The payment processing landscape changes yearly and 2021 is no different. This year will be full of surprises, but I’m here to help you navigate them in a way that’s best for your business. With my expert advice and years of experience, you can stay ahead of the competition. Here’s what you need to know:
Visa business interchange to increase in April of 2021
Visa‘s business interchange fees were scheduled increase by nearly 20% in certain categories in April of 2021, but a last minute decision this week was made to postpone these increases until April 2022 . This is one of the biggest proposed changes we’ve seen in years and I fully anticipate its full deployment in 2022.
The increase in interchange fees usually only benefits the banks that issue credit cards, but Visa has found ways to make a profit based on how those fees are assessed. These constant rule changes are frustrating, especially when business owners feel like the end goal is always a moving target. But it’s important to stay alert and on top of the latest news because it’s predicted that Mastercard and American Express may follow in suit.
Contactless payments are still at the forefront
With the COVID-19 pandemic raging on, contactless payments continue to be the star of the show. Due to customers’ need to touch as little of public surfaces as possible, tap-and-go transactions are essential if you have the bandwidth. (This information may not directly apply to the home heating industry since many payments are taken online or by mail. However, it’s important to know about customer payment behaviors and expectations throughout a variety of industries).
Say hello to Smart Payments
What if there was a technology that could place an automatic order when you ran low on supplies for your business? Or even when your fridge needed to be restocked with healthy groceries? Financial experts, engineers, and computer programmers are working on apps and software programs to do just that. Pretty amazing, right? Bottom line, leveraging financial technology is critical to optimizing efficiencies while compressing processing fees and expenses.
Highlight customer experience
Providing a quality customer experience is more important than ever! Since people are wanting to pay for goods from the comfort of their own homes, they are relying on online reviews and customer testimonials before they make their final decisions. This is true in B2B relationships as well. If you’re not meeting face to face, where’s the business validation?
These are just a few of the payment trends that you can expect in 2021. Make sure you’re informed of these changes and know how to adapt. If you want more tips and tricks like these, schedule a free consultation. Simply visit my website and fill out the online contact form.
