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North American Bancard
Thursday, January 05 2023
EDGE Cash Discount Program: Defeating Processing Cost and Providing Even More Value to Business Owners

If you ask any business owner about the costs of accepting payments, one of the first things that they will tell you is that they feel that the fee they pay to process credit cards and other plastic is unfair and high. Given the chance, any one of these business owners would eliminate the cost and charge their customers for it. Until now, there has never been an easy way to do this without angering the customer and causing strife in their business. Furthermore, consumers in the modern world are heavily incentivized to use their plastic to pay for products for many reasons. To defeat this, you need to be able to present your business clients with a program that is equally as lucrative for them and their customers. The EDGE Cash Discount program is this system.

The problem merchants face with credit card payments

As you know, processing companies make most of their revenue from charging a percentage of each transaction. Typically, merchants will absorb this cost and deal with it as a cost of doing business. There is not an easy way to explain having to raise prices for those that pay with plastic, so the transaction cost cuts into the margin for the merchant and makes it harder to do business with high margins. Accepting cash is preferable because it offers higher margins, but people are heavily leaning towards card payments and are even incentivized with rewards programs and signup bonuses to use plastic as opposed to having to carry around cash.

 

Traditionally, merchants would charge the same amount to both their cash-paying customers and their card-paying customers. This makes things rather unfair to those that are paying with cash, as they are paying the same as someone else who pays with cards, which costs the merchant a high percentage to process. This less-than-ideal situation is what has led many merchants to seek out a different option. The EDGE cash discount program allows merchants to charge the same sticker price to both customers, but keep the same margin, as well.

 

Selling the EDGE Cash Discount Program

Remember how we said earlier on that merchants would love to pass the credit card processing cost onto the customer? Well, it's now possible with the EDGE program. The EDGE Cash Discount Program is an easy way to allow business owners to keep equal margins for any payment method and make pricing products that much easier. With the EDGE program, merchants won't have to worry about which payment methods their customers use most because they will be achieving the same profit either way.

 

In short, this program allows merchants to essentially wipe out processing cost in their store for all card payments. The program is implemented in a way that advertises it as a rewards program for cash instead of simply charging more for those that choose to use their card. For merchants, getting over the hump of advertising this program is the biggest hurdle. Once merchants realize that it will have no noticeable effect on foot traffic and revenue, it becomes an easy jump to make.

 

What’s included in this program?

One of the largest concerns that business owners have when implementing this program is the procedure change that must occur and how that change is presented to their customers. Luckily, the materials that are included in the program make it an easy transition and results in minimal disruption.

 

For starters, this program includes EDGE cash discounting software, which is a program that will automate all of the repricings that have to occur at checkout depending on which payment method the customer decides to use. This reduces the amount of time and labor that the business owner will have to spend, streamlining operations and making the transition anything but a burden on the daily operations of the business.

 

To explain the slight change to their customers and advertise the cash discount program, there will also be signage and literature explaining the program and how the pricing works so that the business owner can adequately inform the customers about the changes and ensure that there is no confusion. The business owner benefits from this information and incentivization, which could drive more customers to use cash because of the perceived benefits.

 

Finally, all of the equipment that is needed to facilitate this change can be provided to the merchant in this program. This includes POS systems and other technical equipment that is needed to facilitate the repricing and restructuring of transactions and how totals are calculated.

 

With these tools, merchants will have everything that they need to implement the EDGE cash discount program and increase their margins without a noticeable disruption in the checkout flow. Merchants won't have many reasons to resist this change and with a trustworthy rep to walk them through the process, they should see only benefits from the new system.

Posted by: Scott Shaw AT 09:53 pm   |  Permalink   |  Email

How to Start a Payment Processing Business?

