Credit Card Processing Information for Your Small Business
By accepting credit cards, you are opening up a whole new revenue stream for your business. More people than ever are using credit cards to pay for products and services, and by accepting credit cards you are providing these people with a convenient way to buy what you're selling.
Here are some facts that you should know before you move forward and set up a merchant credit card account:
Credit cards can increase your sales
There are a large percentage of customers who will only make purchases using their credit cards (especially online). By accepting credit cards you are adding these individuals to your list of potential customers. Be sure to ask for store front options when comparing web design prices. Also, people tend to spend more when using their credit cards, which for your business, can only be a good thing.
Credit card terminals are relatively inexpensive
Basic merchant credit card processing terminals only run about $200. (If you want a high-end wireless model the cost is around $1,000). These terminals are easy to set up and generally require only a phone line and the rolls of paper used to print receipts.
You will pay a fee for accepting credit cards
It is important to know going in that credit card processing companies will take a percentage of every sale you make using the machine. Although this percentage is generally nominal (usually around 1.5% to 2%) you must still weigh the benefits against the costs. In other words, is accepting credit cards going to help you bring in business you would not have had without them? If so (and this is often the case), then paying the percentage off each sale makes good business sense!
Concerns about frauds and scams
Many small businesses do not accept credit cards because they are afraid of getting tangled up in the use of fraudulent or stolen cards. While credit card fraud is a constant concern, credit card companies have made great strides in their protection programs and offer businesses and consumers many ways to avoid paying for illicit charges.