Why Credit Card Processing in Connecticut Is Unique
Connecticut offers excellent business opportunities; however, when it comes to credit card processing, the state has strict laws. As a business owner, it is important for you to not only get competitive rates but also full legal compliance with Connecticut’s strict surcharging law.
The good news is whether you are running a retail store, restaurant, service based business, or online e-commerce startup, there are full-service merchant processors available that can help you to accept credit card payments while saving money and complying with local laws.
Connecticut Credit Card Surcharge Laws: What You Must Know
While many other states allow surcharging, it is prohibited in Connecticut for most businesses under Public Act 24-142. This means:
- Credit card surcharging is illegal in Connecticut.
- You cannot add extra processing fees or non-cash adjustment charges for credit card payments.
- Cash discount is legal in Connecticut if properly disclosed.
- Dual pricing is legal where you display the cash and credit card purchase prices together.
It is important for you to be aware that the violations can be expensive and may result in 500 dollars per violation and may be deemed as unfair trade practice.
This is why it is important for you to work with a payment processor that fully understands the credit card pricing policies relevant to Connecticut.
Features to Look for in Connecticut Merchant Services
Choosing the right credit card processing company in Connecticut is not only about the low rates; it is also about choosing the right partner. Work with a payment service provider that believes in transparent fees. No hidden fees or tiered pricing. The best pricing model that you can get is the interchange plus model or the fixed-rate model.
- The payment processor should fully comply with the card industry standard as well as Connecticut’s surcharge regulations.
- We strongly recommend you work with the payment processor that offers you 24/7 US-based customer service.
- The POS system should allow you to handle inventory management, loyalty program and SKU management.
- For accepting phone orders, you should get a secure virtual terminal.
- For remote and service-based businesses, you should get the ability to accept mobile payments.
- To reduce the risk of transactions, the payment service provider should implement advanced fraud reduction tools.
Top Payment Processing Solutions for Connecticut Businesses
| Provider | Description |
|---|---|
| EMS (Electronic Merchant Systems) | Electronic Merchant Services is a full-service merchant processing company that offers point-of-sale terminals, gift card processing, retail credit card terminals, as well as online e-commerce solutions. EMS solutions are best for small businesses, restaurants, and e-commerce. |
| Durango Merchant Services | If you are searching for a high-risk merchant account or an offshore payment processing solution, then you should evaluate Durango merchant services. They support recurring billing and also work with merchants operating in regulated industries. For your high risk merchant account requirement, Durango can be a good option. They support CBD, supplements, nutraceuticals, and subscription businesses. |
| Authorize.net | It is a powerful payment gateway that is perfect for accepting recurring billing. The gateway comes with highly efficient fraud prevention tools and easy API integration. Businesses operating in SssS, ecommerce and subscription industries can prefer Authorize.Net. |
| Stripe | Stripe is a developer-friendly, low-risk merchant account solution. It offers a detailed API for easy integration. Merchants can accept international as well as local payments by using the Stripe payment gateway. Service-based businesses can use the Stripe’s built-in subscription management tools to accept regular payments from customers. Stripe can be a perfect choice if you operate in industries like SaaS, tech startups, or you have any commerce website. |
| PayPal | If you are searching for an instant merchant account setup that allows strong buyer protection, one-click checkout, and global acceptance, then PayPal can be your choice. PayPal is perfect for freelancers. E-commerce stores and micro-businesses. |
| NMI | It is one of the most advanced payment gateway solutions that you can get. They allow omnichannel processing and also offer a white-label solution. With NMI, you can integrate multiple payment processors. NMI can be suitable for ISOs, SaaS platforms, software companies, and large enterprises. |
| QuadraPay | It works as a partner for various payment processors and offers low- as well as high-risk merchant accounts. QuadraPay also offers ACH and e-check payment processing. This solution is quite useful for businesses operating in high-risk sectors, international business, money service businesses, and enterprise B2B. |
Types of Businesses We Serve Across Connecticut
In Connecticut no two businesses are the same, and that’s exactly the reason why our credit card processing solutions are highly flexible to serve a wide range of industries.
For retail stores, we help businesses in efficiently managing the inventory, speed checkout, building quality customer loyalty programs, and helping them accept credit card payments at low cost.
Restaurants in Connecticut can take advantage of advanced table management functionalities of point of sale systems. Flexible split check options, online ordering, kitchen display systems, and easy mobile payments can help restaurants handle their operations as well as boost their profit.
Service-based businesses can benefit from mobile virtual terminals that come with simple email invoicing as well as automated recurring billing options. This makes managing cash flow easier than ever.
For e-commerce startups, we can offer secure payment gateways as well as custom website design services. Our team can efficiently help with full API integration to support your online growth.
How Credit Card Processing Impacts Your Bottom Line
Processing Fees Matter
Many merchants ignore the importance of saving on the credit card processing fees. Remember, a small difference in rate can help save your Connecticut business thousands of dollars every year. This is why you should look forward to working with a payment processor that offers you transparent interchange-plus pricing rather than bundled rates.
Watch for Hidden Fees
The credit card processing statement that you get every month is a very important document. On the statement, you can see all the rates and fees that you are paying. Many payment service providers charge unnecessary fees on your merchant account that can be easily minimized or fully removed.
You should avoid providers that do not offer transparent pricing. Some fees on which you can negotiate are listed below:
- Non-transparent batch fees
- Annual PCI compliance fees
- Statement fees
- Early termination penalties
- Setup Charges
PCI Compliance
If you accept credit card payments at your business, then you cannot ignore PCI compliance. Being PCI compliant protects your customers as well as your business from data breaches. You should work with the payment service provider that is certified as Level 1 PCI DSS compliant.
Full-Service Solutions Save Time
If your business uses more than one merchant processing solution, then you should choose to work with the omnichannel payment solution. This way you will have one provider that caters to all your payment processing requirements, such as retail credit card terminal point-of-sale systems, multi-merchant processing, e-commerce payments, virtual terminals, and B2B invoice payments. With a single omni-channel payment solution provider, you will have to put in less manual work, the chances of errors will be minimal, and you will have access to better cash flow management.
Connecticut Businesses Are Saving Money Today
Many businesses in Connecticut are already saving 10% to 20% on their processing fees by switching to a low-cost credit card processors. This is Also possible with some of the above-listed best credit card processors in Connecticut. QuadraPay may also help you.
You will be able to use a full-service point-of-sale system for end to end business management.
Accept mobile payments as well as virtual terminal payments for field services and home visits.
Get a Free Credit Card Processing Consultation
Let QuadraPay help you find the most cost-effective and compliant payment processing solution for your Connecticut business.
Lower fees. Full compliance. High-risk friendly. Quick approvals.
Frequently Asked Questions (FAQs)
Q: Can I charge extra fees for credit card payments in Connecticut?
No, you cannot charge extra fees for credit card payments. It is illegal. The state of Connecticut strictly prohibits credit card surcharging. However, you can offer a cash discount or dual pricing instead, provided it is implemented as per the rules.
Q: What is a virtual terminal?
A Virtual Terminal is an online software that allows you to process payments using a web-based portal. With a virtual terminal, you can take phone orders, generate invoices, and accept remote payments.
Q: Which cards can I accept?
With the right card processing solution, you will be able to accept all major credit and debit cards, including Visa and MasterCard. Discover, American Express, Diners Club, as well as contactless and mobile wallet payments.
Q: How do I know if my processor is charging hidden fees?
You can send your current merchant account processing statement to any other provider and ask for a free merchant statement audit. This will help you to analyze your current credit card processing fees and identify the unnecessary charges or the fees that can be reduced.