20 Mar 4 Tips for Restaurants Accepting Card Not Present Payments Due to COVID-19
These are strange times. Due to the rise of Coronavirus (COVID-19), more businesses are operating remotely than ever before. But, for some industries, telework just isn’t a reasonable option. This is especially true for restaurants. Even in a state of normalcy, one-third of small businesses report struggling with cash flow, so this pandemic is only exacerbating the issue.
Out of necessity, many foodservice businesses that typically accept cards face-to-face have transitioned to a card not present business (CNP) model. Restaurants, cafes, and breweries are all scrambling to provide carry-out and delivery as alternatives to their usual over the counter sales method. Many have pivoted to accepting more payments over the phone. If your restaurant business is doing this already, or considering making this move, this article is for YOU.
Right now, every cent counts, so it’s NOT the time to overpay on credit and debit transactions. These 4 tips will help cushion your bottom line and improve outcomes as we face this difficult time:
1. Avoid additional fees
Every time you process a debit or credit card transaction, that transaction is assigned an interchange rate. This rate is impacted by everything from card brand to industry, but there are some actions you can take to ensure you qualify for the lowest possible interchange rate on every transaction.
Batch out daily. Transactions that sit unsettled in a terminal for more than 24 hours, often called “stale authorizations,” are frequently downgraded. This means you’re paying increased rates for every single one of those transactions. Avoid this problem by setting up your terminal to automatically batch out every day after business hours.
Don’t neglect AVS. AVS stands for address verification system, which is a fraud prevention tool that confirms the address provided by a cardholder matches the address on file with the cardholder’s issuing bank. If the billing zip code is not provided, the transaction will be charged a higher interchange rate, so make sure the 5-digit billing zip code is provided every time you or an employee key in a card.
Ask for the CVV code. Entering the three-digit CVV code from the back of the card won’t impact interchange rates, but it will help prevent fraudulent transactions. Many fraudsters don’t use physical cards—they’ve either purchased a list of card numbers or stolen the information themselves. Either way, without being in possession of the card, they most likely don’t have the CVV code. Fraudulent transactions will inevitably be charged back and that costs money. More on that in the next section.
2. Ensure accuracy
When you key in a transaction, the customer usually won’t have the chance to review their receipt, so data entry errors are more likely to result in chargebacks. Chargebacks are accompanied by a fee of at least $25, and the disputed amount is pulled from your bank account until the chargeback is resolved. Then, to get your money back, you must provide supporting documentation to prove the transaction was legitimate. Don’t have it? You don’t get your money back. Your restaurant does NOT have the time or money for this right now, so please, please, please, avoid unnecessary headaches and ensure data entry is accurate! A best practice is to repeat the total back to each customer while you still have them on the phone.
3. Calculate your effective rate
You’ve got a lot of things on your mind, and switching processors might seem like a hassle, but you need to take care of your business and your employees, and you can only do that by taking care of your bottom line. Are you overpaying on processing fees? Take a moment to calculate your effective rate.
The average effective rate varies but generally falls somewhere between 2.75% and 3.25%. If you’re paying more than that, reach out to BASYS Processing for a free savings analysis to see if we can help.
4. Consider other options
If your business is struggling, be creative and consider other options like:
Use a virtual terminal: A virtual terminal allows you to process payments from any device with an internet connection. This provides a secure way to accept payments over the phone or the internet for carry-out and delivery orders.
Running your business from home: If you must close your business location, can you run your business from your home? For example, a small bakery might close their physical location, but still accept orders online or over the phone, process payments from home, and then use shipping, pick-up or delivery to get the product to your customers
If your business is struggling with cash flow due to COVID-19, we hope you’ll be able to implement these 4 practices to start saving money today. In the last week, our office has transitioned to working remotely, but we are still doing everything we can to support our merchants. If you have any questions, or if there is anything else we can do to be a resource for your business during this time, please reach out to us at (800) 386-0711, firstname.lastname@example.org, or fill out the form below. We can help.
BASYS Processing as a business partner
Does your current processor understand the unique struggles of your industry? Do they provide great rates and excellent customer service? Are they offering solutions to grow your business and being pro-active about helping you reduce risk and increase your savings? Contact BASYS today to learn more about innovative payment solutions that will save you time and money. We make accepting debit cards and credit cards convenient, safe & affordable.
BASYS Processing features:
– Live operator when you call support – no automated voice systems
– Dedicated Relationship Manager for questions and concerns
– Quick response time for your questions and concerns; you are a priority
– Family owned since our founding in 2002
– A+ BBB rating
– 90% + Customer Retention Rate
– Proactive contact with every merchant to walk through the annual PCI process
– In-house PCI Team to assist with questions and concerns
– Solutions including terminals, virtual terminals, e-commerce, mobile, and point of sale
– EMV compliant products
– Reporting for customer, sales, and inventory management
– Gift and loyalty card programs
– Easy-to-read statements
– Transparent pricing
– Tremendous savings
About BASYS Processing
BASYS Processing provides credit card and debit card processing services, and solutions that include terminals, virtual terminals, e-commerce, mobile, and point-of-sale, customized to fit any need. Banks, associations, and software partners depend on us to strengthen their reputations and relationships with their customers by providing remarkable service paired with ultimate flexibility and pricing. Merchants depend on us to make accepting credit cards and debit cards convenient, safe & affordable. BASYS was founded in 2002 on one philosophy: to take care of our merchants, partners, and employees so they never want to leave. We are dedicated to working one-on-one with our customers to design the perfect solution. BASYS is Personalized Payment Processing.
Learn more at basyspro.com, and connect with us online at: