Part of the process of starting your own business is choosing the best service for accepting money, that will also save you money. If your brick-and-mortar business does not accept debit and credit cards, I’m sorry to say that you’re way behind the times.
But it’s very common for small mom and pop shops to either only accept cash, or charge a service fee every time a debit or credit card is used. This can be very problematic in an age where consumer convenience is at an incredible height. In our internet-driven society with sites like Amazon controlling the majority of the retail market, it’s too easy for consumers to find other alternatives to your inconvenient payment processing methods.
So what are some possible alternatives that you have?
Well for one, you can start out by choosing company that offers affordable rates on payment processing. I looked at a number of different alternatives and one of the best solutions I was able to find was from a company called Merchant Account Solutions.
Most major credit card providers like Visa, MasterCard and American Express charge an average fee of roughly 1.95% – 2%. The average cost for card-not-present businesses, such as online shops, is roughly 2.30% – 2.50%. In the short-term, this may not always seem like a substantial amount, but think of it this way; if you’re making 1 million dollars in revenue a year, and 80% of those charges are on one of the above credit card providers’ readers, you’re losing almost $17,000 a year.
Seems like a lot now, right?
But what if you could bring that rate down, to just 0.39% and got a free credit card terminal on top of that? For that same annual revenue you’d only be paying a little over $3,000 a year. Imagine what you could do with an additional 15K a year by choosing the right business credit card machine. Once you start thinking 5, 10 or even 20 years ahead, something as simple as a credit card reader can help you see a substantial increase in revenue.
Before making a snap judgement and following the status quo, consider doing your research to find more affordable alternatives so that your business can grow to its fullest potential.