Contact Sales (855) 615-7481

Get FREE Quote

accept credit card

The Pros And Cons Of Accepting Credit Cards

It is becoming more common for businesses to accept credit cards. That is why if a business does not accept credit cards, their competitor may have an advantage over them. However, there are advantages that come along with accepting credit cards. Here is a list of the numerous pros and cons:

Pros

More business

You may be able to get more business if your company accepts cards. It is safer to carry around a credit card instead of cash. People will probably spend more money if they use a credit card. This can potentially help your business generate more revenue. Keep in mind that you are limiting a large percentage of your potential demographic if your business is not using a credit card processing machine.

Convenience

Merchant accounts not only make things more convenient for the customers, but they also make things more convenient for the business. People like the convenience that comes along with being able to swipe their card instead of carrying around a lot of cash. There are different types of software that can be used to tie in directly with your merchant accounts. This makes things like accounting and inventory management a lot more convenient.

Cons

Expensive

It can be expensive to accept credit card payments. You will have to pay for monthly statements, merchant services, interchange fees and other credit card processing fees. These fees may be too much for a business that is on a tight budget.

Subject To Chargeback

Every credit card transaction is subject to a chargeback. If the customer is not happy with your product or service, then he or she may dispute the charge. A person can dispute the transaction for up to six months after it occurred. The business will have to prove that the purchase was legitimate. Additionally, if a business has received a lot of chargebacks, then it may no longer be able to accept cards.

Liable For Fraud

If some type of fraud occurs in your system, then your business may be held responsible. A bank may also require that the business pay for the fraudulent transactions. A business may be destroyed as the result of a fraudulent transaction.

Weighing the Benefits of Accepting Credit Cards

Many business owners often start out with the impression that they will do well for themselves if they only take cash or check for payment. In truth, however, they are doing their business a disservice. If you weigh the benefits of accepting credit cards, you will see just how much it will profit your business.

Validation of Your Business

When you place a sign on your business door or your website that you accept credit cards, it will immediately validate your business in the public eye. Many people often consider a business that will not take credit cards as a business that will not be around for long. In many cases, they are correct.

Get a Boost in Your Sales

The greatest advantage of merchant accounts is you will see an almost immediate increase in sales. A person with cash in hand is only going to spend the amount they have on hand. However, by taking credit cards as payment in your store, you are going to get a lot more impulse buys. Your customers will not be limited by the amount of cash they have in their pockets.

Merchant Accounts are Inexpensive in Comparison to Not Having One

Credit card processing is competitive and, with a little research, you will be able to find a company that will suit both your needs and your budget. Many will have such low rates that small businesses of any type can afford them. In fact, most small businesses find that their merchant accounts are something they should have invested in much sooner.

Merchant Accounts Allow a Level Playing Field with Your Competition

From the moment you choose a credit card processing provider, you have leveled the playing field with all of your competition. The fact is that very few individuals actually carry cash with them. Instead, they pay for their purchases with credit and debit cards. As long as you are offering quality products and services, you can be guaranteed that you will be able to compete with companies in your line of work.

By allowing your clients and customers to pay with a credit card, you are setting your business up for success. The actual set up of a credit card merchant account is quite simple and within a short time, you can start seeing a major difference in your sales. The key is to find a provider that is familiar with the type of business and provides quality service.

Your Responsibilities When Accepting Credit Cards

When a business accepts a credit card payment, it is bound to a set of rules that are detailed in operating guides of all merchant accounts. Adhering to the policies associated with credit card processing protects customers, employees, and businesses from malicious activity. Following the contractual responsibilities of merchant accounts keeps data secure, prevents incidents of fraud, and avoids chargebacks. Failure to sustain accountability in these regards results in fines, convictions, and potential merchant account closure.

PCI Compliance

The payment card industry data security standard (PCIDSS) is the standard of protection agreed upon by the major credit card brands. Meeting the PCIDSS’s twelve basic policies is required of all merchants that store, process, or transmit cardholder data. Without safeguards, credit card processing is vulnerable to intrusions that expose customer data. It is important that businesses of all sizes achieve and maintain the minimum PCI minimum standards in order to avoid data breaches and the associated penalties.

Vigilance Against Fraud

Credit card fraud comes in several different forms, and businesses have a mandate to adhere to procedures that help identify and impede attempts to use wrongly use credit card data. In-store transactions, in which the credit card and its owner are both physically present are easier to monitor, but special attention must be paid to online transactions and telephone orders. Acquiring banks and credit associations will penalize or close merchant accounts if they incur too many financial losses from fraud.

