Whether customers are doing business online or in a physical store location, research shows that the preferred way to pay is with a credit or debit card. If your business is one of the few that is not yet accepting cards as a form of payment, you may be cutting your potential market in half, if not more. If you are considering adding this as a form of payment that you accept, then there are a couple of things you need to know about this method of payment.
Understanding Credit Card Processing Fees
Like with some other forms of payment options available to consumers, there are fees associated with processing credit cards. Depending on the company your business accepts payments from including but not limited to Visa, Mastercard, American Express, Discover, the fees may vary. And while some of the fees are set and necessary for you to do business with them, there are others that you can negotiate down or possibly even get rid of entirely.
Some examples of fees you may find include set up fees, annual fees, termination fees, statement fees if you are viewing your statement via paper format, and transaction fees. Typically, these fees can be negotiated. Depending on the processing company and the volume of business you are doing with them, the cost per transaction may go down. As a rule of thumb, the more card processing volume you do the lower the fees can go.
The Credit Card Processing Equipment
Your business won’t be able to process credit card payments without the right equipment. The only exception to this is when payments are processed online. In this case, you may need to pay a gateway fee in order to process credit cards securely through your ecommerce shopping cart..
If you have a storefront, you’ll need point of sale technology so cards can be processed on the spot. If you own a kiosk or food truck, you may not need anything as robust and a good alternative is a mobile card reader.
Each of these separate components cost money, but in comparison to the convenience your business will be offering your customers, the cost may be minimal. Each payment processing company has their preferred equipment and gateways, you may want to research which option best fits your business before you purchase any equipment. There are many different kinds of equipment these days including the new smart chip card readers so it is important to explore your options and keep your customer preferences in mind..
Credit card processing solutions are available through several different options so make sure you have everything you need for a seamless integration. Contact the team at Persolvent to learn about the options available to your business that will provide the right solution for your and your customers alike.