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How Better Payment Processing Creates More Satisfied Customers

As a small business owner, you’re probably juggling countless responsibilities, from inventory and staffing to marketing and customer service.

But one crucial area that’s easy to overlook is your payment processing system.

And if your checkout is slow, complicated, or outdated, you might unknowingly be frustrating your customers and hurting your bottom line.

Long lines, limited payment options, and concerns about security can send customers straight to your competitors, costing you valuable sales and damaging your reputation.

On the other hand, getting your payment processing right can dramatically improve customer satisfaction, boost customer loyalty, and help drive repeat business.

So, if you’re looking for better payment processing and you want to provide the absolute best experience you can for your customers at checkout, then this is an article you can’t afford to miss.

The Importance of Better Payment Processing

Over the past decade, how customers pay for products and services has dramatically evolved.

Today’s consumers expect transactions to be fast, convenient, and secure, regardless of whether they’re shopping online, at a retail store, or somewhere else altogether.

As a result, having a seamless checkout experience has become an integral element of the overall customer experience.

Slow, cumbersome, or outdated payment methods can frustrate customers, often driving them away to competitors who offer better payment processing.

But if you’ve got an efficient, reliable, and modern payment system, that can translate into much more satisfied customers.

All things considered, businesses that invest in better payment processing can expect to have much happier customers, and significantly more referrals, as satisfied customers are a lot more likely to recommend your services.

Speed: Accelerating Customer Satisfaction

Speed is one of the most noticeable and appreciated aspects of any checkout experience.

Quick transactions mean reduced waiting times, and this is incredibly important to your customers, particularly during peak shopping season.

Consider the difference between a customer swiftly tapping their card or smartphone, instead of having to manually go through the checkout process and deal with slow processing.

No matter how you slice it, the faster and smoother your transactions are, the more satisfied your customers will be.

What’s more, a swift checkout experience helps to make your business more efficient, as employees will spend less time managing individual transactions, giving them more time to focus on other things.

These benefits create a satisfying shopping atmosphere, which can contribute to repeat visits and positive word-of-mouth referrals.

Convenience: Meeting Customer Expectations

Having the flexibility to accept as many payment methods as possible has become another essential expectation of today’s consumers.

Offering multiple payment methods, including contactless cards, mobile payments like Apple Pay and Google Pay, and seamless online transactions, is no longer an option if you want to keep your customers.

Because if you limit yourself to traditional payment methods, you run the risk of appearing outdated and can easily lose potential sales to more forward-thinking competitors.

Moreover, a properly integrated POS system ensures accurate transaction data, which helps to reduce human error and streamline your operations.

And in addition to enhancing the customer experience, this can also improve your efficiency.

Security: Building Customer Trust Through Safer Transactions

Customers today are becoming increasingly concerned about the security of their payments.

With that in mind, if you’re looking for better payment processing, you should consider payment processing systems that prioritize robust security measures, including PCI compliance, encryption, tokenization, and sophisticated fraud detection tools.

Protecting customer data is incredibly important for maintaining and building trust, which is a crucial component of the relationships you have with customers.

In any case, if you clearly communicate your commitment to secure transactions, this makes you more trustworthy, and that means more customers will choose to keep giving you their business.

At the same time, breaches in security can cause lasting damage to your reputation and result in lost customers.

Staying Current: The Importance of Modern Payment Terminals

Because payment technology has been advancing so rapidly, if you want to remain competitive, you’ve got to make sure your payment processing systems remain fully updated.

Like it or not, investing in modern payment terminals is no longer a luxury but a necessity.

These state-of-the-art terminals facilitate faster and more secure transactions and accommodate all forms of payment, allowing you to keep pace with customers’ expectations, and ensure they remain satisfied.

And in addition to how this can benefit your customers, modern payment terminals often come equipped with digital receipts, integrated inventory management, and customer relationship management (CRM) tools, which allow you to collect valuable customer data.

Customer Loyalty and Retention: The Bottom-Line Benefits

Better payment processing does far more than just enhance the customer experience – it strengthens your relationships with customers, making them more likely to continue giving you their hard-earned money.

Loyal customers typically spend more, purchase more frequently, and will enthusiastically recommend your business to others. And ensuring you have a smooth and efficient payment process also helps to reduce cart abandonment rates, both online and in-store.

At any rate, offering a frictionless payment experience and simplifying every step in the purchasing process will inevitably lead to increased revenue, more satisfied customers, and greater loyalty.

Lucid Payments: Enhancing Your Customer Experience

Here at Lucid Payments, we understand the critical role payment processing plays if you want to have satisfied customers.

With that in mind, we provide comprehensive payment solutions that are specifically designed to help small business owners like you enhance the payment experience by focusing on speed, convenience, security, and ensuring we offer the most modern equipment.

If you decide to partner with Lucid Payments, you’ll gain access to:

Rapid Transactions: We ensure customers enjoy swift, efficient checkouts that enhance their overall shopping experience.

Advanced Security Measures: We protect customer data with robust encryption, secure payment methods, and PCI compliance.

Flexible Payment Options: We offer the convenience of a diverse array of payment methods, including contactless and mobile payment options.

Cutting-Edge Equipment: We regularly update our payment terminals to ensure you have access to high-quality equipment with all the latest bells and whistles.

Expert Customer Support: We provide 24/7/365 support, based in Canada, which ensures you’ll receive reliable and intelligible assistance whenever you need it.

Are you looking for better payment processing? Book a Rate Reduction Review today to find out how much you can save with Lucid Payments or contact us for more information.

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5 Signs It’s Time to Switch Payment Processors

If you allow customers to pay with debit or credit, then your payment processor is like the backbone of your business.

Among other things, a great processor will ensure transactions are seamless, costs are kept to a minimum, and customers remain satisfied.

But if you’re with a payment processor that subjects you to things like frequent downtime, hidden fees, or outdated technology, it can severely impact not just your bottom line, but also your reputation, your relationships with customers, and your ability to grow your business.

And considering how common some of this stuff is today, it’s no surprise that business owners are becoming less and less satisfied with their payment processors.

According to a J.D. Power survey, which polled more than 4,800 U.S. small businesses, as of 2023, small business satisfaction with payment processors had gone down six points from the previous year, as the cost of services increased and issues with processing payments continued.

Interestingly enough, here in Canada, regardless of how satisfied businesses are with these services, the vast majority said they’d be willing to switch payment processors, if they’re given the right incentives.

As you can see from the graph below, a survey from Chase, which polled over 2,200 Canadian businesses, found that 86% of respondents were “at least somewhat willing to switch vendors.”

But in an industry that’s as convoluted as ours, it can be tough to know when it’s time to switch payment processors.

So, if you’re not happy with the services you’re currently getting, and you want to find a new payment processor, we want to help you make the best decision for your business by highlighting five signs it’s time to switch.

Is it Time to Switch Payment Processors?

If you don’t have a good grasp of how things work in our industry, then it’s going to be tough to tell if it’s time to switch payment processors.

And by the time you’ve noticed something’s not right, it may be too late, as the damage has already been done.

With that in mind, let’s explore five telltale signs that it’s time to switch payment processors.

1) You’re Paying Flat-Rate Pricing

In the payment processing industry, flat-rate pricing tends to be advertised as more convenient and affordable, but the truth is, it’s the most expensive way to pay.

Unfortunately, because of the way it’s advertised, and the fact that most business owners don’t know any better, many get fooled into thinking they’re getting a good deal.

But as we pointed out in our article on Why Interchange Plus Pricing Is the Best Way to Pay for Payment Processing, a CFIB survey found that 54% of respondents had trouble understanding the contract they signed with their payment processor, and 41% are unsure about their pricing.

That being said, it’s no surprise that business owners are being taken advantage of in this way.

What’s more, the average flat rate offered in our industry is currently 2.4%, with some processors charging up to 2.65% or even more.

But only a select few credit cards have an interchange rate of more than 2.4%.

So, while flat-rate pricing might sound great in a slick ad campaign, at the end of the day, it’s going to cost you more money.

With that in mind, if you’re paying flat-rate pricing, it’s time to switch payment processors.

And if you’re not sure what interchange rates are, or you just need a little refresher, you can read our article on What You Need to Know About Interchange Rates in Canada.

2) You’re Finding Hidden Fees on Your Statement

In addition to promoting misleading pricing, unscrupulous payment processors are also notorious for adding miscellaneous “hidden” fees to your statement.

Truth be told, these fees aren’t really hidden at all, if you know where to look.

But the problem is many business owners don’t know how to decipher what’s on their statements.

As a result, payment processors will often sell business owners on a “discounted rate” but then make up for those lower interchange rates, and then some, by tacking hundreds or even thousands of dollars in extra fees onto your monthly bill.

They’re also known to do things like charging different amounts for the same fee multiple times on the same statement or adding extra fees to cards for which you’ve already paid interchange.

If you’re not familiar with this sort of thing, it can be somewhat difficult to determine, but our article on What You Need to Know to Spot Hidden Payment Processing Feesexplains everything.

And if you do find these kinds of fees on your statement, you should definitely start thinking about switching payment processors.

3) You’re Unable to Accept All Forms of Payment

Today’s consumers expect convenience and flexibility, regardless of how they choose to pay.

And whether they’re making purchases using a credit card, debit card, digital wallet, or any other form of payment, if your payment processor doesn’t support these options, it can lead to lost sales, dissatisfied customers, and a ruined reputation.

Like it or not, the popularity of new forms of payment, including mobile payment options like Apple Pay and Google Pay, continues to grow, and if your processor doesn’t allow you to accept these forms of payment, you risk alienating a significant portion of your customers.

Similarly, if you operate internationally, being unable to accept foreign cards or currencies can limit your growth and deter potential customers.

With all that in mind, you’d be surprised how many processors are still using outdated technology that limits how customers can pay.

But the truth is, you don’t have to let limited payment options hold your business back, and there are many processors out there (us included) that support all major forms of payment.

So, if you’re turning customers away because they can’t pay the way they want, then it is definitely time to switch payment processors.

4) Your Payment Terminal Is Falling Apart

Believe it or not, there are many merchants out there who are still using old beat-up payment terminals.

This may not sound like a big deal, but the truth is a malfunctioning or outdated payment terminal can seriously harm your business.

At the end of the day, a functional, modern terminal is not just a convenience – it’s a critical part of your business’ reputation and revenue.

Because when customers encounter a slow, unreliable, or poorly functioning payment terminal, or they see that yours is falling apart, it makes you look unprofessional and unreliable, creating a negative impression that can lead to frustration and abandoned purchases.

And aside from the fact that they may not support the latest payment methods, older terminals might not comply with current security standards, which can expose your business – and your customers – to potential fraud or data breaches.

Frequent breakdowns or maintenance issues can also disrupt your operations, resulting in lost sales and time wasted on troubleshooting.

In any case, if your payment processor isn’t offering upgraded equipment or providing prompt technical support, it’s a clear sign that they’re not prioritizing your needs and it’s time to think about changing payment processors.

5) Your Provider Doesn’t Offer Online Integration

This doesn’t apply to all businesses, as some do all their sales in-person.

However, if you want to sell stuff online, but your provider can’t do eCommerce, then it’s probably time to switch payment processors.

Because if you’re unable to accept online payments, you could be missing out on a vast and growing market of customers who prefer the convenience of shopping from their devices.

And even if you primarily operate a physical store, offering an online option can help to boost sales, expand your reach, and provide a safety net during unexpected disruptions, like having to temporarily close your physical location.

At any rate, without seamless eCommerce integration, managing sales across different channels can be incredibly inefficient and prone to errors, and dealing with online transactions manually can lead to wasted time, accounting inaccuracies, and frustration for you and your staff.

Are you thinking about switching payment processors? Book a Rate Reduction Reviewto find out how much you can save with Lucid Payments or contact us for more information.

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What You Need to Know to Spot Hidden Payment Processing Fees

The first few weeks of the new year are always a great time for reflection, no matter who you are.

And if you’re a business owner, it’s the perfect time to take stock of everything related to your business.

Whether it’s setting objectives for the coming year, determining whether you reached the goals you set last year, or just looking for the cheapest payment processing, those first few weeks of the new year are easily the best time to do this sort of thing.

And with the holiday shopping season coming to a close, and the new year just around the corner, you should start thinking about this stuff now.

Because the truth is there are still far too many business owners out there who are paying through the nose to process payments, and if you’re one of them, now is definitely the time when you should be weighing your options.

So, if you’re thinking about switching payment processors, but you’re not sure how to go about doing it, then you should definitely keep reading.

This article explores why the best time to switch payment providers is early in the new year, explains how smaller local providers like us may be able to give you the best possible deal, and offers advice on what to consider if you’re looking for the cheapest payment processing.

Why Is Now the Best Time to Find the Cheapest Payment Processing?

Typically, December and February are the months when businesses see the highest volume of sales, as people tend to spend more money during these months shopping for Christmas and Valentine’s Day.

That being said, if you’re looking for the cheapest payment processing, then early in the new year is the best possible time.

But why is that?

Well, for one thing, reviewing your statements during the months when you’re doing the highest volume of sales will give you a better idea of what you’re actually paying, and the kinds of cards your customers tend to use.

At the same time, our industry is extremely convoluted, so as the Christmas rush slows down, and January rolls around, you’ll have some downtime to really sink your teeth into this stuff and get a better understanding of how our industry works, which will make it easier for you to get a good deal.

What’s more, one of the ways we work to save money for business owners like you is by doing a Rate Reduction Review, where we’ll analyze your last statement from your current provider so we can see the volume of credit transactions you’ve had, what kinds of credit cards your customers tend to use, and the interchange rates and other fees attached to those cards.

This allows us to determine where you’re spending the most, and what we can do to save you money by adjusting our rates.

What’s more, once January is here, your last statement would be from December, when you probably had significantly higher sales.

And if we analyze that statement, it’ll allow us to figure out how much you’re spending during high-volume months, which will give us a much better idea of the kind of savings we’re able to offer.

At this point, if you do choose to switch, we’ll also know how to adjust our rates so you can see significant savings in February, when you’re likely to see much higher volume again.

Simultaneously, this also gives us the opportunity to determine whether or not your provider is inflating your rates during high-volume months and will also allow us to break down everything on your bill, so you can actually understand what you’ve been paying for.

How Can Smaller Providers Offer the Cheapest Payment Processing?

We can’t speak for every payment processor out there, but typically, it’s the smaller providers who are able to offer the cheapest payment processing.

The main reason for this is that the big players in this industry tend to be multi-billion-dollar operations, and that means they have thousands of employees and massive overhead.

This means that they really can’t afford to give you a good deal, and they also have very little incentive to even try to be competitive.

Because for years, these companies were the only options for payment processing, so they’ve built trust and familiarity in their brands, and as a result, they’re pretty much guaranteed a steady stream of customers and therefore have no incentive to lower their prices.

Moreover, smaller processors know what it’s like to be a small business, so they can relate to what you’re going through and are more likely to want to give you a better price.

If you’d like to learn more about why the big payment processors won’t give you a better deal, you should check out our article on Two of the Biggest Myths About Payment Processing.

What’s more, because providers like us are struggling to compete against the behemoths of the banking industry, we have much more appreciation for each and every one of our customers.

And although we can’t speak for other processors, unlike the big banks, who like to treat everyone with the same cookie-cutter approach, we take the time to do everything on a case-by-case basis, working with clients to provide a personalized service that addresses their unique needs.

