By datto
I probably get a few Business Owners a week who respond to a detailed merchant account quote that I email them w/ ‘what a great deal so and so company is offering’ without wondering “why does this deal sound so good compared to other ones?”
Transparency (as you’ll see in this example), Track Record (do they have any Happy Customers?) and Competitive Pricing (fair, not rock bottom) are the three most important things to look at when looking for Merchant Services for your business.
Here’s a great example to illustrate what Point of Sale Companies are leaving out of their quotes to appear ‘CHEAPER’. Name is changed in this example.
Read more »
By datto
THIS IS A LONG VERSION OF AN EMAIL RESPONSE TO A RECENT CUSTOMER. IT’S MORE DETAILED FOR THE PURPOSE OF THIS POST:
“Ms. Smith, I appreciate what you are saying, however, I’ve been talking to thousands of Business Owners just like yourself for over 6yrs (yes, I am biased). I’ve seen everyone’s numbers regardless of volume or business model.
Credit card acceptance is essential in this economy for any Small Business Owner. Just consider these ideas below.
Read more »
By datto
Lately, Aug/ Sept 2009, I’ve been getting a lot of Business Owners say that they are being offered 1.37% or 1.42% for a qualified rate for payment processing. First, I’d like to refer you to the last Blog Post that I wrote on Visa and Mastercard’s Wholesale Pricing to the Six Credit Card Processors in Canada. The gist of that post is that if the rate that you’re being offered is LOWER than the publicly posted Wholesale Pricing by Visa, then the company that is offering this fantastic deal is probably going to make up for it in other fees or will change this deal on you as soon as you penn your autograph to their multi-year contract.
Read more »
By datto
Just type into your Google search bar “visa canada interchange rates”. After 5mins of poking around, you’ll eventually come to their public, online PDF of their basic interchange rates.
The most simple way to understand what interchange is in regard to payment processing, without getting into the complexities of how the money flows or who issues the credit cards, etc., is to look at these rates as if they are wholesale pricing or buyrates From Visa to the Six Credit Card Processors in Canada.
Read more »
By datto
This article, 7 Lame Reasons Why People Spend More Than They Make is a good example of why credit card acceptance is important for your business because of people’s spending habits. Most Consumers spend more than they make and want things that they shouldn’t be spending money on. In this day and age, businesses that don’t have bank or credit card acceptance will not have as much volume as a competitor’s business who does. It’s not worth trying to save a few hundred a month for a processing service to lose out on thousands of dollars in increased sales. Besides, with a good accountant, who understands business tax deductions, you won’t lose your cash, just your monthly cashflow for the amount of the processing service that you use.
By datto
Here is an article that explains why Credit Cards offer Consumers more protection in buying products that have a lag time to get delivered from time of payment. If you have a new potential Customer that understands how their credit card protects them when they purchase products and services, then you need to accept credit cards in your business in order not to lose sales.
By datto
If you are a retail storefront business with low margins, then please read about and do NOT do these 3 THINGS in order to avoid the fees that you pay to be able to accept credit cards. They are definite no-no’s that Credit Card Processors frown upon.