch side from the platform/built-in tradeoff is when Volusion doesn’t have an element built-in – they’re unlikely with an application to supply the functionality whatsoever.

For instance, if you’re applying bulk 301 redirects and wish to monitor 404 errors to find out if you missed any URLs – Shopify comes with an application will require proper care of that however, you won’t have the ability to it whatsoever in Volusion.

It’s exactly the same situation for drag editing, membership shopping and lots of other advanced features. Most storeowners don’t needOrwould like them. However if you simply do, you are more inclined to have it in certain form or fashion in Shopify than Volusion.

Shopify Apps

The final example this is actually the “content management system” – Shopify includes a decent one to have an ecommerce platform. Volusion, though, is decidedly missing.

Volusion CMS

Again – a CMS isn’t by itself an enormous deal. But it’s vital that you consider which needs are critical for your store.

Overall, for those who have fairly core ecommerce needs and just want something to exist and also to work – then Volusion will probably are more effective.

If you would like more versatility (without going the self-hosting route), then you’ll convey more use of features with Shopify.

Aside – for this reason I suggest carrying out a 2 week free trial offer with Volusion and Shopify simply to click around and discover for yourself.

Method of Design

Both Shopify and Volusion make use of a system of styles / templates for design. You decide on basics theme after which edit it to appear as you desire.

As the finish result is identical, they are doing have a slightly different approach.

Shopify includes a well-developed “Theme Store” which, similar to their Application Store, has many free and premium styles produced by companies, individuals, and Shopify.

Shopify Themes

Shopify’s backend enables you to definitely make changes towards the theme. It can be done via drag or via  a hybrid method of editing. Small customizations (colors, logos, etc) require only a click while bigger changes (layout, widgets, etc) require editing Shopify’s custom Liquid language. Here’s Shopify’s drag tool.

Shopify Drag Drop

Volusion includes a Theme Store that’s quickly growing. They’ve just added a brand new batch of new styles. However, still it lacks the variety of Shopify. Their cost points for premium styles are often greater too. That stated, Volusion theme editing options include both selecting small customizations and editing the HTML/CSS. It’s a far more straightforward editor that you will get with Shopify.

Volusion Templates

Overall, I believe most storeowners will discover more versatility with Shopify’s method of design. However, if you wish to edit HTML/CSS directly without learning a brand new language and/or wish to download template designs (instead of your development store) – then you’ll like Volusion better.

Shopify versus. Volusion Conclusion & Next Steps

So Shopify versus. Volusion – who is the perfect fit for who? For those who have time – I’d really recommend carrying out a free trial offer (no charge card needed) with and merely clicking around.

Obtain a free 14-day free trial offer with Volusion here.

Obtain a free 14-day free trial offer with Shopify here.

Personally, i such as the versatility and options of Shopify. They’re likely a much better fit for many online storeowners. Take a look at Shopify here & my Shopify Review here.

However, if you are a old store and wish a less complicated experience, you’ll prosper with Volusion. Take a look at Volusion here & my Volusion Review here.

If you’re undecided – then take my Ecommerce Platform Quiz here. It will require your requirements and let you know who is the greatest option for your web store.

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Pick, Pack, and Ship: The Fundamentals of Preparing eCommerce Shipments

Many brick-and-mortar retailers proudly frame their first dollar earned, hanging up for those to determine. For traditional stores, that initial purchase marks the start of the company it’s the first tangible manifestation of success.

However, for online sellers, the very first purchase isn’t quite as straightforward. Actually, the very first purchase is the start of both their business’s success and something of the business’s finest challenges: shipping.

Being an online seller, you haven’t made that first dollar until your product or service arrive securely at the customer’s doorstep. And to be able to move that order from point A to suggest B, you’ll need to navigate the complex realm of fulfillment.

At Merchant Maverick, we all know it may be overwhelming to choose from all the shipping and fulfillment methods open to you. So, we’re wishing to simplify that call-making process. This publish belongs to a four-part blog series on shipping. Within this series, we’ll be covering packaging methods and materials, shipping software programs, third-party fulfillment, and drop-shipping. Our hope is the fact that through the finish from the series, you’ll possess a better knowledge of the shipping possibilities, plus an concept of which route your company must take.

We’ll start by concentrating on packaging for product safety and price-effectiveness. We’ll be also discussing branding and the best way to carry your brand over to your shipments.

Let’s get began.

Table of Contents

Packaging for Cost Efficiency

Allow me to obvious some misconception: Economical shipping is in no way “cheap” shipping. You shouldn’t instantly pick the least expensive option when you are preparing your shipping strategy. Improper and insufficient packaging can result in broken products and disgruntled customers.

Rather, you need to try to pick a shipping way in which best protects your product or service. Then you can can consider lowering the expenses associated with your shipping costs.

The best steps you can take to lessen shipping pricing is to search for packaging that matches your product or service snugly and make use of a filler material to lessen impacts.

Utilizing an appropriately sized package can help to eliminate costs in 2 ways. First, it cuts down on the quantity of filler material that it’s important to use within the shipments. Second, it cuts down on dimension-based shipping expenses.

Make certain you stock a number of sizes, shapes, and designs of boxes and mailers to be able to package each order correctly.

Listed here are a couple of of the very most common kinds of packages you should think about contributing to your warehouse.

  • Bubble Mailers
    • Bubble mailers are ideal for small products, especially individuals that require just a little of padding. You can buy bubble mailers in large quantities relatively cheaply.
  • Card board Mailers
    • Card board mailers are identical dimensions as bubble mailers, but they are stiffer. Consider delivering flat products in card board mailers.
  • Fold-up Kraft Mailers
    • Kraft mailers could be folded into different sized packages, which provides you excellent versatility.
  • Card board Boxes
    • Just your fundamental card board box! Select a number of sizes to suit your products.
  • Card board Poster Tubes
    • Large paper products could be sent securely in poster tubes.

You need to observe that a few of these choices are available under flat-rate shipping models. You can examine available flat-rates on card board mailers and smaller sized boxes particularly.

With regards to filler materials, you then have a selection of options. Your decision will be different with respect to the fragility of the products as well as your brand’s stance regarding ecological impact. Listed here are typically the most popular options:

  • Bubble-wrap
  • Air Pillows
  • Packing Paper
  • Packing Peanuts
  • Molded Styrofoam
  • Instapak

You can buy these items in large quantities from the couple of sources. You may first check out Uline Supplies, which is among the most widely used suppliers. Amazon . com and PackingSupplies.com offer a wide selection of packaging materials.

While you select your packaging, make sure that it lines track of UPS’s shipping guidelines. They’ve general guidelines and product-specific guidelines online. You need to pay special focus on the following tips if you are shipping irregularly formed, fragile, or potentially hazardous materials.

If you are fulfilling a purchase on Amazon . com, it’s important to check into Amazon’s guidelines too.

Furthering Your Brand Through Packaging

Once you’ve selected a number of packaging materials for the warehouse, you are able to begin thinking about how you’ll carry your brand over to your packaging. Online retailers use packaging to help their brand.

You would like your clients with an “unboxing experience.” Customers should seem like they’re unwrapping a present once they open your packages. If you possess the sources available, you can buy branded packaging materials. If that’s too costly, you may rather consider investing in a sticker creator that may print your brand emblem.

Branded inserts are another really good method to extend your brand. Here’s what you could consider including inside your shipments:

  • Packing Slips and Receipts
    • You need to include packing slips and receipts in each and every shipment. Make certain your packing slips display your organization emblem and phone information. It is also smart to include return info on your packing slips.
  • Notecards
    • Notecards are in no way essential, but they’re a pleasant touch. Hands-written i best.
  • Coupons for the following Purchase
    • Turn your one-time buyer right into a loyal customer. Incorporate a promotion code by having an offer of free delivery or 10% from the next purchase.
  • Marketing Material about Approaching Products
    • For those who have something new series being released, allow you to customers know! Let your brand to stand out.

You may choose to incorporate any mixture of these inserts at different points inside your marketing campaigns.

Calculating Shipping Rates

Since several variables affect shipping rates, it’s impossible to look for the best shipping way of every merchant. Individual sellers need to discern on their own what shipping method works well with their company and merchandise.

The variables affecting shipping rates are listed below:

  • Weight
  • Distance (Shipping Zones)
  • Package Dimensions
  • Dimensional Weight (Based on volume divided with a set variable)
  • Shipping Carrier
  • Shipping Speed
  • Predetermined Fee Shipping Options

Because of so many things to consider, you’ll need to determine on your own which packaging methods and shipping carriers perform best for the business. Listed here are a couple of sources that may help you do this:

These sources provides you with use of shipping calculators that consider a shipment’s weight, dimensions, shipping speed, and destination. They can help you make an educated decision about which carrier you need to use for the fulfillment.

Working Out What Works Well With You

Every merchant includes a different shipping strategy based on their business design and industry. Do what you could to analyze your shipping options and obtain began! Never be afraid to consider your shipping approach through a little bit of learning from mistakes. Purchase and test a number of packing materials to determine what take advantage sense for the products, and dig into shipping rates to obtain a good knowledge of future expenses.

Then, get shipping!

Simplify your Shipping: Using Shipping Software to your benefit

Liz Hull

Liz is really a recent college graduate residing in Washington condition. As recently, she will frequently be located haunting eCommerce forums and securing with customer support representatives. When she’s free, Liz likes to rock climb, watch Spanish dramas, and browse poorly-written youthful adult novels.

Liz Hull

“”

The Very Best Accounting Programs for Worldwide Companies

Accounting Software for International Business

¡Hola! Bonjour! Guten tag! Bon giorno! Ni hao! Shalom!

Nevertheless, you greet your clients, you’ll need a cpa solution that maintains together with your worldwide business. Inside a world in which the distance between continents appears to become shrinking (metaphorically speaking) and the opportunity to sell products globally is booming, now more than ever before you’ll need a program that provides strong worldwide business support.

After reviewing a large number of accounting programs, I had been surprised at how couple of companies truly optimize their software legitimate worldwide business. It may be pretty hard for the typical entrepreneur to locate a cpa solution that operates well on the global scale. That is why I’ve done hard work of scouting the the best for you personally. The next three accounting solutions all offer ample worldwide invoicing and business support. Each software is fantastic for different business sizes and markets, so hopefully, there’s something for everybody.

Table of Contents

Zoho Books

Best Accounting Software for International InvoicingIf you are searching for fundamental accounting and delightful invoicing, your search is over. Zoho Books continues to be supplying small companies with attractive, automated invoices since 2011. The program is simple to use and filled with features. The organization offers strong customer care and scalable prices plans too. To finish it off, there are many worldwide business features.