Avoid Chargebacks

Some chargeback situations are unavoidable, but strong business practices will decrease the likelihood of customer dissatisfaction and the resulting complications. Chargebacks cost businesses not only the money from the sale, but fees on their merchant accounts. Like other major violations, too many chargebacks may damage a business’s reputation and make merchant service providers less willing to work with them.

Maintain a Positive Relationship with Merchant Service Providers

Credit card processing is considered a privilege to credit associations and acquiring banks. If a business is consistently unable to meet their standards, the penalties are significant, from fines to the privilege being completely revoked. It is crucial that business owners monitor their statements every month and stay familiar with the policies guiding their merchant accounts.

How Can My Business Start Accepting Credit Cards?

Purchasing items with cash is a thing of the past for many people. A lot of people prefer to use their credit and debit cards to make purchases. Billions of people shop comfortably from their home and paying with cash is not an option in most instances. Here are three things you need to keep in mind in order to start accepting credit cards in your business.

Merchant Account vs. Third-Party

You don’t want your business left behind in ancient times due to the fact your business does not accept credit cards. Make sure you judge your needs according to your business and not your competition. The difference between a merchant account and a third-party account is simple. A merchant account is a business account that enables a business to accept credit card payments with various fees, such as transaction fees. A third-party credit card merchant allows a business to use their merchant account for a fee, but the transaction fees may be lower or higher depending upon the provider you choose. You need to decide which method of accepting credit card payments will best suit your business.

Purchase Necessary Equipment

You may have a merchant account, but without the proper equipment, accepting credit cards is useless. You need to ensure your business has every piece of equipment that is required to accept credit cards without a hassle. In order to accept credit cards, you may need web-programming services and credit card machines to accept credit cards. If you plan on using credit card machines, they have to be professionally installed and set up. There are many different companies that are available to help you with credit card payments. Make sure you choose the correct provider for your company to ensure each transaction is as smooth as possible.

Training and Support

Training and support are essential when it comes to accepting credit cards. Every employee needs to know how the equipment operates and how to utilize its functions. There will be at least one individual who prefers to pay for their item with a credit card. One thing you do not want to do is have a customer wait a long period of time and create a long line. As far as support is concerned, you need to keep all support numbers in a convenient, safe place in case of a mishap. Errors with machinery occur frequently and you should make sure you are prepared for any errors and malfunctions. The better prepared you are, the better chance your business has of recovering from a machine malfunction. Normal wear and tear is expected with machines that are used on a daily basis. You need to have at least two plans and solutions to ensure your company can function in the event of an emergency.

The Benefits of Accepting Credit Cards

Those who want to begin to grow their businesses need to be receptive to the preferences of their customers. In many cases, customers no longer carry around a lot of cash, and many younger people don’t even know how to write a check. Most people prefer to pay with plastic, making credit card processing important for businesses who want to stay relevant.

Merchant accounts offering payment processing have many different options for those who are considering accepting credit cards. Some will offer different fees for debit cards, and they all vary with what types of cards they will take. The types of cards that businesses choose to accept will determine what the cost to accept them will be. In many cases, these payment processers can get businesses their money in one day. That is very helpful for those who need to have their money right away.

One of the best reasons to begin to look into credit card processing is that businesses can then take their merchandise and services to the web. It is easy to find a merchant account service that will process payments not only in person, but also online. They will provide the system needed to process these cards online, and allow businesses to expand to the country or the world.

Those who only accept cash are missing out on customers who rely more heavily on using a credit card. Even those who have something like a cart may find that they are able to accept cards using an app on their phones. In some cases, they will be able to get a device to swipe the cards through, and then will be able to process the payment using their cell phone signal. This can seriously open up the number of people who they are able to sell to, and allow them to be more flexible for their customers.

Look into the services that are available, and find one tailored to the needs of each business. Depending on what each business needs, it is easy to build a package that will include something for everybody. Start reaching out to customers where they are and begin accepting credit cards today.

Hypercom Optimum T4100

When looking to accept credit cards, it’s wise to use a well-built and engineered machine. Think about it, when using a machine, it’s great to have one that works, and it’s great to have one that doesn’t need much in the way of setting up. With that in mind, a business owner should consider a Hypercom Optimum T4100 machine, and here are three reasons why.

