Each year, gift cards top the charts as the leading holiday purchase, and for a good reason. Many shoppers purchase gift cards for their loved ones’ birthdays, holidays, and corporate events due to their versatility.
Offering gift cards at your business can help you enhance your revenues, expand your customer base, and strengthen customer loyalty. So, how can you get started?
Setting up a gift card program is easy. Just take it from us at Electronic Merchant Systems (EMS). As a payment processing company and gift card vendor, we have extensive experience setting up personalized gift card programs for businesses. We’ve also seen the outstanding results.
Key Takeaways:
The holiday shopping season of 2022 is in full swing, and businesses are busy getting ready for the spike in demand.
Although the coming month could be incredibly successful for merchants, there are also hidden risks that could steal sales from those who are unprepared for them.
Increases in fraud, false positives, and chargebacks are frequently observed in conjunction with a sudden surge of holiday sales from new clients during the holidays.
What should businesses know, so they're ready for the best and worst of the holiday season?
We'll take a look in the article below.
Table Of Contents
Let's first examine what constitutes a high chargeback percentage and why it could be problematic for brick & mortar and online retailers.
Card issuers often view 1% as a high chargeback ratio, while each card brand has its own calculation and threshold. If your chargeback ratio rises even temporarily, card issuers may issue a warning before raising your rates, put your funding on hold, or require your business to maintain a reserve balance.
If you can't rapidly lower the chargeback ratio, it can be a headache for businesses with narrow margins.
If your charge ratio remains high, your acquiring bank may close your merchant account and include your company on a list known as the MATCH list.
If your company is placed on the MATCH list due to a high number of chargebacks, it remains there for five years. Any acquirer that you attempt to apply with for merchant services could see that your company is listed and charge you processing fees far more than usual, or simply decline your application.
Acquirers might turn down your business.
For most merchants, the holiday season is their busiest time of the year. Therefore it makes sense that the period immediately after the holidays will see an increase in chargebacks.
The holiday shopping season has certain characteristics that can result in various types of chargebacks, which can cause a merchant's chargeback rate to rise disproportionally to their increase in sales volume.
Chargebacks may also rise due to increasing fraud, slow deliveries, and other problems. Although these chargebacks often increase after the holidays, they are not always exclusive to this time of year.
Simply put, more purchasing means greater opportunity for chargebacks.
Customers occasionally make purchases and return things for which they receive a refund. If they don't receive the full amount, they may dispute the transaction with their bank or the bank that issued their credit card, claiming that they didn't get the money owed to them.
This expression is being used loosely here. This refers to anything from legitimately wrong items to “wrong” items being delivered.
If consumers receive an item that isn't what they expected, they can complain to their credit card provider. This includes both incorrect order fulfillment and items that were not sent.
After the holidays, con artists typically try to cash in on gift cards they received in exchange for "free" goods they are attempting to sell on eBay and Craigslist.
Even though scammers operate all year long, the holidays are usually a perfect time for them to strike. Identity theft and phishing schemes are also more prevalent at this time.
It’s easier than ever for fraudsters to create email templates similar to financial partners, reputable businesses, or security firms. These fraudulent emails typically contain hidden links in legitimate-looking CTAs requesting information used for social engineering purposes.
Once they have that info, they can use it to commit chargeback fraud or sell it to other fraudsters who will do the same. Fraudsters also acquire gift cards using stolen credit card information which they can resell to unwary customers and make huge profits.
This also covers friendly fraud, such as unrecognized transactions and buyer's remorse, which occurs when a customer regrets making a purchase. Friendly fraud can also include acts of promo abuse and return fraud. The latter frequently occurs after they have gone beyond the return window for your online store.
Always have an eye out for fraudulent activity over the holidays.
A lack of detail in the product description might also result in chargebacks and negative customer comments or reviews.
It is possible that you could wind up with dissatisfied customers who will report you for fraud if the product descriptions you provide are unclear or confusing.
Handling and care are sometimes overlooked due to increased deliveries, increased holiday consumption, demand for next-day international shipping, and other factors. Shipping companies are not always friendly to packages either.
However, when clients receive damaged deliveries, they typically hold you accountable rather than the shipping fulfillment company.
Nothing is worse than getting a package days after you thought it would be there. There will always be returns and refund requests if a shipment is late.
First and foremost, it's crucial to designate enough resources to handle the increased demand for sales, fulfillment, and customer service.
Additionally, it is more crucial than ever to use anti-fraud tools and manually review flagged orders as they are received.
The customer experience is crucial for businesses over the holiday season. Many businesses will need to invest more in customer service as online sales increase. Customer service requests should receive a rapid response, and businesses should quickly address customer complaints.