For example, if you’re primarily doing business online, where the interchange fees tend to be higher, then we’ll look at how we can lower our markup on those transactions. Or, if you mainly accept debit payments, then we’ll see what we can do to reduce our markup on those.

Some Other Things to Consider

Aside from everything we’ve already mentioned, there are a couple of other things you’re going to want to take into consideration, including the type of pricing processors use and the quality of the payment terminals they provide for their customers.

With that in mind, let’s look at why these aspects are so important to consider when you’re looking for the cheapest payment processing and thinking about switching to a new payment provider.

Pricing

The payment processing industry is notoriously tough to understand, not least when it comes to the way companies charge for their services.

For instance, many companies will charge a flat rate, meaning you pay the exact same interchange rate on every card a customer uses, no matter what.

This is often advertised as a way to save money, and a more convenient way to pay, when compared to other pricing models.

Unfortunately, nothing could be further from the truth, and flat-rate pricing almost always ends up being the most expensive way to pay, as the flat rates companies charge tend to be considerably higher than what you’d pay on most credit cards.

Other processors will offer a “discounted” rate, but then tack a bunch of miscellaneous fees onto your bill to make up for it.

If you’d like to learn how to spot this sort of thing, you should read our article, which explains What You Need to Know to Spot Hidden Payment Processing Fees.

We, on the other hand, pride ourselves on using interchange plus pricing, which means that when credit card companies lower their rates, that will always be reflected on your bill, and we’ll never inflate our rates or use other deceptive ways to make up the difference.

If you’d like to learn more about interchange plus pricing, you should read our article on Why Interchange Plus Pricing Is the Best Way to Pay for Payment Processing.

Payment Terminals

Believe it or not, many payment processors provide payment terminals that are old, beat up, or about to become obsolete.

This is true of many providers, including the giant corporations that dominate this industry.

These machines are much slower than newer ones, and many of them can’t process popular forms of payment, like Apple Pay and even contactless payments.

So, if you’re thinking about switching payment processors, make sure to research the processors you’re considering and ensure their payment terminals are up-to-date, and can accept all the latest forms of payment.

This is incredibly important to look into, as it can have a significant effect on your business, not least because you may have to turn away some customers depending on what form of payment they want to use.

And no matter what rates a processor is charging, if you’re going to have to turn customers away, or have ongoing problems with your payment terminals, it’s not going to be worth it.

Over the years, we’ve been shocked to see how rundown and outdated a lot of these terminals are, and the effect that this is having on business owners.

That being said, we’ve made a commitment to always provide our clients with new, state-of-the-art equipment, which helps their businesses to be more productive, profitable, and flexible.

Are you still searching for the cheapest payment processing? Book a Rate Reduction Review to find out how much you can save with Lucid Payments or contact us for more information.

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What You Need to Know to Spot Hidden Payment Processing Fees

No matter how you slice it, if you own a business, you’re going to need a payment processor.

But trying to decide which processor to choose can be incredibly confusing, not least because of how difficult it is to decipher their pricing.

The reality is, this stuff is often so convoluted, and processors can be so underhanded, that many business owners won’t know what fees they’re paying until after they get their first statement.

And even then, with all the hidden payment processing fees that tend to get tacked onto your bill, it can be tough to understand what you’re paying for.

It’s not uncommon for business owners to have no idea what they’re even looking at when reviewing all the fees on their bills, and their providers certainly aren’t doing much to make anything easier to understand.

We’ve seen this sort of thing happen far too many times, and had countless business owners come to us asking for help to understand what’s on their statements.

And this really is nothing new.

According to a Toronto Star article, back in 2019, the Canadian Federation of Independent Business (CFIB) surveyed about 12,000 of its members, asking them about their experiences with payment processors.

Unsurprisingly, 18% of respondents said these companies have misrepresented themselves, and 16% of them said they’ve used “deceptive sales practices”.

With that in mind, and in keeping with our commitment to providing absolute clarity, we want to explain what you can do to spot hidden payment processing fees that you might not know about.

So, if you want to avoid hidden fees in payment processing, or you just want to understand what you’re looking at on your statement, then this article is for you.

A Perfect Example of Hidden Payment Processing Fees

Before we go any further, let’s look at an example of a statement that contains these hidden payment processing fees.

For legal purposes, we’ll refrain from naming the processor or the client in question, but what you’ll see below is a real statement, brought to us by a business owner who was fed up with this sort of thing and looking to switch processors.

So, let’s break down this bill and look at what kinds of fees are hidden within.

Below is page three of this statement, which shows the total volume of sales for the month, and what cards this client’s customers were using.

If you look under the “Discount” heading, most of the cards on this list have a discounted rate of 1.36%, which is already suspicious, as that is a very low rate, and one which does not correspond to the non-qualified cards on the list, which we know tend to have a rate of 1.50% to 2% or more.

So, if this processor is only charging 1.36% on most of these cards, and taking a loss on the interchange fees, then how is it making its money?

Clearly, it’s not by marking up the interchange rates, but they’ve got to make their money somehow, so let’s dig a bit deeper.

If you take a look at page four of this statement, it’s obvious what this processor is doing.

When this business owner signed up with this processor, they probably sold them on their discounted interchange rate of 1.36% on most cards, but what they likely didn’t discuss was the litany of miscellaneous fees that would be on their bill.

Many of these fees are standard, but several of them stand out as fees that honest processors wouldn’t charge their customers.

For instance, the “DATASECFEE” is $447, and “SYSTEM MAINTENANCE” is another $65, not to mention the “PCI ADMIN” fee at $187 and $560 for a risk assessment.

Also, keep in mind that this isn’t some sort of annual thing – these are monthly fees!

What’s more, very few people know what these fees are for, so what’s on the statement is essentially meaningless, and a processor could put pretty much anything on there, as the majority of business owners wouldn’t know the difference.

But unfortunately, the hidden payment processing fees don’t stop here.

If you look at page five of this statement, which you’ll find below, there are two more lists of miscellaneous fees.

Some of them, like the risk assessment, were already tied to hundreds of dollars in other fees on page four, so why they’re here as well is anybody’s guess.

Another interesting thing to point out about this page is that it lists all the non-qualified cards that were processed, but there aren’t any rates listed for these cards, just more miscellaneous fees.

So, in order to see the real rates that you’re paying, you’d have to add up all the other charges on each individual card, which nobody would know to do anyway.

And here on page six is where the effective rates, or true rates, for each card are listed.

As you can see, all but one of these cards has a considerably higher rate than 1.36%, and some of them have a rate that’s more than twice that high.

Even a standard qualified Visa has an effective rate of 1.84%, so the question is, why are they offering a “discounted” rate of 1.36%?

Well, clearly this processor sells their pricing based on a discounted rate, and takes a loss on the interchange, but then adds hundreds of dollars of miscellaneous fees to clients’ bills to make up for it, and then some.

Finally, if you look at this client’s billing summary, which you’ll find below, the total cost for one month was nearly $1,700, which is insane for this amount of volume!

By our estimate, a business with this volume of credit and debit card sales should be paying less than a quarter of that amount.

But when your statements are this convoluted, and you use this kind of deceptive pricing, it’s easy to see why so many business owners get bamboozled by this sort of thing.

How to Spot Hidden Payment Processing Fees

The main problem with pricing in this industry is that it seems to all be based on interchange rates, and whether processors will discount those rates, or add a markup to them.

But with everyone being so focused on these rates, many business owners are forgetting that what matters is the overall cost of your bill.

Because if you’re getting discounted rates on every card that’s processed, but then paying hundreds of dollars in miscellaneous fees to make up for it, then you’re not saving anything.

Having said that, in addition to everything we’ve already covered here, if you want to spot hidden payment processing fees, you should stop focusing on the interchange rates and start scrutinizing the “other charges” and/or “other fees” sections on your bill.

If you see anything more than a $5-$10 statement fee, a fee for PCI, which should be $11 per month or less, or some equipment fees in these sections, then the truth is, you’re paying way more than you should.

Anything else is basically a hidden tacked-on charge, unless you’re subscribed to a point-of-sale system or something like that.

What’s more, the only time you should see a fee tied to a card is when there’s a rate included with that fee.

If you see fees being charged for cards with no corresponding rate, then they’re just tacking miscellaneous fees onto your bill because they can.

Now, to be fair, a lot of these fees aren’t technically hidden, and if anything, they’re more hidden in plain sight than anything.

But even though they’re listed on your bill, without the knowledge we’ve provided in this article, chances are you wouldn’t know what most of them are for, and that is essentially the same thing as them being concealed.

At any rate, hopefully this article has given you greater clarity on how to understand everything on your statement, including how to spot hidden payment processing fees.

And we encourage you to share this information with fellow business owners, as the more merchants know about this, the less payment processors will be able to get away with it.

Are you sick of paying so much for payment processing? Schedule a Rate Reduction Review to see how much you can save with Lucid Payments, or contact us today to learn more.

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New Agreement Caps Interchange Fees for Some Small Businesses in Canada

As we’ve been saying since we started in this industry, Canadian businesses are paying way too much when it comes to interchange fees.

But an agreement between the feds, Visa, and Mastercard, which just came into effect last week, may be able to provide some relief, at least for some small businesses.

Truth be told, the Canadian government has been talking about regulating interchange fees for years now, but until recently, it didn’t seem like they were going to do anything about it.

We’ve been covering this specific story for about two years now, but our current federal government started talking about it way back in 2019, when the Liberals began leveraging this issue as part of their election campaign.

Back in 2022, we published our first article on this, which asked, Is the Canadian Government Really Going to Regulate Interchange Fees?

At the time, things were still very uncertain, and whether the government planned to actually bring in regulations was anyone’s guess.

But if you’d like some background on this story, that article is a good place to start.

Then, last year, after the government announced it had reached an agreement with Visa and Mastercard, we published a second piece on this story, Feds Finally Reach Deal With Visa and Mastercard to Lower Interchange Fees for Small Businesses in Canada.

This article goes into great detail on the ongoing fight to lower interchange fees in Canada and sums up the terms of the agreement, so if you want to know more about how this story has been unfolding, you should check it out, as well.

In any case, now that this agreement has come into effect, we want to make sure you’re aware of what’s happening and offer our take on it, as well.

So, if you want to learn more about these changes to interchange fees in Canada and get our honest opinion on what this actually means for your business, then you’re going to want to keep reading.

How Does This Agreement Affect Interchange Fees In Canada?

Earlier this month, the government published a press release outlining what it’s supposedly doing to help small businesses in Canada, including capping interchange fees for eligible businesses.

“The federal government is making life easier for locally owned businesses by introducing reduced credit card transaction fees,” said Minister of Public Services and Procurement Canada, Jean-Yves Duclos.

But how exactly is this going to work?

Well, according to the feds, as a result of these changes, over 90% of small- and medium-sized Canadian businesses will see their interchange fees slashed by up to 27%, and this is projected to save small businesses about $1 billion over the next five years.

With that in mind, here’s what Visa and Mastercard will be doing for eligible businesses as a result of this agreement:

Reducing domestic consumer credit interchange fees for in-store transactions to an annual weighted average interchange rate of 0.95%

Lowering domestic consumer credit interchange fees for online transactions by 10 basis points, offering reductions of up to 7%

Providing free access to “cybersecurity and online fraud resources” to help small businesses sell more online, while preventing fraud and chargebacks

However, only businesses and non-profits with annual Visa sales of less than $300,000 will qualify for lower interchange rates from Visa, and only those with annual Mastercard sales of less than $175,000 will qualify for lower rates from Mastercard.

It’s also important to point out that organizations will have to qualify with each credit card network individually.

The government even provided an example of how this could help, saying that if a business processes $300,000 in credit card payments, it could save $1,080 in interchange fees.

But is this an accurate representation of the interchange fees Canadian small businesses pay?

And is this agreement as good as the government’s making it out to be?

Let’s take a closer look and find out.

Our Take on These Changes to Interchange Fees in Canada

As we said in our last article on this, it’s great to know that small businesses in Canada may end up seeing some relief from the insanely high interchange fees they’ve been paying.

It would have been nice to see these fees reduced even further, but going from an average interchange rate of 1.4% down to 0.95% is nothing to scoff at either.

However, when it comes to this agreement, and this latest announcement, there’s a lot to criticize.

For one thing, the government’s being very disingenuous with its example of the interchange fees a business would supposedly pay.

In its latest press release, the government claims that if a business in Canada processes $300,000 in credit card payments, they’ll pay about $4,000 in interchange fees.

But we did the math on this, and they are really lowballing it.

Because in order to pay only $4,000 in fees on $300,000, the cards you’re processing would have to have a rate of no more than 1.33%, which is pretty much unheard of.

To put things in perspective, if you were to calculate the interchange fees paid on that same amount through Square, which charges rates of at least 2.65%, and is the processor of choice for many small businesses in Canada, it would come to $7,950, which is nearly twice as much as the government’s estimate.

What’s more, even though the government has published several press releases on this agreement, we’re still left with many unanswered questions.

For instance, while the government keeps talking about how businesses will have to qualify with each card network, there’s been no indication of how they can do that, either from the feds or the credit card companies themselves.

So, even as these new changes have come into effect, it’s yet to be seen how businesses will be able to qualify.

Moreover, neither the government nor the credit card companies have given any indication as to where businesses can access the free “cybersecurity and online fraud resources” they’ve committed to provide.

Furthermore, as we’ve learned over the years, many small businesses in Canada are with payment processors outside of Canada, but because this agreement was made solely between the Canadian government, Visa, and Mastercard, there’s no reason to think that these changes will apply to foreign payment processors.

As we outlined above, these reductions are only for “domestic consumer credit interchange fees”, so we can only assume that this applies to Canadian payment processors only.

As a result, many small businesses in Canada will never see these rate reductions, not least because this agreement doesn’t apply to their processors.

Also, in a press release on this agreement published last year, the government said it expects “that payment processors will pass these reductions on to small businesses.”

But if you know anything about our industry, you’d know that many payment processors are notorious for refusing to pass interchange rate reductions on to their customers, instead choosing to obscure these savings by padding people’s bills with miscellaneous fees.

Moreover, the payment processors and the banks are not part of this agreement with the government, so they can continue to do whatever they want, and they will.

Sadly, all of this shows just how out of touch our federal government is with the frustrations of small business owners in this country.

And as far as we’re concerned, this agreement is much too convoluted, it leaves way too many questions unanswered, and it doesn’t go nearly far enough, as it’s not applicable to so many small businesses in Canada.

Unfortunately, there’s nothing we can do to stop the government from being so unclear about this.

But we will continue to cover this ongoing story, making you aware of any new updates, and breaking it down as best we can to help you gain greater clarity on your payment processing.

Are you tired of paying so much for payment processing? Schedule a Rate Reduction Review to see how much you can save with Lucid Payments, or contact us today to learn more.

[lucidpayments]

11 Tips on How to Grow Your Business on Social Media

In today’s world, if you want to build a successful company, you’ve got to know how to grow your business on social media.

Like it or not, these platforms are an essential aspect of any modern marketing strategy, and if you choose to ignore them, you’re doing so at your own peril.

No matter how you slice it, there is no denying that social media platforms offer a ton of benefits for your business, allowing you to build brand recognition, forge meaningful relationships with customers, foster trust and loyalty, drive sales, and achieve substantial growth.

For instance, in an Ipsos poll, which explored the impact of Messenger, Instagram, and Facebook on Canadian businesses, 33% of respondents said these platforms helped them start their companies, and 46% said their businesses are stronger today because of them.

