Every time you use your credit card at a retail store, the merchant is charged a small fee for the convenience of offering customers the ability to pay via card. That charge, known as the interchange fee, is set by the credit card companies and can negatively impact profits for a small business. In most states, that charge is absorbed by the business, but now, a federal law permits storekeepers to pass that fee along to consumers during the transaction process.
Find out if these added charges are permitted in your state – or if you’re off the hook.
2013 could be a year of growth or losses, success or failure. While many large firms report an uptick in spending as the economy recovers, new businesses have more at stake and thus, are proceeding cautiously into the new year. Smaller companies are especially susceptible to the capriciousness of the market, and the unpredictability of the consumer can make or break a small business.
VISA recently surveyed small business owners and listed the top 5 concerns of small business owners in 2013.
- Cost of Health Insurance
- Attracting New Customers
- Rising Taxes
- Retaining Existing Customers
- Managing Cash Flow
While many of these worries aren’t specific to 2013, there have been some changes recently (particularly in the realm of health insurance) that will likely have an effect on small businesses in the coming months.
Some change is inevitable and will make it harder for small businesses to succeed, but there are still ways to grow and profit in this economy. When it comes to attracting new customers and retaining existing customers, that’s where merchant account providers come into play.
Things to Keep in Mind
- Cash is no longer king. Credit cards and other forms of “plastic” have become a go-to method of purchasing goods, so shop owners should take that into account when setting up their business model. Business owners should make sure they accept credit cards for transactions to encourage customer spending and boost sales.
- It’s no longer just a savvy move to accept credit cards as a method of payment; it’s a necessary payment solution for any credible business.
- Companies can make today’s tech-savvy customer happy by offering easy, reliable, and safe mobile processing. Online shopping means you can increase revenue without even having a customer walk through the door.
It’s fair for small business owners to worry about the future, but working with a reliable merchant account provider and offering convenient payment solutions to customers can help the business grow.
Setting up a merchant account is about much more than simply accepting credit cards from customers. In fact, merchant services can help get your business off the ground and continually optimize customer relationships. In today’s fast paced work environment, it’s increasingly valuable for businesses to accept all forms of payment whether the sale is made in person, online, or via mobile devices.
Read on for six ways merchant services can help your business grow.