That’s why 60% of all in-store transactions in the U.S. are now contactless, with half of those transactions via smartphone. Adoption is even higher among young consumers, with up to 75% of Millennials and 90% of Gen Zers embracing contactless payments.

Have you ever wondered how contactless payments work? The process involves several sophisticated technologies enabling a seamless “conversation” between the consumer’s device and the merchant’s terminal.

Contactless Payments from the Consumer’s Perspective

If you’re a consumer, using contactless payments is the easiest way to pay. Just hold your chip-enable credit/debit card or smartphone to the merchant’s payment terminal, wait for the beep, and you’ve made a payment. You may have to manually enter a PIN, if the merchant requires one, but that’s it. Just tap your card or phone and you’re done. It’s almost like magic.

Contactless Payments from the Merchant’s Perspective

A contactless transaction is just as seamless from the merchant’s perspective. Ring up the transaction or punch it into your payment terminal, then have the customer hold their phone or card to the terminal. When the terminal beeps, the transaction is approved and completed. Everything else happens behind the scenes, within the card processing system.

What Happens Behind-the-Scenes

The magic of contactless payments isn’t magic at all. It’s nothing more than a collection of technologies that read the customer’s payment information and transfer it to the payment system.

The core technology used in contactless payments is called Near-Field Communications (NFC). NFC is a short-range wireless technology that transmits information via a low-powered radio signal. It only works when the transmitting and receiving devices are within about 1.5 inches of each other; this prevents the transfer of card data from someone just walking by a terminal. While a customer doesn’t have to literally tap the terminal to initiate payments, the required proximity is often referred to as tap-to-pay.

An NFC transaction is powered by the receiving terminal. A contactless credit/debit card doesn’t contain a battery. Instead, the payment terminal generates a tiny electromagnetic field that powers the internal chip and antenna on the card. Thus powered, data is then sent from the card or phone back to the terminal.

Here’s how it works, step-by-step:

1. Activation: The payment terminal emits a constant low-power radio signal.
2. The Handshake: When brought close to the terminal, the customer’s card or phone enters the electromagnetic field, wakes up, and identifies itself using a standard protocol.
3. Tokenization (The Security Key): Instead of transmitting the actual 16-digit card number, your device generates what is called a token, an encrypted one-time-use digital code. The payment terminal never receives the actual account number.
4. Verification: The terminal sends this token to the payment network, such as Visa or Mastercard, typically over the Internet.
5. Approval: The payment network unlocks the token, verifies with the customer’s bank that adequate funds are available, and sends back an authorization code.
6. The Beep: The payment terminal receives notification that the transaction is approved, generates a beep (and, often, an onscreen message), and the transaction is complete.

Why Contactless Payments Are More Secure Than Swiping

There’s another reason why contactless payments are becoming increasingly popular. Tap-to-pay with a card or phone is significantly more secure than swiping a traditional credit/debit card.

First, know that the magnetic stripe on a credit/debit card contains static data. The customer’s credit/debit card number is literally printed on the stripe. If a thief were to skim that data, they have the customer’s real card number. Contactless data, in contrast, is dynamic, in that the token generated for a given transaction works only once, for that transaction. If a thief were to intercept that data, it wouldn’t work for them in the future.

Similarly, the Apple Pay and Google Pay digital wallets on smartphones use device-specific tokens. The phone doesn’t store the customer’s real card number, just a token. If a thief were to access the digital wallet on a phone, they wouldn’t get the card number. (In addition, the thief would have to know the user’s password or have their fingerprint or FaceID to open the digital wallet app—another layer of security.)

Finally, most issuing banks set a “floor limit” on contactless payments. Any transaction exceeding this limit (typically $100-$250) automatically requires a PIN or signature to complete. That prevents high-value fraud.

Does Your Business Accept Contactless Payments?

