Flute
Convenience. It’s the cornerstone of every modern innovation. Smartphones give you access to the world from your palm; self-driving cars make traveling effortless; delivery apps let you order food with the touch of a button. Every aspect of our lives revolves around convenience. Which makes it all the more jarring when we encounter a payment experience that obviously wasn’t designed with simplicity in mind.
There’s nothing more frustrating than getting to the front of the line at your local coffee shop or boutique to realize that you left your wallet in the car, and you can’t tap your phone to pay. It may seem like a non-issue at first, but those moments can mean the difference between a customer coming back to your shop or going to a competitor.
In our latest research report, we found that more than 50% of shoppers would reconsider shopping at a place after one bad payment experience. PYMNTS Intelligence also reports that 70% of consumers consider the availability of their preferred payment method very or extremely influential when deciding where to shop.
And that need for convenience goes both ways — to offer the best experience for their customers, business owners need payment solutions that go beyond basic, cookie-cutter features. That means flexible payment options, access to capital, and a dashboard that lets them manage everything from a single login.
To better understand how consumer demands are shaping the landscape and how payment platforms affect an operator’s ability to meet those expectations, we conducted two surveys: one of 1,000 consumers and a second of 210 small-business operators.
Across the respondents, we found that payments influence loyalty, trust, and growth. Consumers expect local businesses to offer the speed, clarity, and flexibility they get from larger chains and online retailers, while operators need payment tools that help them manage sales, cash flow, and day-to-day work without adding more complexity.
Keep reading for a highlight, or download the full report here.
The thing about payment friction is that it rarely makes noise. Unlike a bad product or a rude interaction, a frustrating checkout experience usually ends with a polite smile and a customer who has quietly resolved not to come back.
Data from our survey puts hard numbers to that pattern. Fifty-five percent of consumers said one bad payment experience would make them stop or seriously reconsider shopping at a local business. Another 37% of consumers have already decided not to complete a purchase at a local business because paying felt too inconvenient or confusing — not because of price, not because of the product, but because of how they were asked to pay.
That means the majority of your customers are deciding whether to keep shopping with you based on a single interaction.
Business owners have some sense of this, even when they can’t trace it directly. Thirty-eight percent of operators said their current setup has definitely or probably cost them a customer or sale. What’s harder to account for is the customer who left without a word — the sale that never happened and the loyalty that never had a chance to form.
The good news is that what consumers are looking for isn’t complicated. When asked what would make them more likely to spend at a local business, the answers were consistent:
Speed, transparency, and flexibility. These are the same things large retailers have been building into the checkout experience for years. As consumer expectations are shaped by those interactions, independent businesses are increasingly held to the same standard.
There’s also a gap between how business owners see their checkout experience and how customers actually experience it. Of the operators surveyed, 37% believe they offer a more personalized checkout than large chains. Less than 24% of consumers agreed. In fact, 63% said that checking out at an independent business feels exactly the same as at a chain.
The competitive edge local businesses believe they have at checkout isn’t registering the way they expect it to, and it’s cutting into their margins.
This isn’t just a “today” problem. The data shows clear generational patterns in how consumers respond to checkout friction — patterns that will shape the market for years.
More than half of Gen Z consumers have already abandoned a local purchase because the payment process felt too inconvenient or confusing. That compares with 44% of Millennials, 29% of Gen X, and 22% of Baby Boomers. Younger shoppers have grown up with fast, frictionless transactions as the default, and those expectations don’t soften as they age — they get stronger.
As Gen Z’s spending power grows, so will its influence over the checkout experience. The businesses that get ahead of that expectation now, with faster checkout, flexible payment options, and transparent pricing, are building relationships with a customer base that will define the market for decades.
More is riding on that moment at the counter than most business owners realize. The customer who can pay quickly, easily, and the way they prefer is more likely to come back. On the other hand, the one who hits a confusing or limited checkout usually won’t say anything about it. They’ll just stop coming back.
At the same time, local businesses need payment tools that are simpler, clearer, and faster. They need enterprise-level convenience without the high costs, faster access to funds, clearer pricing, fewer systems, and human support when money gets complicated.
Payments have moved from a back-office consideration to a competitive differentiator, and the growing businesses that treat it like one — by giving customers the speed, flexibility, and pricing clarity they’re already asking for — will be better positioned to build the kind of loyalty that sticks.
Download our full report to learn more.
Every time a customer swipes their card, money moves. The problem is, it can take a while for those funds to finally get to you.
On average, it takes between two and three business days for card sales to reach your business bank account. That might not sound like much time, but for businesses managing payroll, restocking inventory, and covering daily operational costs, settlement times create a real cash-flow gap.
Research from U.S. Bank found that 82% of growing businesses experience cash flow problems, even though most generate revenue. That means the problem isn’t what’s coming in; it’s when it actually arrives. The Federal Reserve’s Small Business Credit Survey confirms this. They found that access to card payment funds is one of the most frequently cited challenges small business owners face, with most waiting an average of two to three days after a transaction to see those funds.
Running out of cash is a contributing factor in 38% of business failures — a number that speaks more to timing than to performance.
Today, there are tools designed specifically to address this: instant payouts. These solutions give growing businesses access to earned revenue in minutes, any day of the week — including weekends and holidays — without applying for credit or waiting on traditional banking timelines.
Let’s take a look at what instant payouts are, how they work, and how they compare to other funding options.
When you accept a card payment, the transaction doesn’t immediately translate to accessible cash. There’s a settlement period, which is the time it takes for the card networks, the acquiring bank, and your payment processor to complete the transfer of funds. For most businesses, this takes two to three business days.
Instant payout solutions eliminate most of that wait. Instead of holding funds until the settlement cycle finishes, these tools allow businesses to access revenue from their completed card sales on the same day. That means, unlike banks, which operate on strict schedules, instant payouts are available around the clock, including on weekends and holidays.
What makes instant payouts distinct from a same-day ACH transfer or next-day deposit isn’t just speed, but availability. You’re not filing a transfer request during business hours and hoping it clears. Instead, you initiate the payout when you need it, and funds arrive in your debit card or bank account within minutes. Because the process works within your existing payment setup, you don’t have to deal with any third parties. Everything is available in the payment software you already use every day.
