Mobile Payments at Farmers Markets [2023 Update]

I recently stopped down at the Cherry Creek farmers market here in Denver and noticed a couple things. One, there are way more vendors that have setup shop at this event than in years past. And two, very few of the businesses there were setup to accept credit cards. This surprised me. The amount of lost revenue that these small businesses were losing out on must have been substantial.

I spoke with one farmer that had peaches and tomatoes and asked him why he did not take cards. His response was pretty standard from what I have heard other merchants say: accepting credit cards is too expensive. While this misconception of the payment processing industry seems to have dwindled in recent years there are still business owners out there that are hesitant to sign up for a merchant account. This may be because of a bad experience with a shady processor in the past or simply hearing horror stories from friends, family, and other business owners.

The truth of the matter though is that we have come out of the dark ages of processing’s past. Where tiered pricing and hidden fees were rampant and the “norm”. Host Merchant Services believes in modern transparent pricing based on the interchange plus model. Anyone who takes cards has to pay the interchange rates set by the big boys, Visa, MasterCard, Discover, and American Express. No way around this. With that being said, our belief is that we should provide a fair price relative to the merchant’s volume, average ticket amount, and type of business.

But I digress, back to my conversation with the farmer at the booth. He was familiar with other “four sided” mobile payment processing solutions but was hesitant to go that route because of the one rate, flat pricing structure. He had researched enough online to know that there are hundreds of rates for all the various classifications of cards and that one rate for all them just didn’t add up.

He was not aware that companies like HMS existed with the same mobile swiper solution but also a fair pricing structure. Our solution is powered by HMSPay for iPhone and Android operating system. The handy mobile swiper turns your smart phone into a go anywhere POS. Some of the features that it performs are:

Authorize and capture charges immediately
Authorize and reserve funds immediately
Email receipts
Capture relevant data
Void transactions as needed
Process credits and refunds

With these features your customer get the same experience they are used to in brick and mortar locations and the convenience and speed of paying via card. Setup and installation of HMSPay is a 30-second, two-step process. Visit your appropriate app store on your phone to download the application and attach the device. To get setup with a merchant account contact our friendly payment experts today at 877-517-4678 or simply fill out the form on the right and we will get in touch with you.

What is EMV Chip Card Technology?

EMV® is a worldwide standard for credit and debit card payments based around the use of chip card technology. The acronym stands for Europay, MasterCard, and Visa, who collaborated to create the technology. The goal of this project was to create a card that worked based off of a microprocessor chip that is read by the payment terminal.

How it works

The transaction has a built in verification system that requires both the chip in the card and a PIN number the customer enters. This extra step verifies that the person with the card is in fact authorized to use it. This is just the first facet that makes these transactions more secure. Each chip contained in the card generates an original and unique code for each transaction. This unique identifier makes it easier to track transactions and identify fraud.

Comparison to Existing Magnetic Stripe

Everyone knows the magnetic stripes exist on almost every single card in the U.S. currently. These pass very simple data through the system at the time of the swipe, mainly just card number and expiry data. The data passed back and forth between the terminal and chip card is much more sophisticated and encrypted for added security. Another downside to the magnetic stripes is their shelf life. Many frustrated clerks can tell you that a card that is used often does not usually make it to its expiration date. Merchants should know that they need to swipe the card to get the lowest interchange rates for most cards. Often times, front line workers do not know that the business is paying a higher rate if the card is keyed as opposed to swiped.

Future Growth

EMV is already widely used worldwide. As of Q4 2012, there are roughly 1.62 billion EMV cards in consumers’ hands. Combine this with the 23.8 million terminals that have been deployed throughout Europe, Asia, and Africa and it’s easy to see that this technology is here to stay. HMS fully supports EMV processing and works with merchants to offer this to their customers. With Visa and MasterCard poised to really step on the gas concerning U.S. migration, merchants need to be up to speed on the new processes and technologies.

