For many businesses, the dividing line between staying small and growing bigger is opening a merchant service account. When a business is small, it often accepts cash and checks as a way to avoid merchant fees. But, as time goes on, credit fees pale in comparison to the money a business loses by not accepting credit. Today, payment by card is the norm, and payment by cash or check is the exception. By not processing credit cards, a small business ensures that its growth—if indeed it grows—will be slow.
The benefits of credit card processing for small businesses
Small businesses that think credit card processing is for large businesses ignore an important fact: many merchant services feature small business credit card processing as a core service, featuring accounts and plans that benefit small businesses more than large ones, such as:
Reduced account fees. Some merchant services offer reduced account fees to small businesses reduced, which is mutually beneficial. Reduced account fees help small businesses preserve revenue at a time when it can be unpredictable. They help service providers attract business that they otherwise would not.
Wireless accounts. Many businesses begin without a store location, which negates the opportunity for card terminals. Nevertheless, businesses that take payments at kiosks, upon delivering goods, upon rendering services, or at changing locations can use wireless terminals. In addition to using wireless terminals, businesses can also turn mobile devices and computers into payment terminals.
Online accounts. For most new companies, erecting a website precedes finding a store location, and rightfully so. Unlike store locations, a single website can reach customers worldwide, and it doesn’t incur the overhead that maintaining a store does. If your business has a website that lacks an ecommerce account, it could be missing out on significant revenue.
The importance of credit payment to customers
When small businesses don’t participate in small business credit card processing; their sales can lag for the following reasons:
Credit cards are more secure than cash. Carrying a credit card is safer than carrying cash. When cash gets stolen, it’s gone. But when a card is stolen, it can be disabled and replaced.
Credit cards increase the likelihood of big purchases. In the movies, characters make big purchases with cash for dramatic effect. But in everyday business, such purchases are uncommon. While some of your customers might enjoy spreading the green, credit payment is still the best way to facilitate big purchases.
Credit payment is less agonizing. The bad thing about credit cards for consumers—and the good thing about them for businesses—is they make it seem as if money isn’t spent. When it comes to impulse buys, it’s easier to be impulsive with a card than it is with cash.
At AVP solutions, we have over 25 years experience in Small Business Merchant Accounts and over 16 years servicing merchants, making us the premier choice for small business card processing. If your business needs a merchant account, we can supply the small business credit card processing options that meet its goals.
