How Not To Lose Sales When People Want To Pay You With Credit Cards
by Tom Cleveland
Can you lose a sale because you're not ready to take your customers' money? Whether you entertain clients in your home or prefer to work in the field, it is critical for you to consider the convenience of processing payments from clients on the spot.
Not everyone wants to pay for services using physical cash, nor do you want to accumulate a mountain of checks as accounts receivable that require time and energy for you to collect.
This is why the merchant credit card processing industry is rapidly changing its technology, shifting on-demand payments into higher gear. New solutions that were a dream five years ago are now the new normal.
Let's say that your business model is on the go. You're a plumber, an electrician, a personal chef, a landscaper, a window cleaner visiting a client's site. Are there better ways to get your cash more quickly and immediately reduce your collection headaches without a lot of worry? The answer is yes. But the first step in this process is to get acquainted with modern terminology in the payments arena.
The word “wireless” indicates how a connection to a remote payment devices is established. “Mobile” indicates how payments can now be made from anywhere through cell phones and portable tablets, like iPads. New phone applications appear daily in the marketplace to facilitate “touch-and-pay” services. It is feasible today for anyone delivering services that can command payment on the spot to jump into the ever-changing world of mobile payment solutions. Bluetooth is one supplier that provides a card-swiping attachment for smatphones with an added printing capability.
It may seem reasonable for small businesses, which are price sensitive, preferably to rely on some technologies cobbled together to conduct these types of merchant transactions at the point where the sale takes place. But why risk frequent breakdowns at the most inopportune moment? This is why it is best to consider wireless terminal solutions that have been tested in many markets for several years.
What is a “wireless” terminal?
A wireless terminal is a hand-held equivalent of a standard Point-of-Sales (POS), face-to-face or “card-present” payment merchant terminal. Paired with real-time processing, a wireless terminal comes complete with a magnetic stripe reader and printer, which can access a creditor such as Visa or Mastercard through a wireless phone connection.
For you and your client, the convenience of a POS system is the primary benefit that you can receive from using a mobile wireless terminal. Recent technological advances have made your direct cost low relative to what such POS systems used to run just a few years ago. Transactions processing fees and fraud control costs are also considerably lower.
How much lower are these merchant credit card processing fees? Your basic service usage fee may range from $0.15 to $0.30 per transaction. Your percentage-based fee for phone orders processing is similar to that of Internet orders, which typically ranges from 2.2% to 3.5% of transaction value, depending on your volume of transactions and type of industry. For card-present transactions, you will most likely get a rate of between 1.7% to 2.9%, based on transactions volume and type.
To learn more about how to set up a merchant account for mobile wireless terminal and learn about security policies for the processing of merchant transactions, visit here.
Tom Cleveland is editor at Business Funding Experts, a 5-year Florida-based finance company specializing in merchant cash advance provisioning and fast cash for small businesses, making available to new businesses up to $500,000 in as little as 3 days with no application, broker or other up-front fees and with minimal paperwork. The company determines the amount that a business qualifies for an advance based on credit card sales rather than collateral, assets or a high credit score.