Payment processing makes transactions possible, allowing your customers to use cash, checks, cards, or even their mobile devices to purchase their items.
In this guide, we’ll explore the world of market store payment processing, and tell you everything you need to know about payment methods, technologies, and providers. Here’s a look at what we’ll cover:
Let’s get started!
Whether you’re working on your business plan or you're a seasoned retailer, the world of payment processing can seem intimidating.
But understanding the ins and outs of [[industry]] payment processing is critical for making the right decisions.
In this section, we’ll demystify payment processing and explain what a sales transaction is, how payment processors facilitate transactions in your store, and a brief overview of the fees associated with this service.
First, let’s start with two key terms and their definitions:
As payment technologies continue to evolve, your customers have more options than ever before. Along with traditional card and cash payments, they may choose to use a contactless payment method and purchase their groceries using a smartphone or other electronic device that’s compatible with Apple Pay, Google Pay, or other digital wallets.
Later in this guide, we’ll explore why it’s in your store’s best interest to accept a wide variety of payment methods.
Now that we’ve established why payment processing is an essential requirement for successfully running a store, let’s talk about how to secure this service.
To accept payments in your store, you’ll need the help of a payment processing provider. Payment processing providers handle your transactions and ensure that funds are transferred accurately and securely between your customers’ bank accounts and your business’ account.
When it comes to finding a payment processor for your business, you’ve got two main options: outsourcing your payment processing to a third-party provider or securing payment processing through your point of sale (POS) solution.
Regardless of which option you choose, it’s crucial to be aware of the common fees associated with payment processing.
The most important fee to know is your payment processor’s transaction fee. Payment processors generally charge a flat or percentage-based fee for each transaction that takes place in your store.
Pay close attention to transaction fee rates when evaluating payment processing providers, and budget for this cost when carrying out your store’s financial planning.
If you’re worried about the potential burden of payment processing fees, one option to consider is dual pricing. If you choose to implement a dual pricing policy in your store, you’ll pass on the cost of transaction fees to your customers who choose to use a card, while offering a slight discount to your cash-carrying customers.
Before launching a dual pricing policy in your store, make sure to understand the legal implications and research your state and local laws to ensure dual pricing is permitted in your area.
Imagine that one of your most loyal customers approaches the checkout counter with a full cart or basket — only to realize that they’ve forgotten their wallet at home! You don’t want to have to turn them away because your store doesn’t accept mobile payments, right?
This example is just one of the reasons why it’s important to be flexible and accept a wide variety of payment methods.
In this section, we’ll talk about the different types of payments that you should plan to accept in your store — and the hardware you need to process these transactions.
Let’s start with the type of payment processing you’re probably the most familiar with.
As consumers move away from carrying cash, accepting credit and debit card payments is an absolute must for retailers — [[industry]] included.
To effectively accept these payments, you’ll need a credit and debit card processor. This provider acts as the bridge between your store’s bank account and your customers’ account, facilitating the transfer of funds when your shoppers make a purchase.
When evaluating card processors, here are a few key requirements to keep in mind:
We’ll give a more detailed explanation of how to choose the right credit card processing provider later in this guide, so stay tuned.
Contactless payments have surged in popularity in recent years — and the momentum won’t be stopping anytime soon. Experts predict that contactless payments will grow 130 percent in the next few years!
Before we dive into the advantages of accepting contactless payment, let’s briefly cover what contactless payment is.
Contactless payment allows customers to complete a transaction without physically inserting or swiping their card into your store’s PIN pad. Instead, they can simply tap their card or their mobile device to pay for their items.
Choosing a contactless and eWallet processor to accept tap-to-pay, Apple Pay, Google Pay, and Samsung Pay has several benefits for you and your customers, including:
Accepting contactless payment is crucial for future-proofing your business and ensuring the most convenient experience for your customers, so make sure that your payment processing solution allows you to accept this payment method.
While checks might seem like a relic of the past, many shoppers still prefer this payment method over more modern options. To appeal to the widest possible range of customers, choose a processor that allows you to accept checks quickly and easily.
Let’s take a look at the two main factors to consider when choosing a check processor:
Choosing a fast, reliable check processor that integrates with your POS system will prevent costly slowdowns in your checkout wait times — and give your customers the widest range of payment options.
When your team members provide service that goes above and beyond, your customers want the option to show their appreciation by leaving a tip.
Fortunately, the right payment processor makes it easy for customers to add a custom tip or choose a pre-selected amount at the terminal during checkout.
At the end of the day or when it’s time to do payroll, you can use your payment processing solution’s reports to ensure that the right tip amounts go to the right employees.
Your store’s cash register is a fundamental but often overlooked tool in your small business toolbox. For quick, safe transactions, you need a modern cash register that integrates with your store’s POS system.