If your business doesn’t accept contactless payments, you’re missing out. Recent studies show that consumers with contactless cards and smartphone apps conduct two additional transactions per month, spending an additional $70/month. Merchants report that average tickets increase from 8%-10% when customers use tap-to-pay. If your business isn’t yet contactless, you’re losing out.

If you want to learn more about contactless payments—and set up your company to accept tap-to-pay, contact the experts at Higher Standards today. Our Expert Advisors can answer all your questions and help you obtain the right equipment and service plans to accept contactless payment in your business.

Call us at 952-736-1700 or email us at hsi@higherstandards.net to learn more about how your business can add contactless payments to better serve your customers.

Working with Higher Standards is more than just a job; it’s a business partnership and a stake in one of the most stable and essential industries in the modern economy. There are a number of exciting reasons why joining our team is the smartest move you can make for your financial future.

The Power of the Residual: Your Recurring Revenue Stream

Perhaps the single biggest advantage of selling payment processing services with Higher Standards is the potential for ongoing revenues via residual payments. It’s what separates Higher Standards from most other payment processors—and almost every other sales job out there.

When you sell a business on our payment processing services, you don’t just get a one-time bonus. You earn a residual commission on the actual volume of transactions that business processes every single month.

Think about what this means:

• You sell it once, you earn forever (or as long as the merchant processes with us!). That coffee shop or nail salon you sign up processes credit card payments daily, weekly, and monthly. Every time one of their customers taps their card, you earn a piece of that revenue.
• The snowball effect. Your first few sales might generate a modest residual. But as you add more and more merchants to your portfolio, those monthly checks start to stack up. Over time, your residual income can become substantial—a powerful, growing revenue stream independent of any merchants you sign up.
• Insulation against slumps. Had a slow month on new sales? No problem. Your existing residual portfolio continues to pay you. This stable, recurring income provides financial security and peace of mind that a commission-only role simply can’t match.
• Your monthly residual income portfolio is your most valuable asset. It’s the closest you can get to passive income in a traditional sales role.

Other Benefits of Partnering with Higher Standards

While the recurring revenue is the headline, it’s not the whole story. As a Higher Standards Expert Advisor, you gain access to a platform designed for your success:

• Essential service, stable industry. Every business needs to accept credit and debit card payments. This isn’t a trendy gadget or a passing fad—it’s a utility. Payment processing is non-negotiable for virtually every merchant. This means your product is always in demand, offering incredible stability, regardless of broader economic shifts.
• Uncapped earning potential. Your income is directly tied to your effort and ambition. We provide one of the industry’s most competitive residual splits, ensuring that the hard work you put in is rewarded fairly. There are no ceilings here—the sky truly is the limit.
• Cutting-edge technology and hardware. With Higher Standards, you’ll be selling the latest in terminals, kiosks, POS systems, and e-commerce solutions from Clover and other suppliers, making it easy to close deals with modern merchants.
• Best-in-class training and support. At Higher Standards, we provide comprehensive training on our products, sales techniques, and the nuances of the industry to turn you into a payment expert. And once you’re up and running, our expert staff provides hands-on support for all your needs and your merchant needs.
• Total flexibility and independence. With Higher Standards, you’re your own boss. You set your schedule, you manage your territory, and you decide how you want to build your portfolio. We provide the platform, tools and support; you provide the drive. This level of autonomy is perfect for self-starters who are ready to take control of their career.

Are You Ready to Build Your Financial Future?

Stop chasing the next transaction and start building a legacy of recurring revenue. At Higher Standards, we give you the products, services, and commission structure to make true financial independence a reality.

If you’re a motivated professional ready to tap into the powerful stream of recurring revenue in the payment processing industry, we want to hear from you. Contact us today at 952.736.1700 or via email at hsi@higherstandards.net to learn more about becoming an Expert Advisor for Higher Standards!