What’s more, 36% of exporters said using Instagram has helped them increase sales, and 35% said Facebook has helped them sell more.

As you can see, these kinds of platforms can have a significant impact on your ability to grow your business, and that’s because consumers are increasingly using them to connect with companies, research products, and make purchases.

For instance, a PwC survey, which polled more than 20,000 consumers across 31 countries, found that 46% of them have purchased products on social media, up from 21% in 2019, 67% of them use social media to find new brands, and 70% of them read reviews on social media before choosing to make a purchase.

All things considered, it’s undeniable that consumers are increasingly using social media to do their shopping, so if you avoid these platforms, you could be leaving a lot of business on the table.

With that in mind, we want to provide some advice on growing your business through social media.

So, if you’re wondering how to grow your business on social media, and you’re looking for some tips, then this article is for you.

Our Top Tips on How to Grow Your Business on Social Media

At this point, it should be obvious that social media offers one of the best ways to connect with customers, make more sales, and grow your business.

But growing your business on social media is about more than just posting regularly. It requires a deep understanding of these platforms, and how to use them to your advantage.

Luckily for you, below we’ve offered 11 tips on how to grow your business on social media, so you can take full advantage of these platforms and avoid getting left in the digital dust.

1) Understand Your Audience

The foundation of any successful social media strategy is a deep understanding of your audience.

Knowing who they are, what they like, and how they interact with content is crucial, and this involves analyzing demographic data like age, location, gender, and interests.

Tools like Google Analytics, Facebook Insights, and Instagram Analytics can provide this information, and this will allow you to tailor your content to meet the specific needs and preferences of your audience.

This ensures your messaging will resonate with consumers, which will help you to maximize your return on your efforts.

2) Choose the Right Platforms

Although you may be tempted to use every platform out there, the truth is, not all social media platforms are suitable for every business.

That being said, it’s crucial for you to focus on platforms where your ideal customers are most active.

For instance, if your target audience includes professionals, then LinkedIn is probably the most appropriate platform.

On the other hand, if your focus is on a younger demographic, platforms like TikTok and Instagram are more preferable.

This strategic selection is very important, as it prevents you from wasting time and effort on platforms that do not house your target audience.

3) Develop a Strong Brand Voice

Ensuring consistency when it comes to your brand’s voice is key, and this is true across all marketing channels, including social media.

Aside from just being consistent, this voice should reflect your brand’s values and resonate with your ideal customers.

And whether it’s professional, friendly, informative, or playful, a distinct and consistent brand voice helps to make your content recognizable and relatable, which strengthens your brand identity, and builds trust with your audience.

4) Engage Rather Than Broadcast

Social media should be interactive, which means you’re going to have to engage your audience.

You can do this by responding to comments, messaging followers directly, and participating in discussions, all of which can transform passive followers into active participants.

This engagement not only enhances your relationships with customers, but also boosts your visibility through increased interactions, which platforms like Facebook and Instagram favour in their algorithms.

5) Create Visual Content

Visuals are key when it comes to capturing people’s attention on crowded social feeds.

That being said, high-quality images, engaging videos, and eye-catching graphics can help you to significantly increase engagement.

Platforms like Instagram and Pinterest, for example, are highly visual and require strong imagery if you want to stand out.

With that in mind, you might want to consider using tools like Canva or Adobe Spark to help you create professional-looking visuals that will attract more views and shares.

6) Leverage User-Generated Content

Encouraging your customers to share their experiences with your brand can provide social proof and enhance your credibility, and social media offers a great place to do this.

What’s more, user-generated content not only offers authentic insight into your brand from a consumer’s perspective but also helps in building a community around your products or services.

In any case, featuring user-generated content on your social media accounts can help you to increase trust and foster a stronger connection with your audience, making it more likely that they’ll want to do business with you.

7) Social Media Advertising

Social media ads allow for targeted advertising based on specific demographics, interests, behaviours, and more.

These tools give you the ability to precisely target potential customers and drive conversions by serving your ads to the right audiences at the right times.

But when you’re creating your ads, make sure that you understand your audience first, and then set clear objectives, choose the right platforms, and make sure to use high-quality, enticing visuals.

Retargeting is also something to consider, as it allows you to serve ads to those who’ve already interacted with your brand but haven’t made a purchase.

8) Post Regularly But Not Obsessively

If you want to keep your audience engaged, and avoid annoying them, you’ve got to post regularly, but not obsessively, otherwise you’ll risk overwhelming them.

Too much content can make people want to unfollow you, while too little can cause your audience to forget about your brand, so you’ve got to find the right balance.

In any case, you should think about creating a content calendar, as it can help you organize and schedule your posts, so you can ensure consistent engagement without spamming your followers.

9) Monitor Trends and Adapt

Social media trends can shift rapidly, so you’ve got to stay up to date on things as much as you can.

This is extremely important, because staying updated with these changes and adapting your strategy accordingly is what’s going to help you keep your content relevant and engaging.

Whether it’s a new type of content, a viral challenge, or a change in user behaviour, staying on top of this stuff and being agile and responsive to these trends gives you a competitive edge, which can help you to grow your business.

10) Analyze and Optimize

If you want to be able to compete in the ever-changing world of social media marketing, continuous improvement is a must.

This involves regular analysis of what types of posts perform best, which times yield the most engagement, and where the majority of traffic comes from.

With that in mind, you should look into tools like Hootsuite, Sprout Social, and Buffer, as they offer comprehensive analytics, which allow you to measure performance across multiple platforms and improve your overall social media strategy.

11) Collaborate with Influencers

Influencer marketing is a great way to amplify your reach and lend credibility to your brand, not least on social media.

That being said, if you collaborate with influencers who share your target audience, you can introduce your brand to a broader, yet highly targeted audience that’s already interested in what you’re offering.

This strategy is particularly effective for gaining rapid visibility and traction for new products, services, or campaigns, as they’ll be promoted by people whom your target audience already knows and trusts.

Are you ready to simplify your payment processing? Why not contact us today and find out how we can help?

[lucidpayments]

9 Inventory Management Tips to Help You Stay on Top of Your Stock

Owning a business requires you to deal with a seemingly never-ending array of challenges.

From dealing with finances, to managing employees, ensuring compliance with regulations, and everything in between, today’s business owners have a million and one things to worry about.

And when you’re dealing with something with this many moving parts, it’s easy to overlook things.

But while you can get away with overlooking some things, inventory management is something you just can’t afford to mess up, or you could end up dealing with some severe financial consequences.

For example, according to estimates from a Coresight Research survey, poor inventory management accounts for 53% of unplanned markdowns for retailers, and in 2018, markdowns cost U.S. non-grocery retailers approximately $300 billion.

What’s more, 50% of survey respondents said “inventory misjudgments” act as a barrier to selling their products at full price.

As you can see, this is not something you can afford to overlook. But trying to wrap your head around inventory management can also be incredibly overwhelming.

With that in mind, we want to offer some inventory management tips so you can stay on top of your stock and avoid the pitfalls of poor inventory management.

So, if you’re dealing with issues related to your inventory, and you’re looking for some inventory management tips and tricks, then you’re going to want to keep reading.

What Are Some Common Inventory Management Issues?

Before we start offering inventory management tips, we also want to explore some of the most common inventory management challenges.

This knowledge will help put things in perspective for you and offer even greater context for how you can apply the advice we’re about to give.

Having said that, here are some of the most common inventory management issues:

Inaccurate Inventory Tracking

One of the most common inventory management issues is inaccurate tracking of stock levels.

Errors in data entry, miscounts during stock audits, and discrepancies between physical stock and recorded inventory are all too common.

These inaccuracies can lead to stockouts, where items are unavailable when customers want them, or overstocking, where excess inventory takes up valuable space and ties up capital.

Both scenarios are detrimental, as stockouts can result in lost sales, dissatisfied customers, and many other problems.

Overstocking and Stockouts

Overstocking occurs when a business orders more stock than necessary, which can lead to high storage costs and an increased risk of inventory becoming obsolete.

On the flip side, stockouts happen when inventory levels are too low to meet customer demand, and this can result in missed sales opportunities and damage to customer relationships.

Both of these situations are costly and highlight the importance of accurate demand forecasting and efficient inventory management practices.

Inefficient Supply Chain Management

As we’ve all learned over the last few years, supply chain disruptions can severely impact inventory management.

Things like delays in receiving goods and unreliable suppliers can all contribute to inventory shortages or excesses.

Inefficient communication between supply chain partners can further exacerbate these issues, making it difficult to forecast your inventory needs accurately.

This can lead to a situation where you either overstock to mitigate the risk of stockouts or understock due to uncertainty, both of which are certainly not ideal.

Poor Demand Forecasting

Poor demand forecasting can also lead to either overstocking or stockouts.

And without reliable demand forecasting, businesses risk either tying up too much capital in unsold inventory or losing sales due to insufficient stock.

That being said, accurately predicting consumer demand for the products you carry is vital for maintaining the right inventory levels.

But in order to do this, you’ve got to analyze historical sales data, market trends, and other relevant factors, otherwise you’ll be more likely to misjudge demand.

This issue is also particularly challenging in industries with seasonal fluctuations or rapidly changing consumer preferences.

Lack of Real-Time Data

The absence of real-time inventory data can leave businesses operating on outdated information, leading to poor decision-making when it comes to inventory management.

Without these real-time insights, businesses may struggle to respond quickly to changes in demand or supply chain disruptions, and this lag in information can result in missed opportunities for restocking or unnecessary purchases of slow-moving items.

With that in mind, implementing systems that provide real-time inventory tracking can help businesses make more informed decisions and improve their overall inventory management efficiency.

High Carrying Costs

Inventory carrying costs, which include expenses related to storage, insurance, and the risk of obsolescence, can significantly impact your business’ profitability.

If you overstock inventory or fail to move products quickly enough, you’ll face higher carrying costs, which are often compounded by the need to discount or write off obsolete inventory, and these issues can significantly reduce your profitability.

With that in mind, effective inventory management practices, such as just-in-time (JIT) inventory, can help minimize carrying costs by reducing the amount of inventory held at any given time.

Ineffective Inventory Management Systems

Many businesses today still rely on outdated or inadequate inventory management systems that lack the sophistication needed to handle modern inventory challenges.

These systems may not integrate well with other business processes or may require manual input, which increases the risk of errors.

In any case, a failure to modernize your inventory systems can lead to inefficiencies that hinder your business’ ability to compete.

Luckily, modern inventory management solutions, particularly those that leverage automation and real-time data, can significantly enhance your ability to efficiently manage your inventory.

Our Top Inventory Management Tips

As you can tell by now, there is no shortage of issues when it comes to inventory management.

These may not all apply to your business, but if you fail to address the challenges that do, it could have far-reaching consequences from which you may never recover.

Fortunately, below we’ve provided a comprehensive list of inventory management tips and tricks, so you can avoid falling prey to the pitfalls of poor inventory management.

1) Understand Your Inventory

One of the best inventory management tips we can offer is to make sure you have a solid understanding of your inventory.

This involves categorizing your inventory based on things like how quickly your company can sell a given item, along with its value, and how quickly people will be looking to replace that item.

Employing an ABC analysis is useful here, and this involves segmenting your inventory into A-items (high-value products with low sales frequency), B-items (moderate-value products with moderate sales frequency), and C-items (low-value products with high sales frequency).

This classification can help you evaluate your inventory and then concentrate your resources on the most impactful items.

2) Leverage Technology

Incorporating technology into your inventory management process through things like inventory management software can significantly streamline your operations.

These tools provide features like real-time tracking, automated reordering, and detailed analytics, among many other benefits.

What’s more, this kind of technology allows you to integrate your inventory system with other aspects of your business, like accounting, procurement, and sales, which helps to ensure the consistency of your data and the efficiency of your operations.

3) Optimize Your Inventory Levels

When it comes to inventory management, optimizing your inventory is arguably one of the toughest challenges you’ll face.

With that in mind, setting Periodic Automatic Replacement (PAR) levels is crucial for maintaining sufficient stock so you can meet demand without overstocking.

Setting PAR levels involves using software to set the minimum levels of inventory you need to fulfill demand for a specific product.

Once this is done, the software will then notify you of the need for the item to be reordered and can even be set to automatically reorder stock when the minimum level is reached.

Moreover, the Just-In-Time (JIT) inventory strategy can also be effective for optimizing your inventory levels, as it involves keeping minimal inventory on hand and ordering more only as needed.

However, while this strategy can help to reduce carrying costs, it requires accurate demand forecasting and reliable suppliers.

4) Improve Your Forecasting

Effective inventory management relies heavily on accurate forecasting, which you can do by using historical sales data and considering factors like seasonal fluctuations and market trends.

In any case, it’s essential to regularly update your forecasts based on new sales data and external factors, such as economic shifts or changes in consumer behaviour.

5) Manage Your Relationships

Developing strong relationships with your suppliers can help you negotiate better deals and help to improve the reliability of your supply chain.

And if you’re able to successfully negotiate better terms by leveraging volume, loyalty, and payment history, it can yield significant benefits, including discounts and priority delivery schedules.

6) Monitor and Audit

Regular audits can help you verify that your physical inventory matches your inventory records, allowing you to promptly address any discrepancies.

Making use of cycle counting, for instance, which involves counting a subset of inventory on a rotating schedule, may help you pinpoint issues more efficiently than a full inventory count.

7) Properly Train Your Staff

Properly and regularly training your staff in the best inventory management practices and how to operate the systems you’re using is crucial.

What’s more, encouraging accountability by implementing performance metrics and involving your staff in planning and decision-making processes can also help to improve your inventory management.

8) Optimize Your Storage

Designing an efficient warehouse layout allows you to easily access frequently picked items, ensuring smooth and unobstructed movement of goods.

Utilizing vertical space for storage by implementing a racking system, for instance, can also help by more efficiently using your space and decreasing rental costs.

Not all businesses can afford to rent out warehouse space, but even if you’re storing your inventory in your garage, the same rules apply.

Whatever space you have should be used as efficiently as possible, and should allow for an easy flow of goods, particularly for your most popular items.

But if you are running out of room and you’re looking to scale without heavy investment in warehousing and distribution, outsourcing inventory management to a third-party logistics (3PL) provider can be advantageous, as it can help to reduce costs and improve operational efficiency.

9) Pick the Right Platform

Unfortunately, a lot of companies in our industry are still offering older payment terminals, most of which have no inventory management capabilities.

And if your device doesn’t offer these features, then you’re either going to have to have someone manage your inventory manually, which costs time and money, and can be subject to human error, or you’ll have to pay a third-party to take care of it for you, neither of which is ideal.

Fortunately, our platform offers online inventory management through an all-in-one, easy-to-use, centralized system that syncs with all your devices.

For example, if you do ten sales on your physical terminal, and five sales using your point-of-sale system, and then you log into our online platform, you’ll see all those sales in one place, and the products in question will immediately be deducted from your inventory.

So, ask yourself, when it comes to inventory management, is your payment processing platform working for you, or are you working for it?

Because if you are the one doing most of the work, then maybe it’s time for a change.

Searching for a payment processing platform that works as hard as you do? Why not contact us today and find out how we can help?

[lucidpayments]

Why Interchange Plus Pricing Is the Best Way to Pay for Payment Processing

If there was an award for the most convoluted industry on the planet, payment processing would probably win by a landslide.

And if we had to choose the most needlessly complex aspect of our industry, it would have to be how processors choose to charge for their services.

Whether they’re using interchange plus pricing, tiered pricing, or flat-rate processing, typically, payment processors aren’t making things any easier for their customers to understand.

