So you think that each credit card processor is just a different shade from the others, and for most that you run into are just that. However, processing your credit cards, and debit card transactions shouldn’t be left to chance and if you can find that gem in the middle of them all you will be able to save hundreds, if not thousands of dollars in extra and unnecessary fees. Because this decision for your business is essential to your daily operations, you always need to be looking to see if you are receiving the best deal you can with your credit card processing.
Considering credit card processing fees can add up and take huge chunks of your revenue, we have a few tips that will help you and your team avoid those pitfalls that most stumble into.
Credit vs. Debit Processing Fees
A lot of businesses prefer not to deal with the fees connected with accepting credit card payments. There are whole retail chains out there that highlight this policy and make it a point of the sale with their Point of Sale. To them, it seems like an easy way to save money, right? Completely Wrong! The Federal Reserve recently did a study and found that companies that don’t accept credit cards miss out on, an average mind you, of $7,000 in annual sales. Now for some that may be small pickings for sure, however, what could your business do with an extra $7000?
Think about it. How often do you make purchases using cash? Neither does the average American, a growing number of people today use credit and debit cards only. And we don’t have to even start talking about Google’s Wallet, or Apple’s Phone Pay systems – businesses have to make the adjustments to what their public is preferring to use. To add to it all, studies even have shown that people spend 12-15% more when paying with credit cards versus cash. And that’s only the most obvious of the reasons to accept credit cards on a regular basis.
Because people are using their cards to track their spending, (seems to be harder to do with a cash only philosophy) and keeping the protections that credit cards afford to those purchasing, use of the credit card is only going to increase. By accepting credit cards, you’re also reducing the number of checks you accept, which in the past have had a higher “bounce” rate than credit cards, have ever had.