This upgrade in technology will have an impact on a wide range of hardware including:

ATMs
Existing POS machines
Vending machines
Automated fuel pumps
Ticketing kiosks
Etc.

While replacing the vast amounts of existing hardware might seem daunting on a macro level , the time and capital committed to this migration is absolutely worth it when you consider the upside. The combination of both new terminals and chip cards will reduce risk for both consumer and business. Also, by making chip cards more universal, American tourists who travel abroad will have a consistent experience and won’t need a “special card” for overseas trips. This point is even more powerful when you consider that there are roughly 56 million trips outside the country by U.S. citizens just in 2012. So send us an email or better yet just give us a call at 877-517-4678 to discuss how Host Merchant Services can help your business stay ahead of the EMV curve.

Your Business Should Consider Going Cashless [2026 Update]

The long-lived standard of paper and coin currency is nearing its end. The simple truth is that debit and credit cards, mobile wallets, and various other ways to pay are bringing about the beginning of the end of Washington, Jackson, and even Franklin. Businesses are going cashless.

The truth is that when businesses accept cash payments, there is a certain element of risk involved. First, you have the human element. A clerk has to take a payment and in most cases must give the customer back some change. This is assuming that the clerk has the ability to do the simple math it takes to subtract the transaction total from the amount tendered.

While the average third grader can do this, you know what your mother always told you about assuming. In addition to this oversight, bills can stick together, drop on the floor, or even be mistaken for a different denomination. Also, when employees do not have to worry about this exchange of currency they can focus on providing superior customer service.

When cash is accepted as a payment it also decreases the speed of the transaction as compared to accepting credit cards. The clerk must take the extra time to count out the change and double-check to make sure it is accurate. Credit card transactions are mostly completed by the customers themselves through POS terminals and swipers. Thus freeing up time for the employee to wrap up the sale and provide the best customer service.

The next con about accepting cash payments is that it tends to not be very clean. With the average lifespan of a $1 bill being 18-22 months, you can imagine the amount of dirt, bacteria, and other generally gross germs. Decreasing the amount of cash used in transactions can help improve the overall health of the employees at your business. And may also keep your customers from getting sick too!

According to a 2009 University of Massachusetts study, 90 percent of 234 paper bank notes tested positive for traces of cocaine. Another 2001 study found traces of heroin, methamphetamine, and PCP. While these levels are very low and not enough to make someone sick, it still makes you think about what our paper money goes through.

It’s hard for anyone to deny that payments are shifting from greenbacks and coins to plastic and electronic. And while cash isn’t going to disappear overnight, it benefits merchants to adopt the technologies of the future to get ahead of the curve.

Benefits Of Business Going Cashless

The shift, towards a cashless business model, has become increasingly popular in today’s landscape offering a range of benefits that go beyond mere convenience. As technology advances businesses are realizing the advantages of adopting cashless transactions. Here are some key advantages of a business going cashless;

