Collecting and processing payments is a very important part of your business. Important because your business needs revenue to operate, but also because any time you’re reaching into members’ wallets and purses you’re relying on their trust. They need to know that you’re making every effort to keep their accounts safe, while they’re simultaneously demanding that the process be as simple as possible. That’s the expectation. Here are several things to look for and know about payment processing in the fitness business.
1. Yes, to EMV! – EMV (Europay, Mastercard, and Visa – the companies that developed the requirements) is a set of standards for smart payment cards and for payment terminals and automated teller machines which can accept them. EMV cards are those that must be physically “dipped” into a reader and those that can be read via contactless methods using near-field communication technology. In other words, it is the customers’ preferred method of payment.
2. What About Card Not Present? – Any transaction manually keyed into a credit card machine does not count as a card present transaction, even when the card is physically present. To qualify as a card present transaction, the merchant must capture electronic data stored on the card. That increases security and protects both you and your members.
3. Shift Fraud Liability to Acquiring Banks – You’re an expert in fitness. That doesn’t make you an expert in fraud, online security, or other hazards that abound online and in the real world. But to protect you and your members, you need expertise in these areas. The key part of that phrase is “experts.” Transferring these key responsibilities to real experts and making them responsible, in this case banks, is a smart decision that minimizes risks for all parties involved.
4. There’s No Free Ride – It’s true that money is a driver. Because of the added capabilities, there is typically a cost associated to EMV transactions across the industry. However, the cost is well worth it when you consider the advantages of added security against fraud and the best practice of participating in a more global standard.
Collecting and processing payments is a rapidly changing area, with new methods seemingly appearing overnight. You want and need to accommodate members’ desires, but at the same time, you can’t afford to be wrong. Make sure that you go with a reputable processor that adheres to recognized standards.
At ClubReady, we are updating our processing system to allow for EMV cards, which we are calling Tap to Pay.