Some small business owners are often confused as to whether or not they should allow customers to pay with credit cards. Obviously, there are advantages and disadvantages to using a credit card system. Here’s a quick look at what you should consider:
First, determine whether the cost of accepting credit cards is greater than the amount of profits you’re currently loosing by NOT accepting credit cards. The bottom line is that you need to have a firm understanding as to whether accepting credit cards will bring you more customers and profits for your business. If you can say it will, a credit card system may be the way to go.
Then, talk to companies that provide merchant credit card systems regarding their costs. Be sure to ask about monthly fees as well as transaction fees. Additionally, some companies also charge for equipment and software so beware of any hidden costs. You really need to shop around to find the system that works best for you.
On average, monthly fees for credit card systems run about $25 and transaction fees are approximately 20 cents/per. You can also expect to pay a discount fee of 1 1/2% to 3% on the gross amount of credit card charges.