How To Use Square To Accept Credit Cards In Person

Square has carved out quite a spot for itself in the world of payment processing. When it comes to accessibility, there are few rivals. With no credit checks, sign-up fees, monthly fees, or cancellation fees, and a very transparent pricing model, it’s no wonder why Square remains the go-to option for business owners who want a no-hassle choice.

In fact, it’s so easy to get started, that you can usually start taking payments immediately after setting up your Square account! That being said, it helps to get a bit familiar with the process before ringing up your first customer — and there is more than one way to do it. If you are interested in weighing your options, this post is for you.

We are mainly going to focus on taking payments with physical cards in this post, so if you have an eCommerce shop, you may want to check out our Square Online Store and eCommerce Review. If, however, you want to know how to ring up your sale and get some important details to help you choose the best options, keep reading.

To start us off, here is a short list of the ways you could accept payment with Square:

  • Your device + Square Point-of-sale (POS) app +  Square card reader
  • Keying in credit card information in the Square POS app
  • Square POS hardware (e.g., Square Register)
  • Accessing the Square Virtual Terminal from your laptop

Below, we are going to start by explaining how to accept payments with the Square Reader. After going through some different scenarios, we’ll also explore Square’s POS hardware for those of you with a physical storefront. By the end of this post, you should feel confident navigating your options and finding the best solution (or solutions) for your business processing needs.

But first, a note on Square’s payment security.

Square & Payment Security

Right out of the gate, we need to take a quick minute to cover payment security. It’s that important. Regardless of how you accept a payment — whether that is keying in a card,  swiping with a magstripe reader, a dip or tap, etc. — Square provides secure and PCI compliant payment transactions. That is to say, Square is fully compliant with the latest Payment Card Industry Data Security Standard (PCI-DSS). And that also means you won’t have to pay additional PCI fees or hire a team to manage ongoing compliance, either.

This out-of-the-box payment security is just one reason Square is such a powerhouse for the millions of small business owner who trust it.

Let’s take a look at the Square reader options next.

How To Use A Square Reader For Mobile Payments

We’ll start with the obvious: the Square reader. Assuming you have already downloaded the Square app, it’s effortless to accept payment with your reader.

  • Step One: Open the app on your device. You will already be at the screen you need to make a charge. No fumbling required!

Taking a Payment with Square

  • Step Two: If you have entered inventory into your Items list, find the item and click what you need. The total will automatically update.
  • Step Three: Tap the Charge button when you’re ready.
  • Step Four: Swipe or insert the card, or tap your connected reader. You can also manually enter the card number (keyed entry) if necessary.
  • Step Five: Your customer will sign their name and the sale is complete!

Don’t have a connection? Suffering from a spotty connection? Square’s offline mode helps you avoid losing the sale. Your customer’s data is securely saved in the app and the transaction will process when you connect your device to the internet again (WiFi or cellular connection). You must reconnect within 72 hours, though, or the transaction will cancel.

It’s really that easy. To see how Square stacks up next to other mobile credit card processors, check out our Mobile Credit Card Processing Comparison table.

Square Transaction Fees & Mobile Reader Costs

As stated at the start of the post, Square offers very transparent pricing. If you use Square Point of Sale on a smartphone or tablet with a mobile card reader, you’ll pay the standard processing fee of 2.75% per swipe, dip, or tap. And keep in mind that no matter what type of card your customer hands you, Square charges the same fee per transaction. If for some reason you need to key-in the credit number, you will pay 3.5% + 15 cents for manually-entered transactions. We will revisit the types of card-not-present transactions later in the post.

Let’s talk a little more about the Square Reader, because you do have some choices that go beyond the free magstripe device. The good news is that Square readers work with nearly all Android or iOS devices running the latest updates. If you’re in doubt, Square offers a compatibility tool so you can look up your device and see for yourself.

After signing up for a new Square account, you can choose which free Square reader you would like — and they’ll ship it directly to you for free. Depending on your device needs, you can choose between the lightning adapter for iOS or the standard 3.5mm headphone jack reader. The other option you have is to shell out $49 for the Contactless + Chip reader.

The free magstripe card reader is great for getting started, but I recommend considering the upgraded Contactless + Chip Reader for improved payment security in processing. (It also offers your customers more ways to pay you.)

Square Reader

Square also sells a small charging dock so you can keep your contactless reader fully charged through the day. If you opt for the contactless reader, you can also purchase a specially designed Otterbox case from Square. You can slide the contactless reader on the back of the case if you’re on the go. Unfortunately for Android users, the case only fits an iPhone 7 or 7 plus, but I have a hunch there will be more options for this one when the demand grows.

Can You Use A Square Reader With Multiple Devices?

You may be wondering about the possibility of sharing a reader between different devices — or maybe even switching readers. Good news! You can do either of those things! If you have more than one device, decide to upgrade a device (or reader for that matter), need to swap a device, or hand your Square reader to a different team member for them to plug into their phone, you can do so without an issue.

That’s because your account is anchored to your Square POS app, not to a specific reader. When you or your team member signs into the Square POS app, transactions go into the system automatically. You can use the same reader across different accounts, too. So if you have two businesses, or you have more than one Square POS app (like Square Retail or Square Restaurants), the reader works interchangeably with those as well.

Keep in mind that when you choose your reader, you may limit your usage. For example, you can only use the lightning reader with iOS, but the standard 3.5mm headphone jack reader is compatible with multiple devices. Of course, you can always purchase more readers to suit your needs and keep up with a growing team. As long as they are signed into your Square account, all sales will be synced to your account.

How To Use Square’s Countertop POS Systems

Square Register

If you are considering how you can use Square’s countertop POS systems to make business flow, here are your options:

Square Stand for Contactless and Chip:

When you use the Square Stand with the free Square Point of Sale (POS), you will need to bring along your own compatible iPad (most recent model) or purchase an iPad to go into your stand. The magstripe reader is built-in if you must swipe, but we recommend utilizing the Square Reader for contactless and chip payment for the latest payment security protections. The Square Stand also comes with a dock to keep the contactless reader charged and stable.

When it comes time to ring up an order, you’ll complete the sale just as you would through your mobile device, as the free Square POS app is still the engine that’s running the whole thing. The Square Stand for Contactless and Chip makes a great choice if you are looking for a more prominent, bonafide countertop POS option. It has a simplistic design with minimal cords and offers more screen real estate to find inventory and add to your sale.  

Square Stand for Contactless and Chip

With the Square Stand, you can run your Square POS app or the premium options created just for retail and restaurants. Find out why these might be a better option for you (and see the fee differences) by visiting our Square for Retail or Square for Restaurants reviews.

Square Terminal: 

The Square Terminal is a great all-in-one choice if you want a little more portability than the Square Stand offers. You can swipe, dip, or tap credit and debit cards, and it even has a receipt printer built right in. Terminal runs the free Square POS app, so it’s easy when it comes to ringing up a sale. You can also access features such as your customer directory, reports, and inventory tools.

If you are running Square for Restaurants, you won’t have access to all of the bells and whistles, but Square Terminal does have limited compatibility with the Restaurants POS. For example, you can pull up an open ticket and settle payments right at the table — complete with a receipt! When all is said and done, The Square Terminal can hold its own as an excellent countertop solution, but it’s also lightweight enough to use as a mobile solution. And because Square POS has an offline mode built right in, you don’t have to worry about losing connection. Transaction data is all saved safely with Square and ready to process when your device is back online.

Square Register:

They built the Square Register with both your and your customer’s ease of use in mind. There’s one 13.25-inch screen for you, and one for 7-inch display customers, complete with magstripe, chip card, and contactless payment processing built in! Square Register runs Square POS and supports Square Loyalty and other software add-ons. The Square Register also supports the back-end features of the premium Square for Retail software, such as the advanced reporting and inventory features, but can’t run the POS app itself. 

Not sure what you need? Check out A Guide To Square Credit Card Readers And POS Bundles to compare and explore your options. Below, we’ll break down the cost of the hardware we just talked about, and discuss the transaction fees associated with each.

Square POS Hardware Costs & Transaction Fees

As always, Square pricing is very straightforward. Below we’ve listed prices for the hardware and what it will cost you to process payments.

  • Square Stand for Contactless and Chip:  The cost for this one is $199.00. If you want to add an iPad, you can do so for $329.00. Note that the stand is only compatible with an iPad (2017, 2018), iPad Pro 9.7”, or iPad Air (1, 2). You’ll pay a flat 2.75% per swipe, dip or tap transaction at the Square Stand so long as you are running the free Square POS. Square For Restaurants and Square for Retail process at different rates — 2.6% + $0.10 for Restaurants and 2.5% + $0.10 for Retail.
  • Square Terminal: To get your business a Square Terminal, you’ll pay $399.00, shipping included. You can also opt to add on 20 rolls of terminal print paper for another $20.00. Your payment processing fee is 2.6% + 10¢ per swiped magstripe cards, swiped or inserted chip cards, and contactless payments.
  • Square Register: Square Register costs $999.00 to purchase it outright. Shipping is free, and it arrives in seven business days or less. It’s ready to start processing payments right out of the box, so there’s no fuss when it comes to launch time. Contactless payments, swiped or inserted chip cards, and swiped magstripe cards processed through cost 2.5% + 10¢ fee.

If you add on specialized software, such as Square for Restaurants or Square for Retail, you will have an additional monthly charge (both starting at $60/mo). Both of these premium POS systems are geared towards specialized businesses and include features such as advanced reporting (for retail), and table mapping (for restaurants).  

How To Accept Card-Not-Present Payments with Square POS  

Small Business Owner Using Square Customer Service

There may be some situations when you need to take a payment from your customer, and you can’t swipe, dip, or tap the card. Maybe you don’t have your reader with you, or you want to take an order over the phone. Whether the card is physically present or not, if you manually enter in the card information, it’s considered a card-not-present transaction.

In the next section, we will lay out the payment processing costs for such transactions. But first, let’s discover the ways you can process a card with Square if you don’t have your reader (or the card) in hand.

Virtual Terminal

If you log into the Square Dashboard from your computer, you can key in manual payments from your Virtual Terminal (not to be confused with the Square Terminal hardware). You won’t need additional hardware to complete the transaction. You simply go into the terminal and enter the amount, credit card information, and even add a note to describe the sale. Then you hit “Charge,” completing the transaction. You can also take “Card on File” payments from the Virtual Terminal (more on that below). If you have a Chromebook or Apple laptop, you can connect a basic magstripe reader to swipe transactions. In that case, you’ll pay the standard swipe rate instead of the keyed entry rate.

Card-on-File Transactions

Whenever you ring up a sale, you can also opt to save your customer’s card number on file for future use. After that, you always have the option of selecting “card on file” to complete the sale. However, keep in mind that whenever you ring a card-on-file transaction later and don’t swipe, dip, or tap, you have entered into “card-not-present” territory and slightly higher processing rates apply. 

Security Concerns with Card On File 

The Square app only reveals the last four digits of your customer’s credit card on file and does not save CVV card data to remain PCI compliant. Any time you make a transaction with Card on File, Square automatically sends a receipt to the customer so they have a record of the transaction, to help minimize the risk of unauthorized charges.

You should never save your customer’s card data unless it is stored with PCI-compliant software (such as Square). Businesses that store customers’ payment data improperly put everyone in danger of a breach, and the company can be liable for the breach, should it occur. Small businesses are targeted by fraudsters looking for unsecured data, and it is a lot more common than you may think. If you save the card on file through Square POS or Virtual Terminal, keep in mind that Square also requires you to obtain written consent to store the card on files — the site provides a form you print off and store somewhere secure. Also, your customer can revoke their consent to keep their card on file with you at any time.

Manually Keying-In Credit Card Information

In addition to the Virtual Terminal included with Square, you can always opt to enter credit card information manually with the Square POS app. Because there is a higher chance of fraud when you don’t capture the electronic data, it’s going to cost you a bit more to process. However, sometimes it is necessary to take these types of payments. Use your discretion with these types of transactions, and swipe, dip, or tap the card if at all possible to reduce your fees (and your chargeback risk). However, if a card is particularly worn down, the card reader is just misbehaving, or you don’t have your Square reader handy, it’s good to know you have a backup option to accept payments. 

Invoices

If you are looking for yet another workaround when it comes to processing payments, don’t have your reader handy, and you don’t want to key in the amount, you always have an option to send an invoice. Your customer will get the invoice via an email right away. From there, they can open their email and follow the prompts to enter in their credit card information from their own device. This is especially good for higher-value transactions where keying in the card number might send up a red flag. 

Check out our Square Invoices review for a more in-depth look at Square’s free software, but for now, what you need to know is that you can link your inventory to invoices, allow customers to send tips, take down payments, and even enable installment payments.

Square Keyed-Entry Transaction Fees

As we covered above, there are several scenarios in which you may want or need to key in your customer’s credit card information and more than one way to do it. Here’s how much it’s going to cost you to process these types of payments:

  • Keyed Entry Payments (Square POS Or Virtual Terminal): 3.5% + 15¢
  • Card-On-File: 3.5% + 15¢
  • Invoicing: 2.9% + 30¢

Is Square’s Credit Card Processing Right For You?

Square offers several solutions for businesses at every stage. That means that if you’re a one-person shop now, you don’t really have to worry about finding a new solution when you grow because Square offers so many scaleable hardware options. When it comes to taking payment at your storefront or on the go, there are many ways to go about it. And with a transparent pricing model, there are no surprises on the back end. Because Square offers an all-in-one solution with payment processing and PCI compliant security built right in, you don’t need to worry about jumping through hoops to keep up with the latest global payment security regulations.

So is Square right for you? Sometimes the best way to find out is to see for yourself! Consdier setting up a Square account and playing around with the possibilities. It’s free to set up a Square account, and there are zero commitments or contracts required.

If you are still weighing all of your options when it comes to processing, check out this Mobile Credit Card Processing Comparison table for a quick side-by-side view of some top-rated companies.

Reader eCommerce Retail Food Service
Free App & Reader Square eCommerce Square for Retail Square for Restaurants
Get Started Get Started Get Started Get Started
Free, general-purpose POS software and reader for iOS and Android Easy integration with popular platforms plus API for customization Specialized software for more complex retail stores Specialized software for full-service restaurants
$0/month $0/month $60/month $60/month
Always Free Always Free Free Trial Free Trial

The post How To Use Square To Accept Credit Cards In Person appeared first on Merchant Maverick.

“”

The Best Mobile Credit Card Readers For iPhone and iPad

If you’re in the market for a mobile card reader and a credit card processing app, there’s no shortage of options. The trick is finding the right option for a given business. One of the big factors that determine which apps are suitable is what kind of smartphone or tablet you have. Fortunately, if you have an iOS device — that is, an iPhone or an iPad — you have plenty of options.

Our Top Picks For iOS-Based Credit Card Readers & Mobile Apps

The first decision when choosing a card reader and mobile processing app is selecting the device itself. For the most part, iOS-compatible mobile apps and readers support iPhones and iPads alike with no major issues. But after you’ve narrowed down the list of apps based on supported devices, you’ve still got several other factors to consider — transaction costs, monthly fees, essential features, whether you want a standalone mobile app or something that supports invoicing and online payments… and that’s just to get the list started! The cost of the card reader and accepted payment methods are just as important as app features when you’re dealing with mobile processing.

So without further ado, here’s a list of our favorite card swipers and mobile apps for iPhones and iPads, as well as why we like them.

App Name Square Shopify Lite Payment Depot Mobile Fattmerchant Mobile

Payment Depot merchant services review

Review

Visit Site

Review

Visit Site

Review

Visit Site

Review

Visit Site

In-Person Transaction Fees

2.75%

2.7%

2.6% + $0.10

Interchange + $0.15

Monthly Fee

$0

$9

$10

$99

Monthly Minimum

$0

$0

$0

$0

Type of Processor

Third-Party

Third-Party

Merchant Account

Merchant Account

Account Stability

Good

Good

Excellent

Excellent

Card Readers

Free magstripe reader (Contactless + Chip Reader $49)

Free Chip & Swipe Reader (retail price $29)

Free Swift B200 reader (chip and swipe)

BBPOS Chipper BT (chip and swipe, $75; swipe, chip and contactless, $100)

Payment Depot (Swipe Simple)

Payment Depot (read our review) offers a subscription-based pricing model for its merchant accounts, with a host of software options for businesses to choose from (including Clover). Standard pricing plans for Payment Depot start at $49/month, with transactions processing at interchange + $0.15. However, if you’re looking for a mobile solution that runs on an iPad or iPhone, Payment Depot offers the Swipe Simple app, and Merchant Maverick readers can get access to special pricing that’s competitive even for low-volume merchants.