Worldwide Support

  • Multi-currency support
  • Send invoices in multiple languages
  • Assign default languages to contacts

With Zoho Books, you are able to send invoices in 11 different languages, including Brazilian Portuguese, Chinese, Nederlander, British, French, German, Italian, Japanese, Portuguese, Spanish, and Swedish. You may also invoice and receive payments in over 200 currencies which are updated every hour.

Features

Accounting Software for International Business

Additionally to those features, Zoho Books offers:

  • Estimates
  • Managing contacts
  • Expense tracking
  • Accounts payable
  • Inventory
  • Time tracking
  • Project management software
  • Reports

There’s also time-saving automations, like the opportunity to schedule invoices to become sent in a later, designated time. Customers receive invoices inside a beautiful client portal and may outlay cash directly online, that is a huge plus for business proprietors.

Visit Zoho Books for any full-featured tour.

Prices

Zoho Books offers three prices plans varying from $9 – $29/mo. Plans are compensated monthly, and discover more concerning the prices plan details here.

Ideal Business Size

The program is fantastic for small companies. The biggest Zoho Books plan has limitless users, so most small companies won’t outgrow the program until they require more in depth accounting features just like a full chart of accounts.

Ultimately, Zoho Books is definitely an affordable, robust worldwide business accounting solution. It is indeed my go-to recommendation for worldwide invoicing, also it supports more currencies than even full ERP solutions like NetSuite. Read our comprehensive Zoho Books review for more information relating to this great worldwide accounting software option.

Debitoor

Best Accounting Software for International BusinessDebitoor is a straightforward-to-use invoicing software having a couple of light bookkeeping tools thrown within the mix. The program is created within the United kingdom and utilized in over 40 other nations. With prices beginning at $5/mo, Debitoor is definitely an incredibly affordable choice for small company proprietors looking for good worldwide invoicing.

Worldwide Support

  • Multi-currency support
  • Send invoices in multiple languages

Debitoor also enables you to definitely send invoices in 11 different languages, including Catalan, Danish, British, Faroese, French, German, Icelandic, Italian, Norwegian, Russian, Spanish, and Swedish. You are able to invoice and receive payments in 165 different currencies. Currencies are updated constantly and forex rates are instantly calculated for you personally instantly.

Features

Accounting Software for International Business

Additionally to those features, Debitoor supports:

  • Estimates
  • Managing Contacts
  • Expense tracking
  • Bank reconciliation
  • Item management
  • Reports
  • VAT taxes

Debitoor offers the best invoice automations and customizations. You are able to alter the font, colors, and emblem in your invoice to produce personal, professional template designs. The organization also provides multiple payment gateway options so that your customer will pay their invoices directly online.

Visit Debitoor for any full-featured list.

Prices

Debitoor offers five scalable prices plans varying from $/mo – $24/mo, based on the number of invoices you need to send. Plans are compensated monthly, and discover more about the pricing details here.

Ideal Business Size

Debitoor is fantastic for freelancers, independent contractors, and micro companies. The program is made for United kingdom users (US users can result in the software work, but you will find better options available). Debitoor doesn’t have all the accounting features needed for an entire business accounting experience, therefore the software won’t meet the requirements on most small companies.

Within the finish, Debitoor is among the best worldwide choices for United kingdom users. Invoicing is how the corporation shines, and the simplicity and nice UI never hurts either. Read our comprehensive Debitoor review to find out if miracle traffic bot meets your worldwide (and domestic) small business.

NetSuite ERP

Best Accounting Software for International BusinessNetSuite earns the large guns so far as accounting software and worldwide support are worried. Unlike Zoho Books and Debitoor, NetSuite ERP goes past typical accounting software and it is rather an entire business solution created for large enterprises (as you will see in the cost tag). NetSuite ERP offers a lot of features and advertises itself as “the world’s #1 global cloud ERP.” (Visit here for an entire meaning of ERP.)

Worldwide Support

  • Multi-currency support
  • Send invoices in multiple languages
  • Tax compliant in multiple countries

NetSuite has the best multi-language support available, enabling you to send invoices in 19 different languages, including Chinese (simplified), Chinese (traditional), Czech, Nederlander, Danish, British (worldwide), British (US), French, French (Canadian), German, Italian, Japanese, Korean, Portuguese (Brazilian),  Russian, Spanish, Spanish (South America), Swedish, Thai, and Turkish. You may also invoice and receive payments in 190 different currencies. Currencies are updated nightly and forex rates are instantly calculated for you personally instantly.

NetSuite OneWorld’s tax and compliance management solution meets the accounting regulations of nations around the world.

Features

Accounting Software for International Business

Additionally to those features, NetSuite ERP offers:

  • Estimates
  • Managing contacts
  • Vendor management
  • Expense tracking
  • Accounts Payable
  • Bank Reconciliation
  • Payroll
  • HR
  • Budgeting
  • Reports and KPIs

Being an ERP software, NetSuite ERP combines accounting with business planning, complex inventory, and human sources. Essentially, anything you like the program to complete, it’ll do. Granted, there’s a learning curve with this particular one, however the organization from the software and UI is really really quite simple.

Visit NetSuite for any full explanation of their ERP features.

Prices

Here’s the kicker: the program starts at $10,000. One representative I spoken with stated their customers could pay between $10,000/yr – $1,000,000/yr on NetSuite. Although this number might appear jaw-shedding to small companies, the program is customized to every individual company and works as a complete software solution—meaning enterprises won’t have to purchase a lot of add-ons or switch backwards and forwards between multiple programs.

Ideal Business Size

Given its complex set of features (and steep prices), it’s easy to understand how miracle traffic bot is most effective within an enterprise context.

For enterprises looking for an ERP solution, NetSuite ERP offers incredible features and the best worldwide business support money can purchase. With NetSuite ERP, you can be positive your organization meets the required tax rules from the countries you do business with.

Final Ideas

Each program discussed above offers ample currencies and the opportunity to send invoices in multiple languages each allows your company to thrive within the global scene. The best option for your company is determined by your business’s size and needs. Ultimately, the requirement for worldwide support is a that lots of companies can’t manage to ignore (literally). There’s an excellent big world available awaiting your company and lots of software options that will help you sail and navigate individuals murky worldwide waters.

Yet another factor. If you really are a medium to large-sized business which has a lot of complex accounting needs for Zoho Books or Debitoor but can’t afford NetSuite ERP, there’s an alternative choice. Many invoicing-specific programs offer a minimum of some type of worldwide support and therefore are relatively cheap. Most may be used having a more full-featured accounting solution and a few even integrate directly with popular programs like Xero and QuickBooks.

If the invoicing tool seems like a great alternative for the business, take a look at our article The Very Best Software for Worldwide Invoicing.

Whoever you hire, you want you best of luck in your business efforts. Tell us for those who have any favorite programs for worldwide business within the comments below.

Chelsea Krause

Chelsea Krause is really a author, enthusiastic readers, and investigator. Additionally to loving writing, she grew to become thinking about accounting software due to her constant need to learn something totally new and know how things work. When she’s no longer working or daydreaming about her newest story, she are available consuming obscene levels of coffee, studying anything compiled by C.S. Lewis or Ray Bradbury, kayaking and hiking, or watching The X-Files together with her husband.

Chelsea Krause

“”

Interchange Reimbursement: What you ought to Learn About Your Most Pricey Credit Card Merchant Account Fee

Interchange reimbursement fee

Should you didn’t know this, I’ll educate you on the little secret. About 80% of the credit card merchant account pricing is originating from only one source, which source is the interchange reimbursement fee.

I won’t enter into an excessive amount of detail about how exactly the interchange reimbursement fee works, but when you’re feeling ambitious, there are many online sources where discover more.

But, what exactly are interchange charges anyway? In the following paragraphs, I’ll give the CliffsNotes version.

Interchange Reimbursement Fee
Interchange reimbursement is really a set fee the obtaining bank is billed through the issuing bank whenever a charge card transaction, or “interchange” occurs together. The charge is produced and controlled through the charge card companies, Visa and MasterCard.

Both Visa and MasterCard be capable of change individuals interchange rates two times annually in April and October.

Visa Interchange Rates (PDF)
MasterCard Interchange Rates (PDF)

Check out the above mentioned PDF docs and you’ll observe that there’re tens, otherwise hundreds, of various rate groups (tiers) for various charge card transactions (i.e., CPS/Automated Fuel Dispenser, Debit, CPS/Supermarket Debit—All Other, blah, blah, blah).

You don’t need to waste your time and effort attempting to commit to memory these now, but later on I’ll demonstrate cooking techniques like a reference to reduce your credit card merchant account costs.

That which you need to learn about interchange is always that each and every transaction occurring, whether in your website or perhaps in your store, falls into certainly one of individuals rate tiers.

You won’t ever know in advance which category your transactions is going to be billed under. That can be the charge card company to determine.

Are you able to begin to see the problem here? How’s it going designed to compare merchant services according to rate if individuals minute rates are so dynamic? It might be impossible.

In order to simplify this complete mess, the ISO/MSP’s around the globe have produced their very own prices structures:

Tiered-Prices and Interchange-Plus.

If you are searching to reduce your current credit card merchant account charges, I could possibly help. Click the link to find out more.

“”

Interview w/ Bridge Pointe Group’s Robert Alandt on Fraud and Chargeback Management

bridge-pointe-group-logoLately, I’ve been doing a lot of research about payment card security and exactly what falls under that umbrella. Around I know of the fundamental procedure for merchant services, payment security continues to be a brand new subject for me personally.

The greater I learn, the greater I recognize that fraud and chargebacks really are a very pricey a part of accepting charge cards. An expense that may be reduced when we take time to address them. I intend on writing more extensively about all this within the very close to future, but to kick things off for the time being, I made the decision to create Robert Alandt in the Bridge Pointe Group to speak to us about fraud and chargeback management. Robert has spent 23 years within this industry, and because the former VP of Visa, Corporation. in Bay Area, he most likely knows a factor or more concerning the subject.

Robert, provide us with a fast background of the items your organization does. Preferably, within the easiest, most understandable possible way. I know the majority of my readers (much like me) are newbies within the subject.

Plain and simple the Bridge Pointe Group works together with smaller sized and mid-sized card-not-present (CNP) retailers to mitigate their chargebacks that derive from payment card transactions.

Chargebacks could be associated with fraud, cardholder disputes relating for their purchases, or a mix of the 2. Whenever a chargeback occurs, the merchant not just doesn’t get compensated for that product they offered, they may also incur additional charges and expenses levied by their payment card processor. It’s possible to reason that the merchant’s processor includes a conflict of great interest with regards to helping their merchant reduce chargebacks given that they earn money whenever a chargeback occurs.