Improved Efficiency and Speed;
One major benefit of embracing a cashless approach is the enhancement in efficiency and transaction speed. Electronic payment methods like credit cards and digital wallets streamline the payment process reducing the time required to complete transactions. This not only improves the customer experience but also enables businesses to serve more customers in less time ultimately boosting productivity.
Lower Operating Costs;
Handling cash involves expenses such as security measures, cash handling fees, and the need for physical infrastructure like safes and registers. By transitioning to a cashless system businesses can reduce these operating costs. Allocate resources effectively. This aspect is especially relevant for medium enterprises (SMEs) where every saved penny contributes significantly to overall profitability.
Enhanced Security;
Cash transactions inherently carry security risks such, as theft and counterfeiting.
Going digital with transactions helps reduce these risks because electronic payments leave a trace and often have built-in security features. Digital payment systems use encryption and authentication measures creating an environment, for both businesses and customers. This can result in a decrease in fraud and unauthorized transactions.
Insights from Data Analysis;
Cashless transactions generate data that businesses can use to analyze customer behavior and gain insights. By studying purchasing patterns and preferences businesses can make decisions about inventory management, and marketing strategies. Engaging with customers. This data-driven approach allows businesses to customize their offerings to better meet customer needs building long-term relationships.
Convenience for Customers;
In today’s convenience-oriented world cashless transactions provide customers with a seamless and hassle-free payment experience. With the increasing availability of mobile payment options and contactless cards, customers can make purchases quickly without the need, for cash. This convenience not only enhances the customer experience but also appeals to tech-savvy consumers who prefer efficient modern payment methods.
Global Access;
Cashless transactions simplify business operations by eliminating the complexities of currency conversion and cross-border transactions.
Digital payments offer advantages to businesses operating on a scale facilitating smoother operations and unlocking new market opportunities. This is particularly beneficial, for eCommerce companies that serve customers worldwide.
Advancement of Financial Inclusion;
Embracing cashless transactions can contribute to promoting inclusion by granting individuals who lack traditional banking relationships access to banking services. Mobile banking and digital wallets act as gateways for underbanked populations enabling their participation in the economy. This fosters growth, and reduces poverty. Creates a more inclusive society.

Conclusion

To summarize the benefits of transitioning to a cashless system extend beyond convenience. The efficiency, cost savings, heightened security measures, and data-driven insights associated with cashless transactions position businesses, for growth and success in a digitalized and interconnected world. As technology continues to advance adopting a cashless approach is not merely a passing trend but rather a strategic decision that can significantly impact a business’s performance and enhance its competitive advantage within the market.

Contact one of our payment experts today at 877-517-4678 to learn more and get setup to take payments.

Five Tips to Help You Get a Merchant Account [2023 Update]

If you are lucky enough to be a business owner that has trained your customers to pay in cash or personal check, bravo. For the remaining 99% of entrepreneurs out there, the harsh reality is that our society is trending towards a cashless economy. Personally I rarely have actual cash in my wallet and have three or four different cards that I use on a regular basis. In fact, when I do have to go out of my way to visit an ATM, it seems more like a chore than anything else. Setting a reminder to stop at the bank. Getting out of my car to go inside. Sometimes even waiting in line. But I digress; back to the topic at hand. The reality is that customers want to pay for your products or services with a card. Now let’s look at some things that will help you get approved for a merchant account.

Knowing Your Financial Risk

If you have a business that currently or has previously taken cards, you have some sort of processing history. The important points to keep in mind here are the amount of chargebacks and refunds. If these numbers are high, this may be a red flag to underwriters and either a.) cause you to have a higher rate or b.) be outright rejected for processing. If this is the case, no need to worry though. Similar to personal credit, the reputation of your business can be repaired. This process just takes time and patience. In the meantime HMS can refer you to one of our partners that specializes in “high risk” processing.

Make a File For Your Documentation

Merchant service providers want to see accurate financial statements to approve applications for a merchant account. These can include P/L statements, merchant account statements, or other reports that show financial history. These are crucial as they show the reliability and consistency of the business revenue.

Don’t Fib About Future Sales Projections

Underwriting typically does not base approval on projected volume of sales. So adjusting this number in an attempt to get a better outcome probably won’t help you. But if it comes to light that you intentionally manipulated this, it might reflect on your business as shady and untrustworthy.

Accurate Business Descriptions

Be as thorough and accurate as possible when defining the type of business that you are running. This helps our staff identify your business needs such as POS solutions, e-commerce setup, or maybe a mobile swiper. It also is important because some industry and business types are on a list of high risk merchants and this requires extra steps to get you processing. Knowing these things upfront will help expedite the time it takes to get you setup and accepting payments.