Most solutions charge a small fee per transaction, typically a percentage of the amount you access. Look for solutions that show you the exact cost before you confirm, with no hidden fees and no ongoing subscription costs, so you only have to pay when you take out funds.
On the surface, both options put money in your hands more quickly than traditional settlements. But the way they work and what they cost are vastly different.
A merchant cash advance (MCA) provides a lump sum of capital upfront in exchange for a portion of your future sales. You repay it through automatic daily or weekly deductions from your card receipts, plus fees expressed as a factor rate.
Because you’re receiving money you haven’t earned yet, an MCA is a form of financing, which means businesses are often left with a bigger bill than they bargained for. MCA fees often translate to annual percentage rates that are higher than what traditional business loans charge — sometimes reaching triple digits depending on the terms.
An instant payout solution works differently. You’re not borrowing anything; you’re just accessing money from card sales you’ve already completed. There’s no repayment schedule because there’s nothing to repay — the accessed amount reconciles automatically through your normal payout process.
Here’s a quick breakdown of the differences between merchant cash advances and instant payouts:
Merchant cash advances are best for larger capital needs like big expansions, major equipment purchases, or gaps traditional lenders won’t fill.
Instant payouts are best for bridging short-term gaps between when you earn revenue and when it lands in your account
If you’re looking for more capital to fund an expansion or a purchase that exceeds your recent card volume, a business loan or line of credit may be the right option. But if your goal is to close the gap between earning revenue and spending it without taking on new debt, an instant-payout solution is worth a closer look.
Waiting a few days might be manageable in most cases, but when your business runs on tight margins or needs a last-minute replacement, waiting periods can feel like an eternity. Seasonal businesses feel this most acutely. For instance, a restaurant packed every Friday and Saturday still needs to pay suppliers and staff by Monday, and traditional banking timelines weren’t built with that in mind.
The broader issue is that cash flow constraints don’t always signal a struggling business. Many growing businesses that run into cash-flow friction are doing everything right — they’re just waiting longer than they need to for their payouts.
There are typically no restrictions on how funds accessed through instant payouts can be used, so you’re free to use the money however you need to.
A few common use cases include:
When sales are steady, but the settlement timeline creates a gap, having funds on demand can mean the difference between keeping up and falling behind.
Most instant payout solutions are embedded directly within your existing payment platform, so there’s no separate account to open, no new application to complete, and no additional software to learn. Once you’re enrolled (typically a one-time process based on your payment processing history), you can initiate a payout at any time.
First, choose the amount you want to access, up to the available balance from your card sales. Solutions will typically set a per-request maximum to manage risk on both sides. Before you confirm a payout, double-check any associated fees. The best solutions will require a one-time, upfront payment and nothing else. Once everything is approved, funds will be credited to your debit card or bank account within minutes.
One thing to remember is that your standard payout schedule won’t be disrupted by using an instant payout solution. You’re not pulling from future sales; you’re just accessing money from sales you’ve already completed. That means the funds you pull out early are reconciled through your normal settlement process.
Eligibility is generally based on your payment processing history, including how long you’ve been active with your processor and your transaction volume over time, rather than a credit check. That makes the process faster and more accessible to growing businesses that may not qualify for traditional financing.
When evaluating instant payout solutions, look for:
For growing businesses that process card payments, the gap between earning revenue and accessing it is a real operational challenge. Thankfully, it’s one that can be solved. Instant payouts won’t replace your standard settlement process, but they’ll give you a reliable, on-demand option for the moments when timing matters most.
At Flute, our Instant Payouts solution was built for exactly this. Eligible Flute merchants can access up to $10,000 from their daily card sales in minutes, any time, any day — including weekends and holidays — directly from the Flute dashboard. There’s no credit check, no borrowing, and no new tools to learn. We’ll show you a simple, transparent fee upfront, and you only pay when you choose to use it.
If you’re already a Flute merchant, navigate to the “finance” section of your dashboard to see if you’re eligible. If not, reach out to our team to learn more. Your earned revenue shouldn’t have to wait. With Flute, it doesn’t.
You’ve been running your boutique from the same spot for years, and the countertop device behind your register has done the job well. One weekend, you’re invited to set up a booth at the local farmers’ market. You’re excited to get out and meet some new customers, but don’t give much thought to how you’ll take payments. The problem is, your usual hardware is designed to stay put: plugged in and wired to a counter. Now that the weekend has arrived, you’re left with two options — cancel your market appearance or scramble for a last-minute solution.
Going back to the drawing board when you’re in growth mode isn’t fun. But choosing the right payment hardware is a lot easier when you understand your options before you need them.
Whether you’re just getting started or dipping your toe into a new market, it’s important to invest in the right technology from the start. Here’s how to tell your options apart and choose what’s right for your business.
Most payment hardware, whether it’s a card reader, a countertop device, or a mobile setup, falls into one of two categories: countertop and mobile. Understanding the difference and what each is actually built for is important when you’re just getting started or looking to expand.
A countertop device, sometimes called a countertop card reader or credit card machine, is a fixed unit that lives at your point of sale, like at the register or service counter. These devices connect to a power source and the internet (via Wi-Fi or Ethernet) and are designed for consistent, high-volume sales. They typically feature larger screens, more processing power, and in many cases, built-in receipt printers and customer-facing displays.
Mobile payment hardware is designed for movement. These include compact mobile card readers, wireless handheld devices, and small card readers that attach to a smartphone or tablet — letting you accept payments from anywhere: a table, job site, pop-up market, or festival.
Customers increasingly want to pay where they are, on their terms. A payment setup that can’t keep up with your business when you need to take it on the go creates friction before the transaction even begins.
For brick-and-mortar businesses with a defined checkout area, countertop hardware makes a lot of sense.
Stability is the biggest advantage. A device with a reliable power source and a wired or strong Wi-Fi connection can process transactions reliably, without the battery concerns or signal drops that mobile devices can sometimes cause. When every second at checkout counts, that reliability matters.