In comparison, in the Bridge Pointe Group we’ve not one other interest what is the best for the merchant and exclusively behave as their advocate to recognize methods for reducing their chargebacks and connected expenses. Chargebacks can’t entirely be eliminated but they may be reduced for each merchant available. Our pricing is minimal when compared with what we should can help to save the merchant in losses because of chargebacks.

Exactly what do the thing is because the greatest challenge for CNP retailers today? Strictly from the fraud and chargeback management perspective.

Regrettably, how a rules are presently structured through the global payment card systems, CNP retailers are often responsible for any fraud occurring. This differs from the credit card-present (Clubpenguin) retailers in which the card providers usually assume liability for transactions when fraud occurs. The greatest challenge we have seen for small , mid-sized retailers is the possible lack of understanding they’ve with regards to mitigating fraud and chargebacks. They already know they receive chargebacks, but frequently it normally won’t know why and much more frequently, it normally won’t understand what they are able to do in order to reduce them. The smaller sized the merchant is, the less support and help they receive from everybody. Retailers want to pay attention to their business and never getting to get a specialist on chargeback reason code 83 for instance.

Are you able to offer some quick tips or guidelines that retailers can use immediately to assist mitigate fraud or reduce chargebacks?

Chargebacks are generally caused by fraud someone I did not authorize used my payment card to conduct a transaction. Or those are the consequence of some issue the cardholder had having a transaction they conducted I do not recognize this transaction, the item I got myself is defective, Irrrve never received my merchandise, etc.

At least every CNP merchant should use their processor to completely make use of the following fraud prevention tools: Address Verification Service (AVS), card the three verification, verified by Visa/Secure Code from MasterCard.

The easiest method to try to reduce chargebacks associated with other kinds of cardholder disputes would be to communicate whenever possible using the cardholder through the entire purchase process e.g. send the cardholder an e-mail to verify an order and then tell them whenever they can be prepared to receive their merchandise. Even the merchant should allow the cardholder to make contact with them when they have any difficulties with their purchase. One method to do that is so that the retailers telephone number is incorporated within their billing descriptor. When the cardholder can’t contact the merchant easily they will probably contact their issuer who’ll send a pricey chargeback towards the merchant to dispute the transaction.

Are you able to recommend any online tools that will assist with fraud monitoring?

I pointed out a few of the fundamental fraud minimization tools above that each merchant should utilize at least. As part of this they ought to review their policies when working with these power tools. For instance what’s going to they are doing once they get a “no match” reaction to a card the three verification? For many retailers these power tools are sufficient. For other people, additional tools may be needed like a sophisticated fraud scoring system for every transaction. The key point would be to implement the correct quantity of fraud prevention tools. There’s pointless to purchase greater than you’ll need as there’s to incur fraud because current tools are insufficient. What we should do in the Bridge Pointe Group would be to help CNP retailers find the correct degree of fraud tools after doing an analysis of the fraud and chargebacks.

If my readers want to understand more about fraud and chargeback management, what sources would you recommend?

In case your readers wish to lean much more about mitigating fraud and chargebacks the Sources page on the website has a lot of information which they are certainly not getting using their processors to assist them to. The Sources page contains from transaction flows so they know how the payment card process works, to descriptions from the common fraud tools open to CNP retailers, to descriptions from the chargeback reason codes, to links towards the operating rules for that global payment card schemes for example Visa and MasterCard. Online we have your blog that people use to tell readers about issues, trends, and rule changes that may affect them. Finally, there a few organizations that CNP retailers should consider joining that also have many sources, the Merchant Risk Council (MRC) and also the Direct Response Forum (DRF).

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Thanks Robert! To understand more about the Bridge Pointe Group visit the website at: world wide web.bridge-pointe-group.com.

“”

The Top 5 Payment Gateways for Online Credit Card Processing

Online payment gateway

Setting up an eCommerce business involves making a lot of choices, but one important decision you might have overlooked is choosing the best payment gateway to allow your customers to actually make purchases on your site. Pick a good gateway, and you’ll be able to accept just about any payment method imaginable, interface with the online shopping cart of your choice, and, perhaps most importantly, easily be able to migrate your customer payment data to a different system if you later decide to change gateway providers. If you pick a not-so-great gateway, you may someday find yourself with a product that no longer meets the needs of your business – and no easy way to switch to a better one.

If you’re new to eCommerce, your first question might be “Just what the heck is a payment gateway, anyway?” Admittedly, payment gateways are something of a nebulous subject. Merchants are often unsure about what they do, and why they might need one in the first place. They’re also often confused with merchant accounts, which is a related (but separate) merchant service that you’ll also need to accept credit cards and other forms of payment.

We’ll try to keep it as simple as possible. A payment gateway is a software application that establishes a communication link between your eCommerce website and your merchant account provider’s payment processing system. Much like your computer’s BIOS and other operating system functions, payment gateways run in the background, and your customers won’t have to interface with them directly. The primary purpose of a payment gateway is to allow your customers to make purchases on your site using the payment method of their choice. While almost every gateway will support credit card purchases, the better ones will also allow customers to pay using eChecks, debit cards, their PayPal account, and even contactless payment methods such as Apple Pay. Most gateways also maintain a secure database of your customers’ payment method data, shipping and billing addresses, and other information. With this database, returning customers won’t have to re-enter their payment method information every time they make a purchase. This feature naturally translates to increased sales due to the convenience it offers your customers. For more details about payment gateways and how they work, see our article The Complete Guide to Online Credit Card Processing With a Payment Gateway.

Merchant accounts, on the other hand, process payment transactions and disburse the funds to you after a customer makes a purchase. Both retail and eCommerce businesses need a merchant account to accept credit card payments, although today payment service providers (PSPs) such as Square and Stripe can offer basic credit card processing without the need for a full-service merchant account. If your business is strictly retail and you don’t make any sales online, you can stop reading now. You won’t need a payment gateway. eCommerce merchants, on the other hand, will usually need both a payment gateway and a merchant account. This is because their transactions will all be in a card-not-present environment where they won’t be able to verify their customer’s identity or have access to the magstripe or EMV-chip data that helps to prevent fraud in the traditional card-present environment of a retail location.

With so many different choices of merchant account and payment gateway providers on the market, you might wonder what the best way is to set your business up with both of these services. There are two methods you can use: an integrated approach, or a non-integrated approach. Under the integrated approach, you’ll use the same provider for both services. For example, an account with a payment service provider (PSP) like Stripe includes both payment gateway functions and transaction processing services. The non-integrated approach, on the other hand, requires you to sign up for each service separately. The easiest way to do this is to use the payment gateway offered by your merchant account provider. Often this will be a proprietary product, such as the Quantum Gateway provided by CDGcommerce. While most providers will charge you additional fees for a payment gateway, CDGcommerce will let you use their gateway for free. Many providers also offer access to third-party gateways, which may be a better option if you need more advanced features than what the proprietary gateways have to offer or simply want to have more flexibility to change your merchant account provider at some point in the future. The majority of merchant account providers (including CDGcommerce) offer Authorize.Net as one of their payment gateway options. Signing up for the Authorize.Net gateway through your merchant account provider is often less expensive than going with the company directly, as providers can negotiate discounted rates and fees for their customers.

Another way to take the non-integrated approach is to sign up for your merchant account and payment gateway separately. For example, let’s say you’ve found a great merchant account provider that offers significantly lower processing rates than you’ve been able to find elsewhere. Unfortunately, they don’t offer a gateway that includes all the features you need for your business. You can always sign up for a third-party gateway and integrate it into your merchant account. While this may be the best option for some merchants, be aware that there are two disadvantages to this approach. For one thing, you’ll have to make absolutely sure that the two services are fully compatible with each other before you sign up. Also, you will almost always end up paying more money with this approach. Watch out for gateway setup fees and additional per-transaction charges for using a third-party gateway.

So, which approach is right for your business? There’s simply no clear-cut answer to this question, unfortunately. As a general rule, however, smaller businesses will usually save money by signing up with a payment service provider (PSP) that doesn’t charge monthly fees for either transaction processing or the use of their payment gateway. The trade-off, of course, is that you will pay higher per-transaction processing costs, as most PSPs only offer flat-rate pricing. Upgrading to a full-service merchant account and adding in a payment gateway will cost you more in monthly fees, but you’ll usually save money on processing charges – at least if your provider offers interchange-plus pricing. Larger businesses that have a higher monthly processing volume can more easily afford the extra fees and will save money overall because of the lower processing rates available from full-service merchant account providers. Because of the number of variables involved, there is no easy way to determine what your processing volume needs to be for a full-service merchant account plus a gateway to be more cost-effective than simply going with a PSP. We recommend that you take a close look at the total percentage of your transactions each month that goes to paying for merchant services and compare this to what you would pay under a different provider.

How We Chose:

While all payment gateways offer the basic function of processing transactions over the internet, there’s a lot of variability beyond that. The best gateways on the market offer a combination of fair pricing and a robust feature set that will meet the needs of most eCommerce merchants. In evaluating how well each gateway stood up against the competition, we used the following criteria:

  • Pricing: While everyone wants to save money, we firmly believe that pricing should be evaluated in terms of overall value rather than simply trying to find the cheapest option available. Trying to save a few dollars can easily result in being stuck with a product that doesn’t fully meet your needs. Nonetheless, there are some things to look out for. Many gateway providers, for example, charge a gateway setup fee when you first open your account. While this is a one-time charge, it’s mostly a junk fee that you should avoid paying. You’re more likely to get hit with a setup fee if you sign up directly with a gateway provider. Merchant account providers often waive this fee if you get your gateway through them. Monthly gateway fees (usually around $15.00 – $25.00 per month), on the other hand, are very hard to avoid. Unless you sign up with a company like CDGcommerce, which doesn’t charge a monthly fee for their gateway, you can expect to pay this on top of whatever monthly fee you have to pay for your merchant account. Gateway processing charges (typically $0.05 per transaction) are another thing to look out for. Some companies will charge you separately for this, while others will include it in their processing rates. You might also have to pay PCI compliance fees, particularly if you’ve signed up directly with a gateway provider. Usually, however, these fees are included in your merchant account pricing.
  • Contracts: Most payment gateway providers will bill you on a month-to-month basis, with no long-term contract and no early termination fee (ETF) if you close your account. However, your merchant account provider might include both of these provisions, so read all your contract documents very carefully before signing up. It won’t do you much good to be able to drop your payment gateway whenever you want if you’re stuck in a three-year contract for your merchant account.
  • Features: Obviously, you’ll want a gateway that includes the features you’ll need to run your business. Confirming that a gateway will meet your needs, however, isn’t always as easy as it should be. Companies naturally tend to play up the unique features of their services, but in most cases, they won’t disclose the limitations or shortcomings of those services. For starters, you’ll want to confirm that the gateway supports all the payment methods your customers use. For example, almost every gateway on the market will support Visa and MasterCard credit card purchases. Support for less-common cards isn’t as easy to find. If your customers use Diners Club (as unusual as that may be), you’ll want a gateway that supports it. Support for multiple currencies is also important for some merchants, and you’ll obviously need a gateway that supports the specific currencies your customers use. If you prefer a particular online shopping cart for your site, you’ll need a gateway that is certified to integrate with it. If you need to customize the integration between your site and your gateway, access to an API that allows you to do that will be essential. Finally, we recommend that you choose a gateway that allows for easy and convenient data portability in case you need to switch to a different gateway.
  • Security: No eCommerce merchant ever wants to have their site hacked and their customer’s sensitive payment data exposed in a data breach. Your gateway provider doesn’t want this to happen, either, which is why every gateway on the market comes with a number of security and encryption features to keep your account safe. Some of these features, however, are more effective than others. Look for point-to-point encryption (P2PE) and a gateway that meets Level 1 PCI compliance standards. Other features, such as data breach insurance, are also useful to have.
  • Customer support: Like any other software product, payment gateways are prone to occasional hiccups and glitches – often at the most inconvenient times. The eCommerce world runs around the clock and isn’t limited to just regular business hours. For this reason, you’ll want a gateway that’s backed up by 24/7 customer support. While options like email and online chat are nice to have, you really should be able to talk to a customer service representative via telephone when a problem arises.

