Abandon Credit card Processing? Use Cash Only? Not!

Guide: Everything You Need To Know About Credit Card Chips - Credit Sesame

Merchants looking for the right provider should also make sure that the company they are looking at is able to provide the right equipment for your business. If you are running a brick and mortar store than you will want to make sure that your provider has the payment services agent right credit card processing terminals for you. If you are an online e commerce store than you will want to take a look at options such as the gateway provider to ensure that you have everything you need.

Even if you own a small stand at your local flea market you can find a credit card processing provider who has access to portable wireless equipment. Some card processing companies can also provide the ability to accept checks online as well. Features are going to vary from provider to provider. It is up to the owner of the business or those placed in charge to make sure that they find a credit card processing company who is going to be best suited towards your business.

Choosing the correct provider is as important as choosing the right store location. Make sure that you work with a provider who is reputable and is a registered ISO provider. Look for a company that is going to give the best customer service possible. You do not know when you will need to find your self help for what ever task it may be including updating your swipe terminal software or questions about your account.

Most reputable established providers will give you access to 24/7 customer service centers as well as support via email or online chat. Also be sure and go over all the fees associated with opening and maintaining your account. There are card processor providers for every type of business and credit situation. Those who conduct riskier credit card transactions will end up paying higher fees. Those include mail order and online businesses who process credit cards while the customer is in a remote location. The processing provider does see these types of business transactions as being of higher risk. Lastly, make sure that you work with a credit card processing provider who has right equipment and tools for your needs.

Taking into consideration the special circumstances associated with MOTO processing, merchants who manually key in credit transactions must team up with the right processor. It is important that the processor you choose understands the special needs of your business. Since this type of payment processing is considered high risk within the industry, the need to carefully compare processors, equipment, fees and other expenses becomes imperative. Without taking the proper steps to ensure you have the right set-up, your business is at an increased risk of losing money unnecessarily.

The right processor can help you establish the proper merchant account, offer advice as to the most cost-effective way to process your credit transactions and provide affordable service. This processor will ensure the highest level of security when processing card transactions while at the same time providing superior customer service should you need it. As a business owner it is your responsibility to learn what special conditions apply to your payment processing and learn how to best protect your customers as well as yourself when processing credit card transactions. By doing this, your business has the opportunity to thrive using MOTO credit card processing.

In a recent March 16th Washington Post article by Michelle Singletary it was suggested that consumers respond to the Durbin Amendment in the Dodd-Frank Restoring American Financial Stability Act by “What if we just went back to using cash? Better yet, let’s all begin to negotiate more for a lower price on our purchases if we pay in cash. “

On the surface this makes perfect sense. Those horrible banks won’t be charging a penny for credit card processing interchange, the swipe fee on a merchant account. So because the merchant won’t pay their merchant account services fees – voila, we the consumer can negotiate a lower price and reap the “benefit! ” Regretfully, nothing could be further from the truth. The past decades of credit card processing growth were because it made it easier and quicker for us to purchase everyday items. Going back to cash entirely disregards this value proposition, both for us and the businesses we shop at.

Just think of our challenge today to obtain the cash. How is that money going to leap into our wallet? Certainly we can go into a branch, stand in line, and get cash from our accounts. Of course that’s a time consuming and frustrating task, especially if God forbid, we take out a lot of money and have to complete the government forms because you know, we’re still in the middle of a fruitless 50-year war on drugs. So no problem, I’ll just use the cash machine. And I can, for small amounts, but many times with lines. And I still need to drive to get to one. God forbid if i use a convenient Out of Network ATM Cash Machine! Then poof, on average I’ve just spent about $7 to $8 to get my cash! It’s not the desired outcome to pay more. And what about my personal safety issue? Won’t I be more exposed carrying larger amounts of cash? So i just won’t carry a large amount, right? Wrong! I’m not going to accept NOT being able to purchase something because I don’t have enough cash on me.

Then there is the challenge to spend the cash. How many times have you been at a store where they had posted NO ACCEPTANCE of hundred dollar bills, or even fifty dollar bills? I have and I’ve complained about it every time. But even if those bills are accepted, it routinely takes me longer to pay with cash, and receive change in cash, then swiping my cards. And I always notice how the line behind me grows longer when I’m fiddling though my pockets to get the correct amount of change to pay the clerk, much like it does if i ever sit there at the checkout trying to write a check.

In a study done years ago by Ipsos Insight and Peppercoin, they determined that our desire to use credit card processing for small payments was growing and becoming a more common method of paying, especially for low priced goods and services. Not less. And only seven percent of their survey respondents who would not use credit card processing for small payments found it easier, or preferred to use cash, instead of processing a debit or credit card through a credit card machine. Ninety three percent preferred the faster, easier debit and credit card processing method.

But enough about you and I, what about all of the merchant account “savings” the businesses will reap by not paying for the credit card processing fees? True enough, if we pay with cash rather than a card, no merchant account service fees will be assessed. But don’t ever think the merchant is getting a “free ride” by taking cash for payments instead of processing payments with a credit card machine! The number one source of business losses has always been due to employee theft, over 50%. Cash is easily stolen in many different ways, credit card processing revenue is not.

And what happens to a business’s total daily sales when the line slows up? I don’t know about you, but I routinely walk away from a store if there is a big line. Fewer sales mean lower total profits for me to “negotiate” over. And if I don’t have enough cash on me, I can’t even buy the things that I want to buy. Certainly that will LOWER a business’s profits, not increase them. It is well proven that having credit card processing increases the average size of a purchase, compared to cash only, because of this very point.

But it doesn’t end there for the business. Every day the business has to close out its till. That means counting the money, listing the checks and credit cards processed, and writing up a deposit slip. With a merchant account, the credit cards processed are totaled in a batch automatically through the credit card machine, and can be listed on the deposit in a few seconds. Counting cash, especially if it doesn’t add up the first time, takes much, much longer, and time really is money. And the cost of taking cash doesn’t stop there. As the amount of cash on hand grows, so does the security risk for all of us, often times with deadly consequences. Which then raises the issues of implementing security measures such as drop safes, secure enclosures, guards and surveillance systems, the list of cash related expenses goes on and on.

And the Dodd-Frank Restoring American Financial Stability Act now allows businesses to decline accepting credit and debit cards for purchase amounts of their choosing, below $10. 00. So now a business can stop losing money by taking a debit card to pay for a pack of gum and having all of the profit eaten up by the merchant account services fees.

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