With this exclusive plan, you’ll get the Swipe Simple app and payment processing at 2.6% + $0.10 per transaction, with only a $10 monthly account fee. Remember, this is a Merchant Maverick exclusive, so you’ll need to use our link in order to get the special pricing.

Swipe Simple is a very functional credit card processing app. It runs on iPhone and iPad devices, as well as Android hardware. It even comes with a demo mode so you can test out the app before you sign up, which is always nice to see. There’s limited inventory management, but you can track stock counts. There’s even an offline mode. Check out our Payment Depot Mobile/Swipe Simple review for a closer look at the software.

In addition to the app, Payment Depot offers a choice of two readers. The Swift B200, a Bluetooth-enabled reader that supports magstripe and chip card transactions, is available to merchants for free. If you’d like to add contactless payments, you can get the Swift B250 for just $25, which is a fantastic price for an all-in-one card reader.

Shopify Lite

Shopify (read our review) is mostly known for its ecommerce platform, but it has also developed a quite powerful POS app that integrates with its online shopping tools. Shopify POS is included for free in all standard Shopify ecommerce plans, but if you don’t plan to sell online or only need some very basic online sales tools, there’s another option: Shopify Lite (read our review), which lets you create “buy” buttons and run a Facebook store for online sales, as well as giving access to the Shopify POS.

Shopify Lite will run you $9/month and 2.7% per transaction, which is a reasonable cost. The POS app runs on both Android and iOS, but an iPad offers the best user experience and access to the most features. However, keep in mind that the Lite plan is still limited even with an iPad; specifically, there’s no support for a cash drawer, barcode scanner, or receipt printer. That feature is only accessible with the Shopify Basic plan, which costs $29/month and includes a full web store with unlimited products.

Shopify also offers a free Chip & Swipe Reader for its merchants. It retails for $29 normally, which is still a great price for a Bluetooth-enabled chip card reader. We’ve reviewed the Shopify Chip & Swipe reader already, and you can check that out for a closer look.

Square

Square’s mobile point-of-sale app, simply called Square Point of Sale, gets a lot of love, and rightfully so. The app is free to use and you only pay a per-transaction fee of 2.75%. Square’s pricing makes it very attractive for low-volume and startup businesses, and there is an assortment of hardware options available. The Square Point of Sale app supports both iOS and Android devices, but certain features are not universally supported. An iPad gives you access to the vast majority of these features, but the iPhone supports all of the core features and many of the secondary, non-universal features. Check out our in-depth Square POS review for a comprehensive look at the free POS app and its features. For a closer look at the rest of Square’s products, check out our complete Square review.

As far as hardware goes, let’s start with the basics. Square has been offering a free basic magstripe reader for a long time, and it still does. (Note: you can also get the Square reader in some retail stores for $10.) However, the removal of the 3.5mm headphone jack from newer iPhone models has complicated matters somewhat. Square responded by rolling out a Lightning port magstripe reader. When you sign up for your free Square account, you can choose which model of reader you need. Square no longer offers multiple free readers; after the first one, you’ll pay $10 per reader.

However, it’s important to also consider accepting EMV chip cards, especially if you’re doing a consistent volume of business or large transactions. Square’s Contactless + Chip Reader supports both EMV and contactless NFC payments. It includes a separate magstripe reader for swipe transactions.

The Contactless + Chip Reader sells for $49, but Square does offer financing for hardware purchases that cost at least $49 (convenient, isn’t it?). You can also purchase cash drawers, receipt printers, and even tablet stands directly from Square.

Want to know more about Square’s hardware? Check out A Guide to Square Credit Card Readers & POS Bundles for an in-depth look at your options.

Fattmerchant Mobile

Fattmerchant Mobile isn’t an option that I talk about a lot, mostly because it’s best targeted at high-volume businesses. However, until recently, it was an iOS-exclusive, and even now, the iOS platform is more robust than its Android counterpart. Fattmerchant (read our review) offers customers their own merchant accounts, which translates to a high degree of account stability. Its Omni platform, which includes the mobile processing app, invoicing, and a customer database and inventory management, combines many core features in a single platform. Check out our Fattmerchant Mobile review for a more comprehensive look at the app and its features.

Fattmerchant operates on a subscription pricing model, with a monthly fee that starts at $99/month. Mobile and invoice transactions cost interchange fees + $0.15 per transactions — there’s no percentage markup at all. However, if you opt for the mobile credit card carder, you’ll get the card-present rate of interchange fees + $0.08 per transaction. You can simply key in all the transactions if you prefer — just know that you’ll pay higher interchange fees in addition to the $0.15 markup.

Fattmerchant offers a choice of two different card readers, the BBPOS Chipper BT and the BBPOS Chipper X2 BT. The Chipper BT model supports both magstripe and chip card transactions and connects to your device via Bluetooth. It goes for $75. The Chipper X2 adds contactless payment support to the magstripe and chip card readers and also connects via Bluetooth. It goes for $100.

Honorable Mentions

While I have no qualms with saying the four options I’ve presented are the best of the best, there are a couple of other mobile apps and card readers that are good options for iPhone and iPad users. So let’s talk about them!

PayPal Here

PayPal Here integrates with the rest of PayPal’s services so that you can sell online and in person seamlessly, much like Square. While it doesn’t offer quite as many features as Square, it’s still a very functional mobile app. Check out our PayPal Here review for a closer look at all the features.

PayPal Here processes payments at 2.7% per transaction, with keyed entry at 3.5% + $0.15. PayPal no longer offers a free card reader. Instead, you’ll need to shell out $15 to get its magstripe reader. PayPal will also place limits on your account if you opt for the magstripe reader, making it viable mostly for very low-volume businesses. As an alternative, PayPal offers two Bluetooth enabled cardreaders, starting with the Chip and Swipe reader, for $24.99.

If you also want contactless support, PayPal’s Chip and Tap Reader (retail price $59.99; bundle with stand $79.99). However, there’s another option for iPad users who want a more robust software option: Vend (read our review) with a PayPal integration. You’ll get PayPal’s 2.7% rate for payment processing with no monthly fee from PayPal. Of course, you’ll have to choose your Vend plan as well — and get the appropriate hardware. You’ll need the PayPal Chip Card Reader, which goes for $99.

PayPal + Vend POS
Advanced POS software
Easy credit card processing integration
Get Started For $0

SumUp

SumUp (read our review) isn’t quite as complex or feature-laden as some of the other options on this list, but if you just need an iPad or iPhone credit card reader and app, SumUp will get the job done. Payments process at 2.65%, and there’s no monthly fee to use the software. For a better idea of how SumUp stacks up against the competition, I suggest checking out our Square vs SumUp comparison.

SumUp’s cardreader, at $69, is definitely a little expensive, but it’s a beautifully designed piece of hardware. It’s Bluetooth enabled and supports magstripe, chip card, and contactless payments. You can also occasionally catch it on sale for a reduced price. I suggest checking out our SumUp unboxing review for a closer look at the reader.

Which iPhone/iPad Credit Card Swiper Is Right For You?

In payment processing, especially mobile processing, it’s impossible to take a one-size-fits-all approach, so it’s really important that you, the business owner, spend some time figuring out what features you need in a credit card processing app. You should also consider what kind of pricing model works best for your business, and do the math to see what you’d really pay with each option on your short list. And of course, there’s the card swiper, too. While a free magstripe reader might be enticing, you should really consider upgrading to a chip card-capable reader to protect your business.

App Name Square Shopify Lite Payment Depot Mobile Fattmerchant Mobile

Payment Depot merchant services review

Review

Visit Site

Review

Visit Site

Review

Visit Site

Review

Visit Site

In-Person Transaction Fees

2.75%

2.7%

2.6% + $0.10

Interchange + $0.15

Monthly Fee

$0

$9

$10

$99

Monthly Minimum

$0

$0

$0

$0

Type of Processor

Third-Party

Third-Party

Merchant Account

Merchant Account

Account Stability

Good

Good

Excellent

Excellent

Card Readers

Free magstripe reader (Contactless + Chip Reader $49)

Free Chip & Swipe Reader (retail price $29)

Free Swift B200 reader (chip and swipe)

BBPOS Chipper BT (chip and swipe, $75; swipe, chip and contactless, $100)

The takeaway is that there is no shortage of great credit card processing apps for iPhone and iPad users! And you’ll get a great assortment of credit card readers to go with. Don’t forget to check out our companion article, The Best Credit Card Reader Apps to Android.

Thanks for reading! What’s your favorite credit card processing app and mobile card reader for iOS devices?

The post The Best Mobile Credit Card Readers For iPhone and iPad appeared first on Merchant Maverick.

“”

How To Start A Lawn Care Business

Can you picture making a profit by keeping the lawns of homes and businesses in your area looking their best? You’re not alone. For many aspiring entrepreneurs, starting a lawn care business sounds like a practical and achievable way to make money and be their own boss — a dream come true, in other words. If you’re reading this, you’re ready to take the next step toward making that dream a reality.

Starting a lawn care business seems easy. Just grab up some lawn equipment, find a couple of guys willing to do physical labor, and get started, right? Not exactly.

Like any other small business, building a successful lawn care business takes careful planning and hard work. You have to be willing to put in the time, effort, and money required to start and grow your business. A lawn care business may have low overhead and lower initial risk than other types of businesses, but it isn’t a cake walk. However, over time, you’ll begin to see the fruits of your labor through the beautiful lawns in your city or town and the profits sitting in your bank account.

In this guide, we’ll break down the steps for starting your own lawn care business. We’ll start off with the importance of your business plan and what it should include. We’ll go over what you need to get started — and it’s more than just lawn equipment. We’ll talk about the costs you’ll encounter and how to get the financing to cover those costs. We’ll also discuss ways to bring in customers … and profits.

Let’s get started!

Create A Business Plan

Every business is different, but all businesses need one thing to be successful: a business plan. Your future lawn care business is no exception. Even if your business concept seems simple, having a solid business plan in place is a necessity.

Think of your business plan as a roadmap of your business. You wouldn’t go on a long trip without a map or GPS, or put together a complicated piece of furniture without instructions, right? View your business in the same light.

Your business plan outlines your goals for the future. In other words, how will you get from where you are now — a startup business — to your goal? Every entrepreneur has a different goal. Maybe yours is to make $1 million in revenue within five years. Maybe it’s to expand throughout your state. Maybe you want to build a franchise that will go nationwide. No matter what your goals are, they need to be outlined in a solid business plan.

All business plans are different, but there are a few key sections that should be included in all plans. Those include:

  • Executive Summary: A short summary of your business plan and the value proposition of your business
  • Business Description: What does your business do? Include your mission statement and when your business was formed.
  • Organization: Who are your team members and what do they do within the organization?
  • Market Analysis: Include information about the market and your competition
  • Marketing Strategies: How do you plan to market your business to draw in customers and bring in profits?
  • Financial Projections: Use revenue growth and market trends to project the financial outlook of your business

Not only is your business plan critical to the growth of your company, but it’s also an absolute necessity if you plan to seek funding from outside sources — such as investors or banks — in the future.

Determine What Equipment You Need

Selecting equipment

To operate a lawn care business, you need to have the right tools and equipment for the job. While you may start off small and add to your inventory as your business grows, there are a few critical pieces of equipment you need to get started. For most lawn care businesses, major equipment includes:

  • Riding Lawnmower
  • Push Lawnmower
  • Edger
  • Hedge Trimmer
  • Leaf Blower
  • Truck
  • Equipment Trailer

For your business, you’ll also need equipment that’s less expensive but just as critical to operations. This includes:

  • Lawn Tools
  • Hand Tools
  • Lawn Bags
  • Eye/Ear Protection
  • Gloves
  • Gas Cans
  • Oil
  • Garden Hoses

You should expect to spend approximately $30,000 to $40,000 for the equipment you need to start your business. As your business grows, of course, you’ll need additional capital for the purchase of more equipment. For example, you may have just one truck, trailer, and mower for now, but if you have additional crews taking on jobs all over the area, you’ll need more equipment.

You may even opt to offer additional services — installing sod, laying mulch, or planting flowers — all of which require additional equipment and supplies. For now, however, focus on the equipment listed above. Those items will be most critical to getting your business off the ground.

Calculate Startup Costs

With an idea of the type of equipment you need to launch your business, you can now begin calculating startup costs. This will include the cost of your equipment, plus other necessary expenses to keep your business operating smoothly.

Your equipment will make up the bulk of your costs, and you should budget approximately $30,000 to $40,000 for these purchases. You may be able to get started with a smaller investment by purchasing used equipment. However, purchasing used does come with its risks. Older trucks can break down and previously-owned lawn equipment may immediately require servicing or repairs. While you can save money in the short term by buying used equipment, you may rack up additional expenses over the long term, so consider your purchases carefully.

When purchasing your equipment, shop around. Look online and visit local retailers to get estimates of costs. Determine what equipment you really need now and what you could add as your business grows. You may even consider starting with basic equipment (do you actually need that fully-loaded riding mower right this minute?) and upgrading your equipment when your business starts bringing in revenue.

Beyond the equipment we’ve already discussed, you’ll need additional supplies for your business. This may include chemical weed killers, pesticides, fertilizer, and other supplies. You may purchase these supplies upfront, or you may purchase them when needed. If you plan to keep inventory, you may incur additional costs if you rent storage for your supplies and equipment.

Another big startup cost to consider is the cost of insurance. You will need to have auto insurance on your truck. You will also be required to carry liability insurance. If you hire employees now, additional costs may include workman’s comp insurance and payroll taxes. Other startup costs include fees for permits and licenses. We’ll discuss obtaining licenses and permits a little more in the next section.

If you’re starting small as a one-person operation, your primary startup costs will be your equipment, supplies, insurance, and marketing costs. Just remember to take your time to do your research, plan, and budget to keep startup costs under control.

Register Your Business

Before you begin operating, you’ll need to register your business. There are several steps required to register a new business:

Choose & Register Your Business Name

While you may choose to operate your business under your own name, most small business owners choose a trade name. This name will need to be registered in the state where you will operate.

When choosing your name, you want to select one that is a reflection of your brand. You will also need to make sure that you select a name that is not registered by someone else in your state. You can find your state’s registration database with a quick online search.

Choose Your Legal Structure

One of the first steps in setting up your business is determining your legal structure. Your legal structure determines how much you pay in taxes and your personal liability for your business. Legal structures include:

  • Sole Proprietorship: This gives you full control over your business. You do not have to register this type of entity, so you skip over all the paperwork. However, this structure does not separate your personal assets and liabilities from those of your business. This means that you can be held personally liable for all debts and obligations of your business.
  • Partnership: This structure is the simplest structure for businesses that have two or more owners. A limited partnership (LP) gives one partner unlimited liability, while other owners have limited liability and limited control over the company. A limited liability partnership (LLP) gives limited liability to all owners, protecting each against the debts of the business and the actions of other partners.
  • Limited Liability Company: A limited liability company (LLC) protects you from personal liability from business debts and obligations. For example, your house, vehicle, or savings accounts will be untouchable if your business faces a lawsuit or files for bankruptcy.
  • Corporation: Corporations pay higher taxes and are more expensive to form. However, corporations can also raise money through the sale of stock. This structure is best for businesses that need to raise high amounts of capital or want to go public in the future.

Most lawn care business owners will register as a sole proprietorship or LLC, but consider the number of owners you have, protecting yourself from personal liability, and the future goals of your business before you make your decision.

Register With The IRS & State Revenue Agency

If you plan to have employees now or in the future, you will need to register for an Employer Identification Number. You’ll also request estimated tax vouchers from both the IRS and your state revenue office to file with your quarterly tax payments.

Obtain Licenses & Permits

The licenses and permits that you need for your business are based upon the laws of your municipality and what your business will do. For example, simply mowing lawns only requires a standard business license in most areas. However, if you plan to spray chemical herbicides, an additional license may be required. You can find out more about license and permit requirements by contacting your state’s Department of Commerce.

Seek Funding

We’ve already discussed the potential expenses you’ll encounter when opening your own lawn care business. Now, the big question is: how do you pay for it all? Like most aspiring entrepreneurs, your personal bank account likely isn’t bursting at the seams with more money than you know what to do with.

If you’re scratching your head trying to figure out finances, you’re certainly not alone. Most small business owners don’t have the funds needed to start and operate a new business. This is where small business funding plays a role.
There are more lenders than ever that are ready to give you the money you need to get your business off the ground. The trick is knowing what type of funding is best for your business and exactly where to find it.

Personal Savings

If you’ve socked away money in personal savings through the years, this money could be used to fund your new business venture. The best thing about using your own money is that you aren’t indebted to anyone. You don’t have to worry about loan payments, fees, and high interest rates. On the downside, if your business fails, it takes your savings with it.

