Monday, September 13, 2010

Should I accept credit cards at my business?

It’s always a good idea to provide prospective and existing customers with as many ways to pay you as possible. Accepting credit cards is a good way to accomplish this. There are many instances where it would be more convenient for a customer to pay you by credit card rather than sending a check, meaning you get paid faster. Before you run off and start accepting credit cards you’ll need to make sure you have a couple percent of your revenue to pay for this convenience.

Credit card companies usually charge between 2 – 4 percent of the total amount charged on the card as a service fee to process the transaction and deposit the money into your account. It is not unusual to also have a per-transaction fee as well. In addition many processing companies have minimum fees if your calculated fees do not exceed a certain amount each month. There may also be equipment rental costs if you need a machine to swipe credit cards at your business location. Be sure all of fees and charges are laid out in writing before you sign on the dotted line with a credit card processing company.

Lastly, since people can dispute and potentially decline credit card charges, it is a good idea to make sure your credit card terms and conditions are clear and are available to your customers. Giving customers several ways to pay is a good idea for most businesses but that’s the great thing about having your own business…You get to decide!

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