Sales are the lifeblood of any small business. If you can t close the deal and get customers to buy, your business won t last very long.

Transcription

1

2 1 Sales are the lifeblood of any small business. If you can t close the deal and get customers to buy, your business won t last very long. That s really all there is to it. So doesn t it just make sense to give your customers as many options as possible for buying from you? If you re not accepting credit cards, you re putting unnecessary obstacles in your customers way. And guess what? They aren t going to take the time to go around those obstacles so they can buy from you. Instead, they ll take their business elsewhere, to one of your competitors who does accept credit card payments. It s the 21st century, and it s time for your business to start accepting credit card payments. Consumers expect it, and you don t want to disappoint them. Of course, you might have some questions and concerns about getting your business set up to accept credit cards. Don t worry. In this guide, you re going to discover everything your small business needs to know about accepting credit card payments.

3 2 TABLE OF CONTENTS 3 10 Important Statistics on Credit Card Payments 4 Choosing the Right Payment Processing Company 5 A Quick Look at the Latest Credit Card Processing Technology 6 How to Reduce Your Merchant Fees 7 How Veritrans Can Help Your Small Business Accept Credit Card Payments

4 3 10 IMPORTANT STATISTICS ON CREDIT CARD PAYMENTS Still not convinced that your small business needs to accept credit cards? We understand your skepticism, but the numbers just don t lie. Consumers love using credit and debit cards. Here are 10 key statistics you should really consider million American households have at least one credit card 2. 80% of all American households have at least one credit card million cardholders in the U.S. (2008) 4. There are million credit cards held by U.S. consumers 5. The average cardholding family has 3-4 credit cards 6. There are 507 million debit cards in use in the U.S. 7. About 60% of consumers have a rewards credit card 8. The number of credit and debit card holders continues to increase significantly each year 9. In 2007, 97% of consumers said they had used a credit card in the past year 10. In 2008, 72% of consumers said they had used a debit card in the past year The simple truth is consumers are using plastic more and cash and checks less. Credit and debit card usage continues to increase on a yearly basis, so it s important that you get your business setup now to start accepting plastic.

5 4 CHOOSING THE RIGHT PAYMENT PROCESSING COMPANY If you re starting to get serious about creating a merchant account to accept credit card payments, the first thing you need to do is choose a payment processing company that can get you set up for business. At first glance, all payment processing companies might seem pretty much the same, but the reality is that the quality of service and fees vary greatly from one payment processing company to another. How can you be sure that you choose the right company to set your business up for success? Here are some simple tips to help you out. Check the rates Pricing varies greatly from one payment processing company to the next. It s important to make sure that you re getting the lowest rates possible so that you re not overspending each month, cutting into your profits. Choose a payment processing company that offers guaranteed low rates, so you can be certain you re getting a good rate. Be on the lookout for hidden fees Some payment processing companies surprise you with application fees, setup fees, and cancellation fees should you decide to cancel their service. Veritrans has no hidden fees, helping you save money the entire time you re with us. Never underestimate the importance of good customer service Payment processing technology has come a long way in recent years. These days, you can even accept credit card payments on your iphone. Make sure the payment processing company you choose offers the latest, most effective technology. What equipment do the offer? Customer service is an incredibly important asset to consider when choosing your payment processing service provider. Just think about it. What if your payment processing system isn t working properly or you just have an important question you need answered? You d better be sure you have a payment processing company that offers topof-the-line customer service when you need it most. Read the fine print Some companies try to lock you into lengthy contracts that are difficult to break. Before you sign up for anything, make sure you read the fine print and know exactly what you re getting into. Never rush into an agreement with a payment processing company. Yes, it s important that you get your small business setup to accept credit card payments as soon as possible, but if you choose the wrong service, your business could end up worse off in the long run.