What’s more, business owners don’t seem to have any idea what these various fee structures are, how they work, or which one is going to give them the best deal.

As a result of all this confusion, it seems many businesses are just picking a processor at random without even bothering to look into their pricing.

For instance, a Canadian Federation of Independent Business (CFIB) survey found that 54% of respondents have difficulty understanding the contract they have with their payment processor, and 41% are unsure about their pricing model.

The survey also found that credit card processing fees are unaffordable for 78% of respondents.

However, many business owners are unwittingly choosing to partner with processors whose pricing is deceptively expensive, and the reality is they don’t need to be paying this much.

But given the abject lack of clarity in this industry, it’s no surprise that business owners are getting bamboozled like this.

With that in mind, this article will explain the most common pricing models for payment processing, including interchange plus pricing, tiered pricing, and flat-rate processing.

We’ll break down everything in no uncertain terms, exploring the various types of pricing, comparing them, and explaining why interchange plus pricing is your most affordable option.

If you’re new to this topic, and you’re not sure what the term interchange means in this context, you should start by reading our article, What You Need to Know About Interchange Rates in Canada.

And if you’d like a bit of a refresher on how interchange fees are calculated, you should check out our article, What Determines the Cost of Interchange Fees?

Why Is Interchange Plus Pricing the Best Way to Pay for Processing?

This seems like an easy question to answer, but as you may already suspect, it’s not as simple as you might think.

If you want to understand why interchange plus pricing is your best option, first you’ve got to understand the most common methods of paying for payment processing and compare them.

With that in mind, let’s explore the three most common ways to pay for payment processing, so you can understand why your best option is interchange plus.

Tiered Pricing

Tiered pricing is a pricing model where transactions are categorized into different tiers, each with its own interchange rate. The tiers include these three rates:

Qualified Rate: This is the lowest rate, applied to the most standard and secure transactions, such as swiped or chip-inserted debit or credit card payments.

Mid-Qualified Rate: A higher rate than the qualified rate, applied to transactions that pose a slightly higher risk, such as those involving rewards cards or manually entered card information.

Non-Qualified Rate: This is the highest rate, applied to the riskiest transactions, such as those made with corporate or international cards, or transactions that don’t meet certain security criteria.

This model allows payment processors to charge different rates based on the risk and processing requirements of each transaction.

If you’re being charged based on tiered pricing, that means you’ll have to pay a set qualified rate on every transaction, plus a mid- or non-qualified rate that applies to any transaction that doesn’t meet the requirements of the qualified rate.

So, for example, if a customer is paying with a qualified Visa and actually inserting their card into a physical machine, you’ll probably get a rate of around 1.45%.

Then for every transaction that’s mid- or non-qualified, that corresponding rate will get stacked on top of the qualified rate.

In theory, this model could offer some pretty decent pricing if the company gives you a good deal, but unfortunately, that’s rare.

Typically, providers will set their mid- and non-qualified rates high enough to ensure they’ll make the most profit they can, so you’re not likely to get a very good price.

In these situations, businesses will end up paying something like 0.85% on a non-qualified card, plus the qualified rate, which means they’ll be paying a total of 2.30% (1.45% + 0.85%).

But compared to what you’d be charged based on interchange plus pricing, this is a higher rate than what you’d pay for almost any card that’s available to consumers today.

So, as you can see, not only is this pricing model difficult to understand, but it’s also going to cost you more, as well.

Flat-Rate Pricing

One of the most common complaints we hear from potential customers is that they never know how much they’re going to pay in interchange fees each month.

As a result, many business owners choose to partner with a processor that offers flat-rate pricing, as this type of pricing tends to be advertised in a way that makes it seem like it’s more convenient and easier to understand.

But despite the clever marketing, the truth is that this is the most expensive pricing in our industry.

Providers who offer flat-rate payment processing will typically charge a highly inflated rate to make sure that they’re able to turn a profit on most transactions.

For instance, the average flat rate offered in our industry is currently 2.4%, with some processors charging up to 2.65% or even more.

So, while it may sound great to know exactly what you’re going to pay on every transaction, in reality, what this means is that for the lower-end cards and less risky transactions, you’ll have to pay double what you’d pay with interchange plus pricing, or even more.

To give you an idea of how much more expensive this kind of pricing can be, below, you’ll see Visa’s current interchange rates for consumer cards in Canada.

As you can see, only two of the dozens of cards on this list have an interchange rate of 2.4% or higher. And if you look at Mastercard’s rates below, you’ll see that the list looks very similar.

Again, only two of the cards on this list have an interchange rate of 2.4% or more.

Judging by these numbers, if you’re paying a flat fee that’s anywhere above 2%, you could be costing yourself hundreds of dollars per month in extra fees, depending on your volume of sales.

Truth be told, there are only a couple of different card types that cost more than 2.2%, so no matter how you slice it, paying these higher flat rates will cost you more money.

Interchange Plus Pricing

Hands down, this is easily the best pricing in our industry.

You’re welcome to try, but we can guarantee you’re not going to find anything cheaper.

We use interchange plus pricing because it keeps us competitive, it’s transparent and easier to understand, and it aligns with our mission of putting our customers first and always acting in the best interests of business owners.

That being said, rather than having to charge a high enough flat rate to profit on all cards or creating a convoluted tier system, interchange plus pricing allows us to offer you the exact interchange rate set by credit card companies like Visa and Mastercard, plus a small markup (usually 0.20% – 0.40%), which is how we make our money.

This means if your customer pays with a qualified Visa, you’ll pay 1.25% plus a markup of no more than 0.40%. That adds up to 1.65% or less, which is considerably lower than the average flat-rate pricing in our industry.

And that’s it. It’s really that simple.

With interchange plus pricing, you’ll pay whatever the interchange rate is on the card your customer is using, plus our markup.

This allows you to not only save money but also have greater clarity and peace of mind when it comes to your payment processing.

Another great thing about interchange plus pricing is that when credit card companies like Visa and Mastercard lower their interchange fees, this will immediately be reflected on your bill, which isn’t the case with many providers.

But with Lucid Payments, you won’t have to call in to try and get a better deal, or make sure these savings will be reflected on your statement.

The savings will simply be passed on to you the second that rates are lowered.

Interchange plus is also much more transparent, as well, because you’ll be able to see on your statement which cards you processed, what the interchange rates were on those cards, and what our markup is.

Time to Compare

Using the three different types of pricing we’ve covered today, let’s run a scenario to see which one will offer the better deal.

Let’s say your customers purchased $5,000 worth of products this month, and they all paid with a Visa Infinite card, which has an interchange rate of 1.57%.

For the tiered pricing, you’d be paying 1.57% plus 0.85%, so each one of those transactions would cost you 2.42%.

If you were being charged based on interchange plus pricing, you would’ve paid that same 1.57% interchange rate plus our markup of 0.20%, which would cost you 1.77%.

And for flat-rate pricing, you would’ve paid at least 2.4% on each transaction, regardless of what the interchange rate is on the card the customer is using.

So, if we do the math here, the flat rate pricing would cost you $120 in fees for those $5,000 in sales, and the tiered pricing would cost you $115, but the interchange plus pricing would only cost $88.50.

As you can see from this example, clearly, interchange plus is much cheaper.

And if you’re with a processor who charges you anything but interchange plus, you are simply paying too much.

Want to learn how much you can save with Lucid Payments? Book a Free Statement Review or contact us today to find out how we can help.

[lucidpayments]

Lucid Payments vs. Square: Which One Is Best for Your Business?

As we’ve said countless times before, the payment processing industry suffers from a serious lack of clarity.

Business owners don’t understand it, processors aren’t making it any easier to understand, and unfortunately, they’re benefiting from maintaining that status quo.

We, on the other hand, have chosen to take a different approach by putting the best interests of business owners like you first and ensuring you have absolute clarity when it comes to your payment processing.

With that in mind, we’ve held our tongue for quite some time now, but we’re tired of beating around the bush while business owners get bamboozled, so we figured it was time to start doing direct comparisons between Lucid Payments and some of the giants of our industry.

But we’re not here to just give you a sales pitch, and we’re not looking to throw stones either.

All we want to do is provide an honest comparison of Lucid Payments vs. Square, so you can make up your own mind as to which processor will be best for your business.

So, if you’re looking for the best interchange rates, wondering what the difference is between interchange plus vs. flat rate pricing, or just want a direct comparison of Lucid Payments vs. Square, then keep reading to learn more.

Lucid Payments vs. Square: What’s the Difference?

If you want to choose the best payment processor for your business, then you need to compare what the various processors are offering.

And while that may seem simple, if you don’t have a firm grasp of how our industry works, particularly when it comes to interchange rates, then regardless of how much you compare, you’re probably not getting the whole picture.

With that in mind, below we’ve done a direct comparison of Lucid Payments vs. Square, and provided proper context, so you can come to your own conclusions.

Interchange Plus vs. Flat Rate Pricing

If there’s one thing business owners are most confused about when it comes to payment processing, it’s got to be interchange fees.

Hopefully, you’re aware of what they are and how they work, but if you want more information, you can check out our article on What You Need to Know About Interchange Rates in Canada.

In a nutshell, when you accept payments with credit cards or debit cards, you’ll have to pay a percentage of the cost of each transaction in what’s known as interchange fees.

The rates at which you’ll pay these fees are variable, and they’re based on things like the nature of the transaction, the industry in which you’re operating, and the type of card the customer is using.

That being said, one of Square’s perceived selling points is its flat rate pricing, which it refers to as being simpler, as you’re paying the same rate no matter what card a customer uses.

But as you can see below, according to an article from The Ascent, the average interchange rates on most credit card transactions are actually much lower than Square’s flat rate of 2.65% for an in-person transaction.

On average, three out of these four cards will cost you less than what you’d pay with Square, and when you start doing card-not-present transactions, that’s where things really start to get expensive.

For instance, for card-not-present transactions, like when someone buys something on your website, Square will charge you 2.9% plus a fee of 30 cents per transaction.

And if you’re keying in the information yourself, as you’d do when taking orders over the phone, it’s going to cost you 3.4% plus 15 cents per transaction, which is considerably higher than the rates on any of these cards, regardless of the nature of the transaction.

As you can tell, the issue with flat-rate pricing, despite it being advertised on its simplicity, is that the rates have to be high enough to cover the interchange rates on all possible cards.

But the truth is the rates on most cards will cost you far less than what Square’s charging.

So, while you may be able to make the argument that this is simpler, you can’t honestly say it’s more affordable.

With that in mind, our interchange plus pricing ensures you’ll be charged whatever the rate is on a given card, allowing you to avoid paying exorbitant flat-rate fees and ensure you’re always getting the best possible rate.

For example, if a customer makes a purchase with a Mastercard that has an interchange rate of 0.92%, with us you would pay 0.92% for that card, but with Square, you’d still be paying a whopping 2.65%.

Transaction Limits

Square, which uses a third-party processor, is notorious for imposing transaction limits that can stifle your ability to grow your business.

They typically impose these limits on new users, and those who have a lot of payment disputes, erratic activity on their account, or are selling high-risk goods or services.

And regardless of why they’re doing it, if they choose to impose a transaction limit on your account, when you go over that limit, they’ll start holding your funds.

But when you work directly with a payment processor, as you would with Lucid Payments, you’ll never have to deal with any of those limitations.

Canadian vs. American

We’re staunch supporters of both shopping local and supporting Canadian-owned businesses whenever possible, and we’re proud to say that we’re 100% Canadian-owned and operated.

Unfortunately, our industry is dominated by multinational conglomerates, most of which are American-owned, including Square.

That may not mean much to you, but from our perspective, it’s more important than ever for Canadians to keep our hard-earned dollars within our borders, not least with all the economic uncertainty we’re currently facing.

Statement and Equipment Fees

Another one of Square’s perceived selling points is that it doesn’t charge any monthly statement fees or fees to rent payment terminals.

We, on the other hand, do charge a $5 monthly statement fee, and $50 per month to rent a payment terminal, so in this aspect, Square’s got us beat.

But if you’re spending an extra 1.5% or more on most transactions, those fees can quickly add up to way more than $55 per month, and if that’s the case, you won’t be saving anything.

Want to learn more about how Lucid Payments can benefit your business? Contact us today to find out how we can help.

[lucidpayments]

Searching for Easy Payment Solutions? Our Sales Manager, Michael Nelson, Can Help

Like it or not, if you own a business, you’re going to need some kind of payment processing.

But our industry doesn’t do much to clarify things for merchants, and for the most part, it fails to provide easy payment solutions, keeping everything as convoluted as possible.

That being said, we understand how difficult it can be for business owners like you to try to understand what payment processing is, how it works, what exactly it is you’re paying for, and what provider you should choose to get the best service and the best deal.

With that in mind, at Lucid Payments, we’re on a mission to protect the best interests of business owners, provide easy payment solutions, and give you greater clarity on your payment processing.

And if there’s one member of our team who best embodies these goals, it has to be our long-time Sales Manager, Michael Nelson.

Our customers are constantly raving about the services Michael provides, as he loves to go above and beyond for them in whatever way he can.

As a show of our appreciation, we want to take this opportunity to highlight Michael’s dedication to our customers and introduce him to merchants like you.

So, if you’re searching for easy payment solutions, and you need someone to answer your questions and help you get everything set up, keep reading to learn how Michael can help.

Looking for Easy Payment Solutions? Michael Can Help

Whether you’re in the market for online payment solutions, payment solutions for retail, or something else entirely, Michael can make everything easy for you.

But before we go any further into that, let’s take a moment to get to know Michael a bit better.

Michael has been doing sales in one form or another for the last 25 years, he’s been with Lucid Payments for the last six years, and he currently lives in Sylvan Lake, Alberta.

Aside from his work in sales, before Michael joined Lucid Payments, he worked as a DJ for 27 years and ran his own IT business, which involved things like setting up networks and installing surveillance cameras.

Michael is also a single dad with four kids and the proud owner of a Chihuahua named Gringo.

When he’s not helping business owners, hanging out with family, or walking the dog, Michael loves to spend time cruising around on his Onewheel and dancing at music festivals.

Why Michael Chose to Work for Lucid Payments

Before starting with Lucid Payments, Michael had an awful experience working for another payment processor, not least because he felt like they weren’t being honest with him.

This was having a decidedly negative effect on Michael’s ability to do his job, and if they weren’t being honest with him, then you can bet they were doing the same thing with their customers.

“I worked for them for about three months,” he said. “And I walked away from it because I was ready to pull out my hair. I couldn’t even get answers to simple questions.”

Then he spoke to our VP of Operations, Steven Cumiskey, and that one phone call was enough to change Michael’s perspective on our industry.

Steven was able to answer almost all the questions Michael had, and the couple of things that he didn’t know offhand, he got back to him about the next day.

“I’ve used the term smoke and mirrors as my description of this industry,” said Michael. “But Lucid Payments offered all the clarity I was missing.”

What’s more, our mission, which is to protect the best interests of business owners, give them greater clarity, and provide simplified payment processing, really resonated with Michael.

“That’s exactly how I live my life,” he said. “When somebody needs something, I’m going to try and figure out a way to help them. And if I can’t, I’m going to try and find somebody I know who can.”

As a business owner himself, the most fulfilling part of Michael’s role with Lucid Payments has been helping other business owners.

Whether it’s helping them set up their equipment, showing them how to operate it, explaining how our industry works, going over their statements to explain what they’re paying for, or helping them save money on their payment processing, there’s nothing Michael loves more.

