November 23, 2020
7 questions to ask when selecting a payment processor for your pharmacy
Part of your business’s success depends on your ability to accept payments and who you choose to process them, consider the following questions when reviewing your options.
1. What are the total fees and costs?
Make sure all fees are disclosed before you enter into an agreement, to avoid any hidden charges. There are several ways you can be charged for credit card payment processing, including:
- Interchange pass-through (IPT) pricing passes the cost of processing to your business, for each card presented for payment. These rates vary depending on the type of card you accept and how or where the payment is accepted. In addition, a set fee is charged by the acquirer. This fee can either be a percentage of the transaction dollar amount, a per-transaction fee or both.
- Simplified/flat rate pricing always charges the same percentage rate, regardless of how you accept the card and/or what type of card is presented. This method is simple, but often more costly overall.
- Merchant discount rate (MDR) pricing combines elements of a flat rate structure and IPT. A base rate is provided for the basic or most common transactions. For cards with higher interchange rates, an additional fee is charged to cover the difference in cost.
Supplementary fees may also be charged in addition to these methods. Examples include monthly statement fees, application and setup fees, monthly minimum processing fees and more. It is important to understand each fee and determine the value it brings to your business, if any.
2. What types of payments can be accepted?
Does the processor enable your business to accept transactions of different types of credit and debit cards, as well as gift cards? How easy is it to accept digital/mobile wallets, such as Apple Pay®, Google PayTM and bank card apps?
3. What kind of assistance is offered with security?
Whether you accept payments in person or online, fraudulent activity can be very costly for your business. Ask if the payment processor can help you with complying with the industry rules on securing customer information (Payment Card Industry (PCI) Data Security Standard (DSS) compliance) as well as with preventing and managing fraud and resulting chargebacks using online reporting and other tools.
4. What technology solutions are available?
Does the processor provide you with variety and, ultimately, the right technology solution, no matter how your customer wants to pay? This may include:
- In-person technology, including countertop terminals and pay-at-the-table terminals, and/or on-the-go solutions offering the option to pay through smartphones or tablets, or through long-range terminals
- Online or over-the-phone solutions, such as a virtual terminal or e-commerce solutions
5. Can you get assistance when you need it most?
Make sure you can get help at all times (including weekends) and ask if they have live agents to answer questions. Understand the processor’s commitment to on-site troubleshooting, equipment maintenance or replacements.
6. What kind of reporting options are offered?
Does the processor provide robust, detailed reporting options that allow you to track your transactions in real time and that will make reconciling your account quick and easy?
7. What is the processor’s reputation?
Perform your own research to ensure that the processor is reputable, and confirm whether they are compliant with all Payment Card Industry rules and regulations.
Article provided by Chase Paymentech Solutions Inc.