Choosing a cash register that’s fully integrated with your all-in-one [[industry]] POS system will keep your lines short by facilitating quick cash transactions, protect your bottom line by making transactions more accurate, and make accounting for your day-end sales easier.
Your first major decision to make is whether to acquire payment processing through your POS provider or to find a third-party payment processing service.
Each option has its advantages and disadvantages, so make sure to think carefully about your business’ unique needs.
To help you approach this choice, we’ll take a closer look at integrated payment processing and explore why you might choose this solution for your store.
Integrated Payment Processing: The Pros and Cons
If you go with this option, you’ll find a sole provider for your POS software, hardware, and payment processing service. We recommend integrated payment processing for a few key reasons:
The main disadvantage of this option is that you have less flexibility to switch providers in the future. Since your POS system and payment processing are all rolled into one convenient service, it won’t be as easy to find a new POS or payment processing provider.
Whether you decide to go with an integrated POS and payment processing solution or you think a third-party provider would better suit your needs, you still need to know how to evaluate your options and ensure you’re getting the best service for your business.
In this section, we’ll explain the key considerations to keep in mind as you search for and evaluate potential payment processing solutions.
Perhaps the most important factor in your payment processing decision is the cost. In this section, we’ll take a look at some common payment processing pricing structures, as well as other fees to keep an eye out for.
Payment Processing Pricing Structures
The two most common pricing structures you’ll encounter during your search for a payment processor are flat rates and or fixed percentage fees.
While these fees are generally small, they start to add up as your business grows, so you’ll want to pay close attention to each provider’s quoted transaction fee and calculate how much you can expect to pay for payment processing based on your historical sales data.
If you’re hoping to save money on these fees, we recommend choosing your POS system’s integrated payment processing solution, since providers will generally give you a better deal when you commit to their full range of services.
Additional Payment Processing Costs
Along with transaction fees, you should also be prepared to ask about the following costs:
Setup and Account Fees: Some payment processors charge a one-time fee to get your merchant account set up and ready to start accepting payments.
Chargeback Fees: In the unlikely event that one of your customers issues a chargeback through their bank, you’ll have to pay a penalty fee to your payment processing provider.
Cash Reserve Requirements: Your payment processor might require you to maintain a cash reserve in case of chargebacks or other issues.
Volume Caps: Your payment processing provider might have a limit on the number or value of transactions they will process within a certain period of time.
Early Termination Fees: Depending on the length and terms of your contract, you may be required to pay a hefty fee if you decide to terminate your relationship with your payment processing provider.
For the lowest costs, request quotes from multiple providers, and make sure to ask about these fees to get the fullest picture of how much your payment processing will cost.
Security should be a top priority as you shop for the right payment processing provider for your store.
Since your payment processor will store and handle your customers’ sensitive financial information and your small business’ funds, your provider should be committed to protecting you and your shoppers.
Here are some green flags to look for as you search for a secure payment processor:
Being proactive about payment security by choosing a payment processor that adheres to all the relevant standards and best practices will prevent financial catastrophe and increase your customers’ trust in your business.
Picture your store’s peak hour. Your checkout lines are wrapped around the store, your customers are waiting with full carts, and your cashiers are working hard to provide fast, friendly service.
The worst thing that could happen is that your payment processing system goes down.
Luckily, choosing a solution with highly responsive and helpful support can help you prevent this disaster.
When evaluating potential payment processors, make sure to ask about what kind of support is included. Will someone be available to answer your call if your payment processing goes offline? Is support 24/7, or are there limited hours that you’ll be able to reach someone? Does your payment processor have in-house technical support professionals, or do they outsource?
This scenario is another reason to consider choosing an integrated payment processing and POS provider. Instead of having to go back and forth between two support teams to solve the technical issue, you can rely on one, consistent provider to keep your store up and running.
Reading customer reviews is a great way to evaluate a payment processor.
You’ll be able to see whether other business owners are satisfied — or disappointed — with a payment processor’s service.
Pay special attention to reviews from other [[industry]] store owners to understand what it will be like to work with each provider.
Congratulations! You’re now a payment processing expert.
To help you put what you’ve learned into action, we’ve summarized our main points below:
Payment processing is what allows your store to make sales.
Your business should accept a wide variety of payment types, including cash, cards, contactless payments, EBT, and checks.
Choosing an all-in-one POS system with integrated payment processing is your most convenient, secure, and affordable solution.
When evaluating payment processors, pay attention to transaction fees, contract terms, security, support, and reviews.
If you’re looking for the very best of the best POS system with integrated payment processing for your [[industry]] store, look no further than [[brand_name]].
With reliable payment processing, powerful inventory management, and a sales-boosting customer loyalty program, [[brand_name]] has everything you need to become your neighborhood’s favorite [[industry]] store.
Schedule your personalized demo of [[brand_name]] today!
