Electronic Payments. Adding revenue streams to your operation through the web and your smart phone

Transcription

1 Electronic Payments Adding revenue streams to your operation through the web and your smart phone RCBI (7224)

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5 How much money does the average American carry? 9% do not carry cash on a regular basis 50% of respondents less than $20 70% of men/86% of women less than $50 Only 7% more than $100 Bankrate.com study, released May 12, aspx

6 What is filling this gap?

7 Credit card purchasing Total number of credit card transactions in the U.S. in 2012: 26.2 billion Average value of a credit card transaction in the U.S. in 2012: $94 Total number of debit card transactions in the U.S.: 47 billion in 2012, vs billion in 2003 Total Visa and Mastercard debit card purchase volume in 2012 $1.58 trillion Credit card statistics, industry facts, debt statistics by Daniel P. Ray and Yasmin Ghahremani

8 In 2014, for the first time, the combined volume of digital transactions on mobile handsets and tablets will eclipse that of desktops and laptops.

9 Advantages of mobile payments Possibility of larger sale Instant (or near instant) payment No bounced checks Little or no additional equipment (beyond smartphone/tablet) Ease of use Relatively small transaction fees (when considered with expanded sales)

10 Turn This: Into This:

11 Website Sales through a shopping cart RCBI (7224)

12 Click to edit Master title style Shopping cart How does it work? What does it do for you?

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14 What functions do shopping carts add to websites? Item Selection Tax Calculation Shipping Fees Confirmation Customer Tracking Inventory Management Etc.

15 Options for Shopping Carts Hire a professional consultant for the build-out Expensive Can incur maintenance contract Upside-no on-going transaction fees DIY Cheaper up front, pay more over time Most are pretty intuitive Can add a suite of tools you might be able to afford up front Can be open source or proprietary software

16 Adding e-commerce option to existing website What should I be looking for? Set-Up Cost Maintenance Cost Customization Options Drag and drop itness Marketing Options Intro Period/Free Trial Transaction Fees

17 I have my shopping cart set up... WHAT S NEXT?

18 Payment Gateway The system of computer processes that transfer, verify, submit and receive transaction information to the credit card network on behalf of the merchant, using secure Internet connections. The payment gateway is the infrastructure that allows a merchant to accept credit card and other forms of electronic payments.

19 Items to Consider: Cart Compatibility Payment Card Industry (PCI)-Compliance Card/Currency Support Reoccurring Billing and Phone Order Support Fraud Detection and Prevention Service

20 Gateway Providers PayPal-most popular 2.4% without merchant account Braintree Payments-2.9% plus $0.30/transaction ProPay/Protect Pay-3.40% keyed 2Checkout-2.9% plus $0.30 Amazon-2.9% plus $0.30 (5% + $.05 under $10) WePay-2.9% plus $0.30 for credit card payments and 1% plus $0.30 for bank transfers.

21 Which one do I pick? Start where you are web.com, weebly, wix Many options available as add on Make sure Gateway provider interacts with website/shopping cart host Good reference point for going bigger: Use your VC2 contacts

22 Mobile Payments with your smart phone RCBI (7224)

23 Before starting: What is the first question you have to answer?

24 Mobile Point of Sale is a smartphone, tablet or dedicated wireless device that performs the functions of a cash register or electronic point of sale terminal (POS terminal).

25 Advantages Allows you to accept credit/debit cards which can lead to increased sales Equipment is inexpensive** Easy to use Less risk than accepting checks Relatively low fees associated with process **Assuming you already have a smart phone or tablet

26 Disadvantages Some people may be leery Threat of stolen/lost information Uses your data plan May be limited by location

27 How does it work? Device (usually) and app that work directly through your smart phone Card swipe plugs into your phone Enables you to take credit/debit cards and deposit money to your account Swipe works like a traditional credit card machine at a small fraction of the cost of buying a credit card machine

