Control your transaction fees: here’s how

Do you want to choose your own payment processor (acquiring bank) for processing card transactions, but your POS terminal/software provider wont let you?

Choosing your own acquiring bank can mean that you save thousands of pounds annually. But many mPOS (Mobile Point of Sale) providers come bundled in such a way that means you are lumbered with a fixed percentage per-transaction charge that is much higher than average.

What is mPOS?

mPOS is a relatively new phenomenon. Usually it is an app that installs on a mobile device, supposedly turning it into a ‘crude’ EPOS terminal. The weaknesses are often a lack of control and security for the business owner. The software is often poorly equipped in terms of features, versus solutions that have been established for decades.

A quick guide to payment processing

So what happens when you press to process an integrated transaction on your EPOS System?

1. Your card machine (and any associated software) ‘talks’ to your acquiring bank (payment processor).

2. The card scheme provider, such as Visa for example, will contact your customer’s bank. The card scheme provider will check that all details are correct

3. Your Customer’s bank will approve or decline the transaction. This decision might be based on whether there are sufficient cleared funds available in your customer’s account.

4. The card scheme provider passes on the approval or decline decision to the acquiring bank. The result of this decision is then displayed on your card terminal.

How to save money: Choose your own payment processor

The rise recently of mPOS (also referred to as ‘cheap EPoS’) has meant that many businesses with little cash to spare have been tempted to sign up to heavily marketed low-outlay ‘deals’. These deals are usually the result of the POS provider locking you in to their own payment processing solution (and acquiring bank). In addition, the providers often do not provide the local service required of many businesses. An extra rental fee is usually charged for the ‘app’.

Lower your rates…

With typical mPOS rates of 1.75% per transaction, many businesses end up paying hundreds of pounds extra per month (thousands of pounds per year) in card processing fees. This compares to lower fees that are available through RSS’ EPOS Solutions. RSS lets businesses choose their own acquiring bank, so that they can select the lowest rates. A quick internet search can reveal rates as low as 0.3% per transaction. Compare that with 1.75% on your card revenue!

RSS System integrators work to ensure that their EPOS systems work flawlessly with all banks. This is achieved through their card terminal rental partners, including SagePay and VeriFone. You simply rent the card terminal for a fixed fee. This includes maintenance and helpdesk support. Then you choose your own payment processor (acquiring bank). Shop around and get the best deal with the lowest rates for your business!

Don’t just take our word for it, a recent report by the Competition and Markets Authority asserted that so-called m-POS companies are “generally more expensive on a per transaction basis than the traditional POS pricing models” [1].

Want to learn more about our solutions? Get in touch: CLICK HERE

References:

[1] Competition and Markets Authority (2019), [online], London, Crown Copyright. Available at https://assets.publishing.service.gov.uk/media/5cffa74440f0b609601d0ffc/PP_iZ_final_report.pdf (accessed 09/09/2019)

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