Payment processing makes transactions possible, allowing your customers to use cash, checks, cards, or even their mobile devices to purchase their items.
In this guide, we’ll explore the world of market store payment processing, and tell you everything you need to know about payment methods, technologies, and providers. Here’s a look at what we’ll cover:
Let’s get started!
Whether you’re working on your business plan or you're a seasoned retailer, the world of payment processing can seem intimidating.
But understanding the ins and outs of [[industry]] payment processing is critical for making the right decisions.
In this section, we’ll demystify payment processing and explain what a sales transaction is, how payment processors facilitate transactions in your store, and a brief overview of the fees associated with this service.
First, let’s start with two key terms and their definitions:
As payment technologies continue to evolve, your customers have more options than ever before. Along with traditional card and cash payments, they may choose to use a contactless payment method and purchase their groceries using a smartphone or other electronic device that’s compatible with Apple Pay, Google Pay, or other digital wallets.
Later in this guide, we’ll explore why it’s in your store’s best interest to accept a wide variety of payment methods.
Now that we’ve established why payment processing is an essential requirement for successfully running a store, let’s talk about how to secure this service.
To accept payments in your store, you’ll need the help of a payment processing provider. Payment processing providers handle your transactions and ensure that funds are transferred accurately and securely between your customers’ bank accounts and your business’ account.
When it comes to finding a payment processor for your business, you’ve got two main options: outsourcing your payment processing to a third-party provider or securing payment processing through your point of sale (POS) solution.
Regardless of which option you choose, it’s crucial to be aware of the common fees associated with payment processing.
The most important fee to know is your payment processor’s transaction fee. Payment processors generally charge a flat or percentage-based fee for each transaction that takes place in your store.
Pay close attention to transaction fee rates when evaluating payment processing providers, and budget for this cost when carrying out your store’s financial planning.
If you’re worried about the potential burden of payment processing fees, one option to consider is dual pricing. If you choose to implement a dual pricing policy in your store, you’ll pass on the cost of transaction fees to your customers who choose to use a card, while offering a slight discount to your cash-carrying customers.
Before launching a dual pricing policy in your store, make sure to understand the legal implications and research your state and local laws to ensure dual pricing is permitted in your area.
Imagine that one of your most loyal customers approaches the checkout counter with a full cart or basket — only to realize that they’ve forgotten their wallet at home! You don’t want to have to turn them away because your store doesn’t accept mobile payments, right?
This example is just one of the reasons why it’s important to be flexible and accept a wide variety of payment methods.
In this section, we’ll talk about the different types of payments that you should plan to accept in your store — and the hardware you need to process these transactions.
Let’s start with the type of payment processing you’re probably the most familiar with.
As consumers move away from carrying cash, accepting credit and debit card payments is an absolute must for retailers — [[industry]] included.
To effectively accept these payments, you’ll need a credit and debit card processor. This provider acts as the bridge between your store’s bank account and your customers’ account, facilitating the transfer of funds when your shoppers make a purchase.
When evaluating card processors, here are a few key requirements to keep in mind:
We’ll give a more detailed explanation of how to choose the right credit card processing provider later in this guide, so stay tuned.
Contactless payments have surged in popularity in recent years — and the momentum won’t be stopping anytime soon. Experts predict that contactless payments will grow 130 percent in the next few years!
Before we dive into the advantages of accepting contactless payment, let’s briefly cover what contactless payment is.
Contactless payment allows customers to complete a transaction without physically inserting or swiping their card into your store’s PIN pad. Instead, they can simply tap their card or their mobile device to pay for their items.
Choosing a contactless and eWallet processor to accept tap-to-pay, Apple Pay, Google Pay, and Samsung Pay has several benefits for you and your customers, including:
Accepting contactless payment is crucial for future-proofing your business and ensuring the most convenient experience for your customers, so make sure that your payment processing solution allows you to accept this payment method.
While checks might seem like a relic of the past, many shoppers still prefer this payment method over more modern options. To appeal to the widest possible range of customers, choose a processor that allows you to accept checks quickly and easily.
Let’s take a look at the two main factors to consider when choosing a check processor:
Choosing a fast, reliable check processor that integrates with your POS system will prevent costly slowdowns in your checkout wait times — and give your customers the widest range of payment options.
When your team members provide service that goes above and beyond, your customers want the option to show their appreciation by leaving a tip.
Fortunately, the right payment processor makes it easy for customers to add a custom tip or choose a pre-selected amount at the terminal during checkout.
At the end of the day or when it’s time to do payroll, you can use your payment processing solution’s reports to ensure that the right tip amounts go to the right employees.
Your store’s cash register is a fundamental but often overlooked tool in your small business toolbox. For quick, safe transactions, you need a modern cash register that integrates with your store’s POS system.