Friends & Family

If you have a friend, family member, or colleague with money to invest, consider pitching your idea to them. Present them with your business plan and give a presentation just as you would give to a banker or other lender.

There are a few ways you can go about getting capital from someone you know. The first is a loan. Agree to rates, terms, and the borrowing amount and get it all in writing. Then, you’ll repay the borrowed funds plus interest over a set period of time, just as you would any other loan.

Another option is equity financing. You’d receive capital for your business and in exchange, your investor would own part of your company. You wouldn’t pay back the money immediately like you would a loan, but the investor would be able to take a share of your profits at a later time. Learn more about debt financing vs. equity financing.

No matter which way you go, keep everything professional and make sure everything is in writing. One thing that can sour a good relationship fast is a business deal gone bad.

Personal Loans

As a new business owner, walking into your bank to get a business loan is pretty tough … if not impossible. Banks look at your business and personal credit score, annual revenues, and your time in business. These lenders want to work with small businesses that are established and have the lowest risk. If you’re new to the game, many lenders won’t give you a second look.

This doesn’t mean that you’re only stuck with high-interest, short-term loan options. If you want a long-term loan with low rates, consider a personal loan for business. With these loans, you can qualify based on your personal income and credit score – no business information required.

You can apply for a personal loan for business through your bank, credit union, or an online lender. The most creditworthy borrowers will qualify for the best rates and terms and highest borrowing limits. A personal loan for business is a great option for larger purchases that you’d like to pay off over a longer period of time, like expensive equipment.

Recommended Option: Upstart

upstart logo

Review

Visit Site

Through Upstart, you can receive a personal loan of $1,000 up to $50,000 to use for your startup costs. APRs range from 8.09% to 35.99%. Your loan will be repaid over a period of 3 to 5 years.

Upstart is different from other lenders in that they look at more than just your credit score. While the lender does consider your credit score, education, years of credit, and job history are also factors used to determine if you qualify for a personal loan.

To qualify for an Upstart loan, you must:

  • Have a personal credit score of at least 620
  • Live in a state serviced by the lender
  • Have a regular source of income
  • Have a bank account 

Equipment Financing

Equipment financing is a type of funding used to purchase equipment. Instead of paying the full cost of your equipment up front, you’ll make a smaller down payment. A lender will cover the rest of the cost, which you’ll pay back over time along with fees and interest.

There are two different types of equipment financing: equipment loans and equipment leases. If you take out an equipment loan, you’ll typically pay 10% to 20% of the total purchase price as a down payment. Borrowers with high credit scores may qualify for 0% down financing. Once the down payment is paid and the loan is in place, you’ll be able to immediately take possession of your equipment. You’ll pay for the total purchase price of the equipment plus interest over a set period of time — typically around 5 years. Once you’ve made all payments as agreed, the equipment is yours to keep, trade in, or sell.

An equipment lease is more like renting. You’ll pay a down payment and take immediate possession of the equipment. You’ll make payments to your lender over a shorter period of time, usually 2 years. Once your lease period ends, you’ll return the equipment and sign another lease for newer equipment. Some lenders may allow you to pay off your balance if you want to keep the equipment you’ve been using.

Learn more about equipment loans and leases and which is right for you.

One of the best things about equipment financing is that you don’t have to put up collateral to secure your loan. Instead, the equipment itself serves as the collateral and can be repossessed if you default on your loan or lease.

With equipment financing, you can purchase any type of equipment you need for your business, including lawnmowers, edgers, trimmers, or even a commercial vehicle.

Recommended Option: Lendio

Review

Visit Site

Lendio is a loan aggregator that connects you with multiple lenders with just one application. Through Lendio, you can apply for equipment financing from $5,000 to $5 million with repayment terms of 1 to 5 years. Interest rates start at 7.5%.

To qualify for equipment financing, you must meet the following requirements:

  • Annual revenue of at least $50,000
  • Personal credit score of 650 or higher
  • Time in business of at least 12 months

If your credit score falls below the 650 minimum, you may be able to qualify with proof of solid cash flow and revenue for the last 3 to 6 months.

Even if you don’t meet these requirements, you could still qualify with certain lenders. Simply fill out Lendio’s free application or contact a personal funding manager. If you don’t qualify for equipment financing or have other financial needs, you can also apply for Small Business Administration loans, short-term loans, startup loans, and Lendio’s other financial products.

Lines Of Credit

If you want a flexible form of financing, a line of credit might be right up your alley. You’ll be able to initiate draws from your line of credit, and the lender sends the funds immediately to your bank account. You can make one or more draws from your line of credit up to and including your set credit limit.

Since a line of credit is revolving, your funds will become available to use again as you pay down your balance. Interest and/or fees are charged on the borrowed portion of funds. If you don’t use your line of credit, you won’t pay interest to the lender. Many lenders also won’t charge any fees if you haven’t used your funds.

A line of credit is a good option when you need immediate access to cash, such as to purchase supplies or to pay for an unexpected expense, like repairs to your vehicle or equipment.

Recommended Option: Fundbox

Review

Visit Site

You can qualify for up to $100,000 when you apply for a Fundbox line of credit. Fundbox fees start at 4.66% of the borrowing amount. You only pay when you use your funds, and you can save by repaying early. Payments are made weekly over a period of 12 or 24 weeks. You may receive a line of credit based on the performance of your business or for your unpaid invoices.

To qualify for a Fundbox line of credit, you must meet the following minimum requirements:

  • Be a U.S.-based business
  • Own a business checking account
  • Have at least $50,000 in annual revenue
  • Have a bank account with transactions for at least 3 months OR at least 2 months of activity in supported accounting software

Qualifying through Fundbox takes just minutes. If approved, you’ll be able to initiate draws on your line of credit immediately for deposit in your account as quickly as the next business day.

Rollovers As Business Startups (ROBS)

Do you have a retirement account? If so, you may qualify for a unique type of funding known as Rollovers as Business Startups (ROBS). You probably already know that early withdrawal from your retirement account results in penalties. But there is a way to access these funds without being penalized, and yes, it’s completely legal.

A ROBS plan allows you to roll over your qualifying retirement funds into capital for your new business. Here’s how it works:

  • A new C-corporation is created
  • A new retirement plan is created for the C-corp
  • Funds are rolled over from your existing retirement plan to the new retirement plan
  • These funds are used to purchase stock in the C-corp, giving you the capital you need to start or grow your business

Even though it’s just four steps, there are some legal issues to be aware of. This is why entrepreneurs that leverage their retirement funds in this way turn to a ROBS provider. A ROBS provider will handle everything for you, from setting up the new C-corp to maintaining compliance. In exchange, you pay a setup fee and a monthly maintenance fee.

Funds from your ROBS plan can be used for any business purpose. One of the best things about a ROBS plan is that you won’t be making payments with interest to a lender. You also don’t have to worry about traditional borrower requirements like personal credit score or annual revenues. As long as you have a qualifying retirement plan, you can set up a ROBS plan. The main drawback, however, is that if your business fails, you lose your retirement funds, so be aware of this risk before setting up your plan.

Recommended Option: Benetrends

Review

Visit Site

Benetrends is the creator of the innovative Rainmaker Plan, the original ROBS plan. Benetrends can get the funding you need for your business in as little as 10 days. You will have access to your retirement funds with no penalties with Benetrends’ easy four-step process.

There are no credit score, time in business, or revenue requirements. Most retirement plans with at least $50,000 qualify.

A setup fee of $4,995 is required to start your ROBS plan. After paying this initial cost, you must pay a service fee of $130 per month. This fee covers compliance, audit protection, and other services.

Purchase Financing

When you start your lawn care business, you’ll likely develop relationships with vendors. You can pay these vendors out of pocket when you receive your invoice, or you can break your purchase down into smaller, more manageable payments with purchase financing.

With purchase financing, a lender will pay your vendor up front. You’ll repay the lender the borrowed amount plus fees and/or interest through smaller payments made over a longer period of time. This is an excellent way to purchase supplies and other items critical for the success of your business when you’re facing cash flow issues or just need a little extra time to pay.

Recommended Option: Behalf

behalf logo

Review

Compare

Behalf offers purchase financing, allowing you to pay any merchant with terms up to 6 months. With Behalf, you can borrow between $300 and $50,000. Monthly fees start at just 1%, and there are no origination fees, membership fees, prepayment fees, or maintenance fees.

There are no minimum time in business, revenue, or personal credit score requirements. However, a hard pull of your credit is performed by the lender and will be used to determine if you’re eligible to receive funding, as well as your monthly fee.

Business Credit Cards

A business credit card is a great way to cover expenses or make purchases without waiting for approval from a lender. Once you’re approved for a credit card, you’ll be able to spend up to and including your credit limit anywhere credit cards are accepted.

Once you’ve made a purchase using your credit card, you’ll be required to make a monthly payment until you repay your balance, plus interest charged by the credit card issuer. This is a type of revolving credit, so as you repay, funds will be available to use again. Once you’re approved for a credit card, you don’t have to wait for approval to make a purchase. You can make one or multiple purchases up to and including the credit limit set by the lender.

You can cover an emergency expense or purchase supplies using a business credit card. You can also use credit cards for recurring expenses, such as gas for your truck and machines. With a rewards card, you can even get cash back or perks just for using your card.

If you don’t qualify for a business credit card, consider applying for a personal credit card to use for business expenses.

Recommended Option: Spark Cash For Business

Capital One Spark Cash For Business


capital one spark cash select
Compare

Annual Fee:


$95 ($0 the first year)

 

Purchase APR:


18.74%, Variable

The Spark Cash card from Capital One offers unlimited 2% cash back that you can redeem anytime. New cardholders can earn a $500 cash bonus just for spending $4,500 within the first 3 months of opening their accounts. This business credit card has a 19.24% variable APR. There is no annual fee for one year, and the fee is $95 after the first year. Employee cards are available at no additional cost.

To qualify for this credit card, you must meet these requirements:

  • Excellent personal credit score
  • No bankruptcies
  • No defaults on loans
  • No payments over 60 days late on a credit card, loan, or medical bill for the last year
  • A loan or credit card for at least 3 years with a credit limit above $5,000

Recommended Option: Chase Ink Preferred

Chase Ink Business Preferred



Apply Now 

Annual Fee:


$95

 

Purchase APR:


18.24% – 23.24%, Variable

Another business credit card to consider is the Chase Ink Business Preferred card. With this card, you’ll be able to rack up points just by making purchases for your business. All travel, shipping, advertising, internet, cable, and phone purchases yield three points for every dollar spent for the first $150,000 spent annually. You’ll receive one point for every dollar spent on all other business purchases with no limitations.

You’ll also be eligible to receive a bonus offer of 80,000 bonus points if you spend $5,000 within 3 months of opening your account. Points can be redeemed toward cash, gift cards, or other products and services.

Chase Ink Business Preferred has a variable interest rate of 18.24% to 23.24%. The card has an annual fee of $95. Other benefits are also provided for cardholders, including cell phone protection and free employee cards.

To qualify for this card, you must have good to excellent credit.

Bolster Your Web Presence

web builder template

The internet has made life easier than ever for small business owners. After all, you can do your accounting online, shop for supplies and equipment, and communicate with customers. Perhaps most importantly, you can market your business online. Bolstering your web presence is a quick and easy way to reach your target market, helping you bring in new customers and boost your profit potential.

Set Up Social Media Profiles

Social media has morphed into something much bigger than just chatting with family and friends. These days, people are using social media to find and connect with new brands and businesses. Shouldn’t your new business be included?

One of the best things about social media is that it’s free to set up your profiles. Add your business to Facebook, Twitter, Google+, Instagram, LinkedIn, Yelp, and/or Pinterest. With these social media profiles, you can share information about your business such as operating hours and services provided, post photos of completed jobs, promote specials, or share news about your business. On sites like Facebook, satisfied customers can even post reviews and ratings.

Want to learn how to get the most out of your social media pages? Take a look at our Guide to Social Media Marketing.

Build Your Website

Most people turn to the internet when they’re looking for a service provider, which is why it’s so important to have a website. No experience with web design? Don’t worry — there are a variety of web builders that do the hard work for you. Check out some of our top picks.

Your website doesn’t have to be complicated. Make sure that your design fits your brand and provides the most relevant information that customers need, including a list of services provided, your service area, and your contact information. You can even take it a few steps further by adding photos of jobs you’ve successfully completed, price lists, special promotions, and news and updates.

One last thing to note is that when you choose a domain name, make sure that it reflects your brand and includes your business name. However, you also want to make sure that it’s short and easy to remember. Avoid using symbols and numbers to make it easier for current and future customers to find you online.

Check out more tips and tricks for creating and maintaining your web presence.

Choose Business Software

Small Business Online Accounting Software

Every business — including your new lawn care business — needs business software to keep operations running smoothly. You can use business software to keep track of appointments, store customer data, process payments, create invoices, and keep up with your financials. Let’s explore a few types that would be useful for your lawn care business.

Accounting Software

Managing your finances is one of the most important aspects of running a business. Accounting software makes it easier than ever to track your finances. With this type of software, you’ll be able to keep up-to-date on the money that you receive, what is owed to you, and what you owe. In addition, using accounting software also makes it easier for you to run important financial statements and file your taxes.

Today’s accounting software comes with more features than ever, including cloud-based storage, online invoicing, automatic payment reminders, and mobile apps for tracking on the go. Unsure of which software is best for you? Check out some of our recommendations. If you’re new to accounting or need a refresher, make sure to download our eBook, The Beginner’s Guide to Accounting.

Start Free Trial

A great choice for freelancers needing some extra help managing their business

Payment Processing Apps

Very few businesses today are “cash only.” This is because credit cards, debit cards, and even mobile devices make it easier than ever for consumers to pay for their purchases. To make payments more convenient for your customers, consider using a payment processing app.

Payment processing software transmits data between you, your bank, and your customer’s bank, allowing you to accept credit cards, debit cards, and other forms of payment. Many payment processors also include the hardware needed to accept these methods of payments. This hardware may be included in your subscription cost or for an additional fee.

Worried about bulky hardware? Don’t be. There are devices that easily affix to a mobile phone or tablet, so you can take payments anywhere — from your own office to your customer’s front yard.

Best Overall Mobile POS


Review Visit Site

Highlights

  • No contract or monthly fee
  • Instant account setup
  • Retail upgrade available
  • Restaurant upgrade available
  • For iOS and Android mobile devices
  • 2.75% per in-person card swipe

Retail POS: Free trial ($60/mo value)

 

Restaurant POS: Free trial ($60/mo value)

 

Square POS: Always free

Field Service Management Software

Another type of software to consider purchasing for your business is field service management software. This software allows you to keep up with everything from your customers to your employees. There are even programs that are specific to lawn care companies.

With this type of software, you can keep up-to-date records on your customers, from their contact information to their history of appointments. With this software, you can easily schedule new appointments and dispatch employees. Other features may include automatic invoicing, route optimization, easy estimates, and GPS tracking.

Advertise Your Business

business loans for HVAC

In order to make your business successful and profitable, you have to have customers. And you have to reach customers by spreading the word about your business.

While bolstering your web presence is a good first step, don’t stop there. Consider purchasing paid ad space on social media platforms or search engines to reach a broader audience. Yelp for Business is an excellent way to advertise yourself while gaining street cred with potential clients.

You can also utilize free online sites like Craigslist to advertise your business. Just remember to follow the rules before posting and avoid spamming the website.

Moving beyond the web, never underestimate the power of “old school” marketing techniques like flyers and door hangers. Post flyers in areas that get a lot of foot traffic, such as retail shopping centers, and put door hangers around your neighborhood and surrounding areas. You can design and print these yourself, or you can pay an additional fee to a professional printer. Either way you go, this is a very affordable way to market your lawn care business. Before you use this method of advertising, contact your city government office to learn about any restrictions and always make sure to get the permission of the property owner before distributing flyers on private property.

You can also use your work truck to advertise your business. Make sure that your business name, telephone number, and/or URL are prominently displayed and easy to read. Online printers can create custom vinyl decals featuring your logo, name, and contact information at a very affordable price.

Finally, word-of-mouth advertising is one of the most effective methods of advertising in this industry. If your customer likes your service, they’ll tell their friends, family members, neighbors, and colleagues about your service when recommendations are needed. They may give you a glowing review on your website or social media page, which could lure in additional customers. Always make sure to provide the best service to your customers so they’ll refer you to new customers in the future.

Final Thoughts

Your new lawn care business won’t be up and running overnight, but taking the time to go through each step ensures a better chance for success. Every business is different, and you may need to tweak some of these steps to better fit the vision for your lawn care business. Maybe taking the steps in a different order makes more sense for your business, or maybe there’s a step that isn’t relevant to your future goals.