How Michael Has Helped Our Customers

Throughout his more than six years with Lucid Payments, Michael has helped countless customers.

Whether it’s issues with equipment, poor customer service, or just being tired of paying too much, if you’ve got a problem with your payment processing, or you’re looking for easy payment solutions, chances are, he can help.

And to give you a better idea of how he can help, here are some examples of what Michael has been able to accomplish for our customers:

Chief’s Pub & Eatery

Before choosing to work with Lucid Payments, Chief’s Pub & Eatery used to have lots of technical issues with the outdated payment terminals that were provided by their previous processor.

Michael recently switched them over to newer and more reliable machines, which has solved all of these problems for them, and we were even able to save them over 60 per cent on their monthly processing costs.

Mullets Barbershop

When they opened their first location about three years ago, Michael was able to help Mullets Barbershop get their payment processing set up and made sure they understood everything.

Since then, they’ve opened four more locations, and as a result of how happy they’ve been with the service Michael’s provided, they’ve chosen to work exclusively with Lucid Payments for their payment processing.

Party Chef

Party Chef, which combines a restaurant and local artisanal market, had a rough start when they launched a couple of years ago.

When they first opened, they went with a processor from Ontario, and within the first two days, they were already having issues accepting Mastercard and debit payments.

The following week, they agreed to go with Lucid Payments, and Michael was able to solve these problems by switching them to a more reliable and efficient payment terminal.

Shortly after that, they wanted to launch their website, so Michael worked with them on the initial setup, and he’s always available to answer any questions they have.

“I highly recommend Michael for his exceptional local service, strong communication skills, and willingness to go above and beyond to assist. He is always readily available to provide support and ensures that his clients receive the attention they need. Whether it’s a quick question or a more complex issue, Michael is consistently reliable and responsive,” said Party Chef’s owner, Lydia Neergaard.

“His dedication to helping others is evident in his proactive approach to problem-solving and his genuine interest in addressing clients’ needs. I have been consistently impressed with his professionalism and commitment to delivering top-notch service. I am grateful for his assistance and would not hesitate to recommend him to others.”

What Our Customers Have to Say About Michael

We’re constantly getting compliments from satisfied customers who can’t help but rave about the experience they’ve had working with Michael.

Whether it’s his helpful and friendly demeanour, dedication, expertise, or ability to provide easy payment solutions, our customers have no shortage of good things to say about him.

One look at our Google reviews, many of which mention Michael by name, should be enough evidence of that. Here are some of the compliments he’s received so far:

Still searching for easy payment solutions? You can call Michael at (403) 396-6941, email him at michael@lucidpayments.ca, or contact us for more information.

[lucidpayments]

16 Ways to Improve Your Online Store and Boost eCommerce Sales

So, you’ve set up your online store, everything’s ready to go, and you couldn’t be any prouder.

Your website’s up and running, your products are all in stock, and you’re just itching to start filling up boxes and shipping out orders.

But despite your enthusiasm, you’ve barely made any sales, customers keep abandoning their carts, and at this point, you’d do just about anything to boost eCommerce sales.

To be fair, eCommerce problems are pretty common, both for retailers and shoppers, and today’s consumers have a lot of expectations when it comes to shopping online.

For example, in a survey from Coveo, which polled 4,000 shoppers from the U.S. and the U.K., 93 per cent of respondents said they “expect online shopping to be better than in-person shopping”.

What’s more, 91 per cent of respondents said they’ve encountered problems when shopping online, including things like poor site performance, missing product information, and irrelevant recommendations.

As you can see, in spite of their high expectations, consumers are dealing with a laundry list of many common eCommerce problems that are discouraging them from shopping online.

With that in mind, one of the best ways to differentiate yourself from other online retailers, and help to boost eCommerce sales, is to ensure your online store isn’t suffering from any of these issues.

Because when shoppers come to your store and have a seamless experience, and don’t have to deal with any of these frustrations, they’re going to be more inclined to do business with you again, and more likely to recommend your store to other people.

So, if you want to learn how to optimize your online store and boost eCommerce sales by providing the best possible experience for customers, then this article will definitely be worth your while.

Tips to Optimize Your Online Store and Boost eCommerce Sales

If you want to increase eCommerce sales, you’ve got to optimize your online store to make sure shoppers have a seamless experience.

With that in mind, these eCommerce optimization tips will help you address common eCommerce problems, improve your online store, and ultimately, sell more online:

1) Mobile Optimization

Everyone and their dog has a smartphone or tablet today, and that means optimizing your online store for mobile devices is absolutely essential.

By prioritizing mobile optimization, you’ll be catering to the growing number of consumers who prefer to shop on their mobile devices, thereby expanding your potential customer base and improving the experience consumers have shopping in your store.

Mobile optimization involves creating a seamless browsing and shopping experience for users, regardless of which device they’re using.

This includes doing things like implementing responsive design principles to ensure your website adapts gracefully to various screen sizes and resolutions.

2) Fast Loading Times

In today’s marketplace, consumers expect websites to load quicker than ever before, and as the years go by, their patience just seems to continue waning.

For example, a Digital.com survey, which polled 1,250 online shoppers, shows just how important site speed is when it comes to eCommerce sales.

53 per cent of respondents said they expect eCommerce pages to load in three seconds or less, and half of them said they will abandon their shopping carts if a page doesn’t load fast enough.

To optimize loading times, you can employ techniques such as image compression, minimizing HTTP requests, and leveraging browser caching, which will allow you to enhance user experience, keep shoppers on your site for longer, and increase the likelihood of conversions.

3) Clear Navigation

An intuitive navigation system is essential for guiding users through your online store and helping them find what they’re looking for efficiently.

This involves designing a user-friendly navigation menu that categorizes products logically and provides easy access to essential pages such as the home page, product catalog, and shopping cart.

It’s also important to incorporate a search bar with auto-complete functionality that enables users to quickly locate specific products.

These strategies help to enhance the experience shoppers have in your store and encourage them to explore your store’s offerings.

4) High-Quality Product Images

Visuals play a crucial role in eCommerce, not least because they allow customers to evaluate products and make informed purchasing decisions.

That being said, if you want to capture the attention of potential buyers and effectively convey the value of your products, you’ve got to include high-quality product images that showcase your offerings from multiple angles and perspectives.

By investing in professional photography and optimizing your product images for clarity and detail, you can enhance the visual appeal of your online store, inspire confidence in your offerings, and in turn, boost eCommerce sales.

5) Compelling Product Descriptions

In addition to captivating visuals, compelling product descriptions are incredibly important for persuading customers to make a purchase.

Well-crafted product descriptions should highlight key features, benefits, and unique selling points while addressing potential concerns or objections that customers may have.

You should also make sure that your product descriptions are as comprehensive and detailed as possible, so shoppers can have all the information they need to make their decision.

Crafting this kind of informative and persuasive copy for your product descriptions can help you increase eCommerce sales by allowing you to communicate the value of your products and differentiate them from your competitors’ offerings more effectively.

6) User Reviews and Testimonials

User reviews and testimonials from customers can significantly influence purchasing behaviour and can help to boost eCommerce sales, as they provide proof that other people have benefited from your products and/or services.

Prominently displaying this social proof on your online store provides prospective customers with reassurance and validation, which helps to build trust and credibility in your brand.

If you don’t have any testimonials, you can simply ask your existing customers to write them.

You’d be surprised how many customers will gladly do this for you, and you can even offer some incentives or rewards to encourage them if need be.

These testimonials will allow you to gather valuable feedback and collect user-generated content that can help boost eCommerce sales by enhancing your store’s reputation and fostering a sense of community.

7) Streamlined Checkout Process

The checkout process is a critical aspect of the customer journey, and optimizing it for simplicity and convenience can significantly impact your eCommerce sales.

As we already discussed, if your site is too slow, shoppers will simply abandon their carts, and because they’ve had that negative experience, they probably won’t come back.

That being said, if you want to increase eCommerce sales, you’ve got to do everything you can to ensure your store has a streamlined checkout process.

This includes doing things like eliminating unnecessary steps, offering guest checkout options, and providing multiple payment methods, which can help you improve customer satisfaction and maximize sales opportunities.

8) Personalized Recommendations

If you want to deliver relevant and engaging shopping experiences that resonate with individual customers, personalization is key.

By presenting customers with tailored recommendations that align with their interests and needs, you can increase cross-selling and upselling opportunities, enhance customer satisfaction, and drive repeat business.

Leveraging data and AI can allow you to generate these personalized product recommendations based on each customer’s browsing history, purchase behaviour, and preferences.

But if you want to avoid annoying your customers, make sure the recommendations you’re providing are as relevant as possible.

9) Optimized SEO

Search engine optimization (SEO) is essential for increasing visibility and driving organic traffic to your online store.

By optimizing product pages and content for relevant keywords, you can improve your site’s ranking on search engines like Google and attract qualified traffic from users who are actively searching for the products or services you offer.

You can also create valuable and informative content such as blog posts, guides, and tutorials, which not only enhances your site’s SEO but also establishes your brand as an authoritative resource within your niche and can help to further boost organic visibility and attract potential customers.

10) Social Proof and Trust Signals

Building trust and credibility is crucial if you want to convert visitors into customers.

With that in mind, displaying trust badges, security seals, and SSL certificates prominently on your website can help to instill confidence in visitors by establishing your store’s reliability and integrity, assuring them of secure transactions and data protection.

At the same time, showcasing social proof indicators such as social media followers, likes, and shares can serve as a testament to your store’s popularity and trustworthiness, further validating your brand and encouraging conversions.

11) Email Marketing Campaigns

Email marketing remains one of the most effective channels for nurturing customer relationships, driving engagement, and generating sales.

That being said, by building an email list of subscribers and customers, you can send targeted email campaigns that promote products, offer exclusive discounts, and announce special promotions or sales.

What’s more, using segmentation and personalization techniques can allow you to tailor your email content to specific audience segments based on demographics, purchase history, and preferences, which can increase the relevance of recommendations and improve conversion rates.

12) Abandoned Cart Recovery

Shopping cart abandonment is a common challenge for eCommerce retailers, but it also presents an opportunity for re-engagement and conversion.

Implementing abandoned cart recovery strategies, such as automated email sequences, enables you to follow up with customers who have abandoned their carts and remind them to complete their purchases.

What’s more, offering incentives such as discounts, free shipping, or limited-time offers can encourage customers to return to your site and finalize their transactions, helping you to reduce cart abandonment rates and recapture lost revenue.

13) Loyalty Programs

If you’re looking to boost eCommerce sales, fostering customer loyalty is essential, as it encourages customers to keep doing business with you.

Loyalty programs incentivize customers to engage with your brand regularly by offering rewards, discounts, or exclusive perks.

By rewarding customers for actions such as purchases, referrals, and social engagement, you can strengthen brand loyalty, encourage repeat business, and cultivate a loyal customer base that serves as passionate advocates for your brand.

14) Social Media Integration

Social media platforms provide valuable opportunities for engaging with customers, building brand awareness, and driving traffic to your online store.

Integrating social media into your eCommerce strategy allows you to leverage the power of social networks to promote products, showcase user-generated content, and interact with your audience in meaningful ways.

Making use of shoppable posts and ads, for example, enables you to facilitate direct purchasing from social media channels, which streamlines the path to purchase and allows you to take advantage of eCommerce trends on social media.

15) Continuous Testing and Optimization

Optimizing your online store is an ongoing process that requires extensive testing, analysis, and refinement.

By conducting A/B tests and experimenting with different elements of your website such as headlines, calls-to-action, and product layouts, you can identify what resonates best with your audience and what drives the highest conversions.

Monitoring analytics data, for instance, allows you to track performance metrics such as traffic, engagement, and conversion rates, enabling you to make data-driven decisions and revisit your strategy for continuous improvement.

16) Responsive Customer Support

Providing exceptional customer service is a fundamental part of building trust, resolving issues, and fostering positive relationships with customers.

For example, offering multiple channels for customer support such as live chat, email, and phone ensures that customers can reach out to you conveniently and receive timely assistance whenever they have questions or concerns.

Moreover, by responding promptly to inquiries, addressing customer issues effectively, and going above and beyond customers’ expectations, you can enhance the satisfaction and loyalty of your customers, which can help to improve eCommerce sales.

Do you need help setting up your online store? Give us a call today or check out our online payment solutions for more information.

[lucidpayments]

A Look Into the Future: How Payment Processing Technology Will Be Evolving in 2024

Payment processing technology is constantly evolving, and things can change so rapidly that trying to keep up with it all can be incredibly overwhelming.

But as a business owner, if you want to give your customers what they want, and be able to compete with others in your industry, you can’t just ignore this stuff.

You’ve got to do what you can to stay up to date on the latest technologies and trends in payment processing, otherwise, competitors who are paying attention to this stuff could gain a significant advantage.

And as much as possible, you’ve got to facilitate the forms of payment that consumers want to use, regardless of what they might be.

What’s more, being informed on payment processing industry trends can help you to understand where this technology is going, allowing you to know how your business may need to adapt in the future, and what you can do now to prepare for those changes.

With that in mind, we wanted to help make things easier for you by publishing an article on how payment processing technology will be evolving in 2024.

So, if you’re wondering where payment processing technology is headed, and you want to stay up to date on the latest payment processing trends, then this is one article you’re not going to want to miss.

Trends in Payment Processing Technology for 2024

As we already mentioned, trying to stay on top of this stuff can feel like a full-time job, and believe it or not, sometimes we even struggle to keep up.

But we’ve given it some thought, done some research, and below, we’ve listed what we believe will be the dominant trends in payment processing technology for 2024.

Increasing Popularity of Smart Terminals

Nearly everyone with a cell phone today is using some sort of smartphone.

There are still a few holdouts who will choose to use an old flip phone, for instance, but they’re few and far between, and becoming increasingly fewer.

Similarly, there will come a day when nearly all businesses are using smart terminals, and the popularity of these devices will undoubtedly continue to soar in 2024.

Smart terminals enhance the user experience with intuitive touchscreen interfaces and offer many different functionalities, including things like apps for inventory management, sales tracking, and loyalty programs.

And with all the apps you can download on these things, and all the apps that are currently in development, the functionality of these devices is only going to expand exponentially, and so it’s no wonder they’re becoming so popular and will continue to do so.

Smart terminals continue to stand out for their seamless connectivity, allowing for real-time data synchronization with cloud-based services, CRM systems, e-commerce platforms, and accounting software, which not only streamlines operations but also provides businesses with valuable insights into their performance.

What’s more, their adaptability and ongoing technological advancements position them as an integral tool for the future of retail and service industries, as they do a great job of catering to the dynamic needs of businesses in a marketplace that’s becoming more and more digital.

At any rate, the evolution of smart terminals in 2024 and beyond will also include a focus on sustainability by using things like energy-efficient designs and sustainable materials, which align with the growing consumer demand for more eco-friendly practices.

Terminals with Both Mobile Data and Wi-Fi Capability

In 2024, payment terminals with both mobile data and Wi-Fi capability will continue to gain popularity due to their ability to provide consistent, flexible, and reliable payment processing in many different environments.

This dual connectivity offers unparalleled flexibility by letting businesses operate seamlessly in areas with spotty Wi-Fi by switching to mobile data, allowing transactions to proceed without interruption.

These kinds of terminals are especially beneficial for mobile businesses like food trucks, pop-up shops, and service providers who work across multiple locations, as they can help enhance their ability to offer seamless experiences for customers, regardless of location.

