Merchant Services (Payment Processing) is a crucial part of any business that accepts credit and debit card payments. However, there are a lot of myths surrounding merchant services that can create confusion and lead business owners to make incorrect decisions. In this article, we will address some of the most common myths about merchant services and debunk them.
Merchant services are financial services that help businesses accept electronic payments from customers.
Payment processing is part of merchant services and involves securely managing electronic transactions, sales, refunds, as well as deposits and reconciling funds. Methods for payment processing include point-of-sale (POS) systems, online payment gateways, and mobile payment solutions.
Myth #1
“Merchant services are only for large businesses”
Many small business owners assume that merchant services are only for large corporations, but this is not true. In fact, merchant services are available for businesses of all sizes, including Sole Proprietors, freelancers, and small businesses. Regardless of the size of your business, accepting credit and debit card payments can improve your cash flow and provide a convenient payment option for your customers. There are many options in the market and this is where KIS Payments can assist in find the right solution for your business.
Myth #2
“Merchant services are expensive”
While it is true that some merchant service providers charge high fees, think of Square, Stripe, and PayPal which each charge 2.65% or more! There are many affordable options from great companies out there. Before choosing a merchant service provider, it is important to research and compare different providers and how they charge for merchants services to find the best option for your business.
KIS Payments offers affordable options that are tailored to your business vertical and technology needs. We at KIS have 4 pricing models available for our clients including Cost Plus (also called Interchange Plus), Cash Discounting, Dual Pricing, and Surcharging. Reach out and find out which is right for your business.
Myth #3
“Merchant services are difficult to set up”
Many business owners assume that setting up merchant services is a complicated process, but this is not true. Most merchant service providers offer easy-to-use tools and resources to help business owners set up their accounts quickly and easily. Many providers also offer 24/7 customer support to assist with any questions or issues that may arise.
Our Account Advisors will guide you through the initial account set up, backend overview and lastly performing a transaction on your hardware/software so you are prepared and have the knowledge needed before running even your first transaction! We also provide on-going training & support, and account reviews to ensure you have what you need to run your business.
Myth #4
“Cash is still the most popular payment method”
While cash is still a common payment method, credit and debit card payments have become increasingly popular in recent years. According to a study by the Financial Consumer Agency of Canada, debit and credit card payments accounted for 83% of all non-cash payments in 2022. Accepting credit and debit card payments will help your business reach a wider audience and increase sales.
- 43% of Canadians agree the COVID-19 pandemic has changed their payment preferences to digital and contactless for the long-term.
- The value of eCommerce sales transactions between January and March were DOUBLE that for the same period in 2020 and grew by 5% year-over-year.
Myth #5
“Merchant services are not secure”
Security is a major concern for many business owners when it comes to accepting credit and debit card payments. However, KIS Payments and it’s partners have taken extensive measures to ensure the security of our systems and protect against fraud. KIS Payments works with providers that use industry leading encryption technology to protect sensitive data and adhere to or surpass the industry standard.
Properly protecting your business from security breaches potentially saves you tens of thousands of dollars or more in lost income. Businesses of any size are at risk of hackers and data breaches that could ruin all you have worked for. PCI compliance can be complicated, but KIS Payments is always working to keep your business compliant, so you can rest easy knowing that you are protected.
In conclusion, merchant services are a valuable tool for businesses of all sizes that accept credit and debit card payments. By debunking these common myths, business owners can make informed decisions about their payment processing needs and choose the best provider for their business.
