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Steps To Accept Credit
Cards In Your Business
By:
Bruce Keiffer
President,
National Card Systems,
Inc
Without
being too detailed in this short article, the
first thing you'll need to reveal is:
1.
What Are You Selling?
The
reason for this is because VISA/MASTERCARD does
not accept every type of business there is.
Because of high return and charge back risks,
each sponsored bank has a criteria of what kinds
of business they will and will not accept. That
is why when you check with your local bank there
is a very good chance that your application will
be denied if you are anything but retail.
2.
What Is The Criteria For Acceptance?
The
less risk your business is to the bank, the
greater your chance of acceptance. If you were
operating a retail store selling stationary, your
chances for approval is many times greater than
if you were operating the same business from your
home or over the Internet. To the bank the retail
store is far more secure than your home based
business.
3.
What Do I Do Then To Accept Cards? I Am Not A
Retail Store.
The
answer is that you need to work with a company or
a bank that can approve these kinds of
businesses. They have met the criteria and the
requirements from VISA/MASTERCARD to approve
businesses other than your standard walk in
Retail store such as Mail Order, Phone Order, and
Internet related businesses.
4.
What About The Costs? Are They Any Different For
A Retail Vs. Home Based Business.
The
answer to this goes back to the "Greater The
Risk, The Higher The Cost." In almost every
case the cost (discount rate) to process a
transaction is going to be more to you than if it
was done in person. Most home based businesses
process sales over the phone, through the mail,
and over the Internet. There is no signed sales
receipt in all of these types of transactions.
This invites the high possibility of chargebacks.
Hence, more risk, higher cost than if it was
retail.
5.
What Kinds Of Typical Startup Costs Can I Expect?
You
should expect to invest a startup amount of
between $190.00 - $300.00 from most companies in
our industry. These amounts can include
application, setup, equipment rental lease
deposits as well as additional costs for poor
credit, higher risk, etc.
6.
What About Equipment. What Will It Cost?
This
is going to vary depending on the kind of
equipment you choose. If you lease your
equipment, your payments should range anywhere
from $35.00 to $49.00 per month for a complete
processing system including a terminal and an
automatic printer, and in many cases software. If
you are looking to process Online Internet
Realtime transactions, and want to add on
Shopping Carts, etc, amounts will increase
according to the amount of customization you
need.
7.
Is It Really Necessary To Accept Credit Cards To
Be Successful?
Yes,
it is. Here are just a few reasons why:
The
average cash sale amount is $9.00. The average
credit card sale is $40.00. That is a 450%
increase per transaction. Is it any wonder why
you do not see VISA/MASTERCARD signs disappearing
from store windows? This is no different in a
home based, and more importantly an Online
business.
Another
factor is this. Without giving your customers the
convenience of accepting payment via credit
cards, your sales are going to be far less than
your competitors that do accept credit cards.
This is a basic fact of business.
The
bottom line?... If you are going to be in
business, it is vital to the success of your
business to offer your customers the convenience
of paying by credit cards.
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