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The use of credit cards has become increasingly popular in recent times. The ease and comfort they offer are among the chief reasons for their ever-increasing usage. However, there are also certain disadvantages to using them. Credit card companies attract customers by offering rewards programs, cash back, and loyalty points, making it very difficult for people to resist spending more than they can afford or should be spending on these cards. That said, there are some considerations you need to take into account when using credit cards in your business.
Make Sure You’re Using a Reputable Company
Not all credit card companies are the same; some offer better rates than others. It’s crucial that if you decide to accept credit cards, make sure to use the services of companies with low-interest cards rates. Essentially what you want to avoid is paying high fees for each transaction. This can quickly eat up any profits on small transactions and make it not worthwhile for the business owner to accept credit cards at all. Many comparison websites will show users their options when looking for a specific service. These sites allow users to compare services to find the best rates available in their area.
Make Sure You Have a Credit Card Machine
Please note that you need to have a credit card machine before using this as payment. Without one, it will be nearly impossible to accept credit cards as a form of payment. There are many places where you can buy these machines, and they usually cost around $300-$400 depending on the company and model you purchase. You could also consider leasing the device through your bank or other financial institution for an additional fee per month. However, suppose you don’t mind spending the money upfront. In that case, we recommend purchasing the actual device instead of leasing because often, it’s cheaper in the long run if you use it regularly throughout your business.
Your Business Needs to Make it Clear That it Accepts Credit Cards
Many businesses today don’t accept credit cards because of the high fees associated with them. If you want your company to stay competitive, accepting credit cards is a must in most cases. However, sometimes owners may be unfamiliar with the process or are unsure if they are charging enough for items sold to cover these expenses. If you put up signs saying “we take all forms of payment,” you will lose money on every transaction made through this method, and it won’t be worthwhile at all for your company’s bottom line. It’s vital that before making any significant purchases, you check with your company’s representative to make sure you know how much the rates are going to be.
Set a Limit on Credit Card Transactions
Most companies will have a maximum amount to spend per transaction to accept credit cards. If not, you must set one yourself so as not to lose money on big-ticket items. This can vary widely depending on your company and what they typically sell, so check in with your representative before making any significant changes, so you don’t lose money over something as simple as this. However, if you would like to promote in-store credit card spending to boost profits, you should talk to your company’s representative to find out the percentage for allowing this payment method. Also, if you are selling big-ticket items like televisions or laptops, it may be a good idea to lower this amount since these items will end up costing your company more money in fees than others.
Be Aware of When People Use Their Cards to Make Purchases
If you run an online business (website or internet-based), then not accepting credit cards can sometimes make it challenging for users to purchase products from your site using this form of payment. In some instances, you can set up a third-party service that will allow users to make payments online and use their credit cards to purchase items from your site, but this can come with high fees as well. If you find yourself in a situation where you want to encourage more customers to buy online using their cards (and thus it costs less for both parties), let them use a third-party service specializing in this form of transaction.
The critical thing to remember when deciding whether you should accept credit cards for your company is that this decision will affect your business’s bottom line. When it comes to credit cards, there are many good and bad involved. Because of this, we recommend using a third-party service if possible because it will save you time and money in the end.
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