If you are the owner of a small business that operates with cash, then you might have noticed that you are losing business or frustrating customers with your inability to accept their preferred form of payment: the card. This could be a problem for you that seems unable to be solved, due to the fact that you think you can't afford the fees associated with processing credit cards and you can't afford to lose business. Here are some tips to help ameliorate your problems and process payments with ease.
1. Encourage Mobile Payments
Many people have the ability access funds over the Internet, whether it be through payment services for online shopping or online banking. What some small business owners don't know is that it is possible to accept mobile payments at a brick-and-mortar store. If you choose an Internet service that allows customers to pay on their phones, you can be sure that their data will remain safe. You will also get more information about their shopping habits and get a better look at the overall demographics of the people who are shopping at your store, allowing you to create more targeted advertising. Finally, you will be able to increase the convenience of payment at your store.
2. Buy Your Own Terminal
You still need to be able to accept credit cards. Some processing companies will lease you a terminal for your credit card payment system that you can use to collect swipes, but you will likely get a better deal if you find one yourself and purchase it independently of your contract with that company. This will save you a little bit of money up front.
3. Choose Interchange Pricing
You want to make sure that you choose interchange pricing when you choose a processing contract for the credit cards that your store accepts, rather than tiered pricing. Interchange allows you to only be charged for the amount of credit cards that are swiped and the amount of money that is being transferred. Tiered has you pay a set fee for a set amount of swipes each day or each payment period. This can result in you being in the situation where you are paying for more swipes than you actually use. By getting interchange pricing, you will be able to keep the credit card processing fees much more affordable.
4. Negotiate Rates
Always get three or four offers before you accept one from processing companies. This will help you bring your rates down through negotiation. For more information, talk to a company that specializes in money services.