Whether you’re an eCommerce start-up or a new Main Street retailer, it’s a safe assumption you’ve thought about how you’ll accept payments and what the point-of-sale capabilities of your business will be. Critical financial decisions must be made before entering the world of commerce – decisions that ultimately affect sales and your bottom line.
Take credit cards, for example. Whether to accept credit cards often divides small business owners into two camps: those who view taking plastic as a no-brainer and those who feel they can afford to stay a cash-only business.
Some of the reasons to accept credit cards include convenience – not just for shoppers but also for you because the card company deposits the funds directly into your checking account. That means you don’t have to worry about bounced checks, securing the money, or bill collection. Second, the sign on your store window indicating you accept credit cards gives you instant credibility with your customers. And third, it’s likely your sales will increase. Industry research shows that customers may make more impulse purchases and buy higher-priced items when they pay with plastic.
If you’re launching an eCommerce website, there’s just no way around it – a merchant account, a payment gateway, a shopping cart, and a checking account for your funds to be deposited in are must-haves. But if you’re opening a bricks and mortar store, do you really have to accept credit cards and, more importantly, what’s the cost if you do – or don’t?
Below are the top three myths about credit card processing and merchant accounts – and why buying into these “legends” is risky business.
- Customers always have cash. When was the last time you paid your grocery bill, ate out, or filled your gas tank using cash? For a majority of us, the convenience of using credit and debit cards is a given. A Bankrate survey found that two out of five Americans carry less than $20 in cash on a daily basis. The bottom line? You’re losing sales if your business isn’t taking credit cards – and likely alienating customers who will never come back.
- Accepting credit cards costs too much. There is a cost associated with accepting credit cards and a merchant should evaluate whether the benefits outweigh the cost. But you should also know that the fees and costs associated with processing credit cards are far less than you might expect. Why? Fierce competition among merchant providers for your business drives down prices and keeps fees low. If this is news to you, a free pricing analysis from a processor like EVO Payments International may be just the thing.
- I can’t qualify for a merchant account. Don’t assume your business type, credit history, location or start-up status prevents you from being approved for a merchant account. Many merchant providers – EVO included – will work with businesses that may carry a higher degree of risk.
The bottom line: Carefully consider the pros and cons of opening a merchant account. If you decide it’s the right choice for your type of business, shop around for a reputable processor that offers affordable rates, enables you to accept credit and debit cards and keeps your money safe and accessible. We’re confident you’ll find EVO Payments International fits the bill!