28 Major Brands Square Intuit GoPayment Phone Swipe Flint New Player in the Game Amazon Local Register

29 Square Founded 2009, Jack Dorsey, Twitter Largest share of the market THE dominant player in this field

30 The Basics for Square Platforms Fees IOS & Android -2.75% cardswipe Next -3.5% + $.15 per day keyed-in transaction Deposit Monthly Funds Minimum/ Maximum Hold funds up to 30 days on sales over $2,000 Live Customer Contract Support No No

31 Square Register Works on tablet Enables off-line buying Synchs with Quickbooks, Xero, and Stitch Labs Ability to do refund from POS Customize tax, tips, loyalty program

32 Hold Funds Policy Algorithm for High Risk Transactions Card Not Present /Keyed-In transactions Up to 30 days in some instances

33 Positives Long established Fixed & clear pricing Free app & device Negatives No live support Long Holds Relatively high percentage of sales Not supported on Windows Phone

34 Intuit GoPayment Owned by same company as Quickbooks, Transitioning name to Quickbooks Payment Quickly gaining on Square market share Same basic functions with free app & card reader

35 The Basics for GoPayment Platforms Fees for Standalone Deposit Monthly Funds Minimum/ Maximum Live Contract Customer Support IOS Android Blackberry Pay as You Go2.4% swiped and 3.4% keyed (+ $.25) Pro Plan-1.75% swiped and 3.15% keyed (+ $.25) $19.95 /monthly.20 batch fee 2-3 days Yes, dedicated telephone customer support line No Minimum High ticket items/high processing volumes $5,000/ month $500/sale Provides warnings None (if you are not already using on an Intuit credit card account)

36 Positives Made to work with QuickBooks Free app & device Transparent about processing limits & uses active notification Good inventory management program Negatives Incredibly complex pricing plan Relatively high fees (if not paying for Pro Plan) Not supported on Windows Phone

37 Flint Newcomer to the field A different thing No card scanner, uses phone s camera Integrates well with Quickbooks

38 The Basics for Flint Platforms Fees for Standalone Deposit Monthly Funds Minimum/ Maximum Live Customer Support IOS & Android 2.95% per credit card swipe 1.95% for debit card swipe No monthly fees No extra charge per swipe Same Day Yes, None phone and support during business hours (10am8pm) MondayFriday No Minimum $1,000 Max Swipe $500 Max keyed Max per week $1,000 Max per week $2,000 Application for higher limits Contract

39 Positives Great Live support during normal business hours No extra hardware Very competitive & clear rate structure Negatives Does not take American Express or Discover Limited inventory management function Can be affected by light

40 PayPal Here New entry from one of the premiere online money transfer companies with 106 million registered users Credit/Background check makes system more reliable Promise faster exchanges and ability to use PayPal payments & checks (not just card swipes/key ins)

41 The Basics for PayPal Here Platforms Fees for Standalone Hold Funds Monthly Minimum/ Maximum Live Customer Support IOS & Android 2.7% per Credit/Debit Card swipe Key-in or Scan Credit/Debit Cards % + $0.15 No monthly fees Free equipment No, same day Keyed in funds over $2,500 in a rolling 7-day period held 30 days. Yes, Phone None number, support, community support, more Contract

42 Positives Works on PayPal s well established system Ability to read checks Very competitive & clear rate structure Takes American Express or Discover Negatives Credit Check Can be affected by light

43 The New Guys

44 Amazon Local Register Builds on incredibly successful parent company Somewhat risky entry for Amazon

45 The Basics for Amazon Local Register Platforms Fees for Standalone Deposit Funds IOS & Android 2.5% per Credit/Debit Card swipe No monthly fees Free equipment* Same Unknown Day at this time. Monthly Minimum/ Maximum Live Customer Support Contract Yes, Phone None number, support, community support, and more.

46 Positives Amazon Supported Introductory Rate Takes American Express or Discover Negatives Very new Upgrade personal account to business account??????

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48 Specific to your business you can compare Square, Go Payment, and PayPal here at this site: com/content/calculators/phone-processingcalculator.php

49 Do your homework. Talk to friends, colleagues, etc. Check them out online Look for reviews

50 Questions? Bill Woodrum RCBI (7224)