Moreover, having two connectivity options reduces the risk of transaction failures, which is incredibly important for maintaining customer satisfaction, particularly during peak times. This adaptability not only improves operational efficiency but also gives businesses a competitive edge by meeting consumer expectations for hassle-free, quick payments.

Furthermore, the expansion of global mobile networks, including the rollout of 5G technology, will improve the performance of these terminals even more, making them an increasingly attractive option for businesses, especially those that operate across multiple locations.

Better Inventory Management

Inventory management on smart terminals is advancing rapidly, integrating real-time tracking, enhanced data analytics, and seamless supply chain integration, and will continue to do so throughout 2024.

Smart terminals are becoming much more sophisticated, using AI and machine learning to provide predictive insights, automate restocking, and optimize inventory levels based on sales patterns and demand forecasts.

User interfaces are also evolving to be more intuitive, with simplified navigation and customizable dashboards, making inventory management increasingly accessible to businesses of all sizes.

The integration of Internet of Things (IoT) devices, such as RFID tags and sensors, offers detailed tracking of goods, improving inventory accuracy and visibility throughout the supply chain.

In addition, cloud-based solutions are usually a standard feature of these devices, which help to ensure secure, scalable storage and remote management capabilities, and allow businesses to monitor inventory from anywhere.

Furthermore, an increasing number of smart terminals now support sustainable inventory practices, helping businesses to reduce waste and manage eco-friendly products more effectively.

All things considered, the evolution of inventory management on smart terminals in 2024 will be characterized by greater efficiency, intelligence, and integration, empowering businesses to respond more dynamically to market demands and manage their inventory in a more informed and sustainable manner.

Enhanced Security Measures

When it comes to payment processing technology, security remains a major concern.

The surge in digital transactions, not to mention the massive increase in data breaches over the last decade, has necessitated the development of more sophisticated security protocols to protect against fraud and other threats.

As a result, security measures for payment processing are continuously evolving, and the improvement of these safeguards will no doubt continue in 2024.

Technologies like tokenization and end-to-end encryption will continue to become more advanced, ensuring that sensitive information is securely transmitted and stored.

Furthermore, the adoption of blockchain technology for payment processing provides an added layer of security through decentralized ledgers, making transactions virtually tamper-proof.

Moreover, biometric authentication methods, such as fingerprint scanning, facial recognition, and voice authentication, are also becoming more prevalent, offering a seamless yet secure way to verify transactions.

These methods help to not only enhance security but also improve the user experience by simplifying the authentication process, and they will continue to evolve throughout 2024 and beyond.

Integration of Artificial Intelligence (AI)

It seems like every single industry has been disrupted by artificial intelligence technology, and the payment processing industry is no different.

AI already plays a crucial role in the evolution of payment processing technology, as AI algorithms are increasingly used to detect fraudulent activities and analyze spending patterns, offering real-time insights and proactive fraud prevention.

Machine learning models can also adapt and learn from transaction data, continuously improving their accuracy in detecting anomalies and suspicious behaviours.

In addition, AI can help to enhance customer service on payment processing platforms, as chatbots and virtual assistants, powered by natural language processing, provide instant support and guidance, facilitating smoother transactions, resolving issues, and answering questions more efficiently.

That being said, with all the benefits offered by AI, it will undoubtedly become a key element in the evolution of payment processing technology, both in 2024 and into the future.

Contactless and Mobile Payments Expansion

The trend toward contactless and mobile payments continues to accelerate in 2024, driven by consumer demand for convenience and speed.

Near Field Communication (NFC) technology has evolved, allowing for quicker and more reliable contactless transactions, and mobile wallets and payment apps have become more sophisticated, integrating loyalty programs, personalized offers, and financial management tools, which further enrich the experience of users.

Wearable technology has also entered the payment processing arena, with smartwatches and fitness bands equipped with payment capabilities becoming more and more common.

These technologies offer users an unprecedented level of convenience, allowing for seamless transactions with a simple tap or gesture, so it’s no wonder they’re becoming so popular.

If you want to learn more about contactless and mobile payment technology, you can check out our article on The Evolution of Mobile Payment Processing: A Look at the Latest Trends and Innovations.

Cross-Border Payment Innovations

As the global economy becomes more and more interconnected, the need for efficient cross-border payments has become more pressing.

That being said, in 2024, blockchain-based payment systems will be increasingly adopted for international transactions, offering faster, cheaper, and more transparent payment solutions compared to traditional banking systems.

These blockchain platforms can handle multiple currencies and automatically comply with various international regulations, simplifying the complexities of cross-border transactions.

In addition, these platforms will help to facilitate the use of digital currencies, including central bank digital currencies (CBDCs) and stablecoins, which can streamline global trade and commerce by facilitating quicker international transactions and reducing the dependency on conventional banking infrastructures.

These currencies, which will be more and more common as we move into the future, are becoming more integrated into payment processing systems, and that will continue to be the case this year.

Regulatory Evolution and Compliance

As payment processing technology evolves, so does the regulatory landscape.

With that in mind, in 2024, regulatory bodies worldwide will be adapting to the rapid technological advancements in payment processing, implementing new guidelines and standards to ensure consumer protection and the integrity of payment systems.

Regulators will also be focusing on open banking standards, which promote greater transparency and interoperability among financial institutions.

This regulatory environment will help to foster innovation while ensuring that new payment technologies adhere to strict security and privacy standards.

Emergence of Super Apps

The concept of super apps, which consolidate a wide range of services within a single platform, has significantly impacted payment processing technology, and there’s no sign of this slowing down in 2024.

These apps integrate payment functions alongside other services, such as messaging, social media, and e-commerce, creating a comprehensive ecosystem for users.

This integration offers a seamless experience, allowing users to perform multiple functions, including financial transactions, without switching between different apps.

Sustainable Payment Solutions

As is the case with practically everything else, in the world of payment processing technology, sustainability has become a significant consideration, and in 2024, that trend will certainly continue.

Keeping that in mind, this year, and into the future, there will be a growing emphasis on things like eco-friendly payment solutions, including digital receipts and more sustainable payment cards made from recycled materials.

What’s more, the shift toward digital transactions will also contribute to reducing the environmental impact associated with traditional paper-based payment methods.

Looking to upgrade to the latest payment processing technology? Give us a call today to learn more and find out how we can help.

[lucidpayments]

15 Things You Can Do to Protect Customer Data

With everything going digital, it seems that each year, more of our information ends up floating around on the internet.

This data can be very lucrative for the companies collecting it and can also provide a wealth of conveniences for consumers who are willing to give it up.

But despite all the advantages of this data being available, its very existence in the digital world is like bait for cyber criminals who are looking to profit from that data in any way they can.

According to an article from American Banker, in 2022, more than 250 million consumer records were leaked as a result of data breaches.

And it seems like there isn’t a single company that’s immune to this sort of thing, as many of these customer data breaches have happened at some of the biggest banks and financial services companies in the world.

What’s more, people are becoming increasingly aware of these risks, so if businesses want to retain the trust of consumers, they’re going to have to do everything they can to protect customer data.

A survey from Deloitte found that the number of consumers who trust online services to protect their data has been decreasing, with only 38 per cent of respondents agreeing that they trust online services to protect their data more now than they did a year ago.

And a survey from KPMG, which polled both business leaders and consumers, found that data privacy is a growing concern for 86 per cent of consumers, and 40 per cent of them don’t trust companies to ethically use their data.

Moreover, the survey found that 62 per cent of business leaders say their organizations should be doing more to protect customer data.

As you can see, consumers are becoming more and more worried about this issue, and companies are well aware of their apprehension.

But with all the data breaches that have been happening, it seems like many businesses aren’t doing enough to protect customer data, and as we can see here, some of them are even willing to admit that, at least anonymously.

All things considered, ensuring the security of customer data is becoming increasingly important for businesses today, and the ones that do their utmost to protect consumer data will continue to gain the trust of consumers.

With that in mind, we wanted to publish an article explaining what you can do to protect consumer data, so you can ensure you’re doing everything you possibly can to protect your customers’ information.

So, if you’re concerned about customer data privacy, and you want to know what you can do to protect that data, then this article is definitely for you.

What You Can Do to Protect Customer Data

The obligation to protect customer data is not only a matter of business integrity but also a legal requirement in many jurisdictions, and data breaches can lead to significant financial losses, legal penalties, and irreparable damage to your company’s reputation.

With that in mind, below we’ve provided 15 tips on what you can do to protect customer data.

1) Implement Strong IT Security Measures

Having strong IT security measures in place is one of the best things you can do to protect your customers’ information. Here’s some of what that entails:

Encryption: Encrypting data ensures that even if information is intercepted, it cannot be easily deciphered. This is crucial for protecting sensitive information like credit card numbers and personal identifiers.

Secure Password Policies: Implementing policies that require strong, unique passwords for customer accounts and encouraging or enforcing regular password changes can add another layer of security.

Regular Software Updates: Keeping all systems and software up to date to protect against known vulnerabilities is something else you should be doing if you want to protect customer data.

Firewalls and Antivirus Programs: These tools can help you to protect people’s data by preventing unauthorized access and monitoring for suspicious activities.

2) Employee Training and Awareness

If you want to ensure the security of customers’ data, then you and your employees all have to be on the same page about this stuff.

That being said, this won’t always be relevant to what they do, but if it is, you should make sure employees are trained on how to handle customer data securely, including recognizing phishing attempts and avoiding common security pitfalls.

3) Data Minimization

With the amount of money that can be made from people’s data, collecting it can be tempting, but if you’re serious about protecting customer data, you should make a policy of collecting only the data that’s absolutely necessary for business purposes.

The less data you store, the less you have to protect, and that can significantly reduce the impact of a potential breach.

4) Regular Security Audits

Conducting regular security audits can help you to identify vulnerabilities in your systems, but this can be incredibly technical, and it may not be relevant to your business.

But if you do have systems that house customer data, you might want to consider hiring an external cyber security firm to perform unbiased assessments and ensure your systems are as secure as possible.

5) Come Up with a Response Plan for Data Breaches

Every second that passes after a data breach can result in further damage and loss of data, which is why having a clear, well-communicated plan in case of a data breach is integral to ensuring the security of customer data.

This plan should include steps for how you’re going to control the damage, notify affected customers, and cooperate with authorities, if necessary.

6) Secure Payment Systems

No matter what kind of transactions you need to process, it’s crucial to ensure you and any third parties you’re working with are using secure, PCI DSS-compliant payment systems.

And you should also avoid storing sensitive payment information on your servers, if at all possible.

7) Data Backups

If you absolutely must hold on to customers’ data, you should make sure to regularly back up that data in secure, encrypted forms.

This not only protects against data breaches but also against data loss, which can happen for a variety of different reasons, such as hardware failure, human error, power issues, theft, and even natural disasters.

8) Mobile Device Management

With the increasing use of mobile devices, if you want to protect customer data, you’ve got to ensure that any customer data accessed through a mobile device is secure, regardless of whether it was done through your device or that of one of your employees.

With that in mind, make sure to implement policies and procedures for how to manage the use of personal devices for business purposes and ensure all your employees are aware of the consequences of not following these guidelines, both for them and for customers.

9) Implement Multi-Factor Authentication

Multi-factor authentication adds an extra layer of security by requiring users to provide two or more verification factors to gain access to a resource like an online account.

If you’re dealing with customer data online, ideally, this should be made mandatory, but some customers might not appreciate that kind of imposition, so at the very least, make sure it’s strongly encouraged and that customers understand why you’re asking them to set up this feature.

10) Monitoring and Reporting

Setting up systems to monitor data access and usage can help you to spot any funny business before things get out of hand.

This type of monitoring can flag any unusual activities, allowing you to promptly investigate any issues and get to the bottom of things before too much damage has been done.

11) Vendor and Third-Party Management

It’s typical for businesses to work with third parties when handling or processing customer data, but this can also put customers’ data at even greater risk.

With that in mind, you should make sure that any third-party vendors or partners who have access to your customer data also adhere to strict data security standards.

12) Encourage Customers to Use Chip-and-PIN or Tap

Encouraging customers to use chip-and-PIN or tap (contactless) payment methods can significantly enhance data security, not least because both forms of payment reduce the risk of skimming, where fraudsters can capture card details.

Chip-and-PIN technology is more secure than traditional magnetic stripe cards because the chip creates a unique transaction code for each payment, making it extremely difficult to counterfeit.

At the same time, tap payments use short-range wireless technology to transmit payment information, which adds an additional layer of security.

If you do most of your business online or over the phone, you might not be able to do this, but the more you can get customers to use these forms of payment, the more secure their data will be.

13) Avoid Card-Not-Present Transactions

Again, if you do most of your business over the phone or online, then this might not be possible for you.

But, if at all possible, you should try to avoid processing card-not-present transactions, as doing so can help to reduce the risk of fraud.

Card-not-present transactions, common in online and phone payments, are more vulnerable as they don’t require physical verification of the card, making it easier for fraudsters to use stolen card details.

So, if you can, try to provide incentives for customers to actually come to your store in person, such as in-store discounts, so you can protect your business from fraud and your customers can benefit from the additional security of inserting their card and entering their PIN.

14) Batch Out Your Terminal as Often as Possible

You’d be surprised how common it is for business owners to only batch out their terminals once a week, or even less frequently than that.

However, the reality is, batching out your payment terminal as frequently as possible is crucial for protecting customer data because each batch of transactions stored in the terminal represents a trove of sensitive information, and the longer that data is retained in your system, the greater the risk it could be compromised in the event of a security breach.

But by frequently batching out – that is, transmitting transaction data to the payment processor – the amount of data potentially exposed at any given time is minimized, and the window of opportunity for cyber criminals to access and steal customer information is limited.

That being said, if you can, you should make sure to batch out your transactions every day. And if you have to leave that information on your terminal for any amount of time, make sure you put it in a secure place, preferably a safe.

Because if someone steals that terminal, they’ll have access to all that customer data, and the transactions that are on it probably won’t get processed, and you’ll lose all that money, as well.

15) Only Allow People You Trust to Access Your Terminals

We’ve heard horror stories about new employees who were given full access to payment terminals, with nothing password protected, and then proceeded to scam their employers by doing things like giving refunds to all their buddies.

And if people are willing to do that, who knows what they’d be willing to do with your customers’ data?

That being said, you should ensure that everyone who has access to your terminals is trustworthy.

In some cases, it might be hard to tell if that’s the case, but at any rate, you should make sure to password-protect your refunds and limit access to sensitive data to only those employees who absolutely need it to perform their job duties.

Are you still wondering if you’re doing everything you can to protect customer data? Give us a call today to gain greater clarity and find out how we can help.

[lucidpayments]

How to Protect Your Business from Payment Fraud During the Holidays

For most of us, the holiday season tends to be a particularly positive time of year.

We get to spend time with family and friends, give gifts to our friends and loved ones, and enjoy all the festivities that this time of year has to offer.

For business owners, the holidays are also filled with positive vibes, not least because they tend to be the most productive and lucrative time of year.

Unfortunately, the holidays are also a time when things like theft and payment fraud become more prevalent.

According to a report from Visa, during last year’s holiday season, the merchants who tend to be most targeted by fraud, including home improvement and supply, telecommunications, business-to-business, healthcare, automotive, entertainment, education, government, lodging, insurance, airlines, drug stores, and pharmacies, saw a significant increase in this kind of nefarious activity.

For these unlucky merchants, payment fraud increased by 11 per cent compared to the rest of the year, and actually went up 8 per cent compared to what we saw during the 2021 holiday season.