Customers may be understanding about long delivery times, but persistence and kindness are only going to get you so far. Customers who don't receive a satisfactory response from a retailer will eventually start a chargeback dispute.
To prevent post-holiday chargebacks, you can also ensure your business is PCI DDS-compliant. This will help prevent common forms of credit card fraud and protect your business from unwarranted chargeback fees.
The holidays are not the time to relax your anti-fraud defenses, but it may be a good idea to evaluate your return and refund policy and be as accommodating as you can when clients wish to return an item.
Refunds are usually less expensive for businesses than chargebacks, and they can help win back a disgruntled or regretful customer's allegiance.
Reviewing your payment procedures can also be a good idea as you prepare for chargebacks throughout the holiday season.
EMS believes the payment process should be simple for consumers and effortless for you. Our professionals can assist you in finding the ideal solution that offers these advantages and more.
Your business can utilize one of our comprehensive point-of-sale solutions to safely accept all payment methods, improve business processes, and streamline operations.
Our countertop credit card terminals are made to provide you with all the processing capabilities you require without taking up too much counter space.
EMS can also provide your company with an eCommerce solution so your customers can order products or make secure payments online.
At EMS, we understand how challenging it is to find payment processes that work best for you.
Partnering with EMS simplifies the entire process during the holiday season, making credit or debit card payments as quick, easy, and secure as possible.
With extensive industry experience spanning over 30 years, we’ll streamline the process and maximize your ROI on payment processing services.
Contact us today to find the ideal solution for your brick-and-mortar or online business.
Gift cards are a popular present idea for shoppers who don’t know what to buy. Over 90% of American shoppers have exchanged gift cards at some point. In turn, global gift card sales are expected to reach $2.7 trillion by 2027.
Sports like baseball, football, basketball, and hockey are entertaining to watch and play, but they often have high entrance hurdles. Because it is inexpensive, convenient, and enjoyable, bowling is a fantastic activity for everyone.
Bowling is also fantastic since it invites participation and enjoyment from all. Some folks discover that bowling fosters social interaction.
You have a lot to do as the owner of a bowling alley, and you're constantly looking for ways to improve the experience for your patrons.
One of the simplest ways to ensure that everyone who visits your bowling alley has an amazing time is to streamline your merchant services and payment processing.
For successful long-term payment solutions, Electronic Merchant Systems (EMS) works closely with small businesses like your bowling alley.
It is evident from the over 1000 Google Customer Reviews that we have been effective in assisting numerous businesses to expand.
From cutting-edge POS systems and mobile payment processing options to personalized gift cards, EMS has your bowling alley covered.
EMS offers free consultations, just call 1-866-514-1547 today!
Whether you’re selling handmade scarves, 3D-printed toothbrushes, or custom artwork, you need an eCommerce site with the power to process customer payments.
It finally happened—you had a “Eureka!” moment, and your product idea will change the world. But, even if your idea is so genius that the elevator pitch practically writes itself, you have some hurdles to overcome before closing your first sale.
If your customers rely on credit card transactions to make payments, these transactions need to be easy. The last thing you want is customers going through a stressful shopping experience.
Business is booming for the CBD industry, and that trend doesn’t seem like it’s going to stop anytime soon. In fact, the CBD market is expected to grow 15-fold in the next decade. Some big players are in the game; this is the perfect time to open up your online shop and sell CBD.
Nothing compares to the experience of playing 18 holes of golf. However, when you don't have enough time for a round of golf, the driving range is the next best stop! You can perfect your swing at the driving range and enjoy hitting a few balls.
Owning a driving range can be a successful and busy job. You are constantly looking for new ways to make your clients' experiences at your driving range as enjoyable as possible.
One of the simplest ways to ensure that everyone who utilizes your driving range has a great experience is to streamline your payment processes.
Working directly with small businesses like your driving range, Electronic Merchant Systems (EMS) ensures long-term payment solutions that foster growth.
We achieve this by providing top products and services.
It is evident from the over 1000 Google Customer Reviews that we have been effective in assisting numerous businesses.
From the best POS systems and mobile payment processing options to totally personalized gift cards, EMS has your driving range covered.
Contact us at 1-866-986-0145 to learn more about payment processing for your driving range.
There are few things more important for a business owner than seamless payment processing. But evaluating your platform’s performance can be daunting, especially when you aren’t sure what figures to track. That’s why identifying key performance indicators (KPIs) is essential.
Perhaps the most basic kind of media for customers is a book. Readers don't have to be concerned about batteries, location, or even glare from the sun.
They only need to lift the cover to enter the book's universe. These texts should be just as easy to shop for and purchase.
The main focus of online bookstores is convenience and comfort. You give your customers an electronic outlet that is quick, simple, and convenient for finding their next read.