Countertop devices also tend to offer a better user interface and a more complete feature set. Larger screens make it easier for customers to interact with their transactions, view details, enter a PIN, or sign. Many countertop models also include integrated receipt printers, barcode scanners, and customer-facing screens that streamline checkout from both sides of the counter.
Countertop devices are stationary by design, so if you need to bring the payment experience to your customers, a countertop-only setup won’t get you there. Countertop devices can also be pricier than smaller, mobile options. For businesses just getting started, a larger piece of hardware might not be worth the upfront investment.
Mobility changes the customer experience in ways that are hard to overstate, and the numbers reflect it.
Federal Reserve data shows U.S. consumers now use mobile phones for roughly 23% of all monthly payments, a figure that’s nearly tripled since 2018. Among young adults aged 18 to 24, that number jumps to 45%. Customers are paying on the go, and they expect that convenience everywhere they shop.
Food trucks, pop-up vendors, on-site contractors, and mobile groomers need payment options that are as flexible as they are. But mobile credit card readers aren’t just for businesses on the move. Consider what they can do for a restaurant. On a busy Friday night, your server can take an order on a handheld device, return to the table at the end of the meal, and process the payment right there. No trip to the back, no shared device, and no passing cards across the table.
According to the National Restaurant Association, 62% of full-service restaurant diners said they’d use a tablet to pay at the table, and 63% said they’d be comfortable paying by smartphone. They still want human interaction, but they’re open to tech when it makes the checkout easier. That’s a strong signal, and a real opportunity for restaurants to adapt.
Mobile hardware is also typically more affordable to get started with than a full countertop setup, making it an accessible entry point for businesses in their early stages or operating on tighter margins.
There are limitations, though, that are worth considering. For instance, battery life is a genuine concern, especially during long event days or outdoor markets where charging isn’t always available. Signal reliability can vary by location and carrier. And for businesses processing very high transaction volumes quickly, a mobile credit card reader’s smaller size and screen may not match the processing power of a purpose-built countertop setup.
Mobile hardware tends to work best for:
For many business owners, the answer isn’t one or the other: it’s a combination.
As mentioned earlier, a full-service restaurant might keep a countertop device at the bar and provide waitstaff with handheld devices to take tableside payments. Similarly, a boutique might have hardware at the front desk and equip floor staff with mobile devices, so customers don’t have to wait in line.
The goal isn’t to pick a category, but to build a payment setup that supports your long-term goals, no matter how or where you do business.
Once you’ve settled on the right device type, there are a few extra features to consider. None of them are dealbreakers, but they can make a real difference in how smoothly things run day to day.
Most countertop devices come with a built-in receipt printer. Mobile hardware often doesn’t. If you regularly hand customers a paper receipt, look for a device that includes a printer or budget for an external Bluetooth device.
Many mobile setups support email or text receipts as an alternative, which cuts down on paper and simplifies your setup without losing the confirmation customers expect.
Chip and contactless cards are the standard today, but magnetic stripe cards are still in use.
Federal Reserve data shows that debit and credit cards combined account for about 65% of U.S. consumer transactions. That said, not every cardholder has a contactless-enabled card yet. If your device handles swipe, chip, and contactless, you’ll never have to turn someone away because of how their card is set up.
Restaurants, coffee shops, mobile grooming services, and delivery operations live on tips. If that includes you, look for a device that prompts customers at checkout with suggested tip amounts. It takes the mental math off the customer and encourages them to leave a little something extra. For businesses where gratuity is part of how your team gets paid, that one feature can add up quickly.
Every card transaction comes with a processing fee. Cash discounting and dual pricing are two ways to offset that cost without absorbing it entirely. With cash discount programs, card payments will automatically include processing costs on top of your base price, while customers who pay in cash will receive a small discount. Dual pricing shows both prices side by side at checkout.
Both models are legal nationwide, though state and card network rules vary. If protecting your margins is a priority, look for hardware that natively supports these programs.
The best payment hardware doesn’t call attention to itself. It works quietly in the background, letting you focus on your customers and your business.
Start by thinking honestly about your operation. Where do transactions happen: at a counter, at a table, in the field? Do customers come to you, or do you go to them? How many payments do you take on a typical day?
A 2025 PYMNTS report found that one in three customers would skip a purchase entirely if their preferred payment method was unavailable. That means getting your hardware right is one of the best ways to close the gap between what customers expect and what you offer.
Here are a few questions to ask yourself before you make a final decision:
If you get stuck, ask your payment provider to walk you through your options. The best provider will partner with you to find the ideal solution for your business.
Payment hardware is one of those things you don’t notice when it works well — and notice immediately when it doesn’t. Choosing the right setup doesn’t have to be complicated. Whether you’re setting up your first location or expanding into new channels, understanding the difference between countertop and mobile hardware and knowing which features to look for makes it easier to serve your customers and be successful in the long term.
Flute offers payment hardware built for growing businesses, with flexible options, transparent pricing, and tools that give you full visibility into your payments and your margins, all in one place. Ready to find the right fit? Explore our payment hardware options or reach out to a member of our team to get started.
Software platforms are transforming how people pay, borrow, and manage money. In the past, customers relied on separate banks, lenders, or insurers to complete financial tasks. Today, more of these services are being built directly into the digital products people already use. This shift is called embedded finance, and it’s one of the most impactful trends in financial technology.
For SaaS (software-as-a-service) executives, product leaders, and business owners, embedded finance unlocks new ways to grow platform value, generate revenue, and build stronger customer relationships. With the right partner, platforms can add features like payment acceptance, recurring billing, and even banking tools like lines of credit, deposit accounts, and disbursements — without taking on the complexity of becoming a bank.
Let’s take a closer look at what embedded finance is and how it can help you grow your software company, expand revenue, and build a happier, stickier user base.
Embedded finance is the process of integrating financial services like payments, lending, insurance, or banking into software that was not originally designed for finance.
For instance, a pet care company might use its scheduling platform to book appointments and send invoices within the app. Or, an auto repair shop might let customers finance their bill through its business management software. In both cases, the businesses don’t have to go through a separate vendor for payments or lending; the features are built directly into the core platform, offering a more seamless and intuitive user experience.
