Inclera | Team Inclera, Author at Inclera

The History of Payments: How Money Started

Money; we use it every day. It’s exchanged in different forms, using different platforms and is the cornerstone of our financial system. But how did it start and what was used before? Most people know so little about something we use every day. Here is a brief history of how money came to be.

The Barter System

Before money, societies still need to exchange something of value for goods and services. Items that were the most useful, reliable and re-tradeable held the highest value but because there was no structure to assign value, bartering involved (sometimes extensive), negotiation. Interestingly the barter system has never left us. Some societies in the world still use it for payment and in times of currency instability, like hyperinflation, some have no choice.

The History of Money

We don’t know the exact details of where money came from. Some archeologists have pegged the beginning of currency at around 1100 BC in China. Originally it consisted of miniature tools made of bronze but eventually these were abandoned for circle shapes.

The first coins found come from ancient Lydia (a part of Asia Minor), dated at about 600 BC. Made of an alloy of silver and gold called electrum, they were stamped with animals and assigned denominations. The first bills created were in ancient China. They were made of leather and could be up to one foot in size, which isn’t very practical. It was around 550 BC that the Chinese created the first paper money but its use fluctuated over the years.

So far it all seems simple, but that wasn’t to last. In medieval Europe the difficulties in transporting large amounts of coinage over long distances caused traders to begin issuing promissory notes which lead to the expanded use of paper bills. Initially bills were backed by private banks but in 1694 the English government got involved and was the first to grant rights to the creation of banknotes, giving the Bank of England the responsibility.

The Gold Standard

England was also the first to use the gold standard. This meant currency was valued against its established weight in gold. This standard was adopted all across Europe and North America by the 1900s, but it wasn’t to last. Many factors including wars and depressions led governments to abandon then reinstate the gold standard. It was finally abandoned by the United States in 1971, with most of the world following suit. As the reigning super power they claimed their currency was backed by faith in the government and all the goods and services in the economy. Since then, internationally, most currencies are backed by the American dollar.

Lucky for us Canada has experienced a long period of currency stability, but many countries haven’t been so lucky. As the world has become more economically intertwined new problems have come up, inspiring changes and innovations in payment systems. Next time we will look at how credit cards started and developed.

Make it easy for your customer by providing multiple payment options with our selection of point of sale systems.

Five Barriers Facing Canadian Small Businesses

Small and medium-sized enterprises (SME) are the backbone of the Canadian economy and are defined as any business with 500 employees or less. That covers a lot of industries and many different challenges, but there are five barriers that all of them, especially small businesses, face.

1. Attracting high-quality employees

Employees are at the center of a successful business and employee turnover is a continuing issue.

The best way to tackle the challenge is to focus on effectively branding recruitment plans and training practices. Today’s employees are looking for a workplace that mirrors their values and takes into account their desire for a work/life balance.

Luckily in Canada both the provincial and federal governments offer grants for hiring and training. From hiring new employees to training long term ones in new skills, there are many programs to fit a variety of circumstances.

2. Enforcing contracts and collecting what you’re owed

The success of SMEs is often based on a limited number of contracts or customers. Issues of payment with one client can have a huge impact on the bottom line and can take a lot of time to resolve.

In 2017 the World Bank reported that in Canada it took 910 days on average to resolve such conflicts, up from 570 days in 2003. In comparison it only takes 420 day in the United States. Part of this comes from the tendency of Canadian courts to provide multiple opportunities to grant delays in an effort at fairness.

To help prevent this, be organized and provide clearly defined contracts that are easily available for review. Communicating well with clients can avoid unnecessary delays in payment.

3. Government regulation

Currently there are a lot of unhappy small business owners in B.C. as the government has just started collecting a new employer health tax. The tax rate is based on payroll totals, so it does take into account business size, and though they have lowered the corporate tax rate for SMEs to offset the costs, there is still concern.

Changes in regulations and taxes are constantly impacting bottom lines. It’s important to stay informed and partner with business organizations so as to have a say in potential adjustments.

4. Access to funding for growth

Traditional bank financing is often not an option for SMEs due to lack of available security for a loan. The Canadian Small Business Funding Program (CSBFP) makes it easier to get loans as the government shares the risk. Participating in the CSBFP can speed up the approval process and lower the interest rate so it’s a good idea to utilize this resource even with access to traditional loans.

5. Being ready to sell

Many privately-owned small businesses don’t think about this until it’s to late. Personal circumstances, market fluctuations and competitors looking to buy can come at any time, and many are not prepared.