No matter how you picture your future, you’re now armed with the knowledge of what it takes to start your own lawn care business. Now, it’s up to you to determine what steps you’ll take next to become a successful entrepreneur.

The post How To Start A Lawn Care Business appeared first on Merchant Maverick.

“”

How To Set Up A Free Square Account

Thinking about using Square to process payments for your business? Whether you are a solopreneur or a busy boss running multiple locations, you can quickly set up an account with Square with little to no fuss. Square offers several time-saving benefits for the small business owner looking to start processing payments, including no credit checks, a free magstripe reader to get you started, and a free Square POS app which enables you to start taking credit card payments right away. Not only that, but the Square dashboard offers analytics reporting, inventory management, alerts, and (with optional add-on software) even the ability to plan email marketing campaigns!

With all of these conveniences and freebies, you can expect slightly higher transaction fees than you’d get with a traditional merchant account. However, as a third-party processor, Square offers a very transparent pricing plan that starts at 2.75% per swipe dip or tap, and 3.5% + 15 cents for keyed-in transactions. You won’t be surprised with hidden fees or contracts, and you can enjoy the same processing rate for all major credit cards. Square also offers payment dispute assistance, chargeback protection, and secure, PCI compliant software — all included.

If your interest in Square is piqued, but you need a little more information before getting started, then you’ve landed on the right post! Below, we’ll take you step-by-step through the process of signing up for a new Square account. As you will see, setting up your Square account is relatively straightforward. And the best part? It’s completely free and requires no commitment on your part whatsoever.

What Do You Need To Get Started?

Before we get started, here is the main information you’ll need to set up your Square account:

  • Email address
  • Last four digits of your Social Security number (to confirm your name)
  • Home address
  • Shipping address
  • Legal name
  • Phone number
  • Bank account number to set up your direct deposit schedule

You don’t need:

  • Bank statements
  • Proof of revenue
  • Your full social security number
  • Tax documents
  • A credit check

We are going to get pretty detailed in this tutorial, but rest assured, the application itself takes less than ten minutes. Follow along with the guide below to discover how to set up and make the most of your new Square account!

How To Create A Free Square Account

First, visit Square’s sign-up page and hit the “Sign Up With Square” button.

Sign up with Square

 

The first step asks for your email address and prompts you to create a password and choose your country. You also must agree to Square’s terms, privacy policy and e-sign consent policy. We strongly suggest that as with any contract, you take the time to click on, read, and understand the details before agreeing to them.

 

Square set up account

 

The next screen is straightforward and asks if you are an individual or represent a larger business, charity, or religious organization. Enter in your business name or another title that you would like to appear on your receipts. I’m typing in “Blue Heron Content” as my business name.

Create an individual square account for business

 

Now we are getting closer to the meat — Square wants to know where you plan on processing payments. In this example, I don’t want to limit myself, so I am choosing all of the possibilities!

 

Square processes payments mobile online and square invoices

It’s important to mention that even if you don’t plan to use some of these options right away, you can still access them later at any time.

Next, Square asks what else they can help you manage. I am also going to select all of the options again to get a better idea of what Square may suggest right off the bat. I don’t personally need employee tracking for my business, but let’s see what it can do!

Now it’s time to make decisions. Because I selected that I was interested in restaurant-related products, I am offered a free 30-day trial of Square for Restaurants, one of Square’s premium iPad POS apps. (Check out our full review of Square for Restaurants for a more detailed look at pricing and features.) If you are a restaurant owner, check out some of the perks Square lists below. For this particular tutorial, though, we are going to stick with the free POS system.

Square Point of Sale and Square for Restaurants

 

Now that I have selected Square Point of Sale as my preferred POS app, I’ve made it to the “Let’s talk about you” page. This is the place to plug in the rest of your information. Note that Square is not going to perform a credit check on you or your business, they just need the last four digits of your social security number or ITIN, your legal name, street address, and phone number. They use this information to verify your identity.

I’ve finished filling in this form, so I am going to hit “continue” and see what’s next on our journey.

 

Square setup form

 

Choose A Magstripe Reader

Great news! By the time you arrive at the next screen below (3-5 seconds, give or take), Square will have successfully verified your identity. Now it’s time to select a credit card reader to accept in-person payments. For my part, while the Contactless + Chip Reader looks very enticing at $49, I am going to accept the free reader for now.

Square Reader

 

Now there’s another choice to make. Square would like to know if I would like the 3.5mm magstripe reader that is compatible with the traditional headphone jack, or the Lightning connector version for iOS devices. I’m choosing the reader that plugs into a conventional audio jack. You’ll obviously choose the option that works best for your business setup.

Compatibility Note: Square’s magstripe and chip card readers and the Square Point of Sale (POS app) are compatible with most Apple iOS and Android devices running the latest software updates. After this tutorial, check out our Square POS Review for more about system requirements, integrations, and a lot more details about Square POS.

Free Square Reader

After selecting the type of magstripe reader that fits your needs, Square will give you the options to find a retailer close to you and pick up the reader or have it mailed. Personally, I’m opting for Square to send me the reader in the mail. After entering my shipping details, I am one step closer to getting my own Square reader. Oh, and shipping is free, too! Just note that it could take up to 10 days for yours to arrive. 

Order A Square Reader

After entering my information and clicking continue, the setup process is officially complete! That was very easy. Square has already sent me an email letting me know when to expect my reader and another to confirm my email address.

It’s time to head to the new dashboard to set up the backend. 

How To Set Up Your Square Dashboard

Right away, you can see that the dashboard has a clean layout and is pretty straightforward. Since this is the first time I am visiting this new dashboard, Square is offering up these green bubbles as a setup guide. Let’s explore the dashboard and start setting up inventory, customizing the layout, and checking out the reporting features.

Square Dashboard setup

 

Compatibility Note: You’ll be able to access the full Square dashboard from any web browser, but the Square Dashboard app is only compatible with iPhones at this time. You can still take payments on any compatible iOS and Android device with the Square POS app, however.

Add Items & Build Your Inventory

From your home screen, you will see the teal Items button (pictured in the screenshot above). The place to add inventory is under Items>Item Library. To the right on the screenshot below, note the blue button that says “Create an Item”:

Adding an Item in Square Inventory

Here is what the “Create an Item” screen looks like in the Square Dashboard before adding a product:

Create an Item Screen in Square Dashboard

I went ahead and uploaded a product image and filled out my first item below. I can add the amount of stock I have, a price, and set up low-stock alerts for myself here, too! Square will even let me color-code items if I prefer to group categories by colors. 

It’s also possible to create variant items if you sell the same product in different colors and/or sizes. Plus, for cafes and restaurants, there’s a “modifier” option. Say, for example, that you want to offer coconut, soy, and almond milk alternatives for customers in your coffee shop. You can do that, and even set an upcharge fee for these items using the modifier feature. There’s also an option to specify at which locations an item is available if you have more than one shop. 

Add an Item in Square Inventory

Create & Manage Locations

You can create multiple locations from within your Square Dashboard by going to “Accounts and Settings” and then to “Business” and selecting “Locations.” Square will even let you specify a mix of physical locations with a set address and mobile locations without one.

Square’s location management features can help you manage inventory and gather data from multiple stores — and it is totally free:

  • Linked locations and deposit options
  • Per-location item libraries
  • Device management for security
  • Reporting tools to compare/contrast sales or other data

Square also offers advanced tracking and reporting tools for individual employees across your locations. More on those features and cost in the Employee Management section.

Manage Sales Tax Settings

You will find Square’s sales tax settings nestled under the Items menu in your dashboard.

When you create a tax at your Square Dashboard, the tax will automatically sync to every device in your account, and you can specify which taxes apply to which locations. You can even build the tax into the price of the item if you prefer, rather than adding the tax to the price afterward. Square also lets you modify tax settings from within the mobile POS app as well, which is useful when you need to make changes on the fly.

In addition to multiple tax rates, you can create conditional tax rules, which are preset conditions in which a tax won’t be applied — whether you need that to apply to one item or the entire order. This is especially helpful for restaurants that handle online orders.

Now, let’s head back to the home screen and customize our dashboard layout, and then check out the reporting features!

Customize Your Dashboard Layout

Customizing the layout of your Square Dashboard is super easy. First, you can get rid of anything you know you won’t need right off the bat by scrolling through and unchecking anything in the drop-down menu (pictured on the right-hand side of the screenshot below). Don’t worry about making the wrong decision, because you can reset the whole thing or click to re-check one box.

Square Dashboard Customize

The other way to easily adjust your view is by dragging and dropping the tiles to configure them exactly how you want them. For my store, I switched tiles to move the feedback tile up from the last row. This drag-and-drop feature makes it easy to get the information you prioritize first, and then scroll to other options whenever needed.

Moving Square Tiles in Dashboard

As you can see, it’s simple to move things around, and if you change your mind, just as easy to change it back.

Review Square’s Reporting Features

The extensive, user-friendly and (mostly) free reporting features are what make Square a fantastic, no-fuss choice for any small business. As you can see in the screenshot below, there is a long list of possible reports. Every business has unique needs, and Square does a good job of supporting a wide range of small businesses with various options and features.

Square reports

All of the sales reports, such as Sales Summary, Sales Trends, Items Sales, and Modifier Sales, are free. Custom Reports is another handy and entirely free reporting tool that can help you combine and compare your reporting data. Custom Reports allows you to aggregate reports with multiple filtering options. This feature makes it easy work to create a report that breaks the data down for a single location, or you can pick and choose certain pieces of data and compare them across different locations. For instance, you could create one report that compares Gross Sales and Returns for a particular device and/or location. 

To find out even more about what Square’s dashboard can offer you in terms of reporting features, check out our post Why We Like Square’s Online Dashboard and Analytics App.

If you are looking for even more robust reporting and tracking across multiple locations for your employees, it may be worth it to you to learn more about the Employee Management tools, featured below.

Manage Your Employees 

Within the Dashboard, you’ll find the Employee section, which is the foundation for Square’s Employee Management feature set. Adding a new employee into your dashboard is easy — and adding in separate email logins for Square POS is entirely free. However, if you want advanced reporting on timekeeping, individual employee sales, and sales vs. labor costs, you need to subscribe to Employee Management, which will cost you $5 per employee. 

Square Employee Reporting Tool

Here, I have chosen to select the free “Mobile Staff” option to show you that you can invite employees using the email address that they will then use to log into the Square app. You can also enable or disable permissions for accepting payments in Offline Mode and set or remove Issue Refunds permissions.

It’s important to note that employees assigned to mobile staff can only access their own sales data in the Square POS app. 

Square Employee Permissions Mobile Staff Free

If you want something a bit more substantial in terms of employee reporting, Square offers that, too.  To track individual employee sales through the day, keep better performance accountability across multiple locations, and closely monitor administrative permissions, the $5/mo per employee cost for the advanced Employee Management feature seems like a pretty fair deal. You also get timekeeping, so your employees can clock into their shifts through the Square POS app. 

If you want to get started with Employee Management, there are a few ways to do it: Head to Employee Sales or Labor vs. Sales under Reports and start adding employees. It’s free to try for 30 days!

Employee Management Sales Reporting

 

How To Set Up Square Deposits & Funding

When it’s time to get all of that revenue into your bank account, Square has several options for getting your money, all found under Deposits.

Square Instant Deposit and Deposit Schedule Tutorial

Square will automatically deposit your funds on the next business day. You can also change your ‘close of day’ to adjust for your time zone or business hours if you would like. The close of day determines when Square cuts off payment deposits for the next business day. If you need your money even faster, Square offers Instant Deposits that transfer your current Sales Balance immediately — whether it’s a business day or a weekend. This faster service will cost you 1% of the transfer amount. You can even use Scheduled Deposits to get your money deposited at each day’s close of business. 

Find out all the details about the instant deposit feature, and more about how Square’s deposit options work in general, by checking out our post, How Does Square’s Instant Deposit Work?

To set up your deposit schedule or choose an instant transfer, you’ll need to link your debit card (in addition to your bank account). However, you have yet another option for disbursement. You can request your very own Square Card, a personalized business debit card that holds your Square balance.

Square Card Small Business

You can use your card anywhere MasterCard is accepted. If you’d like to order one, you’ll find “Square Card” tucked right under the Deposits tab. To be clear, you can request a Square Card and also choose to have funds deposited into your bank account.

Explore More Square Software Options

Square offers a myriad of specialized software options to make business more productive. Here are some of your options:

  • Customer Engagement: Square’s customer engagement tools include a customer database, feedback management, and CRM software. The database and feedback tools are free, but the CRM starts at $15 month. The image above is a sample CRM campaign I could send to my lapsed customer list. Email campaigns are easy to customize and segment for those reachable-by-email customers.
  • Loyalty Program: This tool starts at $25/month. Read our Square Loyalty Program Review for an in-depth analysis.
  • Advanced Employee Management: As outlined in a previous section, pay $5/month per employee for advanced reporting and employee management tools.
  • Payroll: Square Employee and Contractor payroll starts at $29/month plus $5/employee. Contractor-Only Payroll is just $5/month per contractor.
  • eCommerce: Square offers free space and setup for an online store, and you can integrate with major shopping carts. Read our Square Online Store and eCommerce Review.
  • Invoicing: Invoices are always free to send, pay 2.9% + 30 cents per invoice when your customer pays with credit or debit online. For more on the pros and cons, pricing, and an in-depth look at invoicing with Square, check out our Square Invoices Review.

Choose Another Square Point of Sale App

While the free Square POS app will likely fit the bill for many small businesses, Square has developed more specialized tools for retail, restaurants, and appointment-based businesses.

Square For Retail:

This POS system works with an iPad and has a redesigned interface and usability geared for retail businesses that have substantial inventory. Instead of scrolling to an item in your inventory, an item is easily searchable by name. The barcode scanning and printing features make keeping up with inventory a bit easier, too. Check out our Square Retail Review for more on price, pros and cons, and all a lot more details.

Square for Restaurants:

If you are familiar with Square’s POS system, you may be surprised to see how different Square for Restaurants really is. And it has to be. Sit-down restaurants usually require more specialized tools to cover their everyday business needs, and this POS delivers — from table mapping, menu creation, table management, and reporting tools — there are a lot of specialized features here. Check out our full Square for Restaurants review to find out if this is the right choice for your restaurant.

Square Appointments:

If your business relies on creating and maintaining appointments for just yourself or an entire team, Square Appointments might be just what you need. Note that this POS option is an iOS exclusive. It’s free for individual users, and pricing starts at $50 a month beyond that. Check out our in-depth Square Appointments Review, including functionality, customization, and features.

Choose Hardware Options

Square has expanded to offer so much more than the free magstripe credit card reader. As I mentioned earlier, Square offers a Contactless + Chip reader that lets you accept chip card and contactless payments for $49, which is a smart move to improve payment security.  

If you need something more robust in terms of hardware, however, you can probably find what you need. Square offers countertop POS systems with customer-friendly displays, and if you want to toe the line between countertop vs. mobile, Square also offers a fully portable credit card terminal with a built-in receipt printer.

Square’s countertop POS devices include:

  • Square Stand: This hardware option is a tablet stand with a built-in card reader (along with contactless and chip reader) with an affordable price tag, minimal cords, and a swivel stand.
  • Square Terminal: A more portable option, Square Terminal accepts magstripe, chip card, and contactless transactions. It’s sleek design, built-in receipt printer, and generous display size make it a nice, versatile option.
  • Square Register: Need something more robust? The Square Register offers a 13.25-inch display to run your Square Point of Sale, and on the opposite side, you have a 7-inch customer display ready for magstripe, chip card, and contactless transactions.

For an in-depth look at each of the POS options or to take a gander at all the Square POS kits and bundles, head over to A Guide To Square Credit Card Readers And POS Bundles.

Where To Go Next With Square?

When you consider that Square is a secure, PCI compliant option with a transparent pricing plan and offers lots of bells and whistles, it truly is an excellent solution for any small business. I like that it’s so easy to set up an account with Square, and that they don’t ask for much in terms of personal information. When it is time to get set up or find reports, the dashboard is intuitive and easy to navigate. I also love that Square offers affordable hardware and software when it comes time to scale the business.

Not quite ready to make a decision? Check out our Square Review or head over to Square and set up your own account to see for yourself.

Already have an account? Square support provides great resources to help answer your questions as you navigate your options.

Have questions, comments? Leave us your thoughts below! (Just make sure you check our comment guidelines, first!)

The post How To Set Up A Free Square Account appeared first on Merchant Maverick.

“”

What Is A Card-Not-Present Transaction?

