Q) Why should I have to pay for credit card processing? It’s my money!
A) For better or worse, we are moving to a paperless society. With less cash to count and fewer checks to clear, money moves from your customer’s account into yours at the snap of a finger. Accepting credit for goods and services rendered can dramatically increase your customer base.
Before we talk about reasonable cost, let’s appreciate the value credit card processing offers your customers.
- It’s Quick
- It’s Convenient
- It makes it easier to plan budgets and track purchases
Now think about the value credit card processing brings to you:
- There’s less cash to count, manage and transfer safely to the bank
- It delivers your funds faster and more securely than personal checks
- For every penny in fees you pay, you’re likely getting a dollar in new or increased business
- Customers who prefer to pay by credit tend to avoid “cash only” businesses
Credit comes at a reasonable cost because of the burden of risk. You share the risk of stolen card numbers, identity theft and credit default with the credit card companies.
The more you understand about risk, the better you can hold up your end of the deal. Always check ID to make sure the person using the card matches the name on the card. If collecting credit card information online, be sure to also ask for the 3-digit code on the back of the card.
With all that said and done, there is a limit to what is a reasonable cost for credit card processing. Many institutions and credit card processing middlemen will be too happy to add hidden fees to their contracts. Your customers shop for the best deals and you should too.
