Many people today simply prefer
convenience of paying by credit card. If you want their business, you must be able to accept their credit-card payments.In part one of this series we will discuss why you should accept credit cards, and basics of getting merchant status. Part two will deal with objections you might get, which credit cards to accept, and check paying option.
Obtaining merchant status, which allows you to accept credit-card payments, might seem like an unnecessary hassle, especially for those in business where majority of their customers pay by cash or check. But by not accepting credit-card payments, you lose sales. This is especially true if yours is a mail order business, or consulting business. Just look at majority of business today, all of them accept credit cards, and becoming more and more popular all time are debit cards.
As many businesses have found, up to 70 percent of people never mail check, so accepting credit cards is crucial. When customer places an order, he’s excited and eager to buy. Faced with prospect of sending a check, waiting for it to clear and then awaiting shipment, his interest is likely to wane. In meantime, you lose sales.
The Basics of Merchant Status
In order to accept credit cards, you need to work with a bank that will transfer money into your account within a day or two of sale, and then collect money from customer. In return, you pay bank a commission of 1.5 percent to 5 percent for each credit-card transaction; a set, per-transaction fee; and a setup fee. You will also have to pay monthly support or equipment-rental fees for a point-of-sale terminal—the machine used to swipe card—depending on contract.