Fast:

When looking to accept credit cards, it’s crucial to use a machine that is fast and works well. Credit card processing is important, and one will want to use a machine that works, and one that works fast. Fortunately, with the Hypercom Optimum T4100 machine, a user can get more out of it as tits fast and has the latest and greatest tech. Since it’s not overpriced, anyone who wants to run a business and not break the bank should consider this. Simply put, with credit card processing, one will have an easier time if they use the Hypercom Optimum T4100 as it’s fast.

Easy to use:

Without a doubt, when looking to use a credit card machine, one will have an easier time if they buy on that is easy to use. Sadly, many are hard to use, and people will often struggle, especially f they are not well-versed in tech. luckily, with the Hypercom Optimum T4100, you don’t have to be a tech genius. In the end, with the Hypercom Optimum T4100 is easy to use and merchant account owners will have an easier time if they have the right tools on their side.

Portable:

Finally, when looking to have a machine that is easy to move around, one will have an easier time. Think about it, now, business owners are not always in front of their desks, and a lot of people want to take payments while on the road. Coupled with a merchant account, and one can see why it’s wise to have a Hypercom Optimum T4100 on their side. So, remember, when looking to have a portable solution, a person will have an easier time if they are a road warrior.

Without a doubt, when looking to accept plastic, one should run out and buy a Hypercom Optimum T4100. Otherwise, with other machines, one will have a harder time taking payments and keeping their business and credit card receipts organized and in order.

Why Accepting Credit Cards is Better For Your Business Than Cash Alone

Credit cards can be attractive, advantageous and beneficial for both business owners and customers. Businesses with credit options at checkout are in a better position to meet the needs of patrons desiring a payment option other than cash. Credit card processing as a means of expanding cash-flow of a business is worth considering. What are the advantages of accepting credit cards as opposed to having a cash-only business?

Better Customer Service

Credit card processing is a catalyst to premier customer service. It can quicken the pace of the payment experience. Consumers are drawn to companies with good customer service. This payment option is crucial to a business that sells products or services using the internet.

Increased Sales

If a customer does not have cash on hand, having an alternative payment option will increase the likelihood of following through with a purchase. Business sales can increase as a result of customer retention. Revenue will also increase due to attracting new consumers looking to spend on credit. Consumers tend to spend approximately 20% more on individual purchases when given a credit option.

Positive Reputation

Merchant accounts give businesses a more professional image in the eyes of consumers. Displaying card logos and decals make a good impression on potential buyers. An alternative payment option may mean the difference between receiving patronage or not.

Enhanced Cash Flow

Revenue gained by means of merchant accounts is deposited directly into the merchant’s bank account. Although there may be a delay before the funds become available to the merchant, credit card processing is very fast compared to waiting for a check to clear.

Lower Costs Overall

Although accepting credit card payments may mean added expense, it is less expensive than accepting checks. There is also the benefit of having less cash on hand that could be stolen.

Overall, giving a consumer more than one payment option is becoming more popular. Consumers have already begun to expect to have multiple choices for transacting money at the “checkout counter”. Accepting forms of payment other than cash will cost businesses money. But businesses are beginning to recognize this arrangement as a necessary operating expense in order to gain and retain customers. Merchant accounts give a business the advantage of being able to say “would you like to pay by means of cash or credit”.

Accepting Credit Cards on the Go

If you have credit card processing capabilities, you can now accept credit cards on the fly. Providers of merchant accounts are now allowing you to turn your smartphone or tablet to into a credit card processing terminal. How can you do this, how much does it cost and are there any requirements to accept credit cards wherever you are?

How Can You Accept Credit Cards on the Fly?

If you have one or more merchant accounts, you can connect your account to a device that you attach to your smartphone or mobile device to take credit card payments wherever you are. Customers can now use their credit cards when they purchase paintings at an art festival or when they buy hot dogs from you at the beach or at a youth sporting event. This enables your company to increase sales and cater to those who don’t like to haul cash around when they go out.

How Much Does it Cost?

Surprisingly, it doesn’t cost much to have this capability. In addition to standard merchant transaction fees, it costs about $30 or less to accept credit or debit cards on the fly. For most businesses, this cost can be recouped in only one or two transactions. Therefore, it is something that even the smallest of businesses can take advantage of to increase their customer base.

Which Companies Qualify For Such a Product?

The best part is that any company that wants to use their smartphone or tablet to accept payment via credit card can do so. However, it may be slightly more expensive to use if you don’t make a certain sales threshold each month. Businesses that make less than $3,000 a month tend to pay the most while companies that make more than $10,000 tend to make the most.

