Do you take plastic? If it seems like you’re hearing this more often, you are. By 2017, more than a third of purchases will be by credit card. You want to offer this convenience to your customers, but it comes at a cost. Your big-box competitors can absorb the expense more easily with volume. But small businesses need to be smarter about using it. Take a look at these ideas for offering smart credit card payment to your small business customers.
The key issue with plastic is the fees. Merchant account companies charge processing fees such as gateway costs, interchange costs and statement fees. The Small Business Administration reports that it can add up to as much as five percent of the purchase price. That means you earn five percent less on every sale you make.
So how do you offer the convenience of credit card payment without breaking the bank? Consider these ideas:
Given the rise in credit card payments, businesses that don’t offer it are standing out (and not in a good way). But be sure that you account for its added costs before you offer the plastic option in your small business.