Take Steps to Reduce Fraud

No one likes fraud. It is a headache and waste of time for merchants who just want to be made whole again. To payment processors it is an unfortunate part of doing business. It seems like there are always a select few“bad guys” that want to scam the system. That’s why it is important to put measures in place to reduce your businesses exposure to people who want to cheat the system. One of these is AVS (Address Verification System). In a card not present transaction it is used to match the address the customer provides to the address on file with the card issuing bank. If these do not match a warning is presented and the business can investigate further. Important fraud prevention steps are important to reduce the amount of risk and possible financial loss that the business can incur.

National Small Business Week Guide

At Host Merchant Services we know that while Fortune 500 companies may get the national spotlight and most of the media attention, small businesses are what really powers our communities and helps grow our nation. A recent stat showed that two out of every three new jobs created in the US is generated by small business. That is why since 1963 the U.S. Small Business Administration has celebrated National Small Business week. This year the event runs from June 17-21 and has events spanning from coast to coast to highlight the contributions of hard working entrepreneurs.

The official cities for this year’s event are Seattle (June 17), Dallas (June 18), St. Louis (June 19), Pittsburgh (June 20), and Washington, D.C. (June 21). If you are lucky enough to live in or near one of these cities it is worth your time to check out the on-site conferences. These will feature experienced speakers providing knowledge and advice to running a successful small business. There are also networking opportunities with other like-minded business owners in the area.

If you cannot make it to one of these sites in person, Google is hosting a series of online events that will cover essential business skills for keeping up with the competition in today’s competitive environment. The topics that will be covered are Getting Started with Social Media, Managing your Business’s Online Reputation, How a Mentor Can Help Your Business, and How to Get a Loan for Your Business. This wide range of topics can help anyone from just getting started to seasoned professional.

In addition to the official sites and the online events there are gatherings planned in almost all 50 states. A full list of events as well as an event map can be found on the SBA website. Business owners should also check out their site at http://www.sba.gov/ for tips and advice on starting, running, and growing your business.

In addition to these important skills for starting and managing a business it is important for every small business to be able to accept payments from their customers for whatever good or service they are providing. Host Merchant Services can help guide owners through the world of merchant services and payment processing in a consultative manner. Whether a fledgling company just getting moving or an established business with years of experience under your belt, we can help get you setup and processing payments on your way to expansion and growth.

Contact us today to get a no obligation quote for the lowest interchange plus pricing available and top tier customer service.

Should Nonprofits Accept Donations on Credit Cards?

Larger charities such as the American Red Cross and the American Cancer Society are easily recognizable. People like to donate to charities that have a reputation for doing meaningful work and spending their money sensibly. However, even these organizations have to seek out donations constantly to keep up and running. For smaller nonprofits and charitable causes that are just getting off the ground, seeking out donations can easily become a full time job.

Accepting credit cards for nonprofit charities is one way an organization can easily increase the volume of their donations. American society lives by their plastic, both debit and credit, so a nonprofit that is not poised to accept donations from a card is going to have a harder time procuring donations.

Some nonprofits do not accept card donations simply because they do not want to spend the small monthly price. This thinking can be somewhat backwards though. If the increase in donations is great enough, it will offset this small monthly cost. In order to accept card donations, a nonprofit has to establish a merchant account and is required to pay certain fees. The fees vary depending on the merchant account and the types of cards that will be accepted.

If the nonprofit already operates a website, accepting cards through the site is a very quick and easy way to increase donations. Many studies have shown that people spend more on their cards than they do with cash. This is true whether they are shopping for groceries or donating to a charity. By accepting cards on the website, a nonprofit will see increased donor amounts.

Donate Online

If the nonprofit is a smaller organization and does not run a website, they can still accept credit cards. With a mobile card reader available for smartphones, an organization can accept cards a lot faster and easier than before. Many smaller merchants, nonprofit and otherwise, now use these readers so that they can accept cards on the go, say for example at a gala or other fundraising event.