If you are thinking of ways that your company can expand its customer base, make sure to look into technology that allows you to turn almost any computer into a credit card terminal. This will allow you to make sales wherever you are and wherever your customers are interested in making a purchase.

Which Credit Card Types to Accept For Your Business?

When you are searching for a merchant account or credit card processing service to use for your small business, you understandably want to find the right processing service to use. Credit cards are among the most popular forms of payment among patrons in a wide range of establishments, and you may miss out on business from some of them if you only accept cash or checks as a form of payment. However, a credit card processing service can be expensive to use if the right service is not selected. Because of this, you want to make sure that you select a processing service that is highly affordable and beneficial for your company. One key factor to consider when making your selection involves which types of credit cards to accept.

Credit Cards That Your Patrons Use

There are two key components to consider when making the decision about which credit cards to accept. The first involves consumer convenience. The fact is that accepting credit cards as payment is a convenience for your patrons, so you need to consider which types of cards most of your patrons use. The majority of consumers will have at least a Visa or Mastercard in their wallet, and some will also use other credit cards like American Express, Discover and Diners Club. If your company only does a small amount of business, the number of consumers who wish to pay with a Diners Club card or another related card may be minimal, and it may not be worth your effort to accept this. If you process a larger number of transactions, accepting additional types of credit cards may be financially feasible.

Service Fees

Another factor to consider involves the service fees for the different types of accounts. Each merchant processing service has different fees, and you may find that those that accept only Visa and Mastercard are more affordable than those that accept American Express and other types of credit cards. It is important to weigh the pros and cons of each processing service before making a decision that is best for your business.

If you are comparing credit card processing or merchant accounts services today, it is imperative that you also consider the types of credit cards that you will accept. These two factors go hand in hand. Your main goal should be to find a cost-effective service that provides the convenience of credit card payments to your customers.

Calculating How Much More You Will Make by Accepting Credit Cards

Companies that have credit card processing capabilities have an opportunity to make more than companies that do not have credit card processing capabilities. However, how do you figure out exactly how much more your business stands to make?

How Many People In the Area Use Credit Cards?

The first thing that your company needs to do is figure out how many people would use credit cards if they could. One way to figure this out is to find out the percentage of customers at local businesses use credit cards. The second way to figure this out is to ask your customers if they would use credit cards if offered the opportunity.

How Much Business Does the Company Do Online?

When customers shop online, they are likely to use their credit cards to pay for their purchases. Therefore, you need to find out how many customers would shop online instead of visiting your store. Then, you need to figure out how many customers would use a credit card as opposed to a PayPal account or with an eCheck.

Which Credit Cards Will Be Accepted?

It is critical that your business accepts credit cards that are widely used. A company that doesn’t accept credit cards that customers want to use will find that there may not be much of an added benefit to accepting credit cards. You should also consider whether or not a store branded credit card will be offered to customers. This could entice your customers to use a credit card when they otherwise might not.

How Much Do Merchant Accounts Cost?

The last piece of information you need is how much merchant accounts cost. Merchant account providers generally charge a signup fee and may charge other fees as well. On top of any administrative fees that you may face, your business will have to pay a processing fee each time a credit card is used to make a payment.

There is a lot of research that needs to be done before you can determine with any certainty how much money your company can bring in by offering credit cards. It is important to know how many people use credit cards now, would like to use credit cards in the future and which cards people are most likely to use. Otherwise, you could be offering customers a service that they don’t want or need.

GET FREE QUOTE TODAY AND START SAVING

Type Of Account

Articles

What Exactly is a Contactless Payment?

The modern credit card industry and credit card processing began in the 1950s, and the first credit cards...

How Smart Chips Will Make Electronic Transactions More Secure

For the typical business person who runs across fraudulent transactions involving credit cards, credit card processing with smart...

What To Do With All of Your Company’s Receipts

As the electronic age has started to take over more businesses, much of the information that used to...

© 2015 CreditCardProcessing.com. All rights reserved. Privacy Policy
CREDITCARDPROCESSING.COM, LLC is a registered ISO of Wells Fargo Bank, N.A. Walnut Creek, CA
American Express® may require separate approval.

*Promotion contingent upon CreditCardProcessing.com's receipt of written competing offer(s). Further terms and conditions may apply.

**Certain restrictions may apply. Promotional offers brought to you by
CreditCardProcessing.com. Call (855) 615-7481 for details.