The biggest benefit of embedded finance is convenience. Users don’t have to juggle multiple vendors, bounce between platforms, or log into different systems to get things done. Instead, everything happens in one place. That means users have access to more relevant, curated financial solutions that keep them engaged and capture more value from every transaction.
Embedded finance isn’t limited to payment processing. Many solutions also include:
Each element of embedded finance is designed to work seamlessly within the software company’s native application.
Software companies are embracing embedded finance not just because it’s more convenient for users, but because it helps platforms grow and open new revenue streams. Here are three benefits to consider:
When your users can do more inside your software, they’re more likely to stay long-term. Payments are often the first step. Instead of directing users to an outside payment page, embedded payments allow them to complete transactions through your application, whether it’s in-person with a point of sale (POS) system, with an app on their iPhone, or through an e-commerce marketplace integration.
The convenience of simplifying daily workflows and accelerating checkout builds loyalty. It also allows you to offer services like recurring billing, stored payment methods, and digital invoicing to keep customers connected to your platform over time. You worked hard to earn your customers, and offering the right financial tools can help you keep them.
Another reason SaaS companies invest in embedded finance is that it opens a new revenue stream without having to manage or build payments infrastructure from scratch. Every time a customer makes a payment, you earn a share of the transaction. Over time, this can become a major contributor to your company’s bottom line, especially as you gain more users.
Remember, not every embedded payment solution offers revenue sharing, so it’s important to ask upfront what your earnings will be. The right partner will also provide the APIs, embeddable components, onboarding tools, and compliance support needed to operate in the background, while you focus on growth.
Brand matters, especially for companies that have invested in their design and customer experience. With embedded payments, for instance, payment flows remain inside your software platform and reflect your branding. This includes checkout pages, receipts, account management screens, and more. This continuity reinforces your brand at every touch, building recognition and trust with your users.
Your embedded finance partner should offer full control over the look and feel of your payment experience. There’s no need to redirect users to a third-party processor or use off-brand forms, so be sure to ask providers about flexible APIs and easy-to-use interface components that you can style to match your brand.
Embedded finance is growing in popularity across a variety of industries, and for good reason. Here are a few examples of how embedded solutions can be valuable if you’re a vertical software provider:
Each of these examples shows how embedded financial solutions not only simplify operations but also open up new revenue opportunities.
Embedded finance isn’t just a trend — it’s an expectation. As users expect more from their software tools, platforms that offer integrated financial services will stand out.
At Flute, we give SaaS companies and software platforms a fast, reliable way to embed payments and capital products into their native solutions. With modern APIs, strong support, and a clear revenue model, we can help you move from payment processing to full financial integration – and in the process, deliver more value to each customer, increase retention, and increase your profitability per customer.
If you’re ready to embed payments and other financial tools into your software solution, reach out to our team for more information.
Credit card fees often feel like an unavoidable cost for growing businesses. Every swipe takes a portion of your revenue, cutting into your profits and making it harder to invest in growth or cover daily operations.
In 2023, businesses paid a total of $224 billion in swipe fees, nearly a third more than in previous years. As more consumers pay with credit cards and digital wallets, that number will only grow. But what if you could shift the cost of card acceptance to your customers in a clear, compliant way, without simply raising prices across the board?
No-fee credit card processing allows you to do just that. With this model, businesses can use surcharging, cash discounting, and dual pricing to keep more of what they earn, let customers choose how to pay, and maintain transparent pricing.
Let’s break down how no-fee processing works, the tools and compliance requirements involved, and what it means for your day-to-day operations.
Before you can get rid of card fees, it’s important to understand how they work and what you’re paying for. In general, there are three main types of processing fees, including:
A lot of payment processors advertise low base rates, but final costs can sometimes include hidden fees like PCI-compliance charges, batch processing, or monthly minimums. Equipment leasing or cancellation fees may also pop up. Although they might not seem like much on the surface, payments-related fees can add up quickly. That’s why it’s important to understand what you’re expected to pay and what you can potentially negotiate with the right provider.
No-fee or zero-cost card processing enables businesses to pass credit card fees to their customers, so they can keep more of what they earn. The right partner will walk you through your options so you can stay compliant and maintain clear, transparent pricing.
How does no-fee processing work? There are three main ways to offset credit card fees, including surcharging, cash discounting, and dual pricing.
With surcharging, you can add a small fee to your total bill to cover processing costs. For instance, you might add a 2.5% fee to a $50 bill, bringing the total to $51.45. Because credit cards come with higher processing costs, surcharging wouldn’t affect debit card or cash payments.
Instead of charging customers more for using credit cards, cash discounting lets you to reward buyers who pay in cash. Unlike surcharging, this model shows a higher default price and then applies a discount when cash or other low-cost payment methods are used. For instance, you might list the cost of a latte at $5.50, but drop it to $5.00 when a customer pays in cash.
Dual pricing lets you showcase two different prices — one for credit cards and one for cash or debit — so customers can see the difference in real time and make an informed decision about how they want to pay.
All three models are strictly monitored and require clear disclosure and compliance with federal, state, and card network regulations. We’ll get to that in a bit.
Zero-cost credit card processing is a fantastic way to pass along fees and protect your revenue. But, since it’s such a highly regulated model, there are some potential challenges to keep in mind. So, let’s break down the pros and cons.
Businesses with narrow profit margins, frequent credit card transactions, or high-ticket services typically see the most benefits from lower processing fees. Industries might include professional services, specialty retail shops, field services, or other operations where card costs affect profitability. Here are a few real-world examples:
A family practice that processes $50,000 in monthly credit card payments can use dual pricing to eliminate fees without disrupting workflows, especially if their payment platform integrates with their electronic health record systems.
A yoga studio with $120 monthly memberships can offer discounts to customers who use cash or ACH payments instead of credit cards. Offering more flexibility keeps members happy while allowing the studio to keep more of its profits.
A jewelry retailer could use dual pricing to list cash and credit prices for a ring, allowing it to keep the price consistent while adding a clear card fee. They could also offer split payments, so customers can use multiple payment methods or split a purchase between them.
Yes, no-fee processing models like surcharging, cash discounting, and dual pricing are legal in most states. That said, all three come with their own rules and regulations. Staying compliant is crucial to avoid fines and maintain your business’s good standing, so it’s important to find a payments provider who will help you understand the intricacies of credit card regulations.
