Credit cards provide consumers with a fast, convenient and simplified way to make payments for the products and services they need to buy, and this is perhaps one of the top reasons why credit cards are among the most popular forms of payment with consumers today. As a business owner, it is critical that you accept the methods of payment that your customers want to use, and the benefit can be tremendous.
In fact, one estimate is that businesses that accept credit cards can see an increase in revenue by up to 23 percent. Payment processing may also be faster, and there is no need to hassle with collecting on invoices. In fact, with a credit card, your business could have the money deposited into your account within 24 hours.
Getting an Affordable Merchant Services Account
In order to accept credit and debit cards as a method of payment, your business will need a merchant services account. There are several costs associated with a merchant services account. For example, you will need to purchase or lease the equipment that is used to process the credit and debit cards (not with us though). You will also have a processing fee related to the ongoing transactions that your company processes through the merchant account. These may be based on a percentage of the sales, or there may be a per transaction fee. When you want to get an affordable merchant services account, a closer look at these fees is in order.
Pay Attention to Equipment Fees
There are different technologies that are used with the processing equipment, so you first need to find technology that is functional for your needs. For example, there are mobile payment processing terminals that can attach to a smart phone, and there are fixed devices that are meant to be used in a cash register in a store setting. The speed of the equipment also will vary. Before you compare price, ensure that you find reliable equipment that meets your functional needs. Then, consider the benefits of buying versus renting equipment. Some companies state that they offer free equipment, but be aware that these companies usually make up for the free equipment by charging higher fees in other areas.
Focus on Credit Card Processing Fees
There are base charges that you will pay with all companies for the benefit of processing credit card transactions, and these are set by the credit card companies themselves. For example, all companies that accept Visa credit cards will pay the same base fee. Some have an additional markup that may cover other fees that the processing company incurs. Focus on finding a fee structure that is most affordable for you. For example, if your company processes numerous smaller transactions, a per transaction fee is less desirable than a percentage rate of total sales.
The fees that you pay for a merchant services account can truly add up, so it is important to review all fees and to understand how they will impact your business. You can explore the different options available today to compare fee structures as a first step. Be sure to run calculations on your own to determine how the fee structure will impact your total costs. This extra effort will help you to save money on your credit card processing expenses.
If you’d like to know more about how we can help you accept credit /debit cards and get the absolute lowest rates, call us for a FREE Merchant Services Consultation at (800)416-7713
Rick Anderson @FundingExpert1
Rick Anderson is the CEO and Senior Small Business Funding Specialist with Small Business Money Solutions. A company that helps small business owners and self employed professionals get the financial solutions they need to GROW and thrive. Rick has been in business for over 22 years, and his company has helped 22,485+ small business owners and counting. Rick has also written a book on small business finance entitled 10 Easiest New Money Sources For Business Owners.
Connect with him https://www.linkedin.com/in/RickAndersonSmallBusinessLoans or if you would like to ask him a question, send it to [email protected] If you’d like a FREE ‘Business Funding’ Consultation, call him at (800)416-7713.