To be ready have a clear outline of the businesses track record and financials for at least a few years and a clean balance sheet. Pay attention to assets and debt and be knowledgeable about market trends, the neighbourhood status of locations and new competitors.

Inclera partners with you to provide payment processing, financial planning and analytics solutions to take your business in the right direction. Follow our blog and social media to learn what we can do for you and what’s happening in your market.

Retail That Wins

The challenges that faced Canadian retail in 2018 have continued into 2019. We’ve all seen brands we know and love close their doors, yet at the same time new brands continue to open and expand. What separates them, and what does it take to remain relevant?

You already have the tools at hand that can help you stand out and succeed in such a challenging retail market. What are they, and how can you use them? These ideas will clarify your opportunities and help you secure regular wins for your business.

1. Look for different ways to use data

Data is driving many of the choice’s being made in a fast-changing retail environment. Looking at new ways to mine this data can give you insight into your customers and the effectiveness of your business operations. You need to be aware of local knowledge and best practices as well as company-wide trends.

Customer service is one area that data is very important. Regardless of the size of your business, you are now expected to be aware of the customer’s history in each channel used. Email, Facebook, phone calls; what have they been saying? How do they reach you for help?

Don’t forget to document and follow-up on new insights as this helps you gain a clear picture of your customer and your business over time.

2. Innovate

Today’s customers expect innovation and for retailers to be up to date on their changing preferences, otherwise they’ll simply switch brands, something technology is making it easier and easier to do.

Constant connectivity and mobile-centered lives mean customers are increasingly educated and enticed by other options. Your competition isn’t always local, neither are your potential customers.

Retail businesses are changing what it means to have a “store” and other ways to view the physical space of retailing. This is just one area of innovation. There are also disruptions that are happening with such technologies as artificial intelligence, sound branding and robotics.

3. Know the resources you have available

You are not the only one who wants your business to succeed. Healthy businesses help build healthy communities and societies. There are many people invested in your success in the retail environment. From jobs to taxes and business owners to governments, there are plenty of resources available to help you thrive.

Groups like the Canadian Retail Council and the Chamber of Commerce provide materials, studies and expertise to keep you up to date on changing customer preferences, governmental policy initiatives and new innovations in your market. These organizations represent businesses of all sizes both online and in communities.

Get to know your business better through Inclera’s analytics services.

Easy Ways To Keep Track Of Your Money

Hate paperwork? One of these expenses tracking apps might be the answer to your accounting problems.

When your workdays are jam-packed, it can be easy for you and your employees to procrastinate the vital task of expenses tracking. Tracking expenses is essential for several reasons:

1) You need to know how your business is doing, and tracking revenues, expenses, profitability, cash, debts, etc. helps you keep a handle on the financial pulse of your business.

2) You’ll need documentation of your expenses and other financials to enable you to prepare an accurate tax return.

3) If (when) you’re audited, or even filing and managing your tax obligations, you will need the expense documentation to show them.

Fortunately, in today’s app-driven market, there are a number of good mobile programs that can help you with easy and quick expenses tracking with your smartphone. Such apps are also an expedient way to get timely expense reports from your employees.

These all anchor around a solid payment processing platform and allow you to use that sales and receipt data to stay organized and in charge of your finances. These are our favorite money managing apps to pair with any of Inclera’s payment processing solutions:

QUICKBOOKS

QuickBooks’ accounting software helps you run your business and provides a sense of your company’s overall financial health. 

You can use QuickBooks to track your business’ sales and expenses; view financial statements, such as profit and loss reports; pay your employees and vendors; track unpaid invoices; maximize your tax deductions; and more.

QuickBooks connects to thousands of accounts — including your business bank account, credit cards, PayPal and Square — and uploads data from these sources seamlessly. It also simplifies doing your business taxes, as it tracks expenses and lets you upload photos of receipts from your phone. With QuickBooks Online, you can access QuickBooks on your iPhone, iPad, Android phone or Android tablet.

FRESHBOOKS

This app gives small-business owners and freelance workers a simple way to manage and track invoices.

FreshBooks lets you create personalized, professional-looking invoices to match your business; automatically bill your clients for recurring invoices; and accept credit cards on your mobile device. Other useful features include the ability to track and organize expenses from anywhere and create customizable business reports, such as profit and loss statements. FreshBooks works on PCs, iOS and Android devices.