For instance, surcharging is not allowed in all states. Connecticut and Massachusetts prohibit surcharging altogether, while other states have strict rules around disclosure and communication. Card networks like Visa and Mastercard also require advance notice and cap surcharges (usually at 3%).
Businesses also need to list surcharges as separate line items on receipts. Businesses can’t apply surcharges to debit cards and need to ensure pricing stays consistent across all locations. When in doubt, talk to your payments provider about zero-cost processing. The best providers will explain everything you need to know and will walk you through the steps required to stay compliant.
Here are a few rules to keep in mind as you’re considering whether to adopt this payment model:
Implementing no-fee credit card processing requires thoughtful planning to ensure compliance, transparency, and a positive customer experience. Here are nine steps to evaluate your eligibility, choose the right pricing approach, and roll out no-fee processing with confidence.
With no-fee processing, you can turn a common business expense into a strategic advantage. With the right setup, you can eliminate card fees, maintain compliance, and give customers more ways to pay.
But the best results will come from partnering with the right payments provider — someone who is intimately familiar with your industry and can walk you through everything you need to get started. As you talk to potential providers, be sure to ask the following questions:
Don’t settle for a provider that doesn’t fully support no-fee processing. By understanding your options and implementing them carefully, this model can help you control costs and grow while keeping customers happy long-term.
If you’re feeling the squeeze from credit card fees, it’s worth looking into whether this option makes sense for you. Reach out to a member of our team to learn more.
Maria runs a specialty kitchen store just off the main square. For one week every summer, the sidewalk outside her shop gets quiet, and it has nothing to do with the heat. Her customers are scrolling Prime Day deals, loading digital carts, and waiting for a little grinning box to show up on their doorstep. Foot traffic moves to someone else’s cart, and Maria spends the week watching it happen.
If you run a business, you know the feeling. Amazon Prime Day has grown into one of the largest shopping events of the year. In July 2025, U.S. consumers spent an estimated $24.1 billion online across the four-day event, nearly the same as Black Friday and Cyber Monday combined.
That’s a lot of money flowing away from independent retailers, service providers, and local businesses.
Thankfully, Prime Day doesn’t have to be a total loss. Growing businesses have real advantages that the biggest players can’t match, like personal relationships, flexible payment options, and hands-on service.
Let’s look at six sales strategies to help you stay competitive during Prime Day and the weeks that follow. We’ll focus on how your payments setup can do a lot of the heavy lifting and how to prepare before the big day this June.
Prime Day does two things well:
People who might have walked into your store in August are now checking whether they can get something similar online for less. But you don’t need Amazon’s scale to give customers a reason to buy from you. You just need to meet them where they are, with the offers, payment options, and experiences that fit how they actually want to shop.
Let’s dive into six strategies you can follow to hold your own during the Prime Day rush. Mix and match what works for your business, and lean into the payment-focused tactics, since those are the ones big retailers can’t personalize the way you can.
Going head-to-head on price during Prime Day is usually a losing game. Instead, run your own event that leads up to or follows Prime Day. For example, a pre-Prime Day promo can capture shoppers who haven’t committed yet, while a post-Prime Day event can pull in people who missed out or are still comparison shopping.
Keep the sale focused and easy to understand. Bundles are fantastic for attracting buyers without lowering prices. If you’d prefer to offer a discount, a straightforward 10% off site-wide sale usually lands better than a complicated tiered promotion. And don’t forget the checkout itself; a great offer loses its shine when the payment process is clunky, so make sure your checkout supports repeat purchases, digital wallets, and online options that match how your customers pay.
One of the biggest reasons customers choose online giants during Prime Day is how little effort the checkout process requires. Your card, address, and preferences are already saved, so buying feels like tapping a button. The Baymard Institute found that 18% of U.S. shoppers abandoned an online purchase last quarter because the checkout process was too long or complicated, not because they changed their minds about buying.
The best way to fix this is with tokenized payment data. When a customer pays, their information is saved as a secure token that stands in for the card number. The next time they buy something, they don’t have to re-enter their payment details — they just click “buy now,” and they’re done.
Digital wallets like Apple Pay and Google Pay are also tokenized, so accepting them gives repeat customers a fast, secure way to pay online and in-store. The customer gets a premium, no-friction experience, and your business never holds the actual card data, which keeps most of the PCI compliance burden off your plate.
70% of consumers say the availability of their preferred payment method is very or extremely influential in deciding where to shop. That means offering flexible, one-click payment options is key to competing with bigger players during special events.
A small-business rewards program is one of the best ways to bring customers back, and Prime Day offers a great opportunity to launch one or to promote the one you already have. Research published in Harvard Business Review found that increasing customer retention by just 5% can boost profits by 25% to 95%.
The simplest loyalty programs tend to work best: a punch card, a points system tied to spend, or a tiered program that rewards frequency. You can also tie rewards to specific payment methods, like double points for customers who pay with a saved digital wallet or who enroll in autopay.
If you sell items or services that customers need more than once, consider setting up a subscription or membership program. Here are a few examples of what that might look like:
Subscriptions give you predictable revenue, smooth out seasonal dips like the Prime Day slump, and build the kind of relationship big retailers struggle to replicate. They also make life easier for your customers, since they don’t have to reorder, rebook, or remember to shop for necessities.
Prime Day’s real hook isn’t always the price. It’s the convenience: a customer gets something delivered in a day or two without spending hours browsing aisles. One way to match that convenience without slashing shipping costs is with click and collect. This option, also called buy online, pick up in store (BOPIS), lets customers purchase on your website and pick up their order within hours, not days.
The demand is already there. U.S. click-and-collect retail sales are projected to hit $177.9 billion in 2026, up more than 15% year over year, and 85% of BOPIS shoppers report making an additional purchase when they come in to pick up an order.
That’s a built-in opportunity to turn a single online purchase into a larger in-store sale, and it works across categories, from clothing and home goods to specialty foods and service packages.