It’s safe to say that nothing is ever free in payment processing (and if it claims to be, you should be very suspicious). But trying to understand why some types of transactions cost more than others to process can be a confusing and sometimes overwhelming process. For example, why does Square charge 3.5% + $0.15 for keyed transactions and just 2.75% for swiped, dipped, and tapped transactions, even though they both go through the Point of Sale app? Why do invoices and online orders cost more than payments processed with a POS app and credit card reader? The answer is that it matters whether a transaction is deemed “card-present” or “card-not-present” (CNP)  — in fact, it is a critical factor in payment processing costs.

A card-not-present sale is any transaction where the cardholder does not present their card to the merchant. While that general definition may seem pretty cut and dry, the reality is a bit muddier. Here’s what I mean: Even if your customer takes out their physical credit card, the transaction is not considered a “card-present sale” unless they actually swipe, dip, or tap it. Manually entering a card number throws the transaction into card-not-present territory.

And when a customer taps a credit card terminal with their phone at a coffee shop? That transaction is actually considered a card-present sale even though the merchant technically never sees a physical credit card!

Confused? Don’t worry. Keep reading; below, we’ll break down some more examples of card-not-present transactions and help you understand why they cost more to process. We’ll also talk about what — if anything — you need to change in your payment processing setup to protect your business.

The reality is, whether you have a brick-and-mortar store or you run an eCommerce business, you need to understand how CNP transactions affect your business, your customers, and your bottom line. There’s much more than meets the eye when it comes to distinguishing from a card-not-present and a card-present transaction, including how much it costs you and the security risks involved. Let’s dive in!

Card-Present VS Card-Not-Present Transactions

Let’s start by talking about what a card-not-present sale actually entails. Once we do that, these transactions will be a little easier for you to identify (and help your sales team navigate the whole issue as well.) A card-not-present sale is any sale processed that does not capture the electronic data of the card at the time of the sale.  

It’s not always super cut and dry. Sometimes merchants don’t understand that being handed a credit card doesn’t automatically qualify the transaction as a card-present sale. It all depends on how it is processed. For instance, say you are at a festival and decide to buy one-of-a-kind art from a vendor. You hand her your card, and she breaks out a little manual machine and makes a carbon copy. Even though you physically handed the vendor your card, this still counts as a card-not-present transaction. No electronic data was captured.

Another example involves Visa and Apple Pay. You can consider any in-store purchase made with Apple Pay a card-present sale, but any payments made using Apple Pay in-app are considered card-not-present. That’s because when a customer uses a digital wallet by tapping or scanning a QR in the store, the electronic data of the card is captured in real time. In-app purchases do not capture the electronic data at the time of the sale.

For the most part, the main thing to understand is that transaction categorization ultimately boils down to whether electronic data was captured.

Common Card-Not-Present Transactions:

  • Invoicing a client
  • eCommerce / online shopping
  • Phone orders
  • Recurring payments that are automatically billed (subscriptions)

Common Card-Present Transactions:

  • Countertop credit card terminals
  • Tapping or scanning digital wallets
  • Swiping via a card reader on a tablet or smartphone (e.g., Square)

If your revenue depends on processing payments with anything other than a POS app and credit card terminal or mobile card reader, it is worth your time to understand how to keep your transactions safe. Processing credit cards costs money whether you process in person or online, but you will face slightly higher fees for processing card-not-present transactions. 

Understanding The Cost Of Card-Not-Present Transactions

 

Why are you charged more for card-not-present transactions? It’s pretty simple, actually. Card-not-present transactions cost more because there are simply more ways for them to fail. From chargebacks, friendly fraud, and malicious fraud, there is more vulnerability and subsequent cost when things go wrong.  Granted, all credit card processing poses some risk — that’s why businesses have contracts with processors, and why high-risk merchant accounts exist. It comes down to which methods of payment processing (and sometimes even which businesses) present the most risk. 

With a merchant account that offers interchange-plus pricing, you will pay a higher interchange rate for card-not-present transactions because the card networks want a return in exchange for accepting some of the risk. Even third-party processors, which don’t overtly pass interchange costs directly to you, still build the costs in by adding a markup to their base rate.

It’s also important to understand that not all card-not-present transactions pose the same risks. For instance, you are generally going to pay a higher cost for a keyed-in entry than for an online transaction because there are typically some built-in security measures (like address and CVV verification) for online purchases, whereas there are no security measures for keyed transactions.

Want to know more about how credit card processing works? Check out The Complete Guide to Credit Card Processing Rates & Fees for an in-depth look. 

Below we talk more about card-not-present fraud and what you can do to protect your business. 

The Cost Of Fraud

Unfortunately, when it comes to CNP sales, the industry is currently seeing an increased rate of fraud for online transactions. The rollout of chip cards and the EMV liability shift in the US for card-present sales actually plays a major role in the increase of card-not-present fraud, and it’s something that financial experts predicted would happen based on EMV adoption in other parts of the world.

While we certainly don’t want to strike fear or dread into any of our readers, the fact is that card-not-present transactions make you more vulnerable to fraud because the physical card data can’t be verified. Not only can a card data breach turn into an embarrassing public relations issue, but the business owner is ultimately responsible for absorbing the cost of any fraudulent charges in a card-not-present sale.

A recent press release from LexisNexis demonstrates that the cost of fraud is rising. Last year, every dollar ($1) of fraud cost a merchant $2.77. This year, it’s predicted to cost $2.94 on average. And if you are in the digital space, the cost is even a bit higher.

Small businesses need to stay on guard just as much as any medium or large business. The unfortunate fact is that fraudsters are looking for vulnerabilities like outdated data security practices, and small businesses are very likely to be targeted.

There are some very sobering statistics from UPS Capital:

  • Nearly 90% of small and medium-sized businesses in the U.S. don’t use data protection for company and customer information.
  • Less than half have secure company email processes to prevent phishing scams.
  • 60% of smaller businesses are out of business within six months of suffering a cyber attack.

It is vitally important to be aware of the risks and know how to protect yourself.

Read on to learn more about fraud and what you can do to protect your business if you accept card-not-present transactions.

Protecting Your Business From Fraud

Merchant’s Guide to Preventing Card-Present Fraud image

Taking a proactive approach to preventing fraud is a smart move. In this post, we focus on understanding the risks and cost of card-not-present transactions, but card-present sales are certainly not exempt from fraud. If your business processes both types, check out the Merchant’s Guide to Preventing Card-Present Fraud for a great breakdown of information on how to protect your business from card-present security issues.

Your first defense against fraud will always be PCI compliance. PCI DSS is an acronym for Payment Card Industry Data Security Standard, which dictates the industry-standard procedures and security measures a business needs to make to protect customer data.

The good news is that unless you are dealing with homegrown software for your payment processing system, you are likely operating with PCI compliant equipment and software. That’s because all payment processing software and equipment vendors go through a strict certification process to ensure their products meet industry standards for security. 

That being said, you still need to take the time to read your contract and understand if there are any steps you need to take to ensure continued compliance. Third-party payment processors such as Square are automatically PCI compliant and do not require you to do anything specific to maintain compliance — at least not as far as the contract is concerned. (As a general rule, you should keep yourself informed on PCI compliance and what constitutes a suspicious transaction that could get your account flagged for fraud.) 

With merchant accounts, PCI compliance is a lot more varied and partially depends on whether you use the provided software or integrate with a third-party. You may be obligated to complete a scan or assessments, or potentially much more depending on your payment processing setup.

The key takeaway is this: PCI compliance is never a one-time event. Assessment, remediation, and reporting is a continual process with best-practices changing each year. Even if your processor doesn’t require you to do anything to maintain compliance, it’s important to make sure you know what security best practices are.

According to the PCI DSS Quick Reference Guide, some habits can put you and your customers at risk for fraud. Within the guide, the PCI cites activities that are common across the board in all types of U.S. and European businesses (page 4):

  • 81% store payment card numbers
  • 73% store payment card expiration dates
  • 71% store payment verification codes
  • 57% store customer data from the payment card magnetic strip
  • 16% store other personal data

Let’s break down that first statistic. The majority of business owners store their customers’ credit card numbers. But where? Unless you’re using PCI compliant software with a secure credit card vault, you could be exposing yourself to risk and liability — big time. 

Following best practices and keeping yourself up-to-date with PCI compliance is one of the most important things you can do to prevent fraud. Another thing to remember is that it is up to you to ensure your team knows what not to do, too. A retail employee who keys in the majority of her transactions may be helping others commit fraud — or she may simply have trouble getting the credit card terminal’s card readers to work. But you won’t know until you check up on her. 

Once your bases are covered with PCI compliance, you can rest easy knowing that your legal and liability concerns have at least been reasonably mitigated.

Additional layers of security may be worth looking into as well, especially if your livelihood involves online sales

  • Address Verification System (AVS): This system checks to see if your customer’s address is the same as the person who owns the credit card. Verifying the billing address or zip code against Visa or MasterCard billing information of the cardholder can prevent misuse and protect your business from fraud.
  • CVV Checks: A CVV check requires your customers to enter in the additional three numbers at the back of the card (four digits for American Express). Since this information can be stored (and also stolen), it also makes sense to require customers to re-enter the card code whenever there is an unrecognized device or change to a shipping address.
  • 3-D Secure: This provides an extra layer of security for online transactions. If you have heard of MasterCard SecureCode, Verified by Visa, or American Express Safekey, then you are familiar with 3-D Secure. MasterCard SecureCode, for instance, requires a PIN code to be entered into an inline window that is securely hosted by the issuing bank. The code is never shared with you directly. This authentication step is designed to reduce your liability and improve security. Many processors that cater specifically to online businesses, such as Stripe, offer 3D Secure bundled with their services.

Final Thoughts

Fully grasping the nuances of credit card processing can be difficult. However, it’s definitely worth taking a bit of time to understand how and why card-not-present transactions are different from card-present payment processing.

Even merchants who run brick-and-mortar shops have to deal with the cost of CNP payments. If you have a storefront shop, taking the time to train your team to spot the difference between the two types of transactions and keeping up with the latest compliant software/EMV readers will go a long way towards keeping your costs down —and your payment security tighter.

If you run an online business, your focus should be on making sure you have the appropriate security measures enabled with a good payment processor — preferably one that does the bulk of the work for you! At the end of the day, you will take the hit from chargebacks and fraud if you don’t have the right protections. 

Shopping around for eCommerce businesses solutions? Read How To Choose An eCommerce Merchant Account.

The post What Is A Card-Not-Present Transaction? appeared first on Merchant Maverick.

“”

The Best Credit Card Reader Apps For Android

Android alternative to shopkeep

 

It feels sometimes like Apple dominates the field as far as availability of credit card reader apps. After all, there are plenty of iOS exclusives, but I can count on one hand the number of Android-exclusive POS apps. It hurts my Android-loving heart, in some ways.

In part, the difficulty with Android-based mobile processing apps is how fractured the Android space is — there so many devices, and updates to the OS depend on both the device and the cellular carrier. But good Android-based mPOS apps for credit card processing do exist. You just have to know where to look! Happily, it looks like many companies are starting to understand the importance of accepting Android, and I’ve seen several POS offerings branch into the Android space recently.

Let’s talk about your best options for Android mPOS apps — which ones offer the best experience, the best hardware, and the best pricing!

Best Android-Based Credit Card Processing Apps

To be considered one of the best Android-based mPOS, the mobile app must be available for Android devices and include a mobile credit card reader, rather than a terminal. And obviously, it needs to be a highly-rated solution, too.

Without further ado, here are our favorite recommendations for Android users in need of a credit card processing app!

App Name Square Shopify Lite Payment Depot Mobile Payline Mobile

Payment Depot merchant services review

Payline Data Review Logo

Review

Visit Site

Review

Visit Site

Review

Visit Site

Review

Visit Site

In-Person Transaction Fees

2.75%

2.7%

2.6% + $0.10

Interchange + 0.2% + $0.10

Monthly Fee

$0

$9

$10

$10

Monthly Minimum

$0

$0

$0

$25

Type of Processor

Third-Party

Third-Party

Merchant Account

Merchant Account

Account Stability

Good

Good

Excellent

Excellent

Card Readers

Free magstripe reader (Contactless + Chip Reader $49)

Free Chip & Swipe Reader (retail price $29)

Free Swift B200 reader (chip and swipe)

CardConnect Mobile Device ($49)

Square

Square (read our review) features in a lot of my articles — and honestly, that’s because it’s one of the best options out there, period. As far as features, pricing, and hardware, Square is top of the line in each category. Square’s free mobile POS app, blandly named Square Point of Sale (read our review) has more features than your standard POS app, even if it doesn’t quite reach the abilities of a full-fledged POS system. Plus, Square throws in invoicing, a customer database, and intermediate inventory tools (including item counts) at no additional cost. Payments process at 2.75% for swiped, dipped, or tapped transactions using Square POS and a mobile card reader. Invoices process for 2.9% + $0.30 per transaction, and keyed entry sales for 3.5% + $0.30 per transaction.

Square works on iOS and Android, though it’s worth noting that particular features aren’t always supported by Android tablets or smartphones. For example, you can run a cash drawer session on an Android tablet, but not on a smartphone, and you can’t track sales by employee at all on Android.

Until recently, the best way to get the most Square features on a single device was to use an iPad. However, Square Register (read our review) has changed that.

Register is an Android-based, all-in-one POS platform with a 13.25-inch touchscreen display and a 7-inch customer-facing display with built-in card readers. It runs Square Point of Sale and has many features that aren’t available on Android tablets or smartphones. Payment processing with Square Register is a departure from the standard 2.75% per transaction; instead, merchants will pay 2.5% + $0.10, which means merchants with an average ticket size of $40 or more will see the most savings with this processing rate.

If Register isn’t quite for you, Square still offers plenty of choices for affordable hardware; its Contactless + Chip Card Reader sells for $49 with financing available. You can also purchase additional hardware for Square directly from the company if you’re using Square for a register setup — including Android-compatible tablet stands!

Reader eCommerce Retail Food Service
Free App & Reader Square eCommerce Square for Retail Square for Restaurants
Get Started Get Started Get Started Get Started
Free, general-purpose POS software and reader for iOS and Android Easy integration with popular platforms plus API for customization Specialized software for more complex retail stores Specialized software for full-service restaurants
$0/month $0/month $60/month $60/month
Always Free Always Free Free Trial Free Trial

Shopify Lite

I honestly feel like more people need to be aware of the fact that Shopify POS is available as a standalone payment processing option for businesses that need a mobile app but maybe don’t want a full-fledged online store. The Shopify Lite plan (read our review) gives you access to the Shopify POS app (available on Android and iOS) as well as a few extra tools. That includes customizable website payment buttons if you have, for example, a WordPress site, as well as a Facebook shop and invoicing.

The Lite Plan goes for a very reasonable $9/month, with payments processing at 2.7% per swiped, dipped, or tapped transaction. Invoiced and keyed transactions process for 2.9% + $0.30 per transaction. Now, admittedly, the Shopify POS app isn’t as full-featured as Square. And the Lite plan doesn’t give you access to all of the features of the POS app, but you do get all the essential, standard mPOS features.

If you want something more resembling a traditional POS setup, with staff PIN access, register shifts, and so on, you’ll need to upgrade to the higher Shopify plan tiers. However, Shopify doesn’t charge any per-device subscriptions, so $79/month for the Shopify standard plan gets you a very powerful ecommerce plan, plus a POS that runs on unlimited devices with quite a few features that bring it on par with traditional POS apps. (Oh, and discounted processing rates, too!)

Finally, you should know that Shopify’s mobile card reader, the Chip & Swipe Reader, retails for $29. However, Shopify does offer a free card reader to new merchants. We’ve previously reviewed the card reader and were very satisfied with it, in terms of design and pricing.

Payment Depot Mobile (Swipe Simple)

Payment Depot has mostly operated as a wholesale merchant account provider, offering a whole range of merchant services, from ecommerce to mobile processing. However, we’re happy to say that Payment Depot is now offering an exclusive mobile processing plan to Merchant Maverick readers, one that’s targeted at even low-volume businesses. You can check out our Payment Depot Mobile review for more information.

Payment Depot’s mobile plan includes access to the Swipe Simple app, made by a company called CardFlight. CardFlight actually licenses its solutions to several providers and so pricing and terms vary according to which company you sign up with. Payment Depot is offering its mobile plan for $10/month, with payments processing at 2.6% + $0.10 per transaction. There are no monthly minimums and no other fees involved. And again, this is a Merchant Maverick exclusive, so you need to use our link in order to sign up for this plan! Also, high-volume businesses can still get access to PD’s standard pricing, which may be more cost effective for them.