6 5 A QUICK LOOK AT THE LATEST CREDIT CARD PROCESSING TECHNOLOGY If this is your first time to look into credit card processing for your small business, you might be surprised to discover just how sophisticated the technology and equipment are. Here s a quick look at some of the credit card processing equipment you ll have to choose from. Point of Sale (POS) Systems POS systems are complete computer systems commonly used in restaurant and retail settings. The systems often include a monitor, credit card swiping device, keyboard, receipt printer, and computer tower. They re popular because they improve productivity, making it easy to ring customers up quickly and accurately. Stand-alone Terminals Stand-alone terminals are smaller credit card processing machinery The small, self-contained units typically have a credit card swiping device, keypad, small screen, and quick printer all built into the device. Wireless/WiFi Systems Wireless payment processing systems are ideal for mobile merchants who are always on the go. They re typically small and very portable. They connect wirelessly to the internet to quickly and securely transmit credit card transactions, giving your business the ability to accept payments almost anywhere you go. Virtual terminals With a virtual terminal, your business will save counter space and eliminate the need for other credit card processing equipment. Virtual terminals let you accept credit cards using your desktop computer or laptop. Now, there are even terminals that let you accept payments from your iphone! With so much different credit card processing equipment available for you to choose from, it can be difficult to find the system that s right for you. That s why it s so important that you choose an experienced, knowledgeable payment processing company that will listen to your needs and match you with the system that best fits your business.

7 6 HOW TO REDUCE YOUR MERCHANT FEES As a merchant, you want the best possible payment processing service at the lowest price. Use these simple tips to reduce merchant fees and ensure you re getting a great value on your service. Verify the company is reputable Above all else, you have to make sure you re doing business with a reputable company. You can learn a lot about a company with a simple Google search. You should also research the company on websites like Ripoffreport.com and Complaints.com to see what customers have to say about them. Know what you re signing Don t just blindly sign a contract and assume you re getting a payment processing solution that fits your needs. Read before signing. Are you agreeing to a long-term contract that penalizes you for early cancellation? Are you agreeing to variable rates that could increase several times while you re stuck in your contract? Are you agreeing to a contract that automatically renews without you being notified? These are things you have to look out for before you sign your agreement. Simply being aware and taking the time to read everything before signing could save you thousands. Choose the right pricing method for your business There are many different pricing plans available for merchants. Most companies offer Interchange Plus Pricing, or pass thru, to their merchants. This means that as a business owner you re going to be paying the wholesale price preprocessing that particular credit or debit card plus a fixed markup per transaction. This usually consists of a set transaction fee and or percentage added to each sale. Although more difficult to understand for a new merchant than some of the other pricing methods available, it is normally the most cost-effective. Process your cards correctly Did you know that swiping a credit card gives you a lower rate and better security than typing in the numbers manually? If you are entering a card, make sure that your credit card terminal or virtual terminal is set up to prompt for the address, zip code and CVV2 number(the three digit number on the back of the card) to achieve the lowest rate. Make sure that all transactions are settled or batched out within a 24-hour period to avoid downgrade surcharges. If you are primarily selling to businesses or government entities, consider using software that will allow you to capture additional data such as tax, invoice, and shipping information to achieve the lowest rates. Stay compliant As a merchant, you re required to comply with the Payment Card Industry Data Security Standards set forth by the industry. Information can be found about this subject at PCIsecuritystandards.org. To summarize, all businesses must complete an annual self-

8 7 assessment questionnaire. If you process payments online, you have to pass quarterly scans to stay compliant. Why is this important? If you re noncompliant, your payment processing company may charge additional fees each month. Look for hidden fees Many merchants pay a range of fees that they don t even understand. That s because payment processing companies have to pay a fee each month to have your account open, so they try to pass the costs down to you. However, if you re processing a larger volume of transactions, you should expect to pay a smaller fee or no monthly fee at all. There is also a cost associated with providing the merchant the services required to become PCI compliant, and this fee gets passed on down to the merchant. Some processors markup this legitimate expense to generate extra profits. If the merchant is paying over one hundred dollars a year for PCI compliance, they may want to start asking some questions. Batch fees, debit access fees, monthly versus daily discount fees, and high-volume monthly fees may all be negotiable. HOW VERITRANS CAN HELP YOUR SMALL BUSINESS ACCEPT CREDIT CARD PAYMENTS Are you ready to take the first step to accepting credit card payments for your small business? Let Veritrans help. At Veritrans, we understand that every business is different. What works for one business, might not work for another. That s why we take the time to listen to your needs and learn about your business, so we can match you with an affordable credit card processing package that fits your business just right. We re always looking for ways to help your business save money on payment processing. We offer a risk-free consultation, so you can learn more about how we can help your business thrive. Click here to schedule your FREE consultation today!