A customer who buys from you during Prime Day and has a great experience can be yours for years. Use the weeks after Prime Day to follow up thoughtfully, with a thank-you note with a small credit, a text reminder about a related product, or an invitation to your rewards program.
Your payment data is a powerful tool here. Knowing when customers buy, how often, and what they prefer will help you personalize their experience. That personal touch is what turns a Prime Day impulse buy into a regular customer.
Here’s a list of things you can do right now to get ready:
Remember, doing two or three of these well will move the needle more than trying to do all five at once. If you’re not sure what to change in your payments setup, your provider is the right place to start — they can tell you what’s already built in and where to go next.
This Prime Day, the question isn’t whether you can outspend Amazon but whether you can provide a better experience. By offering a variety of unique promotions and simple, invisible ways to pay, you can make it easier and more rewarding for customers to buy from you than from anyone else.
At Flute, we build tools that turn checkout, both online and in-store, into one connected experience — the kind that keeps customers coming back long after Prime Day ends. Ready to see what that looks like for your business? Get started today.
The stretch between finishing a job and seeing the money hit your bank can be the most stressful part of the month. The work is done, the customer is happy, and yet payroll, rent, and inventory bills keep coming, whether or not the invoice gets paid.
That gap is wider than it should be. According to the 2025 Intuit QuickBooks report, 56% of U.S. small businesses are currently owed money on outstanding invoices, with an average of $17,500 sitting in unpaid bills per business. Nearly half of businesses reported that some of their invoices were more than 30 days overdue.
Friction is one of the biggest culprits of unpaid invoices. Every step between “here’s what you owe” and “you’ve been paid” is another chance for a payment to slip. That means the fastest way to close that gap is to remove unnecessary steps — and that’s exactly what payment links are built to do.
Business owners feel the pinch of slow payments long before any number on a balance sheet shows it. According to the Federal Reserve’s 2024 Report on Payments, nearly four in 10 small employer firms (39%) said slow-paying customers are a challenge, and another 20% pointed to time-consuming processes like billing customers.
When funds are delayed, owners often turn to higher-interest credit cards, postpone hires they were ready to make, defer equipment purchases, and shelve growth plans. The QuickBooks data shows that businesses hit hardest by overdue invoices are more likely to lean on loans and lines of credit just to cover ordinary operating costs.
There’s also a less visible cost: the time your team spends managing the back-and-forth. Reminder calls, mailed re-statements, and “did you ever get the invoice?” emails take hours away from work that actually grows the company. You’ve probably never put a price on those hours, but the cost is there all the same.
A payment link is a secure URL that a customer can use to pay for a product or service. You generate the link in your payment platform, then share it via email or text. The customer taps the link, lands on a mobile-friendly checkout page, enters their card information, and then the payment is on its way to your account.
Payment links offer a faster, more convenient payment experience, so customers can pay instantly from their phone instead of waiting for a paper invoice. There’s no app for the customer to download, no website to log into, and no special hardware on your end.
Picture a contractor who wraps up a job on Monday and mails the invoice Tuesday morning. Best case, it lands in the customer’s mailbox on Friday. Then it sits. We all know the type — the customer who lets the mail pile up for a week before getting around to it, or the household where half the envelopes go straight to recycling without a second look.
Even the customer who opens the invoice the day it arrives still has work to do. They have to call the office to read off a card number or type a long URL into a browser. Each extra step is another chance to put the payment off until tomorrow, next week, or the next time someone calls to follow up.
Now picture the same scenario with a payment link. The job ends, and the contractor sends a text or email before leaving the driveway. The customer taps the link on their phone, pays however they want to (including by ACH, EFT, or card), and the money is on its way.
Customers have already moved on from paper. One study found that only 7% of consumers paid bills by check in 2024, with half of all bill payments now being made electronically from a bank account. If your customers have moved to digital payments, why hasn’t your business?
Payment links aren’t tied to one type of business. That means that if your company ever needs to send an invoice, request a deposit, or close a sale on the spot, a link will probably be your best option.
Here are a few common use cases:
With payment links, customers can pay where they already are, and you don’t have to deal with long waits. You’ll see a shorter list of unpaid invoices and spend fewer hours chasing payments each week, so you can spend more time focusing on what really matters.
Not every payment link is built the same, and the wrong setup can create new headaches in place of the old ones. Before choosing a provider, be sure to ask about the following:
The goal is to find a tool that fits how your business already works, so you can start accepting digital invoice payments right away.
Customers want to pay digitally, and slow, manual collections are quietly costing you real money. The businesses getting paid faster are the ones making it easier, not harder, to hand over a card.
Payment links meet customers where they already are and shrink the time between “invoice sent” and “money in the bank,” so your team can reclaim the hours that used to go to chasing checks.
If your invoicing process still leans on paper, plastic, or phone calls, the upgrade is overdue. Reach out to Flute to see how we can put faster, more flexible payments to work for your business.
Every time you buy something with a credit card, a small portion of that sale goes to processing fees. Most consumers don’t see those costs, but for small businesses, merchant processing costs can add up quickly.
Credit card fees usually range from 1.5% to 3.5% of the total sale. As a small- or medium-sized business (SMB), if you sell a $100 item, between $1.50 and $3.50 of that transaction will be divided among banks, networks, and processors before the rest reaches your bank account.
As your volume grows, so will the cost of taking payments. For instance, if your business does $100,000 per month in credit card transactions, between $1,500 and $3,500, on average, will go toward paying those fees.
In 2023, U.S.-based businesses paid $224 billion in credit card processing fees. Although there’s no way to get around card fees altogether, there are opportunities to minimize them. So, let’s break down the different types of credit card processing fees and what you can do to lower them.
Credit card processing fees — or processing rates — are the cost businesses pay to accept credit and debit card payments for their goods and services. Fees are split between a few people in the payments ecosystem, including:
Every time your customer swipes, dips, or taps their card, those organizations take a slice of the sale. Understanding who gets what will help demystify the cost of accepting credit cards and give you leverage when comparing providers.
Card-issuing banks like Citi, Chase, and Wells Fargo collect the largest share of fees, also known as interchange fees. These costs cover everything from assumed credit risk to fraud protection and transaction handling.