The Swipe Simple app is an all-around solid offering, with the essential mobile POS app features, along with a customer database, intermediate inventory (including item counts), and a virtual terminal available for no additional cost. There’s even a free virtual terminal thrown in. While it won’t come close to replacing a full-fledged POS app, mobile businesses that need a reliable app and a stable merchant account will enjoy the flexibility that Payment Depot (and SwipeSimple) offer.

Payment Depot also offers a free chip card-enabled mobile reader, the Swift B200. If you’d like to also accept contactless NFC payments, you can upgrade to the EMV/NFC capable card reader, the Swift B250, for just $25, which is an excellent price for an all-in-one, future proof card reader.

Payline Mobile (CardPointe)

Payline Data Mobile was the first mobile processing solution I reviewed that offered the stability of a merchant account combined with pricing that’s competitive for low-volume businesses.  Obviously, we’ve added Payment Depot to that list as well, but Payline Mobile is also a great option if you need a mobile plan and you want transparent pricing and great customer service.

Payline Mobile’s plan includes access to the CardPointe mobile app, made by CardConnect. The app is pretty solid, with all the essential features you would need to run a mobile business. You can even mark items as tax-exempt in the app, which makes it a great option if you run a wholesale business or even just occasionally sell to business owners with sales tax exemptions.  You also get access to a virtual terminal for no additional cost.

As far as card readers, Payline offers the CardConnect Mobile Device, a magstripe reader that connects via headphone jack. It does have an EMV slot; however, chip card acceptance currently isn’t enabled for the reader, so you’re limited to magstripe only until CardConnect launches EMV support. Payline sells the reader for $49, though you can talk with your Payline sales rep about the pricing if it’s a concern.

Payline Data’s mobile offering is billed under the Payline Start plan, which means you’ll pay a $10/monthly fee and interchange plus pricing with a 0.2% + $0.10 markup. This pricing might not be the most competitive for small-ticket businesses, but if you have an average transaction of $50 or more, you should do well.

The other thing to note with Payline is that the company has a $25 monthly minimum — meaning you need to generate $25/month in processing fees, or Payline will charge you the difference between your processing fees and $25 (so if you process enough to generate $18.28 in fees, Payline will charge you another $6.72 to make up the difference). For most businesses, this works out to be about $1,000/month in credit card volume, but your exact break-even amount depends on your transaction size and average interchange.

I also need to mention that CardConnect is actually a First Data product — and if you prefer, you can get the Clover Go mobile app through Payline for the same contract terms and an additional $6/month fee (passed through by Clover). You can get Clover’s chip-card enabled Bluetooth reader for $120, but again, if you have concerns about the price, talk with your sales rep.

Honorable Mentions

Didn’t find quite what you were looking for? You won’t find a shortage of mobile processing apps here at Merchant Maverick — and a list of just 4 processing options seems a bit limited. So here are the honorable mentions — the solutions that didn’t quite make the top of the list but that I still like for various reasons.

PayPal Here

PayPal is a juggernaut of commerce, and if you want to sell online, accepting PayPal is an easy solution. If you want to accept payments in person, PayPal’s mobile POS app, PayPal Here (read our review), offers a solid range of features, including the ability to send invoices from the app or in the dashboard. PayPal Here is not as robust as Square, and PayPal generally recommends integrating with one of its POS partners if you need more advanced software features. But it’s great for pop-up events, tradeshows, conventions, and mobile businesses.

PayPal processes in-person transactions at 2.7% per swipe, dip, or tap, and invoices at 2.9% + $0.30 per transaction. You can get a chip and magstripe card reader for $24.99, or upgrade to the all-in-one Chip and Tap Reader for $59.99 (a bundled charger set is available for $79.99).

Wondering how PayPal Here compares to Square? Check out our Square vs PayPal article for a direct comparison!

Sumup

If you don’t process credit cards on a regular basis but you need a simple, straightforward option for mobile processing with a great credit card reader, SumUp (read our review) should be at the top of your list. I’ve previously described SumUp as Square’s sophisticated, minimalist European cousin because it delivers all of the essentials with a sleek, simple approach.

Payments process at 2.65% per swiped, tipped, or tapped transaction, which is lower than either Square or PayPal, with no flat fee per transactions. While you’re not going to save boatloads over the alternatives, SumUp does offer the lowest rates with no monthly fee, which is worth mentioning. But what I really like about SumUp is the card reader — which, even two years later, still one of the best designed and packaged card readers I’ve ever had the pleasure to encounter. At $69, it’s not cheap, but I still think it’s better than the Square Contactless + Chip Reader, and the similarly priced PayPal Chip and Tap reader.

Check out my Square vs SumUp comparison for a better look at how SumUp stacks up in terms of features and execution.

Clover Go

I’ve already mentioned Clover Go — it’s the mobile app linked to the Clover suite of POS products, owned by First Data, just like CardConnect. Clover is First Data’s flagship software, and has been for a few years now. If you’re already a Clover user and you want to go mobile with your POS, the Go app is the obvious answer because it’s built to be an extension of the full POS app. However, you can get Clover Go as a standalone product from First Data and many of its resellers. Check out our review of Clover Go for a better look at its features.

Pricing for the Clover Go app, payment processing, and hardware will vary by the reseller you choose. Payline Data is one option — you’ll pay $16/month in fees plus interchange plus 0.2% + $0.10 per transaction, and $120 for the card reader. We generally recommend Dharma Merchant Services for merchants processing more than $10,000/month in cards, and National Processing for businesses of all sizes. In both cases, you’ll pay a $10 monthly fee and interchange plus 0.2% + $0.10 markup per transaction.

Curious how Clover Go stacks up? Check out our Square vs Clover Go comparison!

Which Android Mobile Processing App Is Right For You?

App Name Square Shopify Lite Payment Depot Mobile Payline Mobile

Payment Depot merchant services review

Payline Data Review Logo

Review

Visit Site

Review

Visit Site

Review

Visit Site

Review

Visit Site

In-Person Transaction Fees

2.75%

2.7%

2.6% + $0.10

Interchange + 0.2% + $0.10

Monthly Fee

$0

$9

$10

$10

Monthly Minimum

$0

$0

$0

$25

Type of Processor

Third-Party

Third-Party

Merchant Account

Merchant Account

Account Stability

Good

Good

Excellent

Excellent

Card Readers

Free magstripe reader (Contactless + Chip Reader $49)

Free Chip & Swipe Reader (retail price $29)

Free Swift B200 reader (chip and swipe)

CardConnect Mobile Device ($49)

If you need a mobile POS app that’s compatible with your Android device, or you’re debating between an Android or iOS device, there’s no need to worry. There are plenty of great Android-based credit card reader apps to choose from, with great pricing and great hardware. Ultimately, it’s up to you to decide which service is right for you — consider the features you get as well as the pricing. Not sure how to do that? Check out my article, Is Square the Cheapest Processor For Your Business? to learn how to figure out for yourself whether a rate quote is actually a good deal.

Still can’t decide? Square offers the best value in terms of features, and the flat-rate pricing works for all businesses, even low-volume and small ticket ones. Plus, there’s no monthly fee!

The post The Best Credit Card Reader Apps For Android appeared first on Merchant Maverick.

“”

Square’s Customer Service: Why It Works So Well And How To Use It

If you’re considering whether the Square payment processing solution is best for your business, it makes sense to ask about their customer service. For many of us, the customer service experience makes or breaks the way we feel about a company, even if we love everything else about the product. And the truth is that positive — and negative — interactions with customer service can have serious repercussions — especially when you’re trying to run an efficient, successful business and keep your own customers happy.

Not too long ago, Square suffered from a less-than-stellar reputation for customer service, but that is changing. Any company that can identify a pattern in user issues and beef up their service is one that values user experience and trust. And that is a good sign for current users.

For this post, we examined all the negative complaints about Square’s customer service in our complete Square Review and found that the biggest issue that has since been improved is Square’s phone support (more on that below).

We also dug deep into the Square customer service experience to form our own impressions. (Keep in mind that we are looking here at Square’s business products, not the Square Cash App, which has an entirely different support team. But if you’re looking for information on that, we have you covered there, too. Check out our Square Cash App Review.)

When it comes to Square Support, the user experience has clearly been well thought out. When you visit the Support page, you will immediately see a lot of ways to find the help you need, and the available material is straightforward to navigate and easy to understand.

Below, we break it all down for you so that you can make the most of Square’s help features and find what you need in a crunch.

Note: To keep things in perspective, the vast majority of Square users (over 2 million) are happy with their experience, including customer service. We spend a lot of time sifting through information (including reviews) and understand that negativity bias can affect any anyone. We talk a lot more about that and how we handle the phenomenon here at Merchant Maverick in our post, Understanding Negativity Bias. 

Reader eCommerce Retail Food Service
Free App & Reader Square eCommerce Square for Retail Square for Restaurants
Get Started Get Started Get Started Get Started
Free, general-purpose POS software and reader for iOS and Android Easy integration with popular platforms plus API for customization Specialized software for more complex retail stores Specialized software for full-service restaurants
$0/month $0/month $60/month $60/month
Always Free Always Free Free Trial Free Trial

Square’s Support Center

When you have a question, you can probably find what you need through the prompts and easy-to-digest information within Square’s troubleshooting articles. They provide a wealth of information on everything from setting up your Square account to tips for using your card reader, troubleshooting any issues, and changing settings.

Support material is laid out in a table of contents, and each section is expandable. You don’t have to wade through a ton of text or scroll to find what you need because everything is organized by topic. Already know exactly what you need? You can just type in what you are looking for and simplify your hunt even more. It’s also possible to enter a question or search keywords and topics from any page in the help section. The search feature is very intelligent and can auto-suggest articles for you to explore. 

Square Compatibility Checker

Wondering if your smartphone or tablet will work with Square? Rather than searching the knowledgebase for a list, you can use Square’s Compatibility checker. Just enter in the make and model of your device and Square will tell you which card readers and other pieces of hardware are compatible (and which aren’t). This is a great way to make sure you don’t unnecessarily buy new devices even before you sign up with Square, or you can check whether the new device you’re planning to buy will actually still work with your hardware.

Issue Tracking

Having trouble using one of Square’s products? If you are looking for a quick way to see if everything on Square’s end checks out, you can head to https://www.issquareup.com/ and see whether an issue is on your end or theirs. 

Square Community Forum

 

Square has set up an excellent and unusually active hub for sellers to collaborate, get ideas, and problem-solve with its community forum, known as the Seller Community. You need to be a Square user to join, but once you’ve signed in, you can post your questions. And you’ll probably get a response more quickly than you expect! The forum is organized by popular topics, and directly below the fold you can jump right in and view recent discussions. 

Within the Seller Community, you can also search by keyword or for specific community members. There are spots dedicated to those who are new to Square, as well as a general discussion page, a dedicated forum for questions, and a place just for Square staff to share product updates (so you can stay in the know about any new features).

You’ll see that the Square staff are quite active on the forum, answering questions and even encouraging members to submit feature requests to the development team. It’s a pretty happening place when you start digging in.

Email & Social Media

If you have a question that requires a bit more personalized assistance, of course, you can still send Square’s support team a message through email or social media. Square has a dedicated Twitter support page, @SqSupport, for technical questions, or you can message the company’s Facebook page.

You can email Square even if you aren’t a Square user, but if you do have an account, Square will ask you to sign in and then choose the reason for reaching out.

After signing in and connecting to the service that applies to you, they provide you with contact details to get you matched with the right person.  In the meantime, you still have the option of checking out the Seller Community or looking through the support topics Square has published on its site.

Phone Support

Square has made a smart move by having actual employees (who collaborate with Square engineers) handle customer service questions. Speaking to a customer service rep who has inherent knowledge about a product can make a big difference when it comes to technical or even workflow questions. A few short years ago that wasn’t the case at Square, but we are glad that they responded to give the people what they wanted. 

To get your more complicated questions answered, you can access live help when you need it. This live support is only available to existing customers, however. You’ll get a customer code on the Square help page which you can use to patch you through to a person. 

Square’s phone support is active between the hours of 6 am to 6 pm Pacific time, Monday through Friday.

It’s comforting to know that phone support is an option, but thanks to the exhaustive help sections on their site, including the Square Seller Community, you’ll likely get the answers you need without having to call in.

Learn More About Square

If you already use Square, it might be a good idea to check out some of the resources in the help sections and even connect with other sellers in the community forum. Not only does ‘iron sharpen iron’ when it comes to running a business, but you might also discover how to take advantage of built-in features, like the Square Dashboard, to make your experience even better.

If you’re considering using Square to accept payments, you can sign up for a free account. With no monthly charges or hidden fees, chargeback protection, and full PCI compliance included, it’s easy to evaluate whether Square is right for you without external pressures influencing your choice.

Still not sure? Get more information by digging into Is Square a Secure Way to Accept Credit Cards or reading our full Square review.

Reader eCommerce Retail Food Service
Free App & Reader Square eCommerce Square for Retail Square for Restaurants
Get Started Get Started Get Started Get Started
Free, general-purpose POS software and reader for iOS and Android Easy integration with popular platforms plus API for customization Specialized software for more complex retail stores Specialized software for full-service restaurants
$0/month $0/month $60/month $60/month
Always Free Always Free Free Trial Free Trial

The post Square’s Customer Service: Why It Works So Well And How To Use It appeared first on Merchant Maverick.

“”

How to Accept Credit Cards For Your Taxi Business

 

credit card processing for taxi drivers

If you are a taxi driver, there is no shortage of options when it comes to accepting credit card payments from your customers. But the truth is, point of sale solutions don’t all offer the same type of features and benefits. And when you consider that most customers today whip out their credit card when it’s time to pay the bill, finding the best credit card processing company for your taxi business is really important.

If you’re a taxi or ride-share driver looking for a good payment processing app, we’ve created this post just for you — read on for an overview of some of the features you may want to look out for when you choose a processing company for your taxi business. At the end of the post, we’ll also tell you which company offers the best processing features (and value) for your money — and why.

What Makes A Good Mobile Payments Processor?

Mobile App & Card Reader

Of course, the most essential thing to have when accepting payment in your taxi is good, basic functionality in the mobile app and credit card reader you’re using. First things first: Look for a reader that is compatible with the mobile device on which your software is installed — whether that is your iPhone or Android phone, iPad, or another type of tablet.

You will also want to pay attention to any costs associated with the card reader itself. Are the reader and app free to use? If not, could you get a better deal elsewhere? Read our article on the best credit card readers for more information about choosing good hardware.

As a taxi driver, the ability to accept multiple types of payments is important for the convenience of both you and your customer, but you need to be able to count on it to work wherever you are. It’s critical to choose a company that has built up an excellent reputation through reliable and secure service.

Of course, it’s critical to consider things like rates, fees, usability, and other bells and whistles that might come along with your service, so keep reading to find out more about what makes a good credit card processing solution for your taxi company.

Offline Mode

Mobile credit card readers are built to go wherever you do, but that doesn’t mean they are always going to function if your internet service gets interrupted. Since you can’t always rely on the connectedness of your device, finding a credit card reader that also works offline is a must.

You may be asking, ‘So how does it work if you are offline?’ If a card reader has an “offline mode,” you can still swipe payments without worrying about a spotty connection (or just re-swiping and crossing your fingers). Connection problems don’t just affect taxi drivers and other mobile businesses — they can affect brick and mortar businesses as well. Having an offline mode takes some of the worry and the hassle out of accepting payments, so you never have to worry about a disconnection interfering with a sale.

Low Processing Rates

One of the first questions anyone should ask when it comes to credit card processing is, of course, how much does it cost? After all, it is your business and your bottom line, so understanding all of the fees that come along with your service is important. Taxi drivers understand better than many business owners what high processing fees can do to earnings.

Many processing companies charge exorbitant rates per transaction, leading some people to stick to cash transactions and avoid processing credit card payments altogether. Thankfully, not all processing companies are out to screw you over — we include our best recommendation at the end of the post, so keep reading if you are curious!

Look for a company that has easy-to-understand rates, with preferably no added monthly fees. Nowadays, you also should look for freedom when it comes to contracts. As a taxi driver, you shouldn’t be bullied into signing a long-term contract with any credit card processing company. In fact, a contract of that sort is often a red flag that there may be more hidden fees once they hook you, so avoid these high-pressure tactics if you can.

Educate yourself before you begin negotiations with any potential payment processor. Read our Complete Guide To Credit Card Processing Rates and Fees, check out our infographic on payment processing fees for a visual overview, or download our free eBook, the Beginner’s Guide To Payment Processing.

Intuitive Tipping Functionality

One of the great things about accepting payments through a mobile reader is that tipping is made easy for your customers. Tips can add up to a pretty big chunk of your take-home pay if you drive cabs for a living, so pay close attention to any app you are considering when it comes to the tipping experience. Look for an app that offers up some preset tip amounts first but also allows your riders to choose a different amount if they want. When an app suggests a pre-set percentage, it removes any mental math skills and makes it even easier to tip you at the end of the ride.

