The progression of technology over the last few decades has had phenomenal effects on business. Business owners are able to reach out to and do business with people around the world without leaving their office in Smalltown, USA. Likewise, customers can find what they want with the touch of a few buttons, pay for it without leaving the comforts of their home, and wait for their order to arrive in the mail.
Technology has allowed merchants to conduct business transactions from the field, while at an exhibition or a customer’s home. The use of virtual terminals has made business transactions more convenient for the business owner and customer, while providing added security to the payment process. More and more business owners are using virtual terminals on their websites and mobile devices. Similar to most other services, virtual terminals aren’t usually without their fees.
If a businessperson is looking for an alternative to PayPal, there are options that provide a variety of features that suit different business needs. Individuals can also sometimes choose different service packages to ensure they stay in the budget. To further avoid paying more than they can afford, business owners can use these pointers to avoid feeling robbed each month by their virtual terminal service.
Tips to Stay within Budget with a Virtual Terminal
1. Know Usage Needs.
Before shopping for a virtual terminal service, a business should have an estimate regarding how many transactions they might make each month using the terminal. This information will help the person to pick out the appropriate service without paying for something they don’t need.
2. Choose Only Necessary Features.
Some virtual terminals offer basic services, while others have features such as software that’s compatible with the business’s accounting program. As tempting as the extra bells and whistles might be, it’s best to start off with the features needed to avoid unnecessary expense.
3. Ask About Monthly Fees.
Find out ahead of time if there are monthly fees in addition to per-transaction fees, and whether the monthly charges are flat or fluctuating.
4. Understand Per-Transaction Fees.
Per-transaction fees may be charged on a percentage or flat-fee basis. Understanding which it is and how they work can help a business owner avoid excess fees.
5. Contract or No Contract.
The use of a contract can help reduce fees by offering lower rates in exchange for a longer-term commitment. If the company is willing to commit to a virtual terminal service for two years, it might be worth it to get the savings. But if they’re unsure, it might be best to opt for no contract to start.
6. Hidden Fees.
Hidden fees are often what catch business owners by surprise when the monthly statement arrives. Prior to making a commitment, it’s important to know if there are any fees for less usage or other variations in service.
7. Charges for Other Types of Payments.
Extra fees for electronic check processing can add up if a businessperson has a lot of customers who pay that way.
8. Package Prices.
Service packages can be an excellent way to avoid feeling robbed blind when the monthly bill comes. Check with the virtual terminal service at least twice per year to see if any additional packages have been added. Some companies will be happy to help the businessperson find a better, more economical plan to gain customer loyalty.
9. Intelligent Card Sensing.
When this feature is enabled, it allows the virtual terminal to read and pass along the credit card information without accumulating surcharges.
10. Automated Recollection.
Returned payments due to insufficient funds can be costly for a business. Automated recollection is a feature that automatically represents the customer’s payment after a specific amount of time in an effort to collect the money owed.
Get the Best Return for Your Investment
As virtual terminal services grow along with other technological advances, business owners will need to view them as a necessity, rather than an option. Doing business from a brick-and-mortar storefront is still as effective as ever, but the business owner’s reach only goes out to the surrounding community. Small companies that want to compete with everyone else will need to view virtual terminals as a necessity and asset, much in the same way that social media marketing is considered to be a vital part of a business’s marketing plan in today’s world.
While pondering the points above, business owners should always keep in mind that their needs will change along with the growth of the company. Time should be taken to talk to customer service representatives from different virtual terminal companies to find out what their plan is for technology advancement. A company that has an eye on growth will prove to be more useful to their customers in the long run than a company that has one product and doesn’t have current plans for any expansions.
If the addition of a virtual terminal is new to a business, they should schedule a training meeting with staff members so everyone knows how the virtual terminal works. Even staff members who’ll use the company’s virtual payment processing system on a limited basis needs to know the ins and outs of the service so they can avoid unnecessary fees or charges.
Ultimately, it’s important to make an informed decision before choosing a virtual terminal, and then a responsible plan for use once it’s the service is obtained.
—
Mary Ylisela is a writer and business coach who writes on small business topics such as networking, finances, and best practices for choosing an alternative to PayPal. She brings 20+ years of business experience to the table and is the author of a motivational book for freelancers.