Small Business Payments In 2018
For small business payments in 2018, the idea of using a merchant account service for their monetary transaction needs can seem like a very daunting task. Thankfully, the internet has made finding merchant account services much easier than ever before. A quick jump onto your search engine of choice, and before you know it, thousands of results are at your fingertips. But how to tell them apart? What makes one stand out from the others? The best way to proceed is to have a strong understanding of your business and what you are trying to accomplish moving forward. Examining the kinds of charges you will need to process, the amount of business you will be processing per month and the venue in which the purchases will be taking place would be a good start. The needs of an exclusively online retailer, will greatly differ from one that does 70% of its business in a brick and mortar shop and only 30% on their online store. Self-awareness is key to success in 2018.
You now have a relative grasp on the direction you want you business to be moving in and all the potential service providers are patiently waiting for your inquisitive click, the next question that must be answered is, which services are available to me and how will it affect my business moving forward?
This is very dependent on your type of business and the credit you or the company has. These variables will dictate whether you can use a standard merchant account or if you will need a high risk merchant service provider. Unfortunately, certain industries and businesses will automatically fall under the “high risk” category because of the nature of the processing that will be associated with business operations. A couple examples of what may constitute a business as high risk would include an industry that has frequent chargebacks, ones that may be an easy target for fraud or that may require payment being accepted in advance. Fortunately, on the opposite end of the spectrum, there are companies that can