Contactless Payments: The Latest Evolution in Payment Technology

Contactless payment is just the latest evolution in how consumers use technology to pay for retail purchases. In-person card payment first appeared with the introduction of the first Diners Club charge card way back in 1950. BankAmericard (now known as Visa) launched its first charge card in 1958, followed by the Master Charge (MasterCard) card in 1968. The first electronic point-of-sale (POS) terminal was launched by Visa in 1979, and chip cards were first introduced in 1993.

It took almost two decades for app-based payment to come to market, with the introduction of Google Wallet in 2011 and Apple Pay in 2014. The first NFC-enabled contactless cards were introduced by Visa in 2018.

Consumers Love Contactless Payments

Today, an increasing number of consumers are choosing to pay with mobile apps or NFC-enabled credit and debit cards (also known as contactless cards). According to a recent MasterCard survey, more than half of all Americans (51%) say they use some form of contactless payment.

Interestingly, the percentage of consumers using contactless payment varies somewhat by type of purchase. MasterCard details the following usage of contactless payments:

• Grocery: 85%
• Pharmacy: 39%
• Retail: 38%
• Quick service restaurants and fast food: 36%

Contactless Payments to Continue to Increase

According to Juniper Research’s Contactless Payments Market Data 2025-2030 report, contactless payments will account for $8.75 trillion dollars in revenue worldwide in 2025. That number is expected to more than double over the next five years, reaching $18.1 trillion by 2030.

Much of this increase comes from consumers replacing cash payments with payment via phone-based payment apps, such as Apple Pay, Google Pay, and Samsung pay. Also important, although less so, are consumers using NFC-enabled contactless cards.

Do You Accept Contactless Payments?

As you can see, it’s important for all types of businesses to accept contactless payments. If you don’t yet accept contactless payment, you could be turning away customers who want to pay with their phones or contactless cards.

Contactless payment is too important for your business to ignore. If you want to learn more about contactless payment and how you can set it up for your business, contact the experts at Higher Standards today. Our Expert Advisors can answer all your questions and help you obtain the right equipment and service plans to accept contactless payment in your business.

Call us at 952-736-1700 or email us at hsi@higherstandards.net to learn more about how your business can add contactless payments to better serve your customers.

About the Payment Card Settlement

In 2005, several merchants and trade associations filed a class action lawsuit against Visa, MasterCard, and various financial institutions that issue payment cards. The suit alleged that these major industry players engaged in price fixing and other anti-competitive trade practices, including the charging of excessive interchange rate fees.  

A settlement in this class action lawsuit was reached in March of 2023. As part of this settlement, the companies agreed to lower their processing fees at all US merchants by at least four basis points for the next three years. The companies also agreed to pay $5.54 billion in relief to impacted companies. You may be eligible for portion of this settlement.

Who is Eligible to a Share of the Settlement?

All merchants who accepted Visa and/or MasterCard credit cards between 2004 and 2019 are entitled to their share of this $5.54 billion settlement.

When Must a Claim Be Filed?

All claims must be filed by the February 4, 2025 deadline.

How Can You File a Claim?

Claims in the Payment Card Settlement are being handled by the VMC Group, a leading provider of class action claims filing services. You can get started by going to this website address: www.vmcclaim.com/?ref=HigherStandards. VMC will then follow up with you to discuss your claim(s).

Is There Any Cost to File a Claim?

There is no upfront cost to file a claim. The VMC Group is paid a percentage of the recovery if you receive funds. (They don’t get paid unless you do.)

What Should You Do Next?

The first step in this process is to contact the VMC Group at www.vmcclaim.com/?ref=HigherStandards. They will handle and aid in all steps necessary for any claim you may ultimately make.

Please call us at Higher Standards (952-736-1700) if you have any questions about this or any other issues.

The question is, can a merchant charge a fee for non-cash payments?

The answer is: probably.

Are Credit/Debit Card Surcharges Legal?

The first consideration for implementing a credit card surcharge is, is it legal? In most states, the answer is yes—if certain guidelines are followed.

This wasn’t always the case. Surcharging in this fashion was generally against the law until 2013, when a class action lawsuit brought the practice to light. As a result, most states enabled merchants to add a fee (surcharge) to transactions paid by credit card.

