January 26,2009
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Small Businesses Accepting Credit Cards, Pt.3
– Secure a good contract and prosper.-
Protection Fees: Of course both, credit card consumers and retailers (businesses), need protection from each other from time to time. The ‘referee' usually ends up referring to the involved contracts in force. Consumer credit card protection laws have already taken some steps in that direction (as well as some protections for the merchant). Negotiating the contract properly can make a big difference in the degree of protection the small business can expect when ‘things go wrong' with credit card sales.
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Optional transaction types: Whether they be debit cards, gift cards, check clearing or internet transactions, these different schemes play by different rules from conventional credit cards. It's usually helpful to explore these other possibilities for the prospect of substantially better revenues for your small business.
By doing some homework up front, a small business is best prepared to negotiate terms of the contract and; make better decisions as to the viability (and liability) of signing the contract in the first place. Create hypothetical situation models in order to have the representing agent of the credit card processing agent run through the possible outcomes. There are so many possibilities, it's best to narrow this scope to your ‘bread and butter' transactions. Everyone prefers the better profits gained with more expensive purchases but, the reality will come down to where most of the sales are found. With the floundering economy, the niche market that only supports high-end purchases has found itself in a ‘pickle'. However, consider that higher-volume small credit card sales are more effected by the forever transaction fees. Differing options are offered by different processors when it comes to ‘price vs. volume' and you will want to consider scenarios based on which works best for your small business.
Bottom line is, the one writing the contract holds most of the control. Be sure the contract you're signing best meets your needs. You have many choices at the onset. You get to pick which processor will serve you. With so many to choose from, investigate the track record of your prospective ‘partner' and test it's level of concern for your business. If possible, check some references (personal or nation-wide). Focus on the service aspect, as most of the hard numbers will all already be spelled out before you sign the contract. May your business prosper with credit card purchases.
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