Before we dive into our specific recommendations, let’s be clear about one thing: there really isn’t a perfect gateway out there that will meet the needs of every merchant. Even the best gateways fall short of perfection in one aspect or another. Nonetheless, there are several gateways that provide a significantly better combination of features and services than others. Here are our recommendations:

Authorize.Net

Authorize.Net logo

Originally founded in 1996, Authorize.Net is one of the oldest and most experienced payment gateway providers in the industry. Thanks to partnerships with a host of merchant account providers, they’ve also cornered the lion’s share of the market for payment gateways. There’s a good chance that your merchant account provider offers Authorize.Net as their payment gateway.

But, does being the biggest gateway provider also make them the best? Well, maybe. With over twenty years in business to perfect their product, they’ve definitely managed to add a lot of bells and whistles to their core product. Their gateway can accept all major credit cards (yes, even Diner’s Club), debit cards, eCheck payments, and even digital payment methods such as PayPal and Apple Pay. They can accept international transactions from just about any country in the world, although your business must be based in the United States, Canada, the United Kingdom, Europe, or Australia. Their Advanced Fraud Detection Suite (AFDS) can protect your site from card-not-present fraud – a common issue with eCommerce. Best of all, their gateway seamlessly integrates with a huge number of third-party eCommerce platforms.

Sounds great, doesn’t it? Well, there are a few things to watch out for. Pricing can be on the high side if you sign up directly with Authorize.Net, with a $49.00 gateway setup fee, a $25.00 monthly gateway fee, and a $25.00 fee for chargebacks. If you already have a merchant account, you’ll still pay an additional $0.10 per transaction for the use of their gateway. International transactions also pay an additional 1.5% for processing. If you don’t have a merchant account, Authorize.Net will set you up with one, but it uses a flat-rate pricing plan of 2.9% + $0.30 per transaction. While this is the same as what you’d pay for PayPal or most other payment service providers (PSPs), you can get lower rates by signing up with a merchant account provider that offers interchange-plus pricing.

The good news is that you can usually get a better deal on the Authorize.Net gateway by signing up with a partner merchant account provider. Most providers will waive the setup fee, and they’ll often charge a lower monthly gateway fee and per-transaction processing fee (typically $0.05 per transaction). However, Authorize.Net does have one major weakness: data portability. Or, rather, the lack of it. Their Customer Information Manager (CIM) is a powerful feature that allows you to store customer data, including credit card numbers, securely. Unfortunately, it’s difficult and very expensive to download that data and take it with you if you ever decide to switch to a competing payment gateway. This is a serious limitation, especially considering that other providers (such as Braintree) offer you the freedom to take your customer data with you if you want to. You’ll want to very carefully evaluate whether Authorize.Net will be able to meet the long-term needs of your business before you sign up.

PROS:

  • Broad support for multiple payment methods and currencies
  • Strong security and fraud prevention features
  • Month-to-month billing with no long-term contracts

CONS:

  • Pricing is expensive for merchants who sign up with the company directly
  • High flat-rate pricing for optional merchant account
  • Data portability is unusually difficult and expensive

For a more in-depth look at Authorize.Net, check out our full review.

Braintree Payment Solutions:

Braintree Payment Solutions logo

Founded in 2010, Braintree Payments Solutions is now a PayPal company. They offer an integrated approach to eCommerce, with each account including both a payment gateway and a full-service merchant account. It’s available in 44 countries, including the United States, Canada, Australia, and most of Europe. Payments can be accepted in over 130 currencies, including Bitcoin if you’re particularly adventurous.

Standard accounts at Braintree follow a pay-as-you-go pricing model, with no account setup fees, monthly fees, or even gateway fees. All transactions are processed at a flat rate of 2.9% + $0.30 per transaction. Billing is on a month-to-month basis, with no long-term contracts or early termination fees. While the flat-rate pricing is not particularly cost-effective for larger businesses, the lack of monthly fees makes it a great deal for smaller companies. Braintree addresses this limitation by offering enterprise pricing for larger businesses (presumably with interchange-plus rates), but you’ll have to process over $80,000 per month to qualify for it.

Braintree’s gateway includes some excellent standard features, including its Drop-In UI for customer checkouts and support for recurring billing. It’s also compatible with a huge variety of third-party integrations, including shopping carts, accounting software, and analytics. Developers can further customize the gateway using Braintree’s client and server SDKs. Perhaps the best feature Braintree has to offer is that they provide complete data portability for free. If your needs change and you want to switch to a different provider, you’re free to take your customer data with you.

While Braintree offers an excellent service at a fair price, it’s not for everyone. If you already have a separate merchant account (particularly if you’re stuck in a long-term contract), their gateway-only option is quite expensive at $49.00 per month and $0.10 per transaction processed over the gateway. There’s also almost no support for card-present (i.e., retail) transactions, although they do support a handful of third-party mPOS solutions.

PROS:

  • Pay-as-you-go pricing with no monthly fees
  • Simple flat-rate pricing for standard accounts
  • Free, unrestricted data portability

CONS:

  • No support for eCheck (ACH) payments
  • Gateway-only option is expensive

Check out our full review of Braintree for more information.

PayPal:

PayPal Logo

You might not think of PayPal as a payment gateway provider, but their Payflow Payment Gateway is actually a very capable product. In fact, PayPal offers a host of merchant services for eCommerce businesses, and you can integrate most of them with the merchant account, shopping cart, or another service you’re already using.

Offering PayPal as an additional payment method is the simplest option, as it’s free to set up and there are no monthly fees or long-term contracts. Pricing is pay-as-you-go and based on a flat rate of 2.9% + $0.30 per transaction (4.4% + $0.30 per transaction for international transactions). While this is certainly the least expensive option, realize that as a payment service provider (PSP), PayPal is not giving you a full merchant account. Instead, your account is aggregated with those of other sellers so that you won’t have a unique merchant ID number for your business. The downsides to this arrangement, of course, are that your account won’t be nearly as stable as a merchant account, plus account freezes and holds on your funds are more common. PayPal is rather notorious for withholding seller’s funds at the slightest suspicion of fraud, so it’s better to use them as a backup payment method rather than relying on them entirely for your transaction processing needs.

If you already have a merchant account through a different provider, the Payflow Payment Gateway is designed to integrate with it and expand your payment options. There are two pricing plans for the Payflow gateway: Payflow Link and Payflow Pro. Payflow Link (the best choice for most merchants) is practically free. There are no gateway setup or monthly fees. You pay an extra $0.10 per transaction, and that’s it. You can use a PayPal-hosted payment page or a template embedded on your website. Payflow Pro, on the other hand, offers full customization and additional PCI compliance features. However, it’s rather expensive, with a $99.00 setup fee and a $25.00 monthly fee after that. You’ll also still pay $0.10 per transaction with this option.

PROS:

  • No setup or monthly fees (for Payflow Link)
  • Simple, transparent flat-rate pricing with no hidden fees
  • Easy to setup and begin accepting payments

CONS:

  • Flat-rate processing charges are higher than most merchant accounts offer
  • Elevated risk of account holds, freezes, and terminations
  • Inconsistent quality of customer support

For more detailed information about PayPal, see our complete review here.

PayTrace:

PayTrace logo

While they’re not nearly as well-known as the other heavy hitters in the payment gateway industry, PayTrace offers a solid product with lots of specialized features, particularly for merchants in the B2B sphere. Unlike other merchant services providers who offer a broad range of products and services, PayTrace is a payment gateway provider first and foremost. They don’t offer merchant accounts or any hardware, so you’ll have to go with a third-party provider for these items. Although the PayTrace gateway is their primary product, the company also offers a virtual terminal and a mobile payments app.

PayTrace offers both Basic and Pro pricing plans, with the former being suitable for small eCommerce businesses and the latter offering specialized options for larger B2B merchants. The Basic plan has no setup fee and costs only $15.00 per month after that. You’ll also pay $0.30 per transaction processed over the gateway, which is in addition to any processing charge you pay to your merchant account provider. The Pro plan requires a $75.00 setup fee, and $20.00 per month after that. However, your gateway processing fee drops to $0.10 per transaction. You’ll also be able to process Level II and Level III credit card data, which will save you up to 1.0% in processing charges due to the lower interchange rates for these transactions. Processing Level III data requires some additional data input on your part and is mostly useful for B2B transactions, but if you process a lot of these types of transactions, the savings could be significant.

The PayTrace gateway also supports additional features such as eCheck (ACH) processing and recurring billing. However, these are optional features requiring additional fees, and are only available under the Pro plan. PayTrace bills on a month-to-month basis only, so there’s no long-term contract and no early termination fee to worry about. Be aware, however, that your merchant account provider might not be so generous. As always, we highly recommend that you read all contract documents thoroughly before signing up for a merchant account. The same advice goes for payment gateways, even though gateway providers are generally much more flexible about contract terms.

Like most gateway providers, PayTrace also offers a customer information database so returning customers don’t have to re-enter their payment method data every time they make a purchase. Unfortunately, it’s only available under the Pro pricing plan. Data portability is supported, although PayTrace notes on its website that “only truncated payment information is available for export from the system.”

PROS:

  • Month-to-month billing with no long-term contracts
  • Integrates with most merchant account providers and shopping carts
  • Supports Level II and Level III credit card data for B2B merchants

CONS:

  • High per-transaction processing charge under Basic pricing plan

To learn more about PayTrace, check out our full review.