That said, credit card surcharges are currently illegal in Connecticut, Maine, Massachusetts, New York, and Puerto Rico. If you do business in those states, check with local authorities for the current legal status.

What Do Credit Card Institutions Allow?

If you live in a state where surcharging is legal, you still need to follow the rules set forth by the major credit/debit card issuers.

First, you can’t charge more than the cost of your processing fee or 3% of the total transaction. Note that this amount can vary some by state, so it’s best to look at your local laws for specific guidance.

Second, you must make the customer aware that you’re applying a surcharge on all payments by credit card. You are required to post signs at the main entrance to your business and at all points of sale. Failure to post just a single sign can result in substantial fines from the credit card companies.

Third, the surcharge must be listed as a separate line item on the invoice or receipt. It can’t be folded into the cost of the product or service.

Fourth, you cannot implement a surcharge on debit card transactions. Surcharges are for credit card purchases only, not for purchases paid by debit card. This requires you or your payment processing system to separately identify credit card and debit card purchases.

Similarly, you can’t impose a surcharge on payments by prepaid credit cards. Again, you need to be able to identify prepaid cards so as not to apply any surcharges.

Next, if you issue refunds, you have to refund the surcharge along with the cost of the product. You can’t keep surcharge fees when refunding customer payments.

Finally, you need to notify the card brands you accept and your acquiring bank of your intent to surcharge. You typically need to give 30 days’ notice in writing; there may be specific forms you need to complete.

Follow these rules and it’s okay to charge customers who pay by credit card.

Should You Implement a Credit Card Surcharge?

You might look at charging customers extra to use credit cards as a way to quickly improve your bottom line. This may not be the best approach, however.

Know that some customers will balk at paying extra just to use their credit cards. Customers in general are growing resistant to so-called hidden fees and are not likely to warmly welcome yet another 3% charge on top of what they’re used to paying. If you’re surcharging and your competition isn’t, expect to lose some business if you impose this type of fee.

Even if customers aren’t strongly opposed to being charged yet another hidden fee, they may be confused by such surcharges. Be prepared to answer questions about what the fee is, why you’re imposing it, and what that means for the customer. That explanation gets even more complex when you have to talk about fees for credit cards and not for debit cards. Imposing such fees may not be worth the trouble.

An Alternative Approach: Offer a Discount for Cash

An alternative approach, then, is not to impose a credit card surcharge but rather offer a similar discount for customers paying with cash. (Customers always react better to discounts than to extra charges.)

So instead of taking 3% onto the total bill if paid via credit card, you might discount 3% from the bill if the customer pays with cash. You would then want to make sure your normal price accounts for your standard credit card processing fees.

The cash discount approach also has the benefit of being legal even in those states that prohibit credit card surcharges and can be applied to all credit and debit card transactions.

Still Not Sure What to Do?

If you’re not sure if you can or if you want to add a fee for credit card payments, contact the experts at Higher Standards. We’re familiar with all the rules and regulations and we know which payment processing systems can accommodate credit card surcharges. (Not all can!) Let us help you decide how to proceed.

Questions? Contact Higher Standards at 952-736-1700 or by email at hsi@higherstandards.net.

If you said yes to any of the above, you should consider becoming an expert advisor with Higher Standards selling credit card processing services.

Why Businesses Need Credit Card Processing

In today’s fast-paced digital economy, businesses of all sizes rely heavily on credit card transactions to facilitate their daily operations. As such, the demand for efficient and reliable credit card processing services has never been higher. Virtually every business today must offer payments by credit/debit card—and they’re all looking for the best service and rates possible.

That’s an opportunity for you.