WAVE

Wave is an accounting software platform designed for small businesses, independent contractors and sole proprietors with nine or fewer employees.

Wave let  you track sales and expenses, manage invoices and customer payments, pay employees, scan receipts and generate accounting reports. The company also offers free personal finance software to help small-business owners manage their finances in one place.

Wave is compatible with Mac and PCs, and its mobile invoicing and receipt scanning app is available on iOS and Android devices. 

Ensure your customers experience a smooth payment process with our range of point of sales systems.

5 Simple Ways You Can Punch Above Your Weight Class In Retail

Let’s get straight into it because this advice is so simple and so impactful that you don’t need to be convinced:

1. Making it easy for people to shop with you, means making it easy for people to be happy.

Have an open, easy to understand and no strings attached return AND exchange policy. If a customer is unhappy, chances are a mistake was made along the way. Help correct that mistake and you will have a much more loyal customer base who is excited to support you and give you their business.

2. Every single person has customer service in their job title.

Help your team feel excited and empowered to make people enjoy spending money at your shop. People want to support small businesses, but they don’t want to sacrifice the benefits they get from bigger businesses. There should be no “buts” in your business.

3. Retail is one of the best places to learn life skills that translate to any part of life, professionally and personally.

Retail is such an incredible experience. Students, young people, and adults should feel proud to work in retail. But often, this is not the case. The problem is that employers don’t spend enough time helping young adults learn and understand how valuable this experience is. If they did, everyone would have a different retail experience.

4. Communicate. Communicate. Communicate.

You can never communicate too much. Follow up, don’t be afraid to ask how their experience was, how their new item is. Use the power and free access of social media and your website to make it easy for people to get in touch with you, get accurate and up to date information — and to spend more money with you.

5. Respond. We are not Ostriches.

When there is a problem or a complaint, respond and respond quickly and with the intention of fixing the situation. Sometimes fixing the situation just means listening, owning the mistake or problem and thanking the person for taking the time to give feedback. Only 4% of unhappy customers complain. So, for every four complaints you hear, you may have 100 unhappy customers who simply decided not to do business with you.

At the end of the day, this is all simple customer service. However, often, these simple customer service tenants aren’t followed because of fear. Small businesses fear being taken advantage of, fear losing margins/money, and fear dishonesty. And, of course, when your business is your livelihood, these kinds of fears are totally valid. That said, you have to weigh the pros and cons.

For example, there are risks to having a really open and easy return policy. However, it means consumers are more likely to make purchases because they don’t have to worry about changing their minds. If you make life easier for them, they are much more likely to think of you again and come to your store. However, one frustrating experience where they can only get a store credit or not easily exchange something — means they will have a negative thought every time they go by your shop. Part of minimizing returns and complaints is more communication up front and through the entire interaction. Be honest, transparent and give the customer what they really want – someone to trust and help them make an easy and good decision.

This means training your team on how to sell. It means making sure they understand your product and services and giving them the power and ability to deal with problems. Create a system, a simple formula, that helps them decide on the best way to handle a potentially negative situation. The faster it is defused and the more empowered your staff feel, the more likely they are to care for and respect your business. Negative interactions wear on your people too. They don’t like being yelled at or belittled, they would much rather have friendly interactions. So give them the tools and the power to create positive customer relationships!

Ensure your customers experience a smooth payment process with our range of point of sales systems.

How Inclera Supports Your Small Business Needs

At Inclera, we’re small business owners just like you. Whether you own an e-commerce store or a physical space, we want to ensure your small business needs are met (and are financially viable!). We don’t believe in locking our customers into long-term contracts: as business needs change, so do your needs. Inclera offers flexible options that are commitment-free, so whether your business needs are centered around point of sale (“POS”) terminals or complete payment processing packages, we have you covered.

Now that we’ve determined your small business needs, we’re also here to tell you that you’re not alone. You don’t need to understand how payment processing works, nor do you need to navigate this alone. We have a team of dedicated professionals to answer all of your questions, plus, we are diligent in making quarterly visits to all of our merchants.

Do you know what your payment data says about your customers’ purchasing and the steps you should take to grow your business? We do. Our human support team provides analytics and sales reports to review the numbers with you, so you don’t have to make sense of it on your own. At Inclera, we focus on payment processing and solutions so you can focus on growing your business.

Have we peaked your curiosity? If so, contact us for a free quote. No commitment needed – only opportunities to grow your business!