A successful online bookstore needs a user-friendly website and simple payment processing. EMS can help make this happen.
Everything from processing online payments to web design to creating personalized gift cards can be handled by EMS.
With over 30 years of experience in the payment processing industry, Electronic Merchant Systems offers valuable merchant services experience that will help your bookstore thrive.
In addition, EMS has been a certified level 1 PCI provider for over ten years. Security is of the utmost priority.
Call EMS today for the best merchant services options for your online bookstore.
Every small business owner knows the value of managing reputation.
In the age where “word of mouth” is a click away, positive public perception is often the difference between staying a business sinking or staying afloat.
Reputation is essentially the quality with which a company engages its market.
A market that feels welcomed and well-serviced by a business is going to embrace that business.
You know what they say, hell hath no fury like a market scorned. This is why it’s imperative for a small business to exercise reputation management. Here’s how:
Accepting credit card payment is important to the success of most businesses. Even small businesses are finding that credit card capabilities increase their sales.
The holidays are at our heels again, and ‘tis the season to – offer gift cards from your business!
Odds are, you’ll either give or receive a gift card as a present from a friend or family member this year. Whether you personally like the gift or not, the benefits that your business gets from selling gift cards can't be ignored.
Choosing the right POS System for your company is a lot like dating.
You, the business owner or manager, are the young, attractive romantic interest. There are hundreds of POS vendors out there competing for your attention.
A quality POS system can make life a lot easier, but with so many options out there, how do you choose?
As a business owner or manager, you have all the power. All it takes is a little research and maybe a few phone calls, or a trial run.
Soon you’ll be settling into a POS partnership that just feels right.
Picking the best point of sale system for your small businesses, retail store, or restaurant starts with knowing what to look for.
So, what’s your type?
Have you wondered how starting a customer loyalty program can help your small, local business?
Just as the way we swipe credit cards has changed, the way businesses offer rewards has changed, and mobile loyalty programs are the new king.
Loyalty programs have come a long way from the fun-sized reward cards that attach to your keychain.
Nowadays, customers can access loyalty programs through their mobile phones, and loyalty programs don't just benefit the customers.
Businesses benefit from starting loyalty programs too.
Let's find out how below.
Payment processing is one of the cornerstones of running a business in the 21st century. With more ways to pay than ever before, you need a reliable and cost-effective processing partner to help things run smoothly.
For a small business, a payment processing partner can give you more ways to do business. But payment processing can still leave businesses to deal with risks and a headache here and there.
The craft show is finally here!
You've designed your display, your table is thoughtfully laid out, everything is beautifully branded, and your signage is clear.
You have everything you need, except the ability to accept credit card payments.
Maybe you don't want to hassle with new technology, or maybe you're worried about transaction fees.
Whatever it is, you need to reconsider.
If you don't accept credit card payments, you are likely losing sales, and you are almost definitely losing the bigger, more expensive sales.
Luckily, this is an easy fix, and EMS has you covered.
Key Takeaway
It is important for all craft fair vendors to have a credit card reader to make the payment process as simple and convenient as possible for customers. You never want to limit payment options or make payment acceptance cumbersome for customers, or they will likely move on to another vendor.
In the article below, we will discuss why you need a credit card reader for craft fairs in more detail.
As a business owner who accepts credit card payments, your staff needs to be comfortable with the system you currently use to process transactions. When a solution ceases to be fast, easy, and painless, it might be time to switch your approach or find a new partner.
Small businesses need accounting software to keep track of their income, expenses, and other finances.
Although it's not the fun part of running a small business, keeping tabs on cash flow and being ready for tax time is essential for your business.
Sure, there are built-in options with your computers, but handling your bookkeeping and accounting using Excel spreadsheets isn’t ideal.
Small businesses should use accounting software because it is more efficient and makes fewer mistakes than manual processing with spreadsheets.
The accounting software that's best for your small business will depend on your industry and personal preferences.
In the article below, we’ve compiled a list of the best bookkeeping software for small businesses.
If you’re running a small business, odds are you’ve shopped around for payment processors.
Being able to accept credit card payments is a necessity for any business.
As a small business owner, you might already know that you can process debit and credit card payments through merchant services.
However, how do you go about getting a merchant account? How long does it take? Is it an easy process?
Merchant accounts shouldn't be stressful for business owners. So, we've broken everything you need to know into easy-to-follow steps.
Choosing a payment processor is one of several items you’ll need to check off your list when opening up a business, such as getting your small business loan, registering your business, and conducting market research.
Nearly every business is subject to payment laws and regulations—some determined by associations like the Payment Card Industry Security Standards Council.
When processing your customers’ payments, you should have two main priorities: ease of use and protection against security risks and fraud.
