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3 Solutions for Accepting Credit Card Payments without Breaking the Bank

3 Solutions for Accepting Credit Card Payments without Bank

Individuals, craftsmen, market sellers, guest houses. So far, it was difficult, if not impossible, to receive payments by credit card. New solutions to connect to a smartphone compete at the lowest cost of payment terminals offered by banks. We sifted them through. 

”  Sorry, we do not accept the credit card  “. This response is now losing sales to merchants. According to an Ifop poll, 58% of French people have already given up a purchase when they could not pay by credit card. Those who do not take the card are now considered to be archaic and unconcerned about customer service. Yet the reluctance of some professionals is understandable.

Suggesting payment by card ends up being expensive. One is the rental of the electronic payment terminal (EPT). Then the subscription to a telephone line, dedicated or connected to an ADSL box, for the transmission of data to the bank. Not to mention the fixed commission on each transaction, as well as a variable part depending on the amount of the purchase. In the end, several tens of euros a month, even without any transaction.

For several months, alternative payment solutions arrived in France with the firm intention of reducing the invoice. Their principle? Connect a credit card reader to a smartphone or tablet, turning them into a mobile payment terminal. An application allows to carry out transactions exactly as in a traditional shop: the customer inserts his card and validates with his PIN code. Only imperative, have an internet connection wifi or 3G / 4G.

Many mobile payment solutions exist. But most of them require to create a specific account: Paypal, Payname in France; Apple Pay, Google Wallet, in the United States. Those that work with bank cards are often American solutions that only read magnetic tape, unacceptable for many consumers accustomed to the security of the PIN.

Up to 40% cheaper than a bank banking offer

In this case, the first three offers available in France will be detailed. From a financial point of view, they are both simpler and cheaper than banks’ electronic banking solutions. Simpler, first of all, with a clear tariff reading: purchase of the terminal at fixed price and single percentage levied on all transactions. The reverse of traditional bank offers, which are available in multiple options (annual collection amount, type of electronic payment terminal, level of commissions, etc.), each of which is generally defined on a case-by-case basis, Bank advisor.

These alternative payment solutions are also less expensive for small traders. Up to 40% depending on the type of operation. In the absence of recurring fixed costs, the professional pays only a percentage of what he collects. It is not necessary to have a professional bank account. This allows the guest rooms or craftsmen (plumber, taxi, electrician, etc.) to accept the credit card, even in a mobility situation.

Test bench of the solutions available in the Hexagon. All are certified PCI DSS, the data security standard for payment card industries.

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