Some organizations do indeed prefer credit cards for nonprofit donations because they generally mean larger donations. Another bonus for accepting cards is the ability of the donor to set up a recurring monthly payment. This is fantastic for a nonprofit because it means a steady, dependable stream of funds. Donors do not have to remember to send in a monthly check or cash, the money simply comes out of their account every month.

As the number of recurring donors increases, it becomes easier for the nonprofit to budget and forecast out spending. This also might allow them to increase services or programs offered to the people or cause they serve.

There are many aspects to consider when deciding if a nonprofit should or should not accept credit cards. The size of the organization, the size of the normal donation and the possibility of setting up recurring payments are all factors to consider. In addition, the operator of a nonprofit needs to research their options in regards to fees and choose the one that charges the least amount. Host Merchant Services has the lowest fixed monthly fees and uses interchange plus pricing in order to deliver the best value for your nonprofit or charity.

There are also added benefits for the donor to use their credit card to donate. If they have a card that offers rewards they can earn points while donating to a good cause. If they are near a certain reward, it is possible that they might even donate more than they would have otherwise. While this seems shallow to other charitable givers, remember that a donation is gladly received no matter what the donors underlying reasons may be.

With donations on credit cards on your list, the nonprofit resources hub has the related guides.

Steps Can Help Merchants Meet Visa CPS Requirements

Every merchant who accepts Visa debit or credit cards is subject to transaction and processing fees. The determination of what those fees, known as custom payment services (CPS) fees, will be follows a complex maze of calculations based upon such things as the type of card the customer uses, the volume of credit card transactions the merchant processes in a given time frame and whether or not the card is actually presented to the merchant. Added to the mix in late 2012 was a transaction integrity fee (TIF), which Visa charges for all non-compliant transactions in an attempt to get merchants to begin providing all the information needed to ensure that the customer is a legitimate user of the card.

There are steps a business owner can take to meet the Visa CPS requirements. The easiest way is to install a card reader in each of your locations that accept credit cards and require your customers to swipe their cards to pay for the purchases. Additionally, you should encourage customers to opt for a debit transaction rather than credit whenever possible. Many customers prefer not to do this because it requires them to entire their four-digit PIN number, but Visa charges its lowest fees for debit transactions. Some merchants are beginning to add a processing fee to all credit card transactions in order to encourage customers to choose the debit option.

Visa also charges a higher fee for card not present transactions, such as phone, mail order or online purchases. These are the types of transactions that will typically be subject to the new TIF. However, you can reduce your risk of being assessed TIF by ensuring that your systems are submitting all the required information to Visa. One of the most commonly missed pieces of information is an address verification system (AVS) request. If you do not request this at the time the transaction is submitted for approval, it will be subject to TIF.

Another step you can take to ensure that you are meeting the Visa CPS requirements is to batch and submit your sales on a daily basis. Not only does this begin the process of transferring the funds from Visa to your bank account, it also saves you money. Failure to close out your sales within 24 hours following the first transaction will result in higher fees. Host Merchant Services can provide you with auto-batching terminals so that one more task is off your plate.

Although it can be difficult to determine the type of card being used in each transaction, merchants can take steps to minimize their processing costs by meeting simple Visa CPS requirements. Taking a few moments to review your systems to ensure that you are submitting compliant transactions and doing all you can to encourage customers to choose a debit transaction over a credit transaction are the easiest ways to ensure that you qualify for the lowest fees possible for the your merchant classification and transaction types.

Eleven-letter Dirty Word: Chargebacks

If you surveyed everyone in the payment processing world, both merchants and processors, what they wish they could do away with for good, I would venture a guess that 8 out of 10 would say chargebacks. Unfortunately this is not going to happen in the foreseeable future. And the reason for that is simple: the credit card associations and credit card issuing banks have setup the system to ensure that consumers feel secure in using their credit cards.

