To sell anything, you have to have the ability to take payments.
While traditional methods like cash and checks used to be more common, modern payment methods like cards and digital wallets have surpassed them in popularity. This is why retail stores need to implement technology that accepts these payment methods — and that’s where payment processors come in.
Payment processors work with card providers to transfer funds, facilitating digital transactions and making modern business possible. Some businesses use a payment processor integrated with a point of sale (POS) system, while others use a processor that operates on a standalone basis.
You need to take payments at your fabric store, and finding the best payment processor for it makes running your business easier. But with a variety of options on the market, understanding the differences between each one gets complicated.
In this blog, we’ll go over the basics of how payment processing works and list our top six picks for processors, so you can choose the best option for your fabric store.
Let’s get started.
To understand the difference between payment processors, you need to understand the significance of processing rates and POS integration.
Related Read: How To Choose a Quilt Store POS System: 4 Tips
Do you know your processing rates? For every digital sales transaction you make at your fabric store, your payment processor charges you a processing fee. Card providers (like American Express, Visa, and Mastercard) charge fees to payment processors to transfer funds. In turn, they charge you to account for these fees. The amount they charge you is based on the amount of the payment and the rate.
Depending on the processor you use, you can be charged a variable rate or flat rate. A variable rate means the rate of your charge changes based on the payment method the customer uses. For example, you might be charged a different amount for an American Express card versus a Visa card. A flat rate means you’re charged the same rate regardless of the payment method the customer uses.
It’s important to know what rates a processor charges, so you know how much you’re really paying for processing. As you look at different options, compare rates to see which one is most cost-effective for your fabric business.
Related Read: 6 Essential Retail Policies for Quilt Store Owners
A POS system has an interface that allows you to facilitate customer transactions, manage inventory, place orders for new inventory, promote your business, and perform other essential tasks. The credit card terminal you use for payment processing can either be connected to your POS system, or it can operate separately.
When your payment processor is built into your POS system, it’s referred to as an integrated processor. If they are separate, it’s called a nonintegrated processor.
A nonintegrated payment processor includes a card reader that handles transactions, but doesn’t offer a POS interface. Because of this, when you use a nonintegrated solution, you have to manually enter the amount your POS calculated in the card reader. This extra step can cause errors. When you make sales, nonintegrated payment processors charge variable rates based on the card type, which can lead to additional fees compared to an integrated solution.
Although nonintegrated technology is more dated, many of these payment processing providers have been in the industry longer, and some of these providers partner with external POS systems.
An integrated payment processor, on the other hand, is built into your POS system, so there’s no need to manually enter payment amounts. This reduces errors and speeds up customer checkout. POS providers who offer payment processing often give you flat rates, which makes the fees charged more transparent to you as a business owner.
Another benefit of using an integrated processor is that your POS system and payment processor have the same customer support team. This way, if you have tech issues, you have to reach out to only one team rather than two — making it easier to resolve these issues.
Related Read: The Best Fabric Store POS System To Run Your Store: 5 Top Options
Now that you have a better idea of what to look for in a payment processor, let’s explore our top picks for the best payment processors, including both integrated and nonintegrated options.
Related Read: 7 Fabric Store Software Features You Can’t Live Without [ + 5 Top Providers]
These are POS providers who offer built-in payment processing.
Like Sew is a POS system built specifically for fabric stores. Users can connect external payment processors with the system, or use Like Sew’s integrated payment processing. Integrated processing makes customer checkout seamless. As a fabric-specific system, it comes with features tailored to the industry, like access to fabric suppliers, the ability to calculate the cost of fractional yardage, and tools for hosting events.
Square is a general POS system that’s used for a variety of retail industries and is equipped with an integrated payment processor. With its simple and intuitive interface, Square can adapt to the needs of your business.
Heartland is a payment processor that also offers a POS system. This system is a good fit for restaurants and retail businesses because it includes time and attendance tools, payroll, and HR software.
These payment processors are not POS providers. But they do partner with external POS systems, which allows business owners to use both services at the same time.
Global Payments is a large payment processor that serves a wide variety of large and small businesses. Their diverse range of clients include event venues, car manufacturers, and restaurants. They have a focus on new technologies, like e-commerce capabilities. Because they’re global, they maintain a significant international presence with multicurrency support.
Worldpay is a popular payment processor that serves online e-commerce businesses, airlines, retail stores, and other types of businesses. Because of Worldpay’s popularity, many customers are familiar with their card terminals. They also offer 24/7 customer support and fraud prevention tools that are highly regarded in the industry.
TSYS is another payment processor that works with a variety of businesses, including retail stores and financial institutions. They focus on customized payment services based on the needs of a business, and offer loyalty program features to help increase customer retention.
Payment processing is an essential function of any retail business. To compete in the modern retail landscape, you have to accept credit cards and digital wallets. For the most convenient experience, you need a payment processor that’s integrated with a POS system. This eliminates the need for manually entering sales totals, speeds up the checkout process for your customers, and reduces mistakes.
As you look for the best payment processor for your fabric store, pay attention to the rates a provider charges. The lower your rates are, the more money you save.
Your best bet is a payment processor and POS system combined — especially a POS system that’s designed for your industry. Like Sew is designed with the needs of fabric stores in mind, and offers integrated payment processing. In addition to fast and accurate payments, you have access to inventory management features, sales data, and marketing tools.
To see the difference Like Sew can make for your business, schedule a demo today!