Stripe Payments:

Stripe logo

Much like Braintree, Stripe Payments is a tech-focused merchant services provider that specializes in serving the eCommerce community. Those services are tightly integrated into their payments system, so the company doesn’t offer a discrete Stripe-branded payment gateway. Instead, it’s built into their overall payments platform and comes with every Stripe account. For small businesses, this is a very affordable approach, as there’s no separate account setup fee, no monthly gateway fees, and no additional per-transaction processing fee. You also don’t have to worry about trying to integrate two or more third-party services into your website. Another advantage is that Stripe includes several additional features for free that most gateway providers charge extra for, including eCheck (ACH) processing and recurring billing.

Stripe’s pay-as-you-go pricing couldn’t be simpler. Credit card transactions are processed at a single flat rate of 2.9% + $0.30 per transaction. eChecks are 0.8%, up to a maximum of $5.00. Stripe also supports digital payment methods such as Bitcoin and Apple Pay. Qualified nonprofit corporations get a discount on these rates, and enterprise users (i.e., those processing over $80,000 per month) can also negotiate volume discounts on their processing rates. Like most of its direct competitors, Stripe bills month-to-month only and doesn’t impose long-term contracts or early termination fees.

Sounds great, doesn’t it? If you think that there must be a catch – of course there is. Stripe is a payment service provider (PSP), and so they don’t provide true full-service merchant accounts. Like other PSPs (i.e., Square or PayPal), funding holds and account freezes or terminations are distressingly common. Customer service is another weak point, with almost all communications between Stripe and its merchants being conducted via email.

The best thing about Stripe is that it’s designed specifically for eCommerce merchants. Most providers are more focused on the retail sector, and their support for eCommerce always comes at a higher cost in the form of gateway fees and additional per-transaction charges. With Stripe, new eCommerce merchants get everything they need to start accepting payments as soon as their account is approved. While a Stripe account covers all the basics, you can also add or customize features through their huge API library or supported third-party integrations. Stripe also supports data portability, so you can easily take your customer information with you if you decide to change providers later.

PROS:

  • Pay-as-you-go pricing with no setup or monthly fees
  • Simple, transparent flat-rate pricing structure
  • No long-term contracts or early termination fees
  • Huge API library for developers

CONS:

  • Flat-rate pricing is more expensive than interchange-plus for high-volume merchants
  • Frequent account holds and terminations
  • No telephone customer support

For more information, see our complete review of Stripe Payments here.

Final Thoughts:

If you’ve been reading this far, you’ve probably concluded that selecting a payment gateway provider can be a very complicated decision. While that’s sometimes true, it doesn’t have to be all that difficult. Gateway providers offer a dizzying array of options, customizations, and add-ons, but in most cases, you won’t need all of them. Take a close look at what your business needs are today, and consider how those needs might expand over time as your business grows. For example, if you don’t need recurring billing, there’s no reason to pay extra for it. If your needs change later, you can always add it to your service. Level II and III credit card data processing is another feature that a sales agent might try to upsell you on. Yes, the rates are lower, but you still pay extra to access them, and if you don’t take many B2B transactions, you’ll wind up paying extra for something you don’t use.

You’ll also want to put some thought into whether the integrated or non-integrated approach will work best for you. Payment service providers (PSPs) like PayPal or Stripe are an excellent way to add credit card processing to your business without spending any money up front. However, once your business grows large enough, the high flat-rate pricing will end up costing you more money than you’d pay with a traditional merchant account offering interchange-plus pricing. Since there’s no long-term contract to worry about, it’s relatively easy to make the switch once this happens. However, you’ll probably have to find a merchant account provider and a new gateway.

Although there are no hard and fast rules, we recommend providers such as PayPal or Stripe for new, low-volume eCommerce businesses. Braintree is also a good option, especially if you’d like to get all your merchant services from the same company. When you’re ready to step up to a full-service merchant account, Authorize.Net is a good option. However, we recommend getting their gateway through a third-party provider rather than the company itself due to the generally lower costs. PayTrace is also an excellent choice if you already have a merchant account, especially if you run a lot of B2B transactions.

Much like merchant account providers, there is no single “best” gateway provider. Even the companies we’ve profiled here have their shortcomings. Every business has different needs, and it’s up to you to decide what features your business needs the most. Fortunately, most payment gateway providers offer a similar set of standard features that cover the most common requirements of a majority of businesses. They also provide a very high degree of customization to make their service work with your business, although in many cases you’ll have to have developer skills (or hire one) to implement them. If you’ve had any experience with the providers profiled in this article or you want to highlight a gateway provider we haven’t mentioned, please feel free to tell us about it in the Comments section below.

The post The Top 5 Payment Gateways for Online Credit Card Processing appeared first on Merchant Maverick.

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How you can Negotiate the right Charge Card Processing Deal

negotiating credit card processing fees

Negotiating charge card processing charges is intimidating, and even for good reason. You most likely don&#8217t need to negotiate prices greatly inside your everyday existence, and also you just negotiate a charge card processing deal perhaps a couple of occasions inside your entire existence. Sales representatives at a merchant account providers, however, negotiate these contracts each day. Whenever you cope with these representatives, you’re immediately in a disadvantage, which hurts your general confidence.

Confidence is essential to effective settlement. If you’re able to&#8217t with confidence state that an offer sounds bad or good, all sheds. This quick guide provides you with all the necessary tools to stack the negotiating deck to your benefit and provide you with the arrogance to obtain the merchant processing car loan terms you deserve.

1. Have an interchange-plus quote

If you wish to have concrete, significant bargaining power, it&#8217s interchange-plus or bust. With interchange-plus, the sales rep must separate the markup in the wholesale transaction cost, and therefore offer you two simple figures that you could easily match up against quotes using their company vendors.

The 2 figures are:

  • The proportion markup (e.g., .30%)
  • The transaction fee markup (e.g., $.20)

You’ve still got to cover the interchange fee along with other wholesale costs, obviously, but individuals figures are non-negotiable and for that reason don’t offer you any negotiating power. All processors need to pay exactly the same wholesale interchange costs.

Match it up having a standard tiered quote, containing a minimum of six figures, including:

  • Qualified tier rate and transaction fee (e.g., 1.75% + $.20)
  • Mid-qualified tier rate and transaction fee (e.g., 2.25% + $.25)
  • Non-qualified tier rate and transaction fee (e.g., 2.90% + $.30)

Since it&#8217s impossible to be aware what number of your transactions will fall under each tier, and also the markup and wholesale pricing is not separated, making significant comparisons between tiered prices quotes just isn’t possible more often than not.

Some providers designed for lower volume companies (like Flint or PayPal) do not give interchange-plus quotes. But any traditional credit card merchant account provider can provide cost-plus prices. When the representative will not, it&#8217s most likely time for you to hang up the phone the telephone.

2. Examine charges to calculate the effective rate

Which means you&#8217ve got your interchange-plus quote in hands, plus a complete listing of charges. Ok now what?

Well, it will help for those who have some knowledge of payment processing (we are able to help should you&#8217d like), however a careful newcomer can perform a fairly good job of examining and sorting charges, the initial step while calculating the effective markup rate, the number will make apples-to-apples comparisons across multiple processors.

Read this infographic to learn more of processing charges.

Searching at the fee page, highlight all from the charges which are &#8220scheduled,&#8221 meaning they occur at regular times. Such charges include:

  • Fee every month
  • PCI compliance fee
  • Gateway fee
  • Annual fee
  • Equipment warranty fee
  • Monthly minimum surcharge

These charges figure in to the markup cost.

Incidental charges (or one-time charges), however, are excluded in the markup. Such charges include:

  • Chargeback fee
  • Early termination fee
  • Application fee
  • Setup charges
  • PCI non-action fee

It&#8217s important to concentrate on these charges too whenever you make comparisons, but they don’t count included in the effective markup.

NOTE: Should you process lots of card-not-present transactions, consider an AVS (Address Verification Service) fee. Usually this fee is made to the markup quote for card-not-present companies, however, many providers are sneaky and can include it as being another fee. The AVS fee is billed any time you operate a transaction with no card present (for example via a website or over the telephone). The charge is generally small (maybe $.10), however it accumulates rapidly. Multiply this fee by the amount of card-not-present transactions you&#8217ll have inside a month, and include that number along with other scheduled charges.

3. Calculate the effective markup rate

Together with your charges carefully examined and sorted, you&#8217re prepared to calculate the special moment number. The effective markup provides you with just one number that works as a simple metric to check actual costs, not only quoted rates, across numerous processing quotes. It&#8217s the best number to think about when rate shopping, so give consideration!

You’re given an interest rate and fee quote which includes the next:

  • Interchange-plus: .25% + $.20
  • Fee every month: $15
  • Annual PCI compliance fee: $72
  • Monthly gateway fee: $10

You predict that you’ll process $20,000.00 monthly in card payments, with $100.00 being your average card payment transaction size.

Adopt these measures:

  1. Multiply your markup rate from your monthly volume. (20,000 * .0025 = 50)
  2. Divide your monthly volume from your average transaction size to obtain your average quantity of transactions monthly. (20,000 / 100 = 200 transactions)
  3. Multiply your average quantity of transactions monthly from your per transaction fee. (200 * .20 = 40)
  4. Accumulate all scheduled charges. For charges collected yearly, divide by 12 to obtain the monthly figure. (15 + 6 + 10 = 31)
  5. Add totals from lines 1, 3, and 4 to obtain your total price above wholesale. (50 + 40 + 31 = 121)
  6. Divide total price above wholesale from your total monthly card payment volume to obtain the effective markup rate. (121 / 20,000 = .00605)

So within this example, the effective markup rates are .60%, which is $121 in negotiable charges monthly. This is actually the ultimate test to find out if one provider will really be less costly than another, or maybe it just looks less costly. Believe me, sales people are experts at creating a quote look less costly without really helping you save anything.

4. Measure the overall value

The effective markup is really a effective number, however it&#8217s and not the whole story. Without assessing overall value, you can finish up selecting the least expensive provider although not the cost effective.

For instance, let’s imagine you process $20,000 monthly and also you get three quotes. You need to do the mathematics and obtain the next results:

  • Provider A: .60% effective markup, little else incorporated
  • Provider B: .70% effective markup, includes gateway and virtual terminal
  • Provider C: .90% effective markup, includes gateway, virtual terminal, and shopping cart software integration

Should you don&#8217t require a payment gateway or shopping cart software integration, and all sorts of other activities are equal, then your option is obvious. But let’s imagine you need to do require the gateway and shopping cart software, ok now what?

Well Provider A costs about $120. Provider B costs $20 greater than a. Provider C costs $60 greater than a.