Starting a payment processing business can be a lucrative venture, but it requires careful planning and consideration. The first step in starting a payment processing business is to conduct thorough market research to understand the demand for payment processing services in your target market. This research can help you identify potential competitors, determine pricing strategies, and pinpoint the needs of your target customers. Once you have a solid understanding of the market, you can begin to create a business plan that outlines your goals, target market, revenue projections, and marketing strategies.

After developing a business plan, the next step in starting a payment processing business is to choose a payment processor to partner with. This partnership is crucial, as the payment processor will handle the actual processing of transactions, so it is important to choose a reliable and reputable company. Additionally, you will need to secure any necessary licenses and permits to legally operate your business. Once you have everything in place, you can begin marketing your services to potential clients and building relationships with merchants who may benefit from your payment processing solutions. With hard work, dedication, and a strong business plan, you can successfully launch and grow a payment processing business.

With the rapid growth of e-commerce and online transactions, the demand for payment processing services has increased substantially. White label payment processing is a business model where a company offers payment processing services to merchants under their own brand name.

What is White Label Payment Processing?

White label payment processing is a service where a company provides payment processing services to merchants under their own branding. This means that the merchant will see the payment processor's branding, but the processing service is actually provided by a third-party company.

The white label payment provider takes care of all the technical aspects of payment processing, including payment gateways, security, and compliance, while the merchant focuses on growing their business.

Advantages of White Label Payment Processing:

  • Flexibility: White label payment processing allows merchants to customize the payment process to meet their specific requirements.
  • Branding: Merchants can ensure that the payment process aligns with their brand image, enhancing customer trust and loyalty.
  • Cost-effective: White label payment processing eliminates the need for merchants to invest in developing their payment processing system, saving them time and money.
  • Technical support: White label payment processing providers offer technical support to merchants, ensuring a smooth payment process.

How to Start Your Own Payment Processing Company

  • Research the Market: Before starting your payment processing company, it's crucial to research the market to understand the demand, competition, and potential opportunities.
  • Develop a Business Plan: Create a detailed business plan outlining your target market, revenue model, marketing strategy, and financial projections.
  • Obtain the Necessary Licenses: To operate a payment processing company, you will need to obtain licenses from regulatory authorities. Ensure you comply with all legal requirements.
  • Choose a White Label Payment Processing Provider: Select a white label payment processing provider that meets your requirements in terms of features, pricing, and customer support.
  • Customize Your Branding: Customize the payment processing service with your branding and integrate it seamlessly with your website or platform.
  • Market Your Services: Promote your payment processing services to merchants through marketing campaigns, partnerships, and networking events.
  • Provide Excellent Customer Support: Offer excellent customer support to merchants to build long-term relationships and grow your business.

How Much Does It Cost to Become a Registered ISO for Merchant Services?

To become a Registered ISO (Independent Sales Organization) for merchant services, there are several costs involved, including:

  • Registration Fees: The registration fee to become an ISO can range from $500 to $5,000, depending on the payment processor and the services offered.
  • Compliance Costs: ISOs are required to comply with industry regulations, which may involve additional costs for training, audits, and certifications.
  • Technology Costs: ISOs need to invest in technology infrastructure, including payment gateways, security systems, and software development.
  • Sales and Marketing Costs: ISOs need to allocate budget for sales and marketing activities to promote their merchant services and attract new clients.
  • Miscellaneous Costs: Other costs may include insurance, legal fees, and operational expenses.

In conclusion, white label payment processing is a valuable business opportunity for entrepreneurs looking to enter the payment processing industry. By partnering with a white label payment processing provider, you can offer payment processing services under your brand name, providing a seamless experience for merchants. Starting your payment processing company requires thorough research, planning, and investment, but with the right strategy and dedication, you can build a successful business in this growing industry.

    Shaw Merchant Group is a registered DBA of EPX, a registered ISO of BMO Harris Bank N.A., Chicago, IL, Fresno First Bank, Fresno, CA, and Citizens Bank N.A., Providence, RI.

    © Shaw Merchant Group, LLC.