Going into business is rarely simple. There are loads of papers to file so your company is legal and able to operate within a location. There are issues to deal with concerning hiring and sourcing of materials and services that are essential to your operation. A mistake with each process of establishing your company could prove to be costly – and you have not even started yet. Suffice it to say that being knowledgeable with every aspect of your business is crucial to its success. If you happen to be a retail merchant, credit card processing is one of the things you should be familiar with because not knowing what it is and considering it for your business could mean profit losses.
As a modern business, whether you’re running a fashion boutique or a lifestyle store, you will have customers who will be paying with their credit cards. To not offer credit card payment options would be to turn away business – and in great numbers. Now that is just bad business. What you need to do is shop around for the best merchant services agreement that can process your credit card transactions and save you money. Try not to be swayed by the first sales representative that pitches you a seemingly attractive offer for your credit card processing. Always get three or five bids so you get the best possible service and price.
Some businesses, especially new ones, may find their processing statements confusing and frustrating. This is mostly because they soon find out that they will have to pay a steep processing fee, which they did not initially realize. The high processing payment can be compounded by the fact that the processor does not even provide satisfactory service. So be aware of the processing payment and how the merchant services provider structures their fees.
Here is another important thing to ask your merchant service provider or to read on your credit card processing contract before you sign off on one: cancellation fee. A cancellation fee can be as minimal as a few hundred dollars to several thousand dollars. It is a fee that can tie your business down to a contract that requires you to maintain a service for a length of time. If you terminate the contract before it expires, you will have to pay the indicated fee. For small retail businesses or shops that are just starting out, choosing a merchant service provider that has a “no cancellation fee” guarantee would be a wise investment.
Additionally, a merchant services provider that can offer perks like free terminal equipment would save you a bundle from having to buy your store’s credit card processing terminal.
Overhead costs can pile up when you are just starting out. Lease payment on the space, utility bills, shipping costs for materials and such – any area where you can cut costs down to a minimum would help you run your business well. And credit card processing could be one source of savings. By getting as many merchant service providers to bid, reading the fine print on an agreement and scrutinizing the fee structure, and paying attention to added perks that will save you money, you’ll be able to keep your costs under control and, hopefully, see a bit of profit.
Make sure that your enterprise gets the best merchant credit card processing services. It could determine your failure or success.
Resource Box: This article was originally published by Penny Monroe. You can check out Penny Monroe’s Articles RSS Feed.
