Credit Card Processing
It seems as though every business is accepting credit cards these days and as this monopolizing method of payment continues to rise in popularity, it is natural to wonder if your small business should join the ranks as well. Although the decision may seem easy, it can be a challenging task due to the highly competitive nature of the Credit Card Processing Industry. Therefore, there are several essential factors to consider before making this decision.
Benefits of Accepting Credit Cards
To start off on a positive note, consider this: forming a merchant account will benefit your business. A merchant account is one that enables merchants to accept credit card payments, and is required if you have any desire to take credit card, debit card, or electronic check orders. This account can be obtained through a credit card company and will provide several advantages to your company.
- Of course, forming this account will help boost sales due to the modern assumption that most wares are available for purchase with credit card. The easier it is to purchase your product, the more likely it is that consumers will spend their money.
- Not only will you receive more money, you’ll also get the advantage of receiving it immediately. Rather than waiting for several weeks to receive payment, funds will be deposited directly into your account in a matter of days into the checking account of your choice.
- You can also avoid the issue of non-payment. The small fee required to the credit card processing company is nothing compared to the forfeiture you avoid from eliminating non-payment losses.
- Going virtual is a modern phenomenon of business and, with credit card processing, you too can be a part of it. A virtual presence allows you to have a global customer base and provide easy access to ware purchase.
- Finally, you get the advantage of being able to auto charge your clients. For customers on a revolving payment schedule, it is typically easier for both them and your business to rely on credit card auto charging each cycle.
Watching the Cost
In addition to considering the benefits, you must also consider the equipment costs. It costs money to process credit cards, although the price of the necessary equipment has decreased significantly in recent years.
- You should choose a company that will sell you a credit card processing terminal for under $500.
- You should also make sure that some form of training is included with your purchase. A simple introduction to the more advanced features of your terminal can help you get your money’s worth.
- Make sure that you are not stuck with an outdated, refurbished model of a machine; check that it is a new and up to date with the latest technological advances. You want a machine that is compliant and can be used with the processor of your choice.
- You should not lease equipment. It will often cost you far more than purchasing your equipment outright. You could be paying more than the machine is worth and usually you have to enter into some sort of contract.
Make sure you read the fine print and check for hidden fees. Some agreements give the lease company authority to debit your account for additional insurance fees at their discretion, so look sharp.
More information to come; check back soon for more information on fees and charges to look for when utilizing credit card processing.
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Know any other benefits or things to watch for when accepting credit cards? Leave us a comment below!