subject: New to cards at Xmas? [print this page] New to cards at Xmas? New to cards at Xmas?
No we are not speaking about Christmas cards; we're talking about debit and credit cards. There are many new businesses that set up around Christmas time and a great deal of them are cash only operated because of the length of time they do business. These sorts of organisations are generally stores that sell Christmas items like wrapping paper and decorations, and in general the sort of shops that wouldn't do much business all year round; is perhaps a store or stall that sells calendars.
However, there is absolutely no justification why these stores, alongside any other business just about to begin trading, cannot take credit and debit cards when it is very easy to do.
How easy can it be to start accepting card payments?
It is so simple as creating a merchant account and installing card machines where appropriate. Well, at least it should be easy. You ought to be able to set up a new merchant account, install the card terminals required to begin trading within one week. If it takes longer than this then you really need to get going and start the ball rolling in order to get ready for all those Christmas shoppers.
When you are up and running with card machines installed it is extremely simple taking payments. The payments are taken and the money is deposited immediately into your business bank account via your payment processor. The payment processing company takes their merchant fee for each exchange the card terminal processes. These charges can depend on several things, from the length of contract you might have signed with the payment processor, to the type of card making the purchase; you should discuss these charges with your elected vendor.
How much does it cost to set up?
You will find different costs for this from different payment companies so it's challenging to pin down a single figure. However, there really should be set up charge at all. The sole fees involved in accepting card payments should be the actual merchant service fees you pay per transaction. However, some firms try to you set up prices. You shouldn't really be paying anything to have your merchant account setup.
The only other charges are the monthly lease prices for the physical card devices but these are usually pretty low and they differ dependent on which terminals you ; they certainly pay for themselves when you finally start trading.
Why should I accept cards when it will eventually cost me money?
The question shouldn't be "Why should i take cards when its going to cost me money?" It needs to be:
"Why am I not accepting cards when it can make me much more money?"
This is a significant question and calls for a little thought. At the moment the average shopper carries a card for payment purposes, either a debit or credit card. The fact also continues to be that the customer would prefer to make use of their card to pay for their goods for a few reasons:
- It is safer than carrying a lot of cash.
- It's secure. With Chip and Pin technology card scams is much lower.
- They are able to control their spending.
- They can spread the cost of Christmas with a credit card.
-They are enabled to purchase things on impulse.
Once you can provide your clients with these things then you are certain to make far more money than accepting only cash. If someone comes to your store with absolutely no cash they are less likely to go to a cash machine in order to make a purchase and will more than likely buy their goods somewhere else.
There's still sufficient time to get yourself a payment processing merchant account and be trading comfortably by Christmas when you choose the right service provider.