Five Reasons Why You Should Consider Selling Merchant Credit Card Services

Selling credit card processing services can provide you with a plethora of benefits and lucrative opportunities. Here are just a few reasons why you should consider selling merchant credit card processing services:

1. Lucrative commission structure: One of the most appealing aspects of selling credit card processing services is the potential for substantial earnings. As one of the premier merchant credit card processing companies, Higher Standards, offers competitive commission structures which let you earn generous commissions for each merchant you onboard.
2. Recurring revenue streams: Additionally, every merchant you sign up provides a recurring revenue stream. You earn commissions every month based on each company’s credit card business. You’ll continue to earn commissions for the duration of the merchant’s contract. This lets you build up a steady stream of passive income over time. This can provide financial stability and security for you as you build your merchant portfolio.
3. Significant market opportunity: The market for credit card processing services is vast and ever-expanding. Virtually every business that accepts payments, whether online or in-person, requires a reliable payment processing solution. From small mom-and-pop shops to large corporations, businesses across industries rely on credit card processing services to facilitate transactions. This presents a myriad of opportunities for you to tap into various market segments and industries, maximizing your earning potential.
4. Flexible work environment: Selling credit card processing services provides tremendous flexibility in terms of your work environment and schedule. You can work as much or as little as you want on your own schedule. This flexibility helps you achieve a better work-life balance and avoid the constraints of a traditional 9-to-5 job.
5. Continuous innovation and technological advancements: The payment processing industry is constantly evolving, driven by technological advancements and changing consumer preferences. Sales agents who sell credit card processing services have the opportunity to stay at the forefront of innovation, offering cutting-edge solutions that address the evolving needs of merchants. By staying informed about the latest trends and developments in the industry, you can position yourself as a trusted advisor to your clients, fostering long-term partnerships built on trust and expertise.

Explore Your Opportunities Today—With Higher Standards

As you’ve seen, becoming an expert advisor for Higher Standards offers a variety of benefits, ranging from lucrative earning potential to working at your own speed on your own schedule. With the continuous expansion of the digital economy and the increasing reliance on electronic payments, the demand for credit card processing services is only expected to grow. If you seek a rewarding and dynamic career in sales, selling credit card processing services presents a promising opportunity to capitalize on this growing market and unlock financial success. Contact Higher Standards today to see if this is the right career move for you.

The most common payment processing fees include:

• Interchange Fees: These are fees set by the card-issuing banks using guidelines from the major card networks (Visa, Mastercard, etc.) and are paid by the merchant’s bank to the cardholder’s bank for each transaction. Interchange fees vary based on factors like card type (credit, debit, rewards), transaction method (card-present, card-not-present), and industry.
• Assessment Fees: These fees are charged by the card networks (Visa, Mastercard, etc.) for using their payment processing infrastructure. They are typically a small percentage of the transaction amount.
• Processing Fees: These are fees charged by the payment processor, such as Fiserv, for handling the transaction. These fees vary by processor can can be either flat fees per transaction or percentage-based fees on the transaction amount.
• Monthly Statement Fees: Some processors charge a monthly fee for providing statements detailing your transactions. This is typically a “record-keeping” fee.
• Monthly Minimum Fees: If you don’t meet a certain transaction volume threshold, you might be charged a fee to make up the difference. (Higher Standards doesn’t have a monthly minimum fee.)
• PCI Compliance Fees: These fees might be charged if you need to maintain Payment Card Industry Data Security Standard (PCI DSS) compliance. It ensures that your business handles cardholder data securely.
• Chargeback Fees: If a customer disputes a transaction and initiates a chargeback, there is a fee associated with handling the dispute.
• Terminal or Equipment Fees: These are the monthly payments for any terminals or other equipment you lease or rend from the payment processor.
• Gateway Fees: If you’re processing online payments, you might need a payment gateway, and there could be fees associated with using it.
• Cross-Border or International Fees: If you process international transactions, there could be additional fees for currency conversion and international processing.
• Non-Qualified Transaction Fees: If certain conditions are not met for a transaction (e.g., not using address verification for card-not-present transactions), you might incur higher fees. Most business and government cards fall into the non-qualified category.
• Early Termination Fees: Some processors have contracts with cancellation fees if you terminate your agreement before the contract term is up. (Higher Standards doesn’t charge early termination fees.)