Card networks like Visa, Mastercard, Discover, and American Express charge assessment fees for access to their infrastructure. These costs support the secure global systems that make card transactions possible.
Payment processors are the companies that manage transaction logistics, deposit funds into your merchant account, and offer value-added tools like advanced reporting, customer support, or point of sale (POS) integrations. These companies often charge a markup or service fee to cover their services.
During online transactions, payment gateways securely transmit a customer’s payment information to the processor. Gateways are often built into the processor’s platform, but if you’re using a separate, third-party gateway, there may be additional fees.
Credit card fees often go beyond the standard percentage per transaction. Here’s a breakdown of the most common fees you might encounter as a business owner.
Interchange fees are set by the card networks and paid by a merchant’s acquiring bank to the card-issuing bank to compensate issuers for costs like fraud risk, transaction processing, and cardholder rewards. Interchange fee rates can range from 1.15% to 3.25% or more per transaction. These costs vary by card type, transaction method, and industry.
Assessment fees are charged by card networks like Visa and Mastercard for processing transactions through their payment networks. These fees are typically around 0.13% to 0.15% of each transaction. Although they’re more consistent than interchange fees, assessment fees can vary based on factors like transaction type or whether a payment is domestic or international.
Processor markup reflects what payment processors charge for providing the technology and services needed to manage transactions, including payment authorization, transaction routing, and customer support. Processors play an important role in the payments ecosystem by ensuring transactions move securely and reliably from one party to the next.
Processor costs vary based on pricing model, but the most common include:
Gateway fees are the charges payment gateway providers collect to handle online transactions. Gateway pricing often includes one or both of the following:
There are a few more costs to be aware of, ranging from monthly minimums to fraud-related chargeback fees. Here’s a quick look at some of the most common ones:
Payment providers structure their credit card processing fees in several different ways. Here are the three most common models you’ll see.
Flat-rate pricing is a fixed-fee structure in which businesses pay the same rate for each transaction. For instance, a payment company might charge 2.6% + $0.10 every time you take a payment, regardless of what you sold or the final price. It’s the most expensive pricing structure. While it’s convenient for some merchants, flat-rate processing rates can quickly add up and erode profit margins in high-volume businesses.
Here are the pros and cons of flat-rate payment pricing:
Pros:
Cons:
Tiered pricing divides transactions into three categories based on card type and payment processing method. Transactions are categorized as:
In tiered pricing, interchange rates are the lowest for qualified transactions and the highest for non-qualified transactions. This structure also includes a percentage-based fee based on the card type.
Overall, tiered pricing is generally less expensive than flat-rate pricing since you don’t have to pay as much for qualified transactions. Here are the pros and cons of this pricing model:
Pros:
Cons:
This model charges the actual interchange fee plus a fixed markup from the processor. For instance, you might pay 1.8% + $0.10, depending on the card and how it’s used. With interchange-plus pricing, you always pay the underlying rate plus a consistent, clearly defined markup that goes to the processor. This model lets you to cut costs on qualified transactions while knowing exactly how much will be sent to your processor.
Pros:
Cons:
Credit card processing rates aren’t just a transactional expense — they directly impact your total cost of ownership over time. That means a seemingly small difference in fees can translate into thousands of dollars annually, especially for businesses with high sales volumes. Thankfully, with the right strategies, you can lower processing fees and keep more of what you earn without changing how you do business.
Here are seven practical ways to get started:
Interchange-plus is the best pricing model for most businesses. It separates card network costs from processor markup fees, so you always know exactly where your money is going and save more long-term.
No fee payment processing options let you compliantly pass your merchant processing costs along to your customers. When choosing a payment provider, ask if they support cash discounting, dual pricing, or surcharging so you can keep more of what you earn.
Payment processors have more wiggle room in their pricing than you might think. Ask about how you can lower your per-transaction fee or monthly service charges — especially if sales are steady.
Leasing card terminals might sound convenient, but the long-term cost can be up to five times higher than buying hardware outright. Payment equipment usually pays itself off after just a few months.
High-risk businesses (like CBD, firearms, gaming, and travel) often have to pay higher interchange rates to cover the increased risks of fraud, chargebacks, and legal restrictions.
On the other hand, business-to-business (B2B) and business-to-government (B2G) companies may be eligible to apply for Level 2 or Level 3 processing, which offers lower processing fees in exchange for more detailed transaction data.
Understanding what type of business you operate can often help you navigate and even reduce credit card fees.
Being PCI-compliant protects your customers’ data and prevents costly non-compliance fees.
Take the time to fully understand your monthly statements and keep a close eye out for vague charges labeled “regulatory fees,” “service add-ons,” or “batch fees.” These might be unnecessary or inflated. If something looks off or is unclear, ask your provider to explain or justify the charges.
Small changes can lead to major savings, especially as your business grows. At Flute, we’re here to help you get the best deal and keep more of what you earn on every transaction. To learn more, reach out to a member of our team.
You only have a few minutes before your meeting, but it’s your turn to pick up coffee. You drop into a local cafe, place your order, and reach for your wallet — only to realize you left it at home. There’s no time to double back, so you pull out your phone, hold it near the terminal, and in seconds, the payment is done. You grab your drinks and are out the door with time to spare.
As a customer, that kind of payment experience feels effortless. As the coffee shop owner who made it possible, you didn’t just make a sale; you earned a regular.
Consumer expectations are shifting. People are reaching for their phones instead of their wallets, tapping cards instead of swiping them, and choosing businesses that make checkout feel invisible.
Younger shoppers, especially those who’ve grown up with digital payments as the norm, won’t think twice about going elsewhere if a business can’t accommodate how they want to pay. And that’s backed by data: 70% of consumers say the availability of their preferred payment method is very or extremely influential in deciding where to shop.
If you’re a business owner who’s been wondering whether contactless payments are worth the effort, or even what they actually are, this guide is for you. We’ll cover how to accept contactless payments, what consumers expect, the real benefits for your business and your customers, and what they actually cost.
Contactless payments are any transactions completed without swiping a card, inserting a chip, or exchanging cash. Instead, they rely on wireless technology, most commonly near-field communication (NFC), to pass payment data between a device and a reader.
