Useful credit card processing tips for your car business
When you are running a business, it is vital that you accept all different types of payment. These days, with the development of technology, there has been a greater shift to using paperless payment methods.
No longer do people use bank drafts, cash and cheques in order to make payments for good and services. They now use cards and online banking, most notably credit cards. These credit cards provide the owner great flexibility, as they do not have to have the money in their bank account at the time of making a purchase.
However, this can have many drawbacks for the business owner, as the customer may decide to do a chargeback once they receive their credit card statement, as they still do not have the funds to make the payment. Most businesses will have a merchant account with a bank. These accounts allow a business to receive appropriate discounts on a variety of products and services. However, your bank may change your account type to a high risk merchant account. This means that they see your business as being of a high risk. This can be for a variety of reasons, most notably when your business has received a lot of credit card chargebacks over a certain period of time.
This means that you will have to pay higher processing fees, so the bank can cover themselves in case there are any potential credit problems. This can make credit card processing an expensive and difficult component of your business.
However, there are solutions available that will ease the burden; they can be found if you click here. There are also a few additional ways in which you can streamline our credit card processing system. Here are some of those ways.
Don’t hide the fact that you accept credit cards
While you may prefer alternative methods of payment such as cash and debit card, you should not discourage the use of credit cards. Even though you have to pay higher processing fees on credit cards due to your high risk merchant account, if a customer is only going to buy a good or service that you provide, only with a credit card, it would be silly to run away this sale.
You could be losing out on a lucrative relationship that will continue long into the future, all for the sake of a few bucks.
The credit card processing fees will never be as high as lost sales, so always advertise that you accept credit cards.
Choose a reputable credit card processing company to deal with
You need to conduct extensive research before choosing a credit card processing company. There are many cowboys out there who are just looking to take as much money off you as possible. Always read the fine print and understand the terms and conditions.
Ask yourself a number of questions when assessing a company, such as what their cancellation policy is, what fees are charged outside of the processing fee, what additional fees are there for high risk accounts and what type of encryption and other security support is available.