Choosing a cash register that’s fully integrated with your all-in-one [[industry]] POS system will keep your lines short by facilitating quick cash transactions, protect your bottom line by making transactions more accurate, and make accounting for your day-end sales easier.
Your first major decision to make is whether to acquire payment processing through your POS provider or to find a third-party payment processing service.
Each option has its advantages and disadvantages, so make sure to think carefully about your business’ unique needs.
To help you approach this choice, we’ll take a closer look at integrated payment processing and explore why you might choose this solution for your store.
Integrated Payment Processing: The Pros and Cons
If you go with this option, you’ll find a sole provider for your POS software, hardware, and payment processing service. We recommend integrated payment processing for a few key reasons:
The main disadvantage of this option is that you have less flexibility to switch providers in the future. Since your POS system and payment processing are all rolled into one convenient service, it won’t be as easy to find a new POS or payment processing provider.
Whether you decide to go with an integrated POS and payment processing solution or you think a third-party provider would better suit your needs, you still need to know how to evaluate your options and ensure you’re getting the best service for your business.
In this section, we’ll explain the key considerations to keep in mind as you search for and evaluate potential payment processing solutions.
Perhaps the most important factor in your payment processing decision is the cost. In this section, we’ll take a look at some common payment processing pricing structures, as well as other fees to keep an eye out for.
Payment Processing Pricing Structures
The two most common pricing structures you’ll encounter during your search for a payment processor are flat rates and or fixed percentage fees.
While these fees are generally small, they start to add up as your business grows, so you’ll want to pay close attention to each provider’s quoted transaction fee and calculate how much you can expect to pay for payment processing based on your historical sales data.
If you’re hoping to save money on these fees, we recommend choosing your POS system’s integrated payment processing solution, since providers will generally give you a better deal when you commit to their full range of services.
Additional Payment Processing Costs
Along with transaction fees, you should also be prepared to ask about the following costs:
Setup and Account Fees: Some payment processors charge a one-time fee to get your merchant account set up and ready to start accepting payments.
Chargeback Fees: In the unlikely event that one of your customers issues a chargeback through their bank, you’ll have to pay a penalty fee to your payment processing provider.
Cash Reserve Requirements: Your payment processor might require you to maintain a cash reserve in case of chargebacks or other issues.
Volume Caps: Your payment processing provider might have a limit on the number or value of transactions they will process within a certain period of time.
Early Termination Fees: Depending on the length and terms of your contract, you may be required to pay a hefty fee if you decide to terminate your relationship with your payment processing provider.
For the lowest costs, request quotes from multiple providers, and make sure to ask about these fees to get the fullest picture of how much your payment processing will cost.
Security should be a top priority as you shop for the right payment processing provider for your store.
Since your payment processor will store and handle your customers’ sensitive financial information and your small business’ funds, your provider should be committed to protecting you and your shoppers.
Here are some green flags to look for as you search for a secure payment processor:
Being proactive about payment security by choosing a payment processor that adheres to all the relevant standards and best practices will prevent financial catastrophe and increase your customers’ trust in your business.
Picture your store’s peak hour. Your checkout lines are wrapped around the store, your customers are waiting with full carts, and your cashiers are working hard to provide fast, friendly service.
The worst thing that could happen is that your payment processing system goes down.
Luckily, choosing a solution with highly responsive and helpful support can help you prevent this disaster.
When evaluating potential payment processors, make sure to ask about what kind of support is included. Will someone be available to answer your call if your payment processing goes offline? Is support 24/7, or are there limited hours that you’ll be able to reach someone? Does your payment processor have in-house technical support professionals, or do they outsource?
This scenario is another reason to consider choosing an integrated payment processing and POS provider. Instead of having to go back and forth between two support teams to solve the technical issue, you can rely on one, consistent provider to keep your store up and running.
Reading customer reviews is a great way to evaluate a payment processor.
You’ll be able to see whether other business owners are satisfied — or disappointed — with a payment processor’s service.
Pay special attention to reviews from other [[industry]] store owners to understand what it will be like to work with each provider.
Congratulations! You’re now a payment processing expert.
To help you put what you’ve learned into action, we’ve summarized our main points below:
Payment processing is what allows your store to make sales.
Your business should accept a wide variety of payment types, including cash, cards, contactless payments, EBT, and checks.
Choosing an all-in-one POS system with integrated payment processing is your most convenient, secure, and affordable solution.
When evaluating payment processors, pay attention to transaction fees, contract terms, security, support, and reviews.
If you’re looking for the very best of the best POS system with integrated payment processing for your [[industry]] store, look no further than [[brand_name]].
With reliable payment processing, powerful inventory management, and a sales-boosting customer loyalty program, [[brand_name]] has everything you need to become your neighborhood’s favorite [[industry]] store.
Schedule your personalized demo of [[brand_name]] today!