The individual fees and the amount of those fees charged vary from one payment processor to another. When you’re comparing fees between payment processors, make sure you take into account all fees charge; a deceptively low rate for one type of fee may be offset by higher rates on more “hidden” fees.

Higher Standards seeks to offer the best combination of fee rates for each of our customers. Combined with our superior hand-on service, we know we’re offering the best payment processing packages available today.

To learn more about payment processing fees and our rates, contact your Higher Standards expert advisor or click here.

What Are Contactless Payments?

Contactless payments, also called mobile payments, NFC payments, or proximity payments, are payment transactions that take place digitally via a mobile device or NFC-enabled credit/debit card. Today’s Apple and Android smartphones come with mobile wallet apps that store users’ credit card information on the phones themselves. To make a payment, the customer simply unlocks the phone, holds it near a mobile processing terminal, and the payment information is transmitted via near field communication (NFC) technology. No cards need to be physically run through a card reader.

Customers Like Contactless Payments

More and more customers are paying with their phones. For customers, making a mobile payment is faster and more convenient than pulling a physical credit card from their wallets. All they have to do is hold out their phones, wait for the beep, and they’re done.

Contactless payments are also popular from consumers still reeling from the COVID-19 pandemic. Paying via phone is more sanitary than using a physical credit card. There’s nothing to touch and nothing to transmit germs.

This popularity is reflected in the numbers. According to eMarketer, the average consumer will make more than $5,000 in contactless payments this year, up from a little over $4,000 in 2022. That number is expected to increase over 50% by 2026. If you’re not accepting contactless payments, you’re missing out on some of these sales.

Merchants Like Contactless Payments

Merchants like contactless payments for the same reasons customers due. Contactless payments are convenient, don’t require the physical handing of credit cards, and ultimately generate more revenue. Customers who don’t want to pay via cash, check, or credit card can easily pay with their phones.

Contactless payments are easy to set up, requiring only a minimal equipment investment. They’re also easy for employees to manage, just by pointing customers to or presenting a mobile card reader. You can augment security by requiring customers enter a PIN or just go with the mobile scan.

Higher Standards Can Help You Accept Contactless Payments

With more and more customers shifting from physical credit cards to mobile payments via their smartphones, it’s time for your business to get on board the mobile payment bandwagon. We carry a variety of terminals from Clover that enable contactless mobile payments. Talk to your Higher Standards expert advisor or contact us online to learn more about your mobile payment options and start accepting mobile payments from your customers!

CLICK HERE TO LEARN MORE ABOUT CONTACTLESS PAYMENTS WITH HIGHER STANDARDS

If your business accepts credit card payments, you must comply with PCI DSS regulations. If you’re not compliant, you could be subject to fines by the credit card companies of between $5,000 to $100,000 per month, depending on the size of your business and the length of the infraction. Even worse, if you experience a data breach that exposes your customers’ credit card information and you were not PCI compliant, then you may be fined between $50 and $90 for each customer affected by the breach.

What do you need to do to be PCI DSS compliant? It’s a short but essential list:

• Maintain a secure card processing network
• Protect all cardholder information and data
• Protect your systems against malware
• Put strong access control measures in place
• Monitor and test your networks
• Create and maintain an information security policy

These requirements are designed to make sure that you and all the other entities in the processing chain are securely handling your customers’ credit card data. It’s a matter of ensuring that only essential personnel have access to customer credit card data and that this data is securely stored to guard against data breaches and attacks.

The responsibility for PCI compliance is shared between your business and your payment processor. For Higher Standards, that means ensuring that all of our processing solutions meet PCI DSS standards. We also ensure that your business is PCI compliant to keep your customers’ credit card information private and secure.

If you want to know more about PCI DSS and how to be compliant, contact your Higher Standards expert advisor. We can guide you through what you need to do to be PCI compliant.