Just how much would be the gateway and shopping cart software integration likely to cost when you get them elsewhere? The gateway could be easily $20 monthly or even more, so option B reaches least just like A. If Provider C is providing a great shopping cart software, that may certainly cost $40 or even more elsewhere. Which means that they all are comparable when it comes to value, despite the effective markup differences. But Provider A provides the best versatility, as you are free to find the gateway and shopping cart software you&#8217d prefer to use.

Other activities that impact value may include quality of customer care, quality of reporting system, deposit occasions, etc. They are harder to evaluate, but should be thought about whenever you make comparisons of worth.

5. Consider contract termination terms

Everybody will explain to see your contract, myself incorporated. But in fact it&#8217s a really lengthy contract, and when you&#8217re unfamiliar with the terminology, standards, and legalese, you likely won&#8217t have the ability to glean much helpful information from nearly all it. And the fact is that most anything is non-negotiable.

I still suggest that you attempt to see it, as it is a legally binding agreement. Should you only read one section, make certain it&#8217s the part that outlines the termination procedures. Ideally your contract may have an earlier termination fee waiver so the contract is evidently month-to-month. (Observe that car loan terms will still outline the termination fee, and that’s why it&#8217s essential to make certain the waiver is incorporated.)

Our featured providers don’t have any early termination charges!

If you’re able to&#8217t obtain the early termination fee waived, a minimum of consider the auto-renewal clause. This clause &#8211 that was contained in literally every contract I&#8217ve ever read &#8211 causes it to be to ensure that after your initial contract term expires (usually 3 years), anything AND early termination fee renew instantly! Which means that even though you fulfill the initial contract, you can still finish up being tied to the first termination fee.

Possibly the most crucial factor to look for within the termination portion of the contract is any language talking about &#8220liquidated damages.&#8221 This kind of early termination fee enables the company to gather 1000s of dollars in &#8220damages&#8221 from forecasted revenue loss according to your early cancellation. Never accept this.

6. Look around

Among the best negotiating tools you are able to gather together is multiple rate and fee quotes. Speaking to a minimum of three different providers prior to making your final decision will not only help you build confidence along the way, it offers a superior real-world specifics of the charges and rates suitable for your company.

Everybody really wants to understand how much she or he should purchase charge card processing. The reply is: The cheapest quote you’ll find. The figures vary too broadly that i can provide a concrete answer, however the simple fact is when one provider can provide you with a minimal quote, every other processor is going to be ready to complement that rate and fee quote to win your company. So even though you have your heart focused on one processor, it doesn&#8217t hurt to obtain another quote or more. If among the other quotes is gloomier, show it towards the provider you&#8217d prefer to utilize and encourage them to match it.

You need to be careful to evaluate the effective rate and overall value here, since one rate and fee quote might look much better than another, although not really be as valuable for you.

7. Never agree immediately

Here&#8217s a guide to reside by: Spend some time. Don&#8217t subscribe to any short time offers or high-pressure sales tactics. Even though you&#8217re confident you need to sign up having a particular provider, have each day to think about it and check out the figures. The salespeople may be inside a hurry to shut the offer, but you shouldn&#8217t be. When the representative is attempting to hurry you into signing, keep in mind that you don&#8217t owe her or him anything. When the pressure escalates, bring your business elsewhere.

Conclusion

By teaching yourself about payment processing, you build the arrogance necessary to cope with professional sales representatives and negotiate the cheapest charge card charges. Leveling the arena in this manner makes sure that both sides get a good deal. But don’t forget that does not every a merchant account provider has gone out to swindle you. Sometimes the outlet offers are really 100% fair and won&#8217t require any settlement. By getting an interchange-plus quote, figuring out your effective markup, assessing overall value, and following a other guidelines in the following paragraphs, you&#8217ll have the ability to determine whether settlement is essential and make sure that you&#8217re obtaining the cost effective feasible for your unique business.

To understand more about just how much you need to purchase charge card processing, read this article. To obtain fair rates and car loan terms when negotiating charge card processing charges with no fretting about getting scammed, check out a lot of our favorite payment processing companies. Tell us the way your negotiations use your comments ought to!

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10 Surprising Advantages of an iPad POS System

iPad POS system

Traditional point-of-purchase system providers and modern companies alike have acknowledged the benefits of a method that provides both reliability and versatility inside a mobile world. The likes of NCR, that has been supplying POS solutions since 1884, now provide more contemporary, affordable solutions for small companies using iPad-based terminals. Newer companies, like Clover, use alternative hardware that is equally as sleek and effective being an iPad. Because it stands, iPad POS systems offer great possibilities for startups along with a smoother transition from bulky terminals for retailers searching to create a switch. When you think about the options, listed here are ten advantages of an iPad POS system you might find surprising.

Low Learning Curve

The iPad POS system provides a virtually painless consumer experience. Unless of course you’ve never touched a tablet before, the simplicity makes staff training (or customer use if you’re utilizing a kiosk-type model) quick, simple, and simple. John at Toppit Pizza, had this to say of the Amber POS:

“It really didn’t take lengthy for the employees to determine the machine. Training is actually pretty easy using the more youthful, more tech-savvy generation. Most employees learn about ten or fifteen minutes of coaching . . .”

Security

Secured data transferUsing the growing chance of data breaches, device hacks, and charge card fraud, security is really a high priority for just about any business. On POS systems like Bindo, charge card information is encrypted and isn’t stored around the iPad itself. Here’s another little bit of great news. The Apple iOS has a few of the top cybersecurity measures in the class. Their security guidelines really are a bit mind numbing, however, you can skim through their 55 page guide for more information. I’ll provide you with the hyper-condensed version: The Apple iOS uses a mix of hardware and knowledge file encryption techniques to prevent software and firmware from studying certain facets of your device information directly, or perhaps other devices in case your storage device is used in another device. Apple also uses several user-controlled safety measures to avoid direct accessibility device, including passcodes and time delays for incorrect passcode records.

Forward Thinking

The iOS software programs are well known because of its forced upgrades, but keeping pace with safety measures and industry standards could keep your customers’ information safe. This can also make sure that your software programs are running in an optimum level. Another advantage of that’s the freedom from the cloud. You have access to the information you require from almost anywhere, though I wouldn’t recommend doing this over a wireless network.

Faster Checkouts

Because of the speed from the cloud, along with the ever-updating software from the user-friendly iPad, checkout occasions are usually faster. Some POS providers, for example Revel, also provide offline modes where you can still accept payments even when your network connection is lower. Gourmet Services executive VP Alfred Baker had this to say of Revel’s iPad system throughout an ASU game:

Customer Engagement Tools

Among the greatest advantages of an iPad POS product is the elevated use of customer engagement tools. Included in this are paper versus electronic receipts, customer tracking tools, and marketing abilities that will help you integrate the systems that monitor customer transactions and customer relations. Vend POS offers the opportunity to email customer receipts, and Lightspeed Retail offers CRM tools able to supplying specialized reduced prices for customers in a few groups.

Effective Features

Many iPad POS systems include effective features that frequently aren’t on traditional systems. These functions include inventory tracking, direct ordering for restaurants, shipping integrations, loyalty solutions and much more. Becky McCray, a small company owner and blogger, authored this about her experience switching to ShopKeep from the traditional POS System:

“The people working the leading lines love the brand new system. Forget about marking lower every item offered in writing. You don’t need to train any new part of the arcane organization of liquor products by category. (“Is honey whiskey an upright, or perhaps a niche?”) You don’t need to be aware of category system to find information about a cost. You don’t need to write lower your clock-in and clock-out occasions. All that is handled by ShopKeep . . .Inventory control may be the single greatest benefit for all of us . . .ShopKeep has additionally ongoing to include features, like gift certificates, awesome email receipts, integration with MailChimp for e-mail marketing for your customers, a much better reporting dashboard and marketing dashboard, and plenty more.”

(Link)

Reporting Abilities

ipad tablet reports data and chartsWith multiple features built-into a main system, report tracking could be more descriptive than ever before, providing you with reliable, actionable information regarding your customers’ behavior, in addition to supplying information that may help you manage your company more proficiently. Quetzal POS, that is aimed at small retailers, offers numerous sales history filters for reports. Additionally they offer other customizable reports, like the “What to Buy” report which can serve as a listing tool. Read the Quetzal review for more information.

Financial Savings

The price of many traditional POS systems runs from costly to downright prohibitive, particularly if you’re searching for particular features. Having a cloud powered iPad POS system, startup pricing is considerably lower and much more easily available to the business proprietor by having an iPad along with a reliable web connection. Shannon Seip, who owns Bean Sprouts Café &amp Cooking School, saved roughly $10,000 switching from her traditional POS system for an iPad based system. She states:

“For small businesses like us where $10,000 makes a significant difference, which was a vital differentiator.”

(Link)

Bigger Tips

Server picking up tipsFor individuals within the hospitality business, customer-facing iPad POS systems that facilitate customer ordering and payments happen to be recognized to encourage better tipping. Research made by Software Advice concluded three quite interesting points about tipping utilizing an iPad. First, most customers experienced virtually no difficulty while using iPad to tip. Second, 86% of consumers choose to input tips themselves, instead of getting a web server input strategies for them. Third, 29% established that an “opt out” option would boost the likelihood they could leave some advice when the order forced customers to choose from departing some advice or marking “no tip.” See? Guilt journeys work well.

Image Booster

If your company is the area darling, you are able to most likely pull off utilizing an old terminal some time longer, but transitioning for an iPad POS system does create a forward-minded statement. The iPad looks awesome, runs well, is current, and resonates with today’s modern, technology-crazed society. If you’re just beginning your company, new clients expect a “wow” factor of some type. Possibly a sleek bit of technology will have the desired effect, though I wouldn’t expect any people to revisit exclusively to stare at the iPad.

Conclusion: iPad POS System Leads those

Here’s an eleventh benefit, that is good for individuals who don’t make use of an iPad for his or her POS system. The introduction of iPad POS software has opened up the marketplace for several competition, giving older companies a lot more incentive to modernize. I’m wishing to determine more the likes of NCR develop 21st century solutions (like NCR Silver for small companies) and searching toward seeing beginners develop Android and Home windows options (for individuals people who can’t bear the idea of touching an iPad or anything Apple Mac).

Anyway, the iPad POS makes beginning a small company readily available for retailers with less capital and offers a far more centralized means to fix managing a effective business. Before the pool widens to incorporate more diverse alternatives, the iPad POS system takes charge.

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Best PayPal Alternatives

PayPal alternatives for merchants

Thanks to its long-standing relationship with eBay, PayPal has become one of the most recognizable names in payments. And with over 165 million users, it’s got consumer trust. You don’t have to be an eBay seller to accept payments through PayPal — you can set up your own online store, open up a brick-and-mortar location, and even take payments on the go.