The causes of chargebacks vary but inevitably boil down to one simple truth: the customer disputes the charge on their account from the merchant. These range from circumstances that are out the control of the business owner to conditions that can easily be remedied. They include, but are not limited to the following:

Fraud occurred or is suspected
Discrepancy in amount charged
Good or service paid for but never received
Unauthorized or duplicate transaction
Quality of the good or service did not match customer’s expectation
Customer does not recognize the transaction or the associated company name

Just based on this short list alone it is evident that chargebacks are inherent within the credit card system. While the majority of industries are compliant, there are certain verticals that have been identified as having higher occurrence of chargeback rates. The card associations tend to deem these “high risk” and many have trouble getting on boarded with most merchant services providers.

Avoiding Chargebacks

Depending on what type of merchant you are, there are simple steps you can take to greatly reduce the risk of having chargebacks. Let’s explore some different scenarios.

Brick and Mortar Merchants

Typically if you are a retail merchant with a physical location your risk of chargebacks is relatively low. The customer is receiving the good or service right at the time of payment and if the merchant has good business processes the customer should be happy with the quality. Also, your staff should be aware that whenever possible to swipe the physical card to ensure the lowest possible rate. Common practice is also to get a signature on the receipt and keep copies on file for 18 months in case of disputes. If you must key in the transaction by hand, be sure to make an imprint of the card with a signature as well.

Internet & Mail/Telephone Order

With the absence of a face-to-face transaction there are a number of added hurdles that need to be cleared in order to ensure a successful transaction. One first step is to make sure that your processor includes your customer service number along with your DBA (doing business as) name to be displayed on the customer’s statement. This will eliminate any confusion as to where the charges are coming from.

Online sellers should take advantage of fraud prevention tools that are available by the processing bank. These include AVS and CVV2. Address Verification System (AVS) compares the billing address with what is on file with the card issuer. Now while AVS does not approve or decline a transaction, a merchant can use the resulting code that is returned to pre-screen the transaction before committing to the sale. Card Verification Value 2 (CVV2) is the three-digit number that is printed on the back side of the card to the right of the signature panel. In a card-not-present environment this is just one more step to help protect the merchant. For more information read the VISA card-not-present tools.

What to do when…

When you find yourself facing a chargeback claim, a compliance allegation, or an arbitration request the biggest thing to keep in mind is to pay attention to the deadlines presented, act quickly, and provide as much supporting documentation as possible. The more documentation you gather over the process of doing business, the more ammunition you will have to support your claim. Also, failure to abide by the timelines for response means the loss of the transaction amount. In addition, the business may also be fined for non-compliance.

The ERR Pricing Trap

In recent weeks I have personally spoken with numerous merchants who want to try and understand their monthly statement better. It seems like some providers of credit card processing have come up with a game: “confuse the merchant”. Different combinations of low rates and high fees or vice versa. One pricing structure that I have seen quite often lately is referred to as bill back or ERR (Enhanced Recover Reduced).

ERR is presented as a simple and clear pricing system for merchants. This couldn’t be further from the truth. While on the surface the one flat rate for every transaction seems easy to understand. While the (usually) low rate will seem enticing from the merchants point of view because it is only one rate as opposed to the hundreds that exist in the current interchange chart, the processor isn’t telling the whole story. Whoever said “if it sounds too good to be true, it probably is” was a very wise person. The secret behind ERR pricing is the second charge for mid or non-qualified cards. This is the difference between the flat rate and the actual interchange rate for the mid or non-qualified cards with an additional surcharge tacked on.

In essence the one, low flat rate that these processors will reel merchant s in on and then slap them with high, additional surcharges is a classic case of “bait and switch”. Often seen in “big box” retail stores, bait and switch is when a business will advertise a low priced product that is not available. Then will substitute a higher priced product for the customer to fill the void of a missed opportunity. The legality and fine print often associated with this tactic exploits some loopholes and seems shady to the average consumer. Whether legal or not, at the end of the day the consumer is often left feeling taken advantage of.