Security Concerns & Myths with Tap Payments

In the digital age, with the advancement of many convenient payment options, one of the most-used – yet highly-controversial – includes tap payments (aka “contactless”). Contactless payment technology allows customers to pay with just a “tap” of their card or device.

Tap, or contactless payments, have many myths associated with fraudulent behaviour, activity and overall lack of security. We’re here to tell you that these statements are untrue and contactless payments have been vetted to be extremely secure (in addition to being exceptionally efficient!)

Myth 1:

Frauds can use a transmitter to electronically steal financial information from a wallet or purse.

Why it’s False:

Tap payments leverage EMV chip security standards, which is the most advanced and widely cryptographic security, as opposed to magnetic stripe data type processing. Just like the “chip and PIN” method, each transaction using EMV security standards is accompanied by a unique, one-time code that securely encrypts your payment information.

Myth 2:

I might pay for something accidentally – or even worse – pay twice.

Why it’s False:

It is not possible to pay accidentally as your credit or debit card needs to be within 4 centimetres of the terminal for the transaction to occur. Plus, you need to select “debit” or “credit” on the terminal before the transaction can even be initiated. Lastly, due to the advancement of the contactless payment technology, even if you tap twice, you still won’t be billed twice. Contactless terminals can only communicate with one card at a time, so there’s also no chance of being charged twice on separate cards (even if they are in close proximity of each other.)

Myth 3:

If my card is lost or stolen, my entire bank account could be emptied.

Why it’s False:

Single transaction limits for contactless payments are restricted to $100 – this means that no single payment can exceed $100 when using the tap feature. For an individual to spend more than $100 on a single transaction, he/she would need to know the unique PIN associated with the card. If a card is lost or stolen, most credit card companies offer liability insurance, and the account will not be charged immediately for suspicious activity.

Whether or not you choose to use contactless payments in your future purchases, we hope that you will be able to make informed and educated decisions. At Inclera, we fully support tap payments as they are convenient, easy-to-use and most importantly – secure.

To stay up to date on all the latest developments in the payment processing industry, subscribe to our newsletter!

What’s Trending: Mobile Payments

The payment processing industry has seen rapid change in recent years. During this evolution, one of the most noteworthy trends that has emerged is mobile payment. We believe mobile payments will replace traditional wallets altogether one day soon. Studies indicate that by 2025, 75% of payments will be cashless. What this tells us is that mobile payments aren’t just a trend anymore. They are the convenient and near future of payment processing.

What are mobile payments exactly?

Mobile payment, also called mobile money or mobile wallet, is exactly what it sounds like. It involves using your mobile phone to pay for a bill instead of using a credit or debit card. Whenever you use your phone to pay for something, that’s mobile payment in action.

What platforms offer mobile payments?

Platforms that offer mobile payments are called digital wallets. Device-based digital wallets use near field communication (NFC) technology to allow consumers to make purchases with a wave of their phone near a contactless reader.

The most prevalent digital wallets include Apple Pay, Google Pay, Samsung Pay and, an oldie but goodie, PayPal. As their names suggest, these digital wallets were developed by Apple, Google, and Samsung respectively, for use on their branded devices. PayPal has been around for a while as an internet-based digital wallet, but in 2016, the company developed an app that allows users to tap their phone to complete a transaction.

Why are mobile payments the future?

Ride the bus, sit in a café, grab a drink. What do all these scenarios have in common? People on their phones. As a society, we are glued to our mobile devices. The average adult interacts with their smartphone 65 times a day!

This is why mobile payments are the future. We never go anywhere without our phones. They are a part of us, and a much more convenient option for payment than carrying around a physical wallet. No more digging through your purse to extract your wallet or totting around a bulky wallet in your back pocket. No more scrabbling to find the right card or panicking when you lose a card.

Not only are mobile payments easier, they are also more secure. Your smartphone has a lot more barriers to entry than a simple wallet. In addition, if you do lose your phone, you can wipe your data remotely using cloud technology.

For small businesses, adapting a mobile payment system is a smart move. Not only is it easier for your customers, but it is also easier for your business. By getting on top of the trend and adapting mobile payment proactively, you will ensure that your business is prepared for the future and your customers’ stay happy.

To keep up to date on the latest news, trends and developments in the payment processing industry, subscribe to our newsletter below!

Seven Tips for Small Business Owners

At Inclera, we’re committed to helping small businesses, entrepreneurs and startups achieve growth. Small businesses are the lifeblood of our communities, and we want to see them thrive. To that end, we created our affordable, all-in-one payment processing system, but our commitment doesn’t stop there. We support small businesses by sharing insights and tips for building successful and sustainable companies.

