Reliable payment processing is crucial for businesses, especially attractions. While offline payment processing might seem like a good backup plan, it introduces significant risks that could hurt your revenue and reputation.
The Risks of Offline Payment Processing
Offline payment processing stores credit card details locally and processes them once the internet connection is restored. While it allows payments to continue during downtime, this method brings a range of issues:
1.Declined Transactions: Without an active internet connection, the system cannot verify a credit card’s validity. As a result, transactions that seem successful at the time of purchase could be declined when processed later. This delay could cost your business. For example, if a group of four purchases $15 tickets, and the transaction later declines, that $120 loss could be more than the cost of a year-long cellular backup.
2.Higher Risk of Chargebacks: Chargebacks occur when a cardholder disputes a charge. Without real-time verification, the risk of chargebacks increases. A customer might dispute a transaction, and because the purchase wasn’t verified on the spot, you may lose out on revenue.
Why Internet Redundancy is a Smarter Solution
Rather than relying on offline payment modes, businesses should consider internet redundancy as the best option. Internet redundancy ensures that, in case of a primary connection failure, you have a backup internet system, like cellular failover, that supports real-time processing.
Here’s why redundancy is a more secure and cost-effective solution:
1.Affordability: Many businesses mistakenly believe that redundancy is too expensive, but cellular failover is quite affordable. Providers like Xfinity offer backup services for as low as $7 per month, while companies such as Verizon and T-Mobile also offer competitive failover options. A single declined transaction from offline processing can often cover the cost of an entire year’s worth of cellular backup.
2.Real-Time Processing: With cellular redundancy, every payment is processed instantly, even during an internet outage. There’s no risk of declined transactions or chargebacks due to insufficient funds. For example, in a theme park or waterpark, if your primary internet goes down, your backup connection can still process that $120 transaction in real-time, preventing potential losses.
3.Reduced Risk: Cellular failover eliminates the need to store sensitive credit card information locally, significantly reducing the chance of data theft. With an active connection, transactions are processed securely with minimal risk of chargebacks or declined payments.
Adding Redundancy to ATMs for Increased Revenue
ATMs are another area where redundancy can benefit your business. Many businesses own ATMs to generate additional revenue through transaction fees, which offer a steady stream of income. However, during an internet outage, these ATMs go offline, stopping any potential earnings. By adding cellular redundancy to your ATMs, you ensure they stay operational, even during internet downtime.
This not only keeps your customers happy but also guarantees continued revenue. With Gatemaster’s help, your business can implement ATMs equipped with cellular backup, allowing you to profit from every transaction without worrying about internet outages. Plus, ATMs with cellular backup are a sound investment that can help reduce downtime and increase profitability.
Solutions are Widely Available and Easy to Implement
The good news is that internet redundancy solutions are accessible and easy to integrate. Most major internet providers, including Xfinity, T-Mobile, and Verizon, offer cellular failover options. These systems automatically switch to cellular connections in case of an outage, ensuring a seamless experience for your customers.
Specialized companies like Inseego and Tengo Internet also provide enterprise-level failover solutions, offering powerful cellular backup that keeps your business connected during large-scale internet disruptions.
Prioritize Redundancy Over Offline Mode
While offline payment processing may seem convenient, the risks are too great. From lost revenue due to declined transactions to data security issues, it’s clear that offline modes can hurt your business. In contrast, cellular failover offers a cost-effective, reliable solution that keeps your payments secure, prevents downtime, and maintains smooth operations. For any business, the cost of cellular redundancy is far less than the revenue lost from just one declined transaction.
Click below to schedule a FREE discovery call with a “TechXpert” to learn more about setting up cellular- backed ATMs and payment processing systems.