The “trap” part of this pricing usually comes in the form of a term on the contract a merchant is asked to sign. These usually are around 36-months but can be any length of time. Processors will often convince decision makers that there is a need to sign for a term to get the best rates. Yet this is simply not true. And if the merchant decides he would like to get out of the contract before the full term has expired there are more often than not hefty early termination fees.

On the flip side to questionable business tactics and non-transparent pricing is interchange plus pricing. Here at HMS we believe that the customer should never walk away feeling like they lost and that a business relationship can be a win-win situation for both the merchant and Host.

Every business that takes credit cards, bar none, has to pay interchange rates. Bottom line. Full stop. What differentiates each processor is what they choose to charge on top of this. Those that don’t mind if they can sleep at night tend to markup interchange with exorbitant rates and/or backdoor fees. We prefer a more upfront and fair approach.

So let’s quickly recap. Enhance Recover Reduced makes it difficult for merchants to accurately calculate their effective rate as the “bill back” amount is often reflected on the next month’s statement. This roundabout and confusing pricing structure is not clear and easy to understand upfront. That in and of itself is reason enough to switch to a processor that provides the clearest pricing available. Take a look at this Statement Breakdown that outlines how to read and understand our statement vs. the rest.

Top 5 Myths About Credit Card Processors

It’s no secret that credit card processing is not a favorite topic of my business owners. Yet in the current economy consumers are trending toward more of a “cashless” society. Even more, most credit cards now offer some sort of incentive, such as rewards or points, so more consumers are using cards even for minor transactions. So it is important for merchants to be able to separate the facts about the industry versus myths that have been created. This knowledge can help the overwhelmed business owner really have an impact on the bottom line. The following are some of the most infamous myths that many merchants believe to be fact.

Accepting cards is too expensive

Back in the dark ages of credit card processing, there existed just three rates. Whether taking a Visa, MasterCard, or AMEX each had their own set rate. It was a simpler time but many businesses were left wondering if the system could be improved. The truth is that with the current interchange system there are something around 400 rates depending on the card. While this may seem backwards, it actually benefits the business because it assigns each card a respective rate dependent on risk and benefits to the cardholder. A card present debit card transaction is at a much lower rate than a card not present business rewards card. This transparent pricing shows what interchange is on every transaction as opposed to one flat rate.

You must sign a contract to get the best rates

This is one of my favorites. Most merchants are told that they must sign an agreement with a 36-month or longer term in order to be given the best rate. At Host Merchant Services, we do not believe in holding businesses financially hostage and locked into a term contract. Our goal is to provide the best service and lowest rate and to earn each and every one of our clients business on a month to month basis. The real goal behind these contracts is to ensure consistent monthly revenue for the processor and to punish the merchant if they choose to leave. This brings me to the next myth…

Hefty early termination fees

More often than not, when a contract is signed for a term, there is a large early termination fee if the services are stopped before the end of the term. This is found in other industries as well, like personal cell phones. This financial penalty often keeps merchants in an undesirable setup even if they are unhappy and WANT to switch. Many times this is coupled with another misleading stipulation…

Terminals must be leased or purchased

Wrong. Leasing a terminal for hundreds of dollars a month is one of the most disingenuous ways processors take advantage of businesses. Often times after just a few months, the business has paid out the actual value of the terminal if it was bought outright. At HMS we “lend” the terminal for use by the merchant as long as they are doing business with us. If they stop processing with us, we just ask to have the machine returned. That simple. Oh and did I mention we also provide free paper?

It takes too long to get your money

Quite the opposite actually. We can provide 24-hour funding when batches are complete by a certain time. This is a vast improvement from the up to 72-hour or more time frame that other providers hold your money.

It is easy for entrepreneurs to feel mislead and lost in the minefield that is the payment processing industry. Contact one of our knowledgeable merchant specialists today so that Host can guide you safely through the field and to industry leading payment processing.