Here are seven of our top tips for small business owners:

Tip #1 – Choose your team carefully

As a small business owner, your team is everything. Even one bad hire can have a big impact on the success of your business. Conversely, the right person can be the key to growth. In short, a business’ success starts with its people.

Tip #2 – Share the workload

Running your own business is a huge responsibility, but you don’t have to carry the weight of that responsibility alone. Once you have the right people, lighten your load by delegating responsibilities. This will allow you to focus on the things that matter most.

Tip #3 – Invest in your team

It’s one thing to hire the right people but keeping them is another matter. Make sure your team feels valued and invest in their growth. That way, you can all grow together as a business and a team.

Tip #4 – Foster positivity in the workplace

Part of retaining your people is creating a place where they look forward to going to work. An open-door policy and the occasional team lunch can go a long way. Create a positive atmosphere, and not only will your team enjoy coming in to work, you will too!

Tip #5 – Celebrate wins

Celebrating wins, however big or small, will contribute to a positive environment. Not only that, it will make the team feel like their work is important and has purpose. There are lots of milestones when starting a business, so take the time to celebrate them together!

Tip #6 – Stick to your values

As a small business, it’s critical that you understand and stick to your company values. These are the early days, and they will determine what your business looks like five, ten years from now. Always make decisions that align with your values in order to build a bright future.

Tip #7 – Simplify your processes

The day to day of running a business is a complex machine. But these days, we have machines that can help! Research and adopt new technologies to simplify your processes. This will free up time and resources that you can re-invest into growing your business.

Running a small business is challenging, but it’s also one of the most rewarding experiences you can undertake. As the leader of a company, you have a lot of responsibility, but remember, you are not alone. Your team is there to support you, and so are we!

Payment Processing Trends in 2019

In 2018, we saw huge advances in technology, and payment processing methods were no exception. As consumers become more comfortable with alternative methods of payment, these options also gain popularity with businesses. There are some clear trends in the payment processing industry taking shape, and in order to stay relevant with consumers, businesses will have to adapt to these trends.

Here are five payment processing trends to keep an eye on in 2019:

1. Mobile Payments

The most prevalent trend in the industry is the emergence of in-store mobile payments. More and more businesses are offering mobile payment through a personalized app or e-transfer function. The speed and convenience of this type of payment no doubt plays a big role in its popularity. Experts project that mobile payments will overtake credit card payments by 2020.

2. Mobile Wallets

Mobile wallets are gaining rapid popularity. Once again, it’s all about speed and convenience. Paying through a mobile wallet is quicker than paying with a card or cash. All the consumer needs to do is touch their phone to a reader to complete a transaction. Despite early concerns, mobile wallets are actually more secure than cash or credit cards. Customer information is encrypted, and they must unlock their wallet using a fingerprint, retina scan, or passcode.

3. User Experience

Early banking and payment apps suffered from poor user experience. Now that alternative payment methods are trending, more emphasis is being placed on user experience than ever before. The whole idea behind these new forms of payment is convenience. In order for a payment method to be worthwhile for the consumer, the user experience must be flawless. As customers trend away from cash payments, businesses are paying more attention to the fluidity of their point-of-sale systems.

4. AI for Fraud Detection

Fraud has always been of major concern to financial institutions, businesses, and consumers alike. As payment processing systems become more sophisticated, so too have criminals. What this means is payment processing software developers have to build in ways to prevent fraud through their tools. The use of artificial intelligence to detect fraudulent transactions and shield consumers has become increasingly common in the industry. AI is able to spot and flag unusual activity almost instantaneously protecting businesses and consumers in the process.

5. Biometrics

Biometric authentication is projected to become the norm by 2021. Biometrics include fingerprint identification, retinal scans, and financial recognition. Several payment platforms already offer this technology, and others are expected to follow suit. The level of security offered by biometrics is more reliable and cost-effective for everybody involved in a transaction. Widespread adoption of this technology should go a long way towards making customers feel comfortable with alternative payment methods.

Keeping an eye on business and payment processing trends is important for any business owner. Knowing what technologies to adapt and when is essential if a business wants to stay relevant to its consumers. Alternative payment processing methods are undoubtedly the future, and offering different payment options will help businesses increase sales and improve customer satisfaction!

To stay up to date on all the latest developments in the payment processing industry, subscribe to our newsletter!