Clearly, the incidence of these crimes is becoming more common, and sadly, most businesses have pretty much come to expect this sort of thing around this time of year.

A survey from Trustmi confirms this, as it found that the vast majority of businesses are more concerned about payment fraud during the holiday season.

We’ve also been seeing this happening more frequently in our own backyard, and it breaks our hearts to see small business owners getting scammed like this.

According to an article from Global News, Exile Electronics, which is a Vancouver-based music store, was hit by three fraudulent transactions last year, totalling more than $20,000.

The article reports that “the credit card owner disputed the charges and was granted refunds, even though the equipment was long gone. The credit card company then came after Exile for the money.”

At this point, they’re on the verge of bankruptcy, but thanks to a GoFundMe they started, they’ve been able to raise even more than their goal of $13,955 thanks to about 250 generous donations.

All things considered, we want to offer some advice on how you can protect your business from payment fraud during the holidays, so we can do our part to help prevent these heinous crimes.

So, if you’re looking to learn about fraud prevention and want to protect your business against fraud this holiday season, then this is an article you’re not going to want to miss.

Why Does Payment Fraud Increase During the Holidays?

If you want to understand how to prevent payment fraud during the holidays, it’s important to know why these crimes are more common at this time of year.

That being said, there are many reasons why payment fraud tends to increase during the holidays, and this includes things like:

Increased Transaction Volume

The holiday season sees a surge in shopping and transactions, both in-store and online, and this higher volume of transactions creates more opportunities for fraudsters to exploit vulnerabilities.

eCommerce Growth

Online shopping continues to grow, especially during the holiday season, and this increase in online transactions provides more opportunities for cybercriminals to execute various types of fraud, such as card-not-present fraud or account takeovers.

New Account Openings

Some people open new accounts (credit cards, store accounts, etc.) during the holidays to take advantage of discounts or offers, and this presents an opportunity for fraudsters to create fake accounts or steal identities.

Fraudulent Gift Cards

Criminals may tamper with or use stolen credit card information to buy gift cards, which can be used for personal use or sold for cash, making them a target during the holiday season.

Lack of Vigilance

With the holiday rush and excitement, people may let their guard down or overlook suspicious activities, making it easier for fraudsters, as they can exploit this lapse in vigilance.

How to Protect Against Payment Fraud During the Holidays

All this talk about holiday payment fraud can be pretty depressing, especially if you own a business.

But the silver lining to all of this is that there’s actually a lot you can do to protect against payment fraud during the holidays, including:

Password-Protecting Refunds

We’ve heard horror stories of business owners hiring a new employee, only to find out after they’ve quit that they were handing out refunds to their buddies left, right, and centre.

With that in mind, make sure to password protect the ability to give refunds, and only provide that password to people whom you know you can trust.

Otherwise, you’re leaving yourself open to a scam that seems like it’s becoming increasingly common.

Prioritizing Card-Present Transactions

For some businesses, this won’t be possible, but one of the best things you can do to protect against payment fraud is to prioritize card-present transactions and limit card-not-present transactions.

Card-present transactions are one of the most secure forms of payment, as they utilize chip-and-PIN technology, so whoever’s using this form of payment will need to have the card in their possession and also know its PIN.

Again, this may not be practical for some businesses, but, if at all possible, you should try to limit the number of phone and online orders you’re doing, and if it’s applicable, you can even incentivize customers to make in-store purchases by offering them discounts if they make a purchase from your store in-person.

Batching Out More Frequently

Some merchants are used to only batching out their terminals once a week, but this can expose your business to serious risks, especially during the holidays, when you’ll probably be doing a much higher volume of sales.

Because if someone decides to steal your terminal before you’ve batched out, the transactions that are still on there probably won’t get processed, and you’ll lose all that money.

Moreover, all the payment data will remain on your terminal until you’ve batched out, and this puts your customers at risk for fraud, as well, as criminals can steal their information.

That being said, during the holidays, or whenever you’re doing a significantly higher volume of sales, make sure to batch out every day, as once the information is sent to your processor, it’s essentially locked in, and you don’t have to worry about anything being taken or lost.

Using Multi-Factor Authentication

If you enforce multi-factor authentication for online transactions, it can add an extra layer of security by forcing customers to use a combination of passwords, SMS verification, biometrics, or one-time codes.

Regular Security Updates and Patching

One thing that you’ll want to do all year round, not least during the holiday season, is to ensure software, systems, and applications are updated with the latest security patches, as outdated software can have vulnerabilities that criminals can exploit.  

Using Advanced Fraud Detection Tools

Another thing you can do to protect against payment fraud all year round is to employ robust fraud detection systems, which can use machine learning and AI to analyze patterns, detect anomalies, and flag potentially fraudulent transactions in real time.  

Monitoring Transactions and Setting Up Alerts

Something else you can do to prevent payment fraud is make a point of monitoring transactions regularly for any unusual or suspicious activity and setting up alerts for large transactions, multiple purchases within a short time, or transactions from new or unusual locations.  

Customer Verification Processes

Implementing strong identity verification methods for new accounts or high-value transactions offers another way to protect against payment fraud. This could involve verifying personal information, sending confirmation emails, or requiring additional documentation.  

Educating Employees

No matter what time of year it is, you should also make sure to educate your employees so that they can recognize potentially fraudulent activity, and create protocols for handling suspicious activities and reporting them promptly.  

Secure Payment Processing Systems

It’s unlikely that you’ll ever come across a company with payment processing systems that aren’t secure, but it doesn’t hurt to ensure your processor is using secure and encrypted systems that comply with industry standards and protect customer data, both during transmission and storage.

The holiday season is here, and that means now is a great time to weigh your options and get a reduction on your fees! Give us a call today to find out how much you can save with Lucid Payments.

[lucidpayments]

What You Need to Know to Pick the Right Point-of-Sale System

Like it or not, if you want to be able to scale your business, you’re going to need a point-of-sale system.

You may not think you need one right now, and depending on the nature of your business, you may be right about that.

But at some point, you’re probably going to want to expand your business, and without a point-of-sale system in place, that could be practically impossible.

Without a point-of-sale system, transactions will have to be manually processed, and inventory will have to be manually updated, both of which can be incredibly time-consuming.

As a result, transactions and inventory management will be more prone to human error, and you may be limited to only accepting cash, meaning you might have to turn away a lot of customers.

At the same time, you’re not going to have access to all the benefits and features of a point-of-sale system, like being able to offer a better experience for customers, the ability to accept various forms of payment, sales reporting and analysis capabilities, and better record-keeping, which can help to ensure compliance with legal and regulatory obligations.

Unfortunately, similar to pretty much everything else in this industry, picking a point-of-sale system can be incredibly convoluted, and most payment processors aren’t trying to make it any easier.

With that in mind, and in keeping with our commitment to provide absolute clarity for our customers, we figured we should publish an article explaining how to pick a point-of-sale system.

So, if you’re wondering how to choose a point-of-sale system, and you need some advice, then we hope you take the time to keep reading.

Because in this article, we’re going to explain what a point-of-sale system is, what options are available when choosing one of these systems, and what you need to know to choose the system that’s right for your business.

What Is a Point-of-Sale System?

For those of you who aren’t quite sure, a point-of-sale (POS) system is a combination of hardware and software used by businesses to complete sales transactions with customers. A typical system includes the following elements:

Hardware

These systems are made up of many different hardware components, including:

Computer or Tablet: This serves as the central processing unit and runs the POS software.

Barcode Scanner: Used to scan product barcodes.

Cash Register or Cash Drawer: For storing cash, checks, and other forms of payment.

Receipt Printer: To provide customers with a printed receipt.

Card Reader or Terminal: Used for processing credit and debit card payments.

Customer Display: Shows customers the transaction details and prices.

Touch Screen Monitor: Allows staff to input items and complete transactions with a touch screen interface.

Peripheral Devices: A POS system can also include devices such as receipt printers, kitchen printers (for restaurants), and scales (for businesses selling products by weight).

Software

These systems run on software that may include the following features:

User Interface: The software interface where the cashier or staff enters items, processes payments, and generates receipts.

Inventory Management: Helps businesses track stock levels, reorder products, and manage product information.

Sales Reporting and Analytics: Generates sales reports, tracks trends, and provides insights into business performance.

Payment Processing: Integrates with payment gateways to process various methods of payment.

Customer Database: Stores customer information and may be used for loyalty programs and marketing.

Employee Management: Tracks employees’ hours, permissions, and performance.

Barcode Scanning: This allows you to scan product barcodes for things such as inventory management, order fulfillment, and checkout.

What Options Are Available When Choosing a Point-of-Sale System?

The choice of a POS system should be based on careful consideration of the specific requirements and scale of your business, as well as your budget and long-term growth plans.

That being said, it’s important to research and evaluate all your options, so you can determine which one best fits the needs of your business.

And now that you know what’s included in a typical point-of-sale system, let’s explore the options that are available. These options can be categorized into three main types:

Traditional On-Premises POS Systems

These are traditional, locally installed systems that run on dedicated hardware, which is located within the premises of a business.

The advantages of this option include a high level of control and customization, the ability to operate offline in case of internet outages, and the fact that it’s a one-time software purchase.

However, these kinds of systems often require a significant upfront investment, tend to require regular software updates, may have limited scalability, and maintenance can be costly.

Cloud-Based POS Systems

These are web-based, Software as a Service (SaaS) systems, which are hosted in the cloud and accessed via the internet.

These systems offer several benefits, including lower upfront costs, automatic software updates, better scalability, accessibility from anywhere with an internet connection, and support for mobile devices, along with integrated data backup and security.

But despite all these advantages, these systems offer limited control over the software, pose potential data security concerns, will not work without being connected to the internet, and while they do require less of an initial investment, you’re going to have to pay ongoing subscription fees, so keep that in mind.

Mobile POS Systems

These systems run on mobile devices, such as smartphones and tablets, often with peripheral hardware like card readers and receipt printers.

This kind of system offers the benefits of portability and greater flexibility, and depending on the nature of the business, the mobility it offers may be absolutely essential.

However, this type of system tends to have less functionality compared to full-scale systems, may not be suitable for larger businesses, and is also dependent on battery life and device durability.

Within these categories, you can also choose from various feature sets and functionalities to meet the specific needs of your business, including:

Retail-Specific POS: These systems are tailored for retail businesses and typically include features such as inventory management, barcode scanning, and customer loyalty programs.

Restaurant-Specific POS: Designed for food-service establishments, these systems often include table management, menu customization, and kitchen display integration.

E-commerce Integration: Some systems integrate with online sales channels, allowing businesses to manage in-store and online sales from a single platform.

Omnichannel Solutions: These systems enable businesses to sell across multiple channels, including brick-and-mortar stores, online stores, and marketplaces, with integrated inventory and sales data.

Mobile Payments: Many modern POS systems support mobile wallet payments like Apple Pay, Google Pay, and PayPal, as well as contactless payments.

Customer Relationship Management (CRM): Some systems offer CRM features to track customer data, preferences, and purchase history for targeted marketing and loyalty programs.

Reporting and Analytics: You can also choose systems that provide robust reporting and analytics tools for tracking sales, inventory, and other key metrics.

How to Choose a Point-of-Sale System

Now that we’ve explored what a point-of-sale system is, along with its components, potential features, and the various options that are available when it comes to these systems, you’ve got a much better idea of what you’re going to need for your business.

But, as we already mentioned, the payment processing industry is notoriously convoluted, and as a result, just understanding these concepts may not be enough for you to make the right choice.

With that in mind, aside from everything we’ve already discussed, we also want to offer some advice on how to choose a point-of-sale system, so you can avoid potential pitfalls and make the best decision for your business. Here’s what you need to consider when picking a POS system:

Budget

Before you even start weighing your options, make sure to develop a clear budget and compare the total cost of ownership for different systems to what you’re actually able to afford.

And remember that you need to factor in not only the initial setup costs, but also things like monthly subscription fees (if applicable), hardware expenses, and ongoing maintenance.

Business Type and Industry

The type of business and industry you’re in can significantly influence the type of system you need, and the kind of features the system will require.

So, regardless of the industry you’re operating in, make sure that the point-of-sale system you choose offers everything you need, and if possible, try not to settle for something that doesn’t quite cut it.

Otherwise, at some point, you’ll probably end up having to scrap the system you have and replace it with something more suitable, and that can cost you a lot of money.

Features and Functionality

Before choosing a point-of-sale system, make sure to identify the essential features your business requires.

But keep in mind that some systems only offer a specific set of features, and they can’t be modified, so once you’ve installed them, you’re pretty much stuck with what you’ve got unless you want to purchase an entirely new system.

And considering that these systems can cost several thousand dollars to install, this is something you’ve got to get right the first time.

Scalability and Versatility

When making your decision, you’ve got to think long and hard about the future of your business, particularly as it relates to how you plan on diversifying or expanding.

Ask yourself: Can this system grow with my business? And does it offer all the features that I need now and the ones I might need in the future?

Some systems will be incredibly convenient for one specific type of service offering, but if you’re looking to diversify or expand your business, they may end up being completely incompatible.

Integration

Some systems will be able to integrate with other software and tools your business uses, such as accounting software, e-commerce platforms, or payment gateways, but others will not.

So, if you already have specific tools or software in place that you know you can’t part with, make sure that the system you’re choosing is going to be compatible.

Mobility

Depending on your business, you may want a mobile POS system that allows you to process transactions on smartphones or tablets.

For some businesses, this won’t even be applicable, but for those that require on-the-go sales, such as pop-up shops or food trucks, this is an invaluable feature.

Payment Options

No matter what kind of business you own, or what industry you’re in, make sure that your system can accept all major forms of payment, including debit cards, credit cards, mobile wallets, contactless payments, and cash.

Otherwise, you may end up having to turn potential customers away, and that’s never a good thing.

Hardware Compatibility

If you already have hardware in place, and you don’t want to have to replace everything, make sure that any system you’re considering is compatible with your existing hardware, such as barcode scanners, receipt printers, and cash drawers.

If not, then you may end up having to replace everything, and that can be very expensive.

Support and Training

Consider the level of customer support and training offered by any POS provider you’re thinking about choosing.

Reliable support can be critical for addressing any issues and if anything does go wrong, you’re going to want to be with a company that will be able to fix the problem fast.

Customization

Make sure to determine if a potential system allows for customization to meet your unique needs.

Depending on the nature of your business, you may need a system to be customized. But if a system is too rigid, and can’t be modified, then it may not be a viable option.

Reporting and Analytics

Robust reporting and analytics tools are valuable for tracking sales trends, monitoring inventory levels, and making informed business decisions.

These features are incredibly insightful and can save you a lot of time, so if possible, make sure your system includes this functionality.

Data Backup and Recovery

You should also inquire about a potential system’s data backup and recovery capabilities.

Losing important data can be an absolute nightmare, so for any system you’re considering, make sure that your sales data and business records will be easily recoverable in the case of a system failure.

Consider a Smaller Local Provider

There are many companies out there that can provide point-of-sale systems, but if you want to save money, choosing a smaller local provider is probably your best option.

Banks and other large corporations offer these services, as well, but they’re pretty much all going to charge you more than a smaller local provider would.

These companies have massive overheads and a never-ending stream of customers, so they have to charge more, and there’s really no incentive for them to give you a good deal anyway.

At the same time, a lot of them also have systems that are highly specialized, meaning they’re quite rigid and don’t offer a lot of options for customization.