But should you? There are several advantage to PayPal, including the ease of setup and its accessibility. Unfortunately, it’s also known for placing holds on accounts if it gets even the slightest suspicion that not everything is hunky-dory. And its rates, while competitive among similar services, are not the lowest in the industry.

Are you a small merchant looking to get started quickly? Are you tired of your current processor and looking to switch to one that has fewer hoops to jump through?

Whether this is your first foray into merchant payments or you’re shopping around for PayPal alternatives, we’ve got you covered. Take a look at how PayPal stacks up against some of our other top-rated payment options, including other pay-as-you-go processors and some traditional merchant accounts, and see which one is best for you.

Don’t forget to check out the full reviews for each of these PayPal alternatives. Need help choosing a payments provider? We can help! Contact us here.

PayPal

Paypal-Logo-2015In our 2015 review of PayPal, we gave it 4 stars. We like PayPal. It’s convenient, trusted, and easy to use. However, we have a hard time endorsing PayPal as anyone’s standalone, sole payment option.

Pricing

There are no monthly charges or hidden fees with PayPal — you pay just 2.9% + $0.30 per swipe. Since there are no contracts, there’s no early termination fees. You also don’t pay any PCI compliance fees. If you use the PayPal Here mobile processor, you pay just 2.7% per swipe (excluding keyed/scanned transactions).

You can get volume discounts, too: At $3,000 per month, rates drop to 2.5% + $0.30; at $10,000 it falls to 2.2% + $0.30. If you process more than $100,000, you get to call 1-855-787-1012 and ask for special pricing.

If you need features beyond credit card processing (such as a virtual terminal to accept mail and fax orders), you can upgrade to a Pro account for $30 a month. However, those orders will process for a higher (and undisclosed) fee.

We like this setup — a lot. However, the flat fee still isn’t as transparent as an interchange-plus setup, nor as low.

Without a doubt, one of the most attractive features of PayPal is how quickly you have access to your money — it’s almost instantaneous. And if you have the PayPal debit card, you can spend that money anywhere you can swipe a card.

Customer Support: Fair

When it comes to any sort of payment processing, you need to know that there’s someone standing by who can help you when trouble arises. PayPal’s customer service can be spotty, but overall, we’d rate it fair.

The problem is in PayPal’s phone support. Sometimes your representative is competent, sometimes…not so much. The good news is that in a lot of cases, PayPal’s other resources, including its Quick Questions, Community Help Forum, and @AskPayPal Twitter account, can get you the answers you need, so you may not ever need to pick up the phone.

Reliability: Fair

PayPal lets just about anyone open up a merchant account and get approval very quickly. That makes it great for new businesses. It’s also a great solution when you don’t have the sort of volume that merits a traditional account. However, this “we welcome anyone” approach results in greater risk, and therefore a very active risk department dedicated to finding and stomping out fraud.

Paypal’s tendency to put holds on accounts or even terminate them isn’t as bad as some of the other pay-as-you-go processors (we’re looking at you, Stripe and Square), but it’s enough to earn just a “Fair” rating in the reliability department.

That said, PayPal is a spectacular backup, especially if you want to take payments on the go and your merchant account’s offering is a bit lacking. No monthly fees mean you aren’t losing money on a service you only use sporadically.

Integration & Implementation Options

With the basic PayPal account, you get your standard payment buttons and a variety of shopping cart integrations, including an in-house solution. However, your site will redirect your visitors to PayPal to complete the transaction. You can upgrade to the Pro account to get a hosted payment page on your own site along with PayPal’s virtual terminal for orders by mail, fax, and phone.

PayPal also offers one-touch checkout for in-app and web purchases.

We like that you can set up secondary accounts and set permissions. PayPal also equips you for recurring billing and handles customer information storage for you.

There’s also a substantial list of partners and integrations for you to choose from. You can check out the full list of PayPal partners here.

Other Features

We’ve already mentioned PayPal’s mobile reader, PayPal Here. You pay just 2.7% per swipe (or 3.5% for keyed-in transactions). The reader is free if you order it from PayPal; you can also buy it at a store and PayPal will reimburse you. We’re still waiting on details about PayPal’s EMV reader, but we’ll keep you updated before the big liability shift on October 1, 2015. We do know it’ll accept chip-and-pin cards as well as contactless payments (such as Apple Pay and Android Pay).

You can send invoices from PayPal — and you don’t pay until you get paid. Invoices run you 2.9% + $0.30. You can even send invoices from within the mobile app.

PayPal also offers special nonprofit pricing, at 2.2% + $0.30 per swipe and no monthly fee.

Payline Data

payline-data-logoPayline Data earned a perfect 5-star rating from us for its fair pricing on merchant accounts, and great  customer service — but on top of all that, we love its commitment to charitable giving. Payline donates 10% of its profits from your account to a nonprofit partner of your choosing.

Pricing

Payline Data uses an interchange-plus format on top of monthly fees. For small-volume processors, there’s the Simple plan; for higher volumes, the Pro plan.

Simple (Under $5,000 per month)

  • $5 monthly fee
  • Interchange + 0.50%
  • $0.10 per transaction

Pro (Over $5,000 per month)

  • $20 monthly fee
  • Interchange + 0.20%
  • $0.10 per transaction

The nice thing is, the $5,000 mark is the break-even point for both plans, so you’d pay exactly the same. If you come in under that $5k mark more often than not, go with the simple plan. If you go beyond the $5k regularly, go with the Pro plan.

We like that Payline makes your funds accessible within 24 hours. Next-day funding is the fastest you’re going to get apart from PayPal, so you really can’t do better if you need a merchant account.

Customer Support: Excellent

You can reach the Payline team by phone and email, but there’s also a substantial knowledge base if you’re more prone to solving the problem yourself. Overall, the team has really great reviews, as befitting a 5-star processor.

Reliability: Excellent

The complaints against Payline Data are virtually nonexistent, which is great to see. We have full confidence in the company’s ability to handle your business fairly, with minimal risk for a potential hold or freeze. (We hope you understand, no processor is immune to risk — and no merchant immune to a hold. However, traditional merchant accounts are less susceptible to risk than pay-as-you-go providers.)

Integration & Implementation Options

Payline makes it very easy for you to set up recurring billing for your clients. We also really like Payline Shop Professional ($79/month), which includes your merchant account, as well as a shopping cart, gateway, web hosting, a domain name and SSL security. As far as comprehensive eCommerce solutions go, this is spot-on. Comparable services through shopping carts will run you the same, or higher, and may not include everything that Payline does.

On its own, the Payline gateway is $10 per month. It supports a customer information vault as well as invoicing. There’s a virtual terminal, too. The virtual terminal allows you to use a USB swiper, although no USB chip card reader is currently available.

In addition, you’ll find payment buttons, tools for recurring billing, customer info storage, and fairly good support for third-party shopping cards as well as Payline’s in-house option. The one thing that’s lacking is a hosted payment page.

Other Features

If you need mobile processing, Payline again has two solutions. If you process less than $5,000 per month on the app, you get a Flint account. Flint uses your device’s camera to scan credit cards rather than swiping — there’s no reader required. Debit rates are just 1.95%; credit cards 2.95%. Above that $5k threshold, you should use the ROAMpay X Mobile app with Payline, which will support EMV when the switchover happens in October.

For retail shops, there’s an iPad POS through Vantiv Mobile Checkout as well, and that will run you $69 per month. You can accept Apple Pay transactions in store with a future-proof terminal (supporting EMV and NFC) and also integrate Apple Pay for in-app payments.

Payline stands out from the rest of the options in this list in part because it also offers high-risk processing. Merchants who operate in an industry that’s deemed high risk (such as antiques, how-to programs, and even selling on eBay), typically make merchant account providers — and pay-as-you-go solutions — skittish. A high-risk account means you pay more, but you’re far less likely to encounter those dreaded holds and freezes…or worse, an account termination.

In addition to allowing merchants to donate to a charitable partner, nonprofit organizations can set up accounts with Payline and get discounted rates. There’s also a Payline Commercial Co-Venture program: In essence, you refer clients to Payline, Payline will create a solution for them, and you get recurring donations to your organization.

CDGCommerce

cdgcommerce-logoWe like CDGCommerce, a traditional merchant account provider, quite a lot — enough to give it a perfect 5-star rating. However, the service is only available in the U.S., for merchants who sell primarily in the U.S.

Pricing

Head to the CDG site and you’ll find an advertised rate of 1.7% + $0.25 for payment processing (1.95% + $0.30 for online processing). However, if you visit the site through this link, you’ll also find a special rate offer for our readers: interchange plus 0.30% + $0.15. There’s no monthly minimum processing, and no ETF. (If you do ever want to cancel, you’ll have to follow the steps to provide proper notice of cancellation).

Beyond that, the only other fee you must pay is the $10 statement fee. There’s no PCI compliance, and the CDGcommerce gateway is free to use.  You can get volume discounts, but they’re not advertised. You’ll have to negotiate with CDG directly if you think you qualify.

Merchants will typically have funds deposited in their account within two days. That’s not as fast as PayPal, and slower than some other merchant account providers, as well.

Customer Support: Excellent

On top of the spectacular rates, CDGcommerce excels in the customer service department. You can get live chat, email, and phone support 24/7. The volume of BBB complaints against CDG is incredibly low, but what really sets this company apart is the fact that the CEO has actually responded to user complaints found on the Internet. The level of dedication to customers is outstanding.

Reliability: Excellent

As we’ve said, complaints against CDG are incredibly low. Every processor will occasionally face a situation where it must put a hold on a company’s account. However, everything we’ve seen indicates that CDG is careful to minimize these instances.

Integration & Implementation Options

CDG offers its customers a USB-based card reader. That means you don’t need a traditional credit card terminal, which is actually quite convenient. The USB readers do not support EMV, but we were told that the upgrade, when available, will be optional. (Go here to learn about EMV and your liability for processing cards when the new rules take effect October 1, 2015.)

And while we have repeatedly and vocally spoken out against terminal leases, here we have probably the best rental terms you can get: just pay $79 annually for insurance and return the device when you no longer need it. The terminal is EMV-ready and compatible with NFC payments, so unless you have a really good reason for sticking with USB, you should consider upgrading.

You can also have the company reprogram your existing terminals…for free.

CDGcommerce offers extensive reporting options, which we like to see. There’s also an optional  security service for $15 monthly, which includes $100,000 of data breach insurance —  a worthwhile investment.

With this provider you also get a virtual terminal to use with the Quantum gateway. There’s no payment buttons or in-house shopping cart. What’s interesting is that Quantum has a feature that lets it emulate an Authorize.net gateway, which ultimately increases your options for third-party shopping carts.