Customer Experience Feedback

Another perk to check out when you are shopping around for the best mobile app for your taxi company is the feedback function. Does the app allow your customers to rate the drive or give you any input? If there are any issues, resolving them directly with you through the app is preferable to a customer posting a public review or calling your company. These customer feedback functions can also show you how you or your staff are doing each day and over time— and allow you to communicate with your customers about their experience directly.

Backend Reporting

Nowadays, when it comes to finding the right mobile processing app, there is so much more available than just the swipe feature. Check out some of the other services that may come along with the app, like reporting and analytics. The ability to track sales history and amounts, see peak service times, store customer data, and create other insights can be powerful tools to help you make better decisions. 

The Best Mobile Payment App For Taxis & Ride Shares

With all of the potential benefits — and pitfalls — in mind listed above, there really is only one company that offers the whole package. When it comes to credit card readers that deliver more than just a swipe function, our favorite payment processor is Square.

Best Overall Mobile POS


Review Visit Site

Highlights

  • No contract or monthly fee
  • Instant account setup
  • Retail upgrade available
  • Restaurant upgrade available
  • For iOS and Android mobile devices
  • 2.75% per in-person card swipe

Retail POS: Free trial ($60/mo value)

 

Restaurant POS: Free trial ($60/mo value)

 

Square POS: Always free

Square has some of the lowest rates with no surprise monthly charges or hidden fees. Not only are costs low, but you can also get your funds deposited directly into your bank account in as little as one or two business days. Also, fees are the same no matter what card you take —  and yes you can start taking every major credit card, including American Express. With the free Square POS app, it is just 2.75% per swiped, dipped, or tapped transaction — and the card reader itself is free.

We like that when you take payment, the offline feature is backing you up in the event service is interrupted. Keep in mind that with Square, no data is saved to your device, so you can be confident you are offering a fully secure and PCI compliant solution.

We also like that with Square POS, you get access to analytics that you may not have had before. For instance, the Square dashboard feature makes it easy for you to see every time you or any other driver connected to your account to process a payment with Square. At the Square dashboard, you can see this activity happening in real time. The simple charts allow you to quickly determine peak times and sales activity for each driver (or yourself), so you can make better decisions when it comes to scheduling.

If you want to check out a little bit more about Square before making a decision, check out our other resources, including How Much Does Square Charge, and How Does Square’s Instant Deposit Work? By doing a little research and checking out the features most important to you, you can find the best solution that you are comfortable with — and that makes your life a lot easier.

Reader eCommerce Retail Food Service
Free App & Reader Square eCommerce Square for Retail Square for Restaurants
Get Started Get Started Get Started Get Started
Free, general-purpose POS software and reader for iOS and Android Easy integration with popular platforms plus API for customization Specialized software for more complex retail stores Specialized software for full-service restaurants
$0/month $0/month $60/month $60/month
Always Free Always Free Free Trial Free Trial

The post How to Accept Credit Cards For Your Taxi Business appeared first on Merchant Maverick.

“”

Why Square Is A Great Free POS For Markets And Grocery Stores

As a small business owner who is launching a new shop or exploring your payment processing options, finding the right POS to accept payments is not a decision to be made lightly. You probably already know that the grocery industry has its own unique rewards and challenges. Keeping up with supply and demand, getting your name out there, competing with the bigger brands, and strengthening your own brand recognition takes time, energy, and a lot of know-how. Fortunately, Square offers a fantastic POS option for markets and grocery stores that goes way beyond just the swipe.

Read on to find out how Square payment processing tools can benefit your business whether you are opening a pop-up shop, have a brick-and-mortar store, or take your culinary delights on the go to farmer’s markets and trade shows.

Square’s Free Point-Of-Sale Reader & App

Square is best known for the free Square Point of Sale app and the free Square Reader. Square’s iconic white reader plugs into a smartphone or tablet to make mobile payments possible. The Square Point of Sale app allows you to “swipe, dip, or tap payments” whether or not you have an internet signal. If you run into a spotty WiFi connection or have a service interruption, you don’t have to worry about a line bottleneck because the app can securely save data offline.

For the smaller to mid-size shop, the Square Point of Sale app has everything you will need and then some. We dive into all of these features below, so keep reading for a closer look at how Square gives you better control over more parts of your business, from inventory management to sales, employees, and even more.

We’ll also take a look at how Square can also help you completely run or supplement your marketing campaigns with an all-in-one solution that can integrate a loyalty program and private customer feedback. Most of these perks (except for the loyalty program option) are all “in-the-box” features that you won’t pay anything more to use with your free POS Square reader.  Let’s dig in!

Reader eCommerce Retail Food Service
Free App & Reader Square eCommerce Square for Retail Square for Restaurants
Get Started Get Started Get Started Get Started
Free, general-purpose POS software and reader for iOS and Android Easy integration with popular platforms plus API for customization Specialized software for more complex retail stores Specialized software for full-service restaurants
$0/month $0/month $60/month $60/month
Always Free Always Free Free Trial Free Trial

Track Inventory

One thing will never change — people love to eat. However, keeping your supply up-to-date can be a challenge when it comes to balancing the ebb and flow of demand. Your customers come in for a specific product or ingredient; making sure it’s always there for them builds loyalty and trust. Managing inventory can be tricky if you don’t have the right tools.

Thankfully, Square builds inventory management right into their product, so you don’t ever have to think twice about shopping around for a suite of tools. It’s easy to set up your inventory — you can bulk import all of your products with a CSV spreadsheet and make any adjustments to name, prices, or quantities as needed. Once your inventory is saved, you can also set low-stock alerts so that Square will let you know if you’re running low on a product. The best part is that you can determine what constitutes “low stock,” whether that’s six of an item, or 100! You’ll also always be able to take a peek in real time at what — and how much — of your products are selling.

Square’s inventory also supports variants and modifiers. Variants are helpful if you carry a product that comes in different flavors or sizes — you can keep the item listing centralized, but still track quantities of each flavor or size and see which ones are most popular. You can even set different pricing for each variant, as appropriate. Modifiers are more applicable to restaurants and cafes, but if you run a small boutique store and want to upsell customers on special bundles or extra discounted products, you could add them as modifiers.

Square’s inventory system allows you to upload photos for each product, and on a tablet you can configure the layout of products. However, if you don’t like browsing for the right item, you can also attach a barcode scanner. While the free Point of Sale App doesn’t have native label printing, you can find several viable workarounds.

Also, if you sell products in bulk, it’s important to know that Square doesn’t currently support tracking partial increments of a product, or selling by weight. Again, you can find workarounds for this, one of them being the variable price point feature. With the variable price point, you can create an item and track sales, but the POS app will prompt you to enter an amount for the sale when you select the item.

Finally, if you have more than one shop, you can take advantage of the free multi-location inventory management tools. Square allows you to set up individual preferences for each location, including taxes. You can build your inventory from Square’s centralized item catalog and adjust pricing and availability as appropriate. Plus, you can run reports to see sales by location, POS device, or even by individual employee (you’ll need an Employee Management subscription for that last report.) 

The best part is that you can control all of this — every location, all of your inventory, all of your devices — from your Square Dashboard, which is a free web portal. Below we also cover a little bit more about the dashboard — including how it helps you keep track of employee sales, tips, peak sales times, and more.

Square Dashboard

The Square dashboard gives you an integrated look at many aspects of your store — and these reporting and analytics features are all free. You can view your stats in real time and see what is going on in your store — or stores — simply by visiting the Sales tab in the dashboard. Whether you want to dig into the data or you just want a quick visual representation of sales, you can find what you need, fast. You can access reports, view all types of transactions, and keep track of deposits all by quickly scanning the three tabs at the top of your dashboard.

The reports tab breaks all of your data down into simple graphs and data to view aspects of your shop, including:

  • Sales Summary: Your sales summary report is updated in real time and can be viewed by day, month, or year.
  • Sales Trends: See your sales performance in daily, weekly, or yearly views.
  • Payments Methods: This report displays how your customers pay and any fees associated with the transaction.
  • Item Sales: Allows you to find out how well any individual product is selling.
  • Category Sales: Get a quick pie-chart view of which categories are bringing in the most sales such as appetizers, side dishes, or drinks, for example.
  • Employee Sales: This report breaks down tips, hours worked, and when an employee’s sales peaked for the day. (Note: You need to subscribe to Square’s Employee Management to access these features)
  • Discounts: Running a promotion? This report tells you how often your customers use a discount, coupon, or another offer when they buy. (More about loyalty programs through Square later in the post.)
  • Taxes: This report breaks all of your tax information down by the type, amount, and records any non-taxable sales in one spot.

Square also allows you to create your own custom reports, so if you want to see certain pieces of information together, you can tell Square to compile that report for you, and even how often to send it.

Don’t forget that the Dashboard is also the centralized management hub for all of your other Square services, including invoicing, employee management or payroll, and any other tools you might be using.

Built-In Marketing Engagement

One of the interesting aspects of Square’s platform is its customer engagement tools, the foundation of which is the customer directory. With Square POS, you can keep a record of all your customers, with their name, phone number, email, purchase history, and even card details, if you prefer (and your customers agree to store the card on file). You don’t need to have Square’s loyalty program to activate this feature, and it comes at no charge. It’s a great way to keep notes on regular customers and their preferences, to see who your most loyal customers are and who spends the most money in your store. 

If you’d like to build marketing campaigns to reach out to your regulars, your new customers, or even lapsed customers, Square has the tools built right in, plus all of the data right at your fingertips. Square’s marketing services start at $15/month, which is a pretty reasonable price. The price will scale with your use of the marketing services.

With the marketing tools, you can segment your customer list and target people automatically with offers to get them in the door. So whether you are welcoming a new customer or re-engaging a customer you haven’t seen in a while with a with a special discount, Square lets you tailor your marketing message to people at different spots in the buying journey.

The email tools are simple — you don’t have to understand how to set up multiple campaigns because Square streamlines the creation process for you through prompts. They give you a lot of template designs to choose from and even have some holiday and special occasion suggestions. You can send out a one-time email for a birthday or set up recurring email campaigns that encourage more interaction and more opportunities to buy from you — it all depends on how you want to run your business. 

Finally, when it’s time to review the success of your email campaigns, Square reports show you how many opens and clicks you get, as well as how many people redeem your offer.

Receive & Manage Feedback Privately

The Feedback feature can be helpful if you want a way to take charge of the customer experience and try to eliminate the troubles they encounter. It allows you to personally engage your customers — while keeping everything private. When you enable feedback management, customers who receive digital receipts also receive an invite to provide private feedback about their experience.

You can then resolve any issues between just you and your customer and hopefully make them happier and engaged. The idea behind this is that it is much easier to respond to private feedback than having to keep track of and respond to negative public feedback. Most customers appreciate being acknowledged whether the experience was good or bad, and if you do have an unhappy customer, you can make it right with a full/partial refund or a coupon for a discount on their next purchase. You can check the customer database to see what their purchase history is like and make a determination of the best offer to send. 

Best of all, the feedback management feature is totally free to use!

Square Loyalty Program

Square encourages customer engagement and sales in yet another way — a loyalty program. The pricing structure of Square’s loyalty program is based on the number of loyalty visits, starting at $25/month. Costs automatically adjust with the participation of your customers, and you can always track the success of any program at your dashboard to see if you’re getting your money’s worth.

Square’s loyalty program is very flexible and allows you to tailor rewards to your business and your branding. You can opt for something as simple as a digital punch card, where customers earn a reward after so many purchases, or you can structure a more advanced reward system that allows your customers to collect points and cash in their rewards when they want. You can even let them choose from multiple tiers — they could opt for two lower-tier rewards, or spend all their points on a single higher-tiered reward. 

However you choose to structure your rewards program, you can track the performance on your dashboard. You can see how many customers enroll, how often customers redeem rewards, and how many subsequent repeat visits you’re getting. 

According to Square, customers who join their loyalty programs spend 37% more after they join it. Across the board, loyalty programs continue to work for businesses of every size to encourage repeat business, and we think that it’s definitely worth giving it a try for a while and seeing if it works for your business.

Fully PCI Compliant & Secure

When dealing with credit card processing companies, one of the biggest questions most business owners have has to do with safety and security. You want to know that your data is secure and your customer’s payment information isn’t going to be compromised, because when it all boils down, the burden is on you to make sure that you are PCI compliant. “PCI” is shorthand for the Payment Card Industry Data Security Standard (also sometimes called PCI DSS). No matter how big or small your business is, if you accept credit cards, you have to follow the best practices of the industry when it comes to security — and you can face penalties if you don’t.

To remain secure and compliant for each credit card you take, you have to follow the security guidelines when you swipe, key in, store, or transmit their card data. For starters, data must be encrypted properly at each stage of processing and storage, and each year the standards change.

The whole security and compliance issue can be expensive for the smaller to midsize business, and for some, the issue is intimidating enough that they avoid credit card payments altogether.

The great news is that when Square offers you their product or service, they are taking the burden of PCI compliance on themselves when it comes to their hardware and app. Square is an industry leader in security and compliance. Their team participates on the PCI board itself and has an inside view into the ever-changing world of data security. What that means for you is that when you use Square, you don’t have to jump through any other security hoops — Square maintains PCI compliance and does the work for you. You won’t even need to pay any PCI compliance fees. 

Cost Per Swipe & Getting Started With Square

Getting started with the Square POS app and the reader you will use to swipe your customer’s cards is entirely free. Square continues to remain a favorite among small business owners because they don’t charge sign-on or monthly fees for their free POS reader or app — and they don’t make you sign contracts and punish you with charges if you decide it’s not for you.

If you bring your own smartphone or tablet and combine it with one of Square’s mobile card readers, you’ll pay 2.75% for each swiped, dipped, or tapped transaction. If you opt for one of Square’s all-in-one hardware systems, such as Square Terminal or Square Register, you’ll pay slightly different rates. With Square Terminal, swiped, dipped, or tapped transactions process at 2.6% + $0.10 per transaction.  If you want to know more about all of Square’s different card readers and hardware, check out A Guide to Square’s Credit Card Readers and POS Bundles.

Considering that these are pretty low rates to begin with, and there are so many additional built-in features like dashboard analytics, invoicing, the customer database, and inventory management, we think that is a pretty sweet deal for any grocery store looking to expand.

If you are curious and want to dig even deeper, check out our Square review or visit the Square Point of Sale page and sign up for free to see how it all works for yourself!

Reader eCommerce Retail Food Service
Free App & Reader Square eCommerce Square for Retail Square for Restaurants
Get Started Get Started Get Started Get Started
Free, general-purpose POS software and reader for iOS and Android Easy integration with popular platforms plus API for customization Specialized software for more complex retail stores Specialized software for full-service restaurants
$0/month $0/month $60/month $60/month
Always Free Always Free Free Trial Free Trial

The post Why Square Is A Great Free POS For Markets And Grocery Stores appeared first on Merchant Maverick.

“”

The Best CBD Oil Merchant Account Providers

CBD oil

What are CBD oils? Perhaps you’ve heard of this new class of products, and you’re curious about what they are and what benefits they can offer you. Maybe you’re also interested in opening a business that sells CBD-derived products, and you’d like to know more about the special requirements you’ll need to meet in order to be successful. Well, we’re here to help! Cannabidiol (or CBD) is a substance (or phytocannabinoid, to be more precise) that’s derived from hemp (Cannabis sativa) plants.

Now, you’re probably already aware that marijuana is also derived from Cannabis plants. The major difference between CBD products and marijuana is that the former contain little or no THC or any of the other psychoactive ingredients that marijuana contains. In other words, CBD products won’t get you “high.” Despite this rather obvious distinction, CBD-based products have been illegal under Federal law until very recently. In fact, as of the time of this writing, they’re only legal under certain specific conditions.

Although medical marijuana and, by extension, CBD products are now legal in many US states, most banks and credit card processors have been extremely reluctant to approve CBD oil businesses for merchant accounts, and many such businesses have had their accounts suddenly closed without notice. In this article, we’ll update you on the current (as of January 2019) legal status of CBD products and recommend several merchant account providers that accept businesses selling CBD products.

Legal Issues In The CBD Oil Industry

Until just a few weeks ago, CBD-based products were still listed as Schedule I drugs by the Drug Enforcement Agency (DEA), effectively prohibiting their sale, transportation, or use under Federal law. However, many states (33 as of this writing) have passed medical marijuana laws which legalized the use of marijuana and CBD-based products for medicinal purposes. Several other states have gone even further, legalizing marijuana for recreational purposes and removing all prohibitions against CBD-based products.