But if you go with a smaller local provider, not only is it going to be cheaper, but they’re also more likely to offer an array of options that can accommodate all aspects of your business.

Are you still struggling to pick the right point-of-sale system for your business? We offer a full range of options, competitive pricing, and only the best quality equipment. Give us a call today to find out how we can help.

[lucidpayments]

Tapping Into Success: How Contactless Payment Solutions Can Benefit Your Business

Regardless of the kind of company you own, or what industry you operate in, if you want to grow your business, you’ve got to give your customers what they want.

This idea that the customer’s always right certainly isn’t a new one, but it’s been given new meaning with the rise of contactless payment solutions.

Being able to simply tap your credit card, smartphone, or other device has become increasingly popular in recent years, not least as a result of the pandemic.

Like it or not, many people today would prefer to avoid touching a payment terminal, and this has caused the popularity of contactless payments to skyrocket like never before.

A survey from Mastercard of 17,000 consumers across 19 countries found that nearly eight in 10 respondents make use of contactless payment solutions.

What’s more, the survey found that 82 per cent of respondents consider contactless payments to be “the cleaner way to pay” and 74 per cent of them said they planned to continue using contactless payments post-pandemic.

In addition, as you can see from the graph below, a report from Payments Canada, published in 2022, found that between 2020 and 2021, the volume and value of contactless payments increased by 12 per cent and 18 per cent, respectively.

The report also found that due to the pandemic, 43 per cent of Canadians have changed their payment preferences to “digital and contactless for the long-term.”

Moreover, about one-third of Canadians said they’re uncomfortable touching a payment terminal, and more than a quarter said one of their biggest frustrations when making in-store payments is when stores don’t offer a contactless option.

At the same time, the majority of Canadian merchants are now giving consumers what they want, as a study from the Bank of Canada found that in 2021 and 2022, 81 per cent of merchants surveyed said they offer contactless payment solutions in their stores.

All things considered, clearly this trend toward contactless payments isn’t going anywhere. Consumers from around the world, and right here in Canada, want this option to be available, and the reality is, business owners who don’t offer it are going to get left in the dust.

So, if you want to start offering contactless payment solutions, or you’re not quite sure what they are, but you want to learn more about this technology, and how it can benefit your business, then you should definitely keep reading.

Because in this article, we’re going to explain what contactless payments are, and how they work, and explore the benefits of this ever-more popular and convenient payment option.

What Are Contactless Payments and How Do They Work?

The term contactless payments refers to a form of payment where the customer doesn’t need to physically insert their card into a card reader or enter a PIN.

Instead, they can simply wave or tap their contactless-enabled card, smartphone, or wearable device (such as a smartwatch) near a contactless-enabled payment terminal to complete the transaction.

Here’s how contactless payments work:

Card or Device: Customers use a contactless-enabled debit or credit card, a smartphone with mobile payment capabilities (like Apple Pay, Google Pay, or Samsung Pay), or a wearable device equipped with contactless technology.

Payment Terminal: Merchants or businesses need to have a contactless payment terminal or point-of-sale (POS) system. These terminals are equipped with near-field communication (NFC) technology that enables them to communicate wirelessly with the customer’s card or device.

Tap or Wave: To make a payment, the customer holds their contactless card, smartphone, or wearable device within a few inches of the payment terminal. There’s no need to swipe, insert, or type in a PIN.

Authorization: The payment terminal securely communicates with the card or device to process the transaction. Depending on the transaction amount and the specific regulations, the customer might be prompted to enter a PIN for security verification.

Confirmation: Once the payment is authorized, the terminal provides a confirmation, usually with a beep or a visual cue, indicating that the transaction is complete. The process is quick and efficient, often taking just a few seconds.

So, now that you have a better understanding of what contactless payments are, and how they work, let’s take a look at how contactless payment solutions can benefit your business.

The Benefits of Contactless Payment Solutions

Contactless payments have emerged as a game-changing innovation that is reshaping the way transactions are conducted.

With their undeniable convenience, security, and efficiency, contactless payment solutions hold tremendous potential to benefit both consumers and business owners.

With that in mind, let’s explore the myriad ways in which contactless payments can make your customers happy and benefit your business.

Enhanced Customer Experience

For both business owners and consumers, one of the most significant advantages of contactless payments lies in the enhanced customer experience they offer.

In an era where speed and convenience reign supreme, customers are drawn to establishments that provide hassle-free, convenient, and quick payment methods.

Contactless payment solutions fulfill this demand by drastically reducing transaction times. With a simple tap or wave, customers can complete their purchases swiftly, eliminating the need for them to fumble with cash or enter PINs.

The result? Satisfied customers who are more likely to return, spread positive word-of-mouth, and contribute to increased patronage and higher sales.

Streamlined Operations

For business owners, time is often a precious commodity, but contactless payment solutions can help to streamline your operations by speeding up the payment process.

The reduced time spent on each transaction translates into shorter lines, faster checkout, and improved overall operational efficiency.

This efficiency gain can also have a ripple effect on various aspects of your business, allowing you and your employees to spend more time focusing on other critical tasks, such as customer service and inventory management.

Increased Sales Opportunities

Contactless payment solutions can open up new avenues for you to capture sales that you might have been missing before.

By embracing this technology, your business can tap into a broader customer base, including tech-savvy individuals who prefer cashless transactions.

Moreover, contactless payments can facilitate impulse purchases, as customers are more likely to make quick buying decisions when the checkout process is frictionless. For businesses operating in competitive markets, this could translate into a significant boost in revenue.

Data-Driven Insights

In the digital age, data is king. That being said, contactless payment systems can provide you with valuable insights into your customers’ behaviour and preferences.

And by analyzing that transaction data, you can gain a deeper understanding of your customers, which allows you to tailor your offerings, promotions, and marketing strategies accordingly.

This data-driven approach can help you to make informed decisions that can drive growth and optimize your operations.

Cost Savings

While the initial setup costs for contactless payment systems may seem like an investment, they can lead to substantial cost savings in the long run.

Handling and processing cash transactions can incur expenses related to cash management, security, and banking fees. But by offering contactless payment solutions, you can reduce your reliance on cash, thereby cutting down on associated costs.

Additionally, the digital nature of contactless transactions helps to reduce the need for paper receipts, which also contributes to these kinds of cost-effective practices.

Security and Trust

Contactless payments are built on robust security measures, including encryption and tokenization, which safeguard sensitive customer data.

This level of security not only protects customers but also fosters a sense of trust and credibility for your business.

In an age where data breaches and fraud are prevalent concerns, offering secure payment options can set your business apart and establish a reputation for prioritizing the security of your customers.

Adapting to Changing Trends

The world of commerce is evolving rapidly, and as a business owner, you’ve got to adapt to stay relevant.

With that in mind, contactless payment solutions represent an essential step toward the modernization of your business.

And by embracing this technology, you can demonstrate your willingness to evolve with changing consumer preferences, positioning your business as a forward-thinking and innovative establishment.

Contactless payments are ushering in a new era of convenience and efficiency, and for business owners, particularly those running small and medium-sized enterprises, the benefits are both tangible and transformative.

From enhancing customer experiences and streamlining operations to increasing sales opportunities and providing data-driven insights, the impact of contactless payment solutions is profound.

And as the business landscape continues to evolve, harnessing the power of contactless payments isn’t just a financial transaction – it’s an investment in the future success of your business that can foster growth, customer loyalty, and innovation.

Do you want your business to be able to accept contactless payments? Give us a call today to find out how we can help.

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Feds Finally Reach Deal With Visa and Mastercard to Lower Interchange Fees for Small Businesses in Canada

For many years, Canadian merchants have been forced to pay some of the highest interchange fees in the world.

According to a Bank of Canada report, in 2018 alone, Canadian merchants paid more than $11 billion for the privilege of accepting credit card payments.

But a new agreement between Visa, Mastercard, and the federal government aims to provide some relief for small business owners.

Merchants in Canada have been fighting this battle for many years now, dealing with not only the credit card companies and banks who’ve been gouging them, but also unscrupulous payment processors who’ve been taking advantage in any way they can.

Last year, we saw a small victory, stemming from a class action lawsuit that started more than a decade ago, back in 2010.

The lawsuit alleged that Visa, Mastercard, and certain banks “conspired to set higher interchange fees and to impose rules restricting merchants’ ability to surcharge or refuse higher cost Visa and Mastercard credit cards.”

And although the banks and credit card companies named in the lawsuit refused to admit any wrongdoing, they agreed to pay $131 million in settlements, allowing some Canadian merchants to claim a rebate, with the ability to submit claims expiring in September of last year.

The settlement also included a provision that gives Canadian merchants the option to impose a surcharge on credit card transactions, starting in October of last year, although to the best of our knowledge, this function still doesn’t seem to have been rolled out on most payment terminals.

In any case, many countries have decided to regulate interchange fees, in order to keep them at more reasonable levels, but for whatever reason, the Canadian government has shied away from doing this, instead spending several years trying to come to an agreement with Visa and Mastercard.

Back in 2020, the government got them to agree to bring interchange fees down by a measly 0.1 per cent, and in the feds’ 2022 fall economic statement, the government even claimed that it had draft legislation ready to go in case it felt the need to regulate these fees, but that still hasn’t happened.

Then, last month, the federal government published a press release, stating that they’d reached agreements with Visa and Mastercard that are “expected to save eligible Canadian small businesses about $1 billion over five years.”

But what exactly did Visa and Mastercard agree to? What are the stipulations surrounding these savings? And how is this going to affect your business?

If you find yourself asking these kinds of questions, and you’re wondering if your business will qualify for a reduction in interchange fees, then you’ve got to keep reading.

Because in this article, we’re going to summarize the details of these agreements, look at how this is going to affect small business owners in Canada, explain how you can ensure these savings will be reflected on your statement, and offer our take on this issue, as well.

And if you want to learn more about how this has been playing out over the last several years, you can check out our article, which asks the question, Is the Canadian Government Really Going to Regulate Interchange Fees?

How Will These Agreements Affect Interchange Fees for Small Business Owners?

According to Canada’s Department of Finance, these new agreements will allow more than 90 per cent of credit card-accepting businesses to qualify for lower interchange rates, reducing the fees they pay by up to 27 per cent.

Businesses with annual Visa sales volume of less than $300,000 will qualify for lower interchange fees from Visa, businesses with annual Mastercard sales volume of less than $175,000 will be eligible for lower interchange fees from Mastercard, and non-profits with transaction volumes below these thresholds will also be able to qualify for reduced interchange fees.

Those who qualify will benefit from lower interchange fees on domestic in-store transactions, with a new annual weighted average interchange rate of 0.95 per cent, along with a reduction of 10 basis points on interchange fees for domestic online transactions, which could result in savings of up to seven per cent.

Visa and Mastercard have also agreed to “provide free access to online fraud and cyber security resources to help small businesses grow their online sales while preventing fraud and chargebacks.”

In addition, as part of these agreements with Visa and Mastercard, Canada’s large banks have agreed to protect the reward points of Canadian consumers, despite these reductions in interchange fees.

These changes will come into effect in the fall of next year, in order to provide time to “complete the required system updates.”

Our Take on These Agreements With Visa and Mastercard

It’s great to see that small business owners in Canada will finally be getting some relief from the exorbitant interchange fees they’ve been paying for so many years.

According to both Visa and Mastercard, the average interchange rate paid on their cards in Canada is 1.4 per cent, which means that on average, for every $100 spent using these cards, a Canadian merchant will pay $1.40 in interchange fees.

That may not sound like a lot, but when you’re accepting a lot of credit card payments, these fees can quickly add up.

That being said, cutting that number down to 0.95 per cent can actually provide significant savings for small business owners.

But considering the fact that Canadian merchants paid more than $11 billion in fees for credit card processing in just a single year, saving $1 billion over five years is arguably just a drop in the bucket, so it would have been nice to see a larger reduction in fees for small business owners.

Nevertheless, this will save small businesses some money on interchange fees, and from our point of view, that’s always a good thing.

However, the statement released by the feds also included a couple of questionable clauses about the government’s “expectations” that we’d like to address, as they definitely need to be put into perspective.

For example, the statement said that “the government’s expectation is that commitments by credit card networks to lower interchange fees for small businesses will not adversely impact interchange fees paid by other businesses,” but it’s important to point out that this is simply an expectation, and not part of the agreement between these credit card companies and the federal government.

That being said, it’s yet to be seen whether Visa and Mastercard will simply download these reductions in fees onto the bills of bigger businesses, and unfortunately, nothing would surprise us at this point.

At the same time, the statement also said that the government “expects other credit card companies to take similar actions to lower fees for small businesses, and that payment processors will pass these reductions on to small businesses,” but there are so many things wrong with this statement, we’re not even sure where to begin.

First of all, the idea that other credit card companies will follow suit when they don’t even have an agreement with the government is laughable.

The government’s expectations do not constitute an agreement, so there’s really no reason for other credit card companies to do anything at this point.

Moreover, the expectation that “payment processors will pass these reductions on to small businesses” is even more absurd, as we know this is not typically how things work in our industry.

Although this is something we’re vehemently against, and would never do ourselves, many payment processing companies will use any reduction in interchange fees as an excuse to pad business owners’ bills with “miscellaneous” fees, rather than passing those savings on to their customers.

All things considered, the government’s “expectations” are nothing more than that, and so long as they don’t have agreements with these other companies, there’s no reason to believe that they’ll do what the government expects them to do.

How You Can Ensure Your Payment Processor Is Passing These Savings on to You

As we’ve already mentioned many times before, when credit card companies reduce their interchange rates, payment processors are notorious for refusing to pass these savings on to their customers.

And unfortunately, despite the federal government’s expectations, we have no reason to believe this won’t continue to be the case when these reductions come into effect.

So, if you want to ensure your payment processor is actually passing these savings on to you, there are a few things you can do.

According to the feds, “Small businesses will qualify with each credit card network individually” for these reduced rates, so it’s not quite clear how this is going to work.

Will anyone below the thresholds in question automatically qualify, without having to apply? Or will merchants have to go through an application process before they can access these savings?

At this point, no one knows for sure, but you’ll want to stay tuned to our blog and newsletter because when we do get the details, you can be sure we’ll pass them on to you.

But it’s important to remember that these changes won’t come into effect for more than a year, so in the meantime, you should make sure to stay on top of this stuff yourself, especially as we get closer to the fall of 2024.

Then, once you’ve got those details, make sure to go through any necessary application processes as soon as you possibly can, so you don’t miss out on any of these savings.

In addition, once these rate reductions come into effect, make sure to pay close attention to your monthly bills because if you’re accepting Visa and Mastercard payments, there should be savings reflected on your statement.

This isn’t always going to be true, depending on how your volume fluctuates from month to month, but most eligible business owners should notice a difference.

And if you don’t see any difference once this comes into effect, more than likely, your payment processor has taken the opportunity to pad your bill with extra fees, so make sure to pay close attention to all the fees on your statement, as well.

Alternatively, you could try to figure out how to do all the calculations yourself to be sure of exactly what you should be saving, but that process can be incredibly convoluted, not least because payment processing companies tend to structure their statements so that it’s really hard for merchants to do that.

At any rate, once this goes into effect, if you’re not quite sure what to do, we’ll be more than happy to go through your statement with you and help you figure it all out.

And who knows? We might be able to give you a better deal, regardless of whether these savings end up being reflected on your bill or not.

Are you tired of paying so much for your payment processing? Give us a call today to find out how much we can help you save.