Other Features

For mobile processing, you get a free reader, which runs on CDG’s ProcessNow mobile app (available for Apple devices running iOS 7.0 and higher and Android devices running OS 4.0 and higher). Swipe rates for mobile are 1.70% + $0.25 per transaction (2.9% + $0.30 for keyed and other nonqualified transactions).

There’s no nonprofit pricing here. If you want to accept Apple Pay and other contactless payment methods, you’ll need the future-proof terminal.

We like that CDGcommerce helps merchant reduce the headaches that  come with dealing with chargebacks thanks to its Chargeback Defender, which lets you know about chargebacks pending — even before the fees are debited from your account. The platform also helps you rebut it and has a built-in tool to detect previously issued refunds, so that the funds aren’t deducted twice. It’s not something we see so openly advertised, and it’s a very useful tool.

PayJunction

PayJunction-logo-squarePayJunction is a 5-star processor for its customer service and reliability, but we also really like that it makes it easy for merchants to go paperless. It’s not just environmentally friendly; it’s easier for merchants to securely manage their records.

Pricing

We really like that PayJunction is another month-to-month service provider with interchange plus. There’s no ETF, no PCI compliance fees, and no charges for the gateway. However, if you process under $10,000 monthly, you can expect a $35 monthly fee. The gateway also includes check (ACH) processing at 0.75%.

For new processors, PayJunction offers interchange plus 0.75% — but established merchants may be able to get lower rates, as the company offers match or beat your existing rates. This isn’t uncommon in the industry, but most processors don’t meet our high standards for quality of service, too.

Admittedly, the 0.75% markup is high — but there’s no per-transaction fee, which could be a major benefit to small-ticket merchants.

Something else we definitely like: next-day deposits.

Customer Support: Excellent

You don’t get to be a 5-star processor without great service. PayJunction’s support options include its knowledge base, phone, and email. Something we haven’t seen here before is the option for remote support. Basically, it means that someone at PayJunction will remotely access your computer to either walk you through a process and show you what to do, or handle it for you. It’s actually a really useful tool.

Reliability: Excellent

Complaints about PayJunction are few and far between — and the ones you will find have been thoroughly addressed by a company representative. We like that. We can’t say that you won’t ever have an issue with PayJunction, but if you do, you can expect it to be handled quickly, fairly, and in-house.

Integration & Implementation Options

Among the many features available, PayJunction provides a hosted shopping cart for free, and it has good third-party integrations as well. We’ve already mentioned the free payment gateway/virtual terminal. You can also expect features for recurring billing info storage. Combined with the paperless feature and you really do have everything you need in a single browser-based interface. All that’s missing are payment buttons and a hosted payment page.

Other Features

A couple of noteworthy additional features: PayJunction’s customer management system, which serves as a directory for your clients and their information. It also lets you create groups of clients and account numbers.

PayJunction will also set you up with digital signature collection — by providing a signature capture device, the company really does allow you to go paperless. No reason to bother with signed receipts, ever again. For eCommerce and other card-not-present transactions, there’s email signature capture, where customers sign using their computer cursors.

PayJunction also lets merchants create teams and set permissions, which is always a handy feature to have.

If you need mobile processing, you can opt for PayJunction’s partner company, iPay. You’ll have to set up your gateway, and the app is only available for iOS devices — but it’s better than nothing. The mobile reader doesn’t support EMV.

You can get free equipment if you provide two months of billing statements — so in other words, this offer applies only to established merchants.

For EMV, you’ll need a traditional credit card terminal, but PayJunction stresses that for low-risk merchants, this upgrade is optional. The site actually has a very detailed explanation of EMV and how it affects merchants, which you can find here.

There’s no additional nonprofit pricing, but there is a feature you can set up on your site to accept donations.

Braintree

Braintree-payments-logoBraintree is actually a wholly owned subsidy of PayPal, picked up in 2013. For that reason, you’ll see a couple of similarities, as well as some noteworthy differences. While PayPal hovers at a 4-star rating, we wholeheartedly endorse Braintree with a perfect 5-star rating. This is another option that’s very developer-friendly, with a comprehensive suite of tools that make it easy to get started.

Pricing

This should come as no surprise (it’s a PayPal company), but Braintree’s fees are just 2.9% + $0.30. There are no fees, no contracts, nothing. If you process over $80K per month, you will likely qualify for a discounted rate. While not advertised, Braintree also offers interchange-plus pricing for some high-volume merchants.

Interesting to note, Braintree has an offer of $50k in free payment processing. There’s no contract, no deadlines, no monthly minimums. Seriously. Learn more here.

It bears mentioning that Braintree deposits take 2-4 business days (2 days for most cards; 4 days for American Express). That’s a bit longer than most of the other options here..

Customer Support: Great

Whereas PayPal’s customer service can be spotty, especially over the phone, Braintree has an outstanding reputation. The low volume of complaints against Braintree is astounding considering its size and its parent company. There’s a good knowledge base, but also solid phone support — and even a 24/7 emergency line. However, you won’t get as much personalized attention as the merchant account providers in this list.

Reliability: Excellent

The number of incidents we found of Braintree freezing accounts was exactly zero. The company also has a list of noteworthy clients and some pretty amazing customer case studies.

Integration & Implementation Options

Braintree offers an impressive array of features at no extra cost, including a marketplace solution, and a simple checkout option (PayPal actually built its One Touch feature on Braintree’s original offering).

Something else we really like is the fact that you can take your customer data with you if you ever decide to leave Braintree, which means your recurring billing won’t be interrupted.

What you won’t find are a virtual terminal, an in-house shopping cart, a hosted payment page, or payment buttons. However, Braintree does offer an impressive list of integrations for a variety of services, including shopping carts.

Other Features

Braintree’s v.zero SDK (software development kit) has Bitcoin and Apple Pay integration, both of which we like. You can also incorporate native in-app payments as well as a “check out with PayPal” option. However, Braintree doesn’t offer nonprofit pricing right now.

You’ll also have to look elsewhere for mobile processing — if you’d like to keep all the transactions in a single account, Inner Fence is your best option. Just provide a code to Inner Fence to link it with your Braintree account.

We gave Inner Fence 3.5 stars on our last review, mostly because we felt it under-delivered in some areas while over-delivering in others, creating an interesting dichotomy, to say the least. We also took issue with the pricing model. In addition to the fees you pay to Braintree, Inner Fence charges you a percentage of each transaction plus a monthly fee. A “Professional” account will run you $79 a month with a 0.9% transaction fee. That includes support for up to 10 terminals…but you get only one free card reader. With Braintree’s free $50k in processing we can almost say the cost might be worth it for low-volume merchants, but not really.

If you’re willing to forgo the convenience of all your funds going to the same account for the sake of better rates, here’s a great opportunity to try Braintree’s parent company offering, PayPal Here — or our top-rated mobile processor, Flint.

Stripe

Stripe-logoWe had high hopes for Stripe in our 2015 review update. However, what we found was enough to downgrade Stripe’s rating to 3.5 stars, so please bear that in mind. Whereas PayPal is a good option for anyone, Stripe is particularly suited to developers, with easy implementation for all sorts of eCommerce and Internet operations.

Pricing

Stripe’s pricing is on par with PayPal, at 2.9% + $0.30 per transaction. There’s no monthly fees, there’s no ETF, no PCI compliance. The suite of tools Stripe offers — at no additional charge — is actually a huge value, especially for low-volume merchants.

You can get volume discounts (undisclosed rates) but to do so you need to process at least $80,000 per month.

As far as payment schedules are concerned, Stripe takes two days to deposit your funds in your account for US-based merchants. Canadian and Australian merchants have to wait four to seven days, and all other countries will be on a seven-day delay. Still, this is a major improvement over Stripe’s former deposit schedule, which was seven days across the board.

Customer Support: Poor

One of the sources of Stripe’s review score was its poor customer support. There were numerous complaints on our site and elsewhere from customers about their awful experiences. Stripe doesn’t offer any sort of phone support, just a knowledge base and a Freenode-based chat support (#Stripe).

Reliability: Poor

The other reason we downgraded Stripe’s rating was the reliability factor. The number of complaints about held funds (something we admit is common with this type of payment processor) rose dramatically. Access to your money is critical to a business, and nothing to mess around with.

Integration & Implementation Options

Stripe’s poor support is such a letdown because of how many other great features it offers — which we’ve said before are actually a solid value for the cost. Stripe gives you a hosted payment page through Stripe Checkout, as well as payment buttons, in-app payments, the ability to set teams and permissions, and even marketplace solutions. Checkout, as far as industry offerings go, is actually one of the best payment flow options out there.

There’s no virtual terminal, in-house shopping cart or payment buttons, but the third-party shopping cart integrations are great. Get the full list of integrations here.

Other Features

Stripe supports in-app Apple Pay integration, as well as BitCoin, both of which we like. There’s no nonprofit pricing right now, and no mobile processing.

If you want mobile processing, however, you’ll have to look at Inner Fence, and link your Stripe account. If you want to incorporate mobile payments and don’t want to deal with Inner Fence, allow us to point you at Flint, our 5-star rated option for mobile. You can also consider some of our other mobile options.

Quick Comparison

Paypal PaylineData CDGCommerce PayJunction Braintree Stripe
Monthly Fee $0 $20 $10 $0 $0 $0
Pricing 2.9% + $0.30 0.20% + $0.10 + interchange 0.30% + $0.15 + interchange 0.75% + interchange 2.9% + $0.30 2.9% + $0.30
Customer Service Fair Excellent Excellent Excellent Great Poor
Reliability Fair Excellent Excellent Excellent Excellent Poor
Gateway Payflow Payline Data Quantum PayJunction Braintree Stripe
Features
Virtual Terminal X X X X
Included Shopping Cart X X X
Hosted Payment Pages X X X X
Payment Buttons X X
Recurring Billing X X X X X X
Info Storage X X X X X X
Shopping Cart Compatibility Excellent Good Good Good Excellent Excellent
Availability
US X X X X X X
Canada X X X X
Mexico X X X
UK X X X
Europe X X X
Other X X X

Want More PayPal Alternatives?

PayPal has such great recognition and a solid suite of tools for newbie merchants that in some cases, it seems the obvious choice. However, if you’re like most merchants, you will eventually reach a point where you experience some major growing pains — or you might encounter the dreaded account hold. At that point, it’s time to start looking for a provider that can deliver what you want, and more importantly, what you need.

The list of PayPal alternatives doesn’t end with those mentioned in this blog post, of course. Even if they aren’t direct PayPal competitors, there are plenty of merchant account providers to choose from when your business is ready to graduate from a third-party payment processor like PayPal. Check out this handy chart of top-rated merchant account providers. Don’t forget to also look at our mobile processing options!

Need help deciding? Want to get the lowest rates? Contact us and we’ll help you sort out your options!

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