How Payment Processing Works at Golf Courses

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Dealing with payment processing is a complicated process. Therefore, let us clarify this side of your business giving you some tips about how payment processing works at golf courses.

When a client pays with a credit card at a golf course, a fee will be charged and given to the payment processor, meaning you. It is a small percentage, but these transactions can add up quickly. 

Then, the processor pays a fee to the credit card provider (like MasterCard or Visa), —called the interchange fee and typically factored into the processing fees— and charged to you.

Processor fee model

  • Interchange Plus Model: the most common model across retail businesses that uses POS system. The payment processor charges the merchant the interchange rate of the credit card provider: a percentage, fixed charge, or whichever is higher. Taking into account an average of the operations with all the accepted credit cards in a golf course, the interchange rate fluctuates around 2.4%.
  • Fixed Rate Model: The processor charges a flat rate (2.2%, for example) and absorbs the fees charged by premium cards. Meanwhile, it benefits from cards with lower interchange rates.
  • Fixed Rate Barter Model: an extension of the fixed rate model, where you pay for management software through a higher processing fee. Good for seasonal businesses, with a monthly-fluctuating demand.
  • Cash Discount Model: used for operators that charge a fee to the customer when they use a credit card, or discount any payment made in cash. It passes the cost of payment processing to the customer and encourages him to pay with cash.

Choosing processing partners

Golf courses are in the low-risk category for processing partners, so it is easy to find the most suitable for your business and negotiate for a better rate and a lower hardware cost, and determine which payment model is best for you. Some of the best-ranked processing partners are:

  • Chase Paymentech
  • Elavon
  • Global Payments
  • Heartland Payment Systems
  • Moneris
  • Stripe
  • TSYS
  • Vantiv
  • WorldPay

Using payment gateways

If the software you use to process payments is not integrated with your payment processor, you will need yet another intermediary, the payment gateway. In addition, of course, you will have to pay fees to both the payment processor and payment gateway on every transaction. Gateway fees may vary, but typically are around $0.05 per transaction, with some sort of monthly fee.

Understanding Payment Processing in Golf Courses

A golf club has to earn money, and that requires that you have the capacity to accept payments in a beneficial for your business, efficient, reliable, and secure way.

Therefore, you need to select the payment processing models that suit a variety of needs and situations and make a good deal with a payment processor that provides it. Of course, for that, you need to research beforehand, shop around, and get a clear idea of what you are currently paying. Another aspect to take into account when selecting a payment processor is whether it integrates directly with your system or if you have to pay gateway provider fees. 

Whatever you decide, the payment industry is evolving and you need to be up to date to ensure the success of your business. That includes, of course, changes in laws and regulations in your region: being informed will help you to avoid penalties or fines. 

Make payments easier with Golfmanager

You will have the best online payment experience with Golfmanager because our software accepts over 80 online payment methods, enables you to pay with wallet vouchers, and tokenizes your customers’ cards.

Request a Demo now to start offering your clients a remarkable payment experience through the Golfmanager-integrated payment gateway.

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