Whether you’re a veteran business owner or just starting your first venture, every small business needs a way to process credit card payments. These days, cards are more popular than ever; in fact, many potential customers don’t even carry cash anymore! Although every credit card company does charge a processing fee to use their services, there are multiple ways to take payments while reducing costs to protect your bottom line.
Fraud: Protect Yourself and Getting the Most Bang For Your Buck
Because both you and the credit card company are hurt by fraud, choosing safer transaction types has multiple benefits. For one thing, different ways of entering the credit card information can actually cost you different amounts per transaction. For example, manually entering numbers takes longer and is also more vulnerable to theft. On the other hand, if you scan the card’s strip or chip, you will benefit from the card’s built-in security features, which results in a more secure transaction. Obviously, credit card companies prefer this method, and will often charge you a lower rate if you swipe or read the card’s chip.
There’s a low-tech practice that can save you time and money, too. Check IDs against the names on the credit card! Believe it or not, taking 30 seconds to do this could save you a serious headache down the road.
Credit Card Processing for Small Transactions
If your business tends to handle smaller transactions, it might be smart to impose minimum amounts for credit card sales. For example, if you own a convenience store that gets a lot of small transactions under $5 and your profit margin on those products is just 10%, it’s probably not worth conducting the sale after factoring in credit card fees.
All it takes is putting up a note that says you accept credit cards, but with a minimum sale of $10 or $20. If a customer doesn’t understand, simply explain that the cost of processing plastic is greater than cash.
Credit Card Fees: Unavoidable, but Controllable!
Credit card processing fees are unavoidable, but they can be negotiated and reduced with the right strategy and execution. Contact us today
for a free consultation and let us help you find the best way to process your customers' orders while protecting your bottom line!