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LocalPay, a better way for farms to accept online payments

Food is a low-margin industry. Farmers, producers, manufacturers, distributors, chefs, and grocers; all businesses in the food supply chain operate on tight margins. 

At Local Line, we do everything we can to help farms earn more and save more. With the rise of e-commerce in the agriculture industry, we noticed that credit card fees from online orders kept adding up, taking valuable margin away from the farm.

We’ve all grown familiar with the popular online payment companies. You know, the ones you integrate with that process payments for your online store. Paypal, Stripe, Square, Apple Pay, heck… even Bitcoin. Over the years these payment companies have grown larger and larger, and we all naturally accepted the rates they charge for online payments: 2.9% + $0.30/transaction. 

Today, paying 2.9% + $0.30 is a widely accepted cost of online sales. But paying nearly 3% on every order adds up in an already low-margin industry. We wanted to understand if there was a way to bring these costs down for farmers because any savings on these fees flows straight through to the bottom line. For example, $100 in saved credit card fees is $100 more profit for your farm. We asked ourselves the following questions: 

  • How do online payments actually work? 
  • What happens when someone clicks “Pay” at checkout? 
  • How did the payment companies decide on 2.9% + $0.30/transaction?
  • Is there a way to build a better, more affordable solution? 

These questions took us deep down the online payments rabbit hole, and we found that it’s absolutely possible to build a better, more affordable solution. Here’s how: 

When a customer places an online order with a credit card, the internet payment platform you’re integrated with (Paypal, Stripe, Square, etc.) captures the info for that transaction and sends it to the credit card company (Visa, Mastercard, American Express, etc) to be finalized. When the credit card company finalizes the transaction, the customer's card is debited and the farm's account is credited. Simple! 

While it’s true that credit card companies have a cost to settle each transaction, the key discovery we made was that this cost varies by industry. Primary industries such as farming, energy, mining, etc have much lower transaction costs than other industries such as retail and travel. 

Yet despite the farming industry having low transaction costs for online orders, the internet payment platforms still charge farms the standard 2.9% + $0.30. In fact, these companies charge this standard rate no matter the industry. Because they serve so many different kinds of businesses, they have standardized the rate for everyone. As a farmer, this means you’re paying a higher credit card transaction fee than you need to.

In farming, we know it’s the inches that make the miles. Reducing your credit card rate by 1% can mean an extra 5% in profits at the end of the year. So, we built an online payments system that saves farms money. We call it LocalPay

To build LocalPay, we partnered with a payments company that recognizes that not all industries should be paying the expensive 2.9% + $0.30/transaction charged by the popular internet payment platforms. Through working with our partner and building our own payment gateway inside Local Line, farms will now save hundreds, if not thousands of dollars each year. Moreover, farms will no longer need to manage their payments, refunds, and payouts in another system. Everything can be seamlessly managed in your Local Line account. 

Karin from Wolf Creek Family Farm, who has been using LocalPay since early June said,
“When mobile payment options started coming out, it seemed like everyone was jumping on board, but they all seem to charge the same amount for processing. The more options to have on the market, the better the market becomes, I think. And so especially when a smaller company is jumping in and trying to do their own thing and trying to run with those big dogs. I'm like, yes, please, let's go for it!”



Farmers can now get much lower rates when compared to other generic options. Local Line customers pay as little as 2.3% + $0.15/transaction, which is significant savings compared to the 2.9% + $0.30/transaction charged by the major online payments companies. With these new rates, the average Local Line customer will save $480/year and some customers will save more than $10,000/year.

Setting up LocalPay in your account takes 10 minutes to do and can increase your profit margins by 3-5% per year. Plus, you can keep all your transaction details inside Local Line, so you no longer need to integrate 3rd party apps into your account. 

The best part?

There is no cost to Local Line customers to use LocalPay.

Get Saving Today

Getting started is easy. All Local Line users are now able to enable LocalPay in their Local Line accounts by filling out a simple application. 

Learn More

*LocalPay is currently only available for Local Line users in Canada and the United States. 

Not yet using Local Line? What are you waiting for? 

Running your business is hard work. We want to help make it a little bit easier.

Try Local Line for yourself for free today!

Used by all types of farmers and producers, Local Line helps you sell online, communicate with customers, and manage your business all in one place.

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