In practice, that looks like a customer tapping a phone or smartwatch near a payment terminal to pay through Apple Pay, Google Pay, or Samsung Pay.
It also includes contactless-enabled credit and debit cards. Most cards issued in the past few years include this feature by default, indicated by the small wave icon on the card’s face. It also includes QR code payments, where a customer scans a code on a screen or printed display to complete a transaction through a mobile app.
Contactless payments are more convenient than traditional methods: the customer taps, scans, or hovers their device, and they’re done. It also allows businesses to accept payments from a much wider range of devices and payment methods than traditional card readers.
Here’s a quick breakdown of the most common types of contactless payments:
The shift toward contactless payments isn’t a trend on the horizon; it’s already the mainstream. Mastercard reported that 70% of all in-person transactions on its network were contactless in the third quarter of 2024, and that number is growing. That means contactless payments have moved from early-adopter territory into everyday use.
Younger shoppers are driving much of this shift; for many of them, using a digital wallet for business and personal transactions is already second nature. Worldpay’s 2026 Global Payments Report found that digital wallets are the most-used online payment method for 39% of 18-to-24-year-olds and 41% of 25-to-34-year-olds. The same report projects that by 2030, $4.1 trillion in U.S. spending will flow through digital wallets, a 64% increase from 2025.
This matters across all industries, not just retail.
Consider a home services contractor who just finished a week-long renovation project. Their customer wants to settle up on the spot, but they don’t have any digital payment options available, so they mail an invoice instead. That invoice takes a week to arrive, only for the customer to then misplace it. Instead of receiving their money on the spot, cash flow stalls, and the contractor has to spend weeks chasing down their payment. It’s not only a bad experience for the customer, but it’s bad for the business, too.
Contactless options solve this problem, allowing the contractor to process the transaction immediately rather than waiting weeks (or months) for their customer to pay a paper invoice.
The data makes it clear what’s at stake. A 2024 Applause Digital Payments Survey found that 76% of consumers are likely to abandon a transaction if they can’t pay the way they want. And research from PPRO found that 42% of U.S. consumers said they’d walk away from a purchase if their preferred payment method wasn’t accepted.
These aren’t customers who reconsidered and came back. In most cases, they went somewhere else.
For growing businesses, there are three places you’ll see the greatest benefits: checkout completion rates, the ability to serve shoppers without adding more time, and more customers.
Fewer abandoned sales: Payment friction is notorious for quietly draining your revenue. When customers can’t pay the way they want, they often don’t say anything; they just don’t complete the transaction. Removing that barrier is one of the best ways to improve your conversion rate without changing anything else about your business.
Faster service: A tap takes seconds. Compare that to inserting a chip and waiting for approval, counting out change, or flipping through a wallet for the right card. For businesses with consistent foot traffic, like cafés or retail stores, that speed adds up fast. Straightforward transactions mean more throughput, shorter lines, and a better experience for everyone.
A broader customer base: Gen Z and Millennial shoppers have strong preferences when it comes to paying for goods and services. Offering the payment options they already use will help you reach more people and build lasting loyalty.
On the other side of the counter, the benefits to your customers are just as tangible. They’re the kind that build goodwill and bring people back.
Speed and convenience: This is what customers feel most immediately. Worldpay’s 2026 Global Payments Report notes that consumers are drawn to digital wallets because they’re fast, safe, and easy to use. A smooth, fast transaction is a small thing that leaves a lasting impression.
Better security: Contactless payments are more secure than magnetic stripe swipes, which surprises a lot of people. NFC transactions use tokenization, so instead of transmitting a customer’s real card number, the terminal receives a one-time token that applies only to that specific transaction. There’s no static data to intercept and no card number to copy, so your customers are protected at every step.
Payment flexibility: Not every customer carries the same thing. One shopper might have their phone, another might have a contactless card, and another might only have a smartwatch. When your business accepts a range of contactless options, customers can pay with whatever they have on hand. That kind of flexibility is easy to offer and hard for customers to forget.
Security is often the first question business owners raise, both about protecting their operations and their customers. It’s a fair question, but fortunately, contactless payments are among the most secure payment types available.
NFC payments use end-to-end encryption and tokenization to secure each transaction. That means when a customer taps their phone or card, the terminal receives a unique encrypted token in place of their actual card information. Because tokens don’t represent specific card numbers, even if that data were somehow intercepted, it would be useless to fraudsters.
Let’s compare that to magnetic stripe cards. The data embedded in a magnetic stripe is static, so it’s the same on every single swipe. That makes it possible for fraudsters to copy data using special equipment, which is why mag stripe card fraud has historically been so common.
NFC-based payments don’t carry that vulnerability.
The biggest fraud risk for most businesses today isn’t contactless transactions; it’s outdated hardware that doesn’t support modern encryption standards. Upgrading to contactless-enabled devices will not only make it easier to meet customer expectations but also help keep your business safe.
Contactless payments, including NFC-enabled cards and digital wallets like Apple Pay and Google Pay, have the same interchange rates as standard chip card transactions, so your rates depend on your payment processor and the type of card being used, not on how the customer pays.
The main upfront consideration is hardware. If your current device doesn’t support NFC, you may need to upgrade. That said, most modern point of sale systems include NFC capabilities as a standard feature, so most businesses just need to enable the functionality rather than buy new equipment.
For businesses looking to reduce costs even more, zero-cost processing programs allow you to accept all payment types without dealing with processing fees. When set up correctly, these programs compliantly shift the cost to customers who choose to pay by card, keeping your margins intact regardless of how they pay. With the right provider, that can mean offering more flexibility while spending less on processing.
The way people pay is constantly changing. Consumers (especially younger ones) are making decisions about where to spend their money based in part on whether a business offers the payment experience they’re used to. That’s a real consideration, and one that growing businesses can’t afford to ignore.
When you make it easy to pay, you make it easier for customers to choose your business over someone else’s.
Flute makes contactless payments simple. With transparent pricing, NFC-ready hardware, and built-in zero-cost processing options, our platform is designed for growing businesses that want powerful payment tools without a high price tag or complicated setup.
Getting started is easier than you think. Talk to our team, and we’ll find the right setup for your business.