Why You Should Accept Mobile Payments

Why You Should Accept Mobile Payments

On our blog, we’ve talked a lot about emerging technologies, their pros and cons, how to ease into them, and also how to future proof your business to accept these technologies. Recently Bank of America published their annual Trends in Consumer Mobility Report. In it, they surveyed consumers on a range of topics relating on how we interact with our mobile phones. In their report they show the sharp rise of awareness and adoption of mobile payments.

While the adoption has been slower than predicted, mobile wallets are starting to gain traction as a payment option. According to the Report, in 2016 40 percent of respondents would use or already use their phone to make purchases at checkout. this is up from 34 percent in 2015. As awareness increases, mobile payments will become more pervasive.

In the past couple years there has been a significant push by companies like Apple and Samsung to promote mobile wallet technologies. These work by allowing the consumer to link their credit/debit card to a secure application on their phone, and just wave your phone at checkout instead of using a physical credit card. Currently this is one of the more secure methods of payment. It uses some of the most advanced security and encryption features available.

Unlike a traditional credit card, the information stored is encrypted and when you run a transaction, the information is tokenized. This means a one time use code is generated and in the event the information is intercepted, it is useless to a potential fraudster. These apps also require the use of a fingerprint or password to access the application and authorize a payment, adding an extra layer of security.

To make sure that your business is able to accommodate these types of payment technologies, we recommend that your customer facing devices (terminals and pin pads) are NFC capable. Some other ways to increase awareness are to instruct staff on how to train customers and make sure you have signage letting your customers know you can accept things like Apple Pay and Samsung Pay. If you’re interested in learning more, or want to take NFC payments, shoot us an email at info@agapay.gives or call us at 800-644-3909 Option 1.

Processing Fees: They’re Deductible

Processing Fees: They’re Deductible

Tax season is here, and with tax season comes financial statements. If you have a merchant account, it’s very likely that you will soon be receiving your IRS form 1099-k from your processor. In a recent blog post we spoke about  what  the 1099-k is, what they show and what they don’t. Since the 1099-k only reports gross payments we wanted to discuss some of the ways you can reduce your tax liability from this income by deducting some of these common expenses:

Credit Card Processing Fees

All of the fees paid on your merchant account are deductible. Interchange, transaction fees, monthly fees, etc. Since the 1099-k reports unadjusted gross sales, you can reduce this amount by deducting any fees that were paid during your fiscal year.

Credits and Returns

It’s inevitable that most, if not all, businesses have processed a return or refund on a credit card processing account. As the amount reported on the 1099-k is not adjusted for credits, refunds or returns. These transactions reduce your income and are deductible.

Chargebacks

Nobody likes chargebacks. They’re costly, they come up suddenly, and they’re a pain to resolve. One good thing about them is they’re deductible. Since the money is a loss on your part, you are able to deduct it.

Equipment & Software

As Point-of-Sale systems are a business purchase for the purpose of accepting payments, all or part of the expense may be deductible. Software and online services used to accept credit card payments can also be deductible. On these it may be best to consult with your accountant.

While these expenses are deductible we would advise that you speak with your tax professional on how best to report these expenses.

To get industry updates and useful insights into your merchants accounts, subscribe to our blog. For questions or suggestions, contact us at info@agapay.gives.

Should I Accept Debit?

Should I Accept Debit?

Debit card usage has been on the rise over cash payments in the past several years with adoption rates increasing significantly. According to a report by Euromonitor International, for the first time, globally in 2016 consumers spent more on debit and credit cards than with cash. In the “Payments Study 2016” conducted by the Federal Reserve, debit transactions outpaced credit transactions two to one (69.5 billion versus 33.8 billion respectively). With these numbers it’s easy to see that there is a trend toward electronic payments, and specifically debit card transactions.

As a business, being able to accept payments is critical and with less people carrying cash, you want to make sure you can accept all forms of payment. For merchants with a large volume of small tickets the ability to accept pin debit cards can be a huge money saver, as the cost of processing pin debit can be significantly lower than credit cards, or debit cards run without a pin.

At Agapay, we are able to work with you to assess your needs and see which products, services and equipment you need. To see if pin debit is something that may benefit your company, contact us today!

 

Pin It on Pinterest