The recently-passed 2018 Farm Bill changes all of that. Under this legislation, which was signed into law on December 20, 2018, hemp-based products (defined as containing less than 0.3% THC) are now removed from the Schedule I list of controlled substances. However, you must be a licensed grower and comply with all applicable Federal and state laws to produce and sell your product legally. With so many variations in state laws, it’s well beyond the scope of this article to attempt to cover them all. We recommend that you look into the laws of your state and consult with an attorney or qualified consultant to determine the specific requirements that apply to your business.

Needless to say, selling a product that can potentially still be illegal under Federal law makes it very difficult to get approved for a merchant account. Only a small number of high-risk specialists accept CBD businesses, and in many cases, they’ll require you to obtain an offshore merchant account. Of the small number of providers that do accept CBD merchants, there are only a few that we feel comfortable recommending, and we’ll profile them below. Desperate CBD merchants have tried using PayPal or Square (see our review), but this strategy inevitably involves being dishonest about the nature of your business, and providers won’t hesitate to shut you down if and when they catch you.

Before the passage of the 2018 Farm Bill, the Food and Drug Administration (FDA) considered it illegal to sell or transport CBD products across state lines. This made it nearly impossible to sell CBD products legally through a website, and many eCommerce-focused high-risk providers were reluctant to accept CBD merchants. The new law eases many of these concerns, so we anticipate that the opportunities for CBD merchants to obtain a merchant account will improve dramatically in the coming year. In the past, we’ve seen reports of banks and credit card processors suddenly deciding to shut down accounts en masse, leaving many CBD merchants in the lurch. This situation should improve considerably with the recent legalization of hemp-based products.

For the time being, we’re going to confine our recommendations to processors that we know already accept CBD merchants and that have a strong reputation for providing fair prices and honest service. As legal limitations on CBD products continue to be rolled back, CBD merchants should find expanded opportunities to get approved for merchant accounts. At the same time, you can still expect to be assigned a high-risk merchant account for now. Until the day arrives when CBD products are fully legalized in all 50 states, we don’t anticipate that low-risk merchant accounts will become available.

What Makes A Good High-Risk Merchant Account Provider?

Finding a good high-risk merchant account provider involves the same criteria as a low-risk provider – it’s just harder to find a provider that offers the right combination of reasonable prices, fair contract terms, and high-quality customer service.

  • Pricing: The bottom line here is that any high-risk merchant account is going to cost significantly more than a comparable low-risk one. Be prepared to have to accept a tiered pricing model (although some established businesses might be able to negotiate a more affordable interchange-plus model). You can also expect to be charged higher monthly and annual fees as well, although the difference in these costs isn’t as much as it is with processing rates. Another additional “expense” that most high-risk merchants have to contend with is a rolling reserve, where your processor withholds a certain percentage of your funds every month until the reserve is met. While you’ll eventually receive all your money, rolling reserves can create serious cash flow problems for a small or newly-established business.
  • Contracts: We really like month-to-month billing arrangements that don’t lock you into a long-term contract or force you to pay an early termination fee (ETF) if you close your account early. Unfortunately, CBD merchants (like any other high-risk merchants) will usually have to accept both a long-term contract (typically for three years) and an ETF. Also, be aware that if you have a long-term contract, it will probably also include an automatic renewal clause that extends your contract, typically for one-year periods at a time. If you don’t keep careful track of when your contract is scheduled to auto-renew, you might find yourself locked in for another year or longer.
  • Hardware: If you plan to sell CBD products out of a retail location, you’ll need either a dedicated countertop credit card terminal or a mobile processing system that uses your smartphone or tablet in conjunction with a mobile card reader. Your terminal should be able to accept both magstripe and EMV payments at a minimum, and we also recommend that you consider getting a terminal with NFC-based capabilities so that you can take payment methods such as Apple Pay and Android Pay. For some specific recommendations, check out our article, The Best Credit Card Machines And Terminals. We also highly recommend that you purchase your terminals outright rather than leasing your equipment. Leasing arrangements lock you into noncancelable long-term contracts, and you’ll wind up paying several times more in leasing fees than what your machine is actually worth.
  • eCommerce Support: Naturally, you’ll want to be able to sell your CBD products to as many customers as possible, and selling via a website allows you to do that. As we’ve noted above, there are still some significant restrictions on selling CBD products across state lines that you’ll want to be aware of before you launch your website. At the same time, the recent legalization of hemp-based products is going to open up eCommerce opportunities that weren’t there just a few months ago. All of our recommended providers can set you up with a high-quality payment gateway that will allow you to process transactions over the internet and significantly expand the reach of your business. As not all states have relaxed their marijuana laws, you’ll want to find a gateway that will automatically filter out customer addresses where CBD products are still illegal.
  • Customer Support: In researching dozens of merchant account providers, we’ve found that high-quality customer service is the true “secret ingredient” that separates the merely average providers from the truly outstanding ones. Customer support issues occur more frequently with CBD and other high-risk merchants, so you’ll want to pay particular attention to a provider’s reputation in this area.

Best Merchant Account Providers For CBD Oil

With the above factors in mind, here’s a brief overview of five of the best merchant account providers in the industry that accept CBD merchants:

Easy Pay Direct

Easy Pay Direct logo

Easy Pay Direct is headquartered in Austin, Texas and has been in business since 2000. The company provides merchant accounts for both low-risk and high-risk businesses, and is one of the few providers to advertise service for CBD merchants. The company’s primary product is their proprietary EPD Gateway. While you’ll have to pay a premium in terms of processing rates and account fees, you’ll be set up with a domestic bank or credit card processor. They’re also one of the very few CBD providers to disclose their rates and fees on their website.

You will probably have to pay a $99 account setup fee to get started. While we normally don’t approve of this kind of fee, it’s appropriate in this case given the more extensive effort required to underwrite a CBD account. Processing rates start at a flat 3.95% + $0.25 per transaction, although lower rates are available if your business meets certain monthly processing volume limits. There’s also a $29.99 monthly account fee, but this appears to include the use of the EPD Gateway. You can also expect a standard contract with a three-year initial term that automatically renews for one-year periods after that. One very positive feature about Easy Pay Direct’s contracts is that they do not have an early termination fee, even for high-risk businesses. While this isn’t quite the same thing as true month-to-month billing, it does make it much easier to close your account without penalty if you have to.

One helpful feature offered by Easy Pay Direct is called load balancing, where a business can divide its incoming funds among multiple merchant accounts. This is particularly helpful for high-risk businesses that often exceed the monthly processing volume limits imposed by the processor underwriting their account. Just be aware that you’ll usually have to pay separate monthly fees for each account, so it might not be cost-effective for some merchants. Also, be aware that you might not need this feature if you opt for an offshore account. Underwriting guidelines in some (but by no means all) foreign countries are more relaxed than they are in the United States, and you might not have a monthly processing limit imposed on your account at all.

Although Easy Pay Direct doesn’t get as much attention as other, better-known processors, it’s a solid choice for merchants selling CBD products. We particularly recommend the company for eCommerce merchants due to the robust feature set of their EPD Gateway.

Pros

  • No early termination fee
  • Load balancing feature allows higher monthly processing limits
  • High-quality proprietary payment gateway

Cons

  • $99 account setup fee
  • Three-year contract with automatic renewal clause

Check out our full review of Easy Pay Direct for more information.

SMB Global

SMB Global logo

SMB Global is a new high-risk provider that was spun off from one of our favorite providers, Payline Data, in 2016. Headquartered in South Jordan, Utah, the company specializes in providing merchant accounts to high-risk and offshore businesses. Using a variety of backend processors, they’re able to approve a merchant account for almost any high-risk business, including those selling CBD oils. They have an excellent reputation for fair prices and top-notch customer service.

As a newly-established business, SMB Global is still a little rough around the edges, lacking a mobile processing system and credit card terminals for retail merchants. At the same time, they offer a full range of services for eCommerce merchants, including a choice between the NMI Gateway and Authorize.Net (see our review).

Because they work with so many banks and processors to get you approved for an account, the company doesn’t offer any specific pricing information. Processing rates, account fees, and contract terms will all vary widely depending on which backend processor is handling your account. While we highly recommend that you request an interchange-plus pricing plan, be prepared to have to accept a tiered plan instead, particularly if you haven’t been in business for very long. Likewise, you can also expect to have a standard three-year contract with an automatic renewal clause and an early termination fee if you close your account early. As a CBD oil merchant, you should be prepared to have a rolling reserve included in your account agreement.

SMB Global requires a minimum processing volume of $50,000 per month for an offshore merchant account, which can present a formidable barrier to a newly-established CBD business. The company will occasionally waive this requirement if your business has a very strong financial history. Offshore accounts support multi-currency processing, allowing you to avoid cross-border fees. They also feature dynamic currency conversion, letting your customers pay in either their local currency or the currency in which you bill them. SMB Global appears to accept CBD merchants only through offshore accounts at this time, although this could change quickly with the recent deregulation of hemp-based products.

Pros

  • Accepts CBD businesses through offshore merchant accounts
  • Reasonable pricing and contract terms
  • Excellent customer service

Cons

  • Requires minimum $50,000 monthly processing volume for offshore account
  • No mobile processing system at this time
  • No information available about credit card terminals or POS systems

For a more detailed look at SMB Global, be sure to check out our full review.

PaymentCloud

PaymentCloud review logo

PaymentCloud is headquartered in Sherman Oaks, California, and has been in business since 2010. The company specializes in placing high-risk businesses (including CBD oil merchants), relying on a network of third-party processors and acquiring banks both in the United States and offshore to get you approved for an account. While they can’t place every merchant for one reason or another, they have a higher success rate than many of their competitors in getting merchants approved for an account. Best of all, they do the extra work required to accept a high-risk account without charging you any application or account setup fees.

Like almost all high-risk specialists, the company doesn’t disclose its processing rates or account fees, so you’ll have to get a quote from their sales team and do a little negotiating to see how their offer stacks up against other providers. For retail merchants, they’ve de-emphasized expensive credit card terminal leases and now offer a “free” EMV-compliant terminal with each account. Note that in this case, “free” means you’re free to use it for as long as you maintain your account, not that you can keep it even if you later close your account or switch providers. Nonetheless, it’s a pretty good deal if you’re a small CBD business owner who only needs one terminal.

PaymentCloud also offers Authorize.Net as their payment gateway, although their system is compatible with other third-party gateways as well. Additionally, they provide a free virtual terminal with each account. While their line-up of products and services isn’t as robust as some other providers, they offer all the essentials you’ll need for a small or medium-sized CBD oil business.

The company doesn’t have a BBB profile, and we’ve found almost no complaints against them on the internet. Feedback from our readers has been overwhelmingly positive – something that’s quite rare in the processing world.

Lastly, PaymentCloud is now recommended by one of our favorite low-risk providers, Dharma Merchant Services (see our review). Dharma recently decided to stop accepting high-risk merchants themselves, and now refers inquiries from businesses in the high-risk category to PaymentCloud. To us, a recommendation from a company as highly respected as Dharma carries a lot of weight, and we give PaymentCloud a strong endorsement as well.

Pros

  • No application or account setup fees
  • “Free” credit card terminal with each retail account
  • Dedicated account manager for customer support

Cons

  • May require offshore account for CBD merchants
  • No online knowledgebase

Be sure to read our full review of PaymentCloud for more details.

eMerchant Broker

eMerchantBroker logo

Los Angeles, California-based eMerchant Broker has been in business since 2011 and is one of the few reputable high-risk merchant account providers that was deliberately marketing to the CBD oil industry before the recent deregulation of hemp products. Although the company has a reputation for charging above-average processing rates and account fees, we’re very impressed with their efforts to educate CBD oil merchants on the ins and outs of high-risk processing. Many CBD merchants are also new to running a business, so the information that eMerchant Broker provides, particularly about chargebacks, is very educational. Even if you don’t sign up with them, we highly recommend that you take a look at the eMerchant Broker website for detailed information about high-risk processing in general, as well as specific issues unique to the CBD oil industry.

eMerchant Broker offers a reasonable lineup of products and services that you’ll need in addition to a high-risk merchant account. Their proprietary eMB Payment Gateway offers an impressive set of features, and they also support Authorize.Net and other popular third-party gateways. The company mainly supports eCommerce and doesn’t appear to offer any credit card terminals or mobile processing systems. They should, however, be able to integrate their processing system with third-party products if you need them.

Don’t expect to save money with eMerchant Broker. They appear to mainly use tiered pricing plans, although interchange-plus pricing might be available to some merchants. The only rate they advertise – 2.99% — represents the lowest available qualified rate. In most cases, your actual rate will be much higher. You can also expect to be saddled with a standard three-year contract with an automatic renewal clause and an early termination fee. Fortunately, they don’t charge application fees, setup fees, or annual fees. Be sure to review your contract thoroughly before signing up, so you’re clear on the assortment of fees you will have to pay.

eMerchant Broker has a good reputation with the BBB and a low complaint volume. Reports from our readers have been mixed, with some praise for their ethical, well-trained sales staff, and some criticism for their customer service department. All in all, eMerchant Broker rates as an above-average high-risk provider, and we’re comfortable recommending them for your CBD oil business.

Pros

  • No application or account setup fees
  • No annual fee
  • Good sales practices

Cons

  • Expensive tiered pricing processing rate plans
  • Long-term contract with early termination fee
  • Some complaints about customer service

For more information about eMerchant Broker, check out our full review.

PayWize

PayWize logo

Another company you should consider in your search for a CBD oil merchant account provider is PayWize. This very small provider is based in Costa Mesa, California and has only been in business since 2017. However, they’re affiliated with Payment Depot (see our review), one of our top choices for low-risk businesses.

At the moment, PayWize offers just a simple, one-page website. However, it does include some significant disclosures that help to set it apart from other high-risk providers. The company markets primarily to medical marijuana dispensaries and CBD oil merchants, so they have more specialized knowledge of the unique issues affecting this industry than many of their competitors.

PayWize offers predictable flat-rate pricing, although they don’t disclose specific rates. Flat-rate pricing is popular among merchants who want to always know in advance how much they’ll pay to process a transaction. At the same time, this pricing model can become very expensive for a large business that has a high monthly processing volume (typically over $5,000 per month). The company also claims not to impose any rolling reserves, which is a real plus for a business that’s just starting up. PayWize offers several credit card terminals and a payment gateway, but discloses very little information about them. Their gateway integrates with a large number of popular online shopping carts, including Shopify, WooCommerce, and many others.

We haven’t produced a full review of PayWize yet, but based on their association with Payment Depot, we’re willing to recommend that you check them out and compare what they have to offer against any quotes from other providers that you obtain.

Pros

  • Predictable flat-rate pricing
  • Appears to offer month-to-month billing
  • Extensive compatibility with third-party online shopping carts

Cons

  • New company with little online feedback from merchants

Final Thoughts

With the very recent deregulation of hemp products by the Federal government, 2019 is shaping up to be a breakout year for the CBD oil industry. Your chances of getting approved for a merchant account have never been better, and it should get even easier as acquiring banks and credit card processors adjust their underwriting guidelines to reflect the diminished risk associated with CBD oils – and cash in on a booming new industry. At the same time, we don’t expect that CBD oils will be treated as a low-risk business any time soon. With products such as diet pills and nutritional supplements still firmly in the high-risk “nutraceutical” category, CBD merchants can expect to have to pay the extra cost of maintaining a high-risk merchant account for the foreseeable future. The only way we see this situation changing is if the Food and Drug Administration ever formally backs up the claims CBD merchants make as to the medicinal value of their products.

In addition to opening the floodgates so more high-risk merchant account providers can accept CBD merchants, the recent deregulation should make it easier to obtain a domestic merchant account rather than having to take on the additional risk and expense of an offshore account. Unless you specifically need to get around monthly processing limits imposed by your provider for a domestic account, we don’t recommend offshore accounts. The added expense and the risk that you might never receive your funds make them a poor choice for most merchants. However, if you do need an offshore account, check out our article The Best Offshore Merchant Account Providers for some recommendations.

Of the five providers we’ve covered in this article, Easy Pay Direct and SMB Global have the best overall reputations for fair pricing and quality service. However, we recommend that you obtain quotes from several providers and compare them closely before deciding which one to sign up with. Also, remember that the CBD oil industry is changing very rapidly now, so there inevitably will be more providers offering merchant accounts to CBD merchants in the coming years than just the ones we’ve profiled here. Finally, if you’re a CBD oil merchant and have had any experience working with the companies listed in this article – or other providers – be sure to tell us about your experience in the Comments section below. Thanks!

The post The Best CBD Oil Merchant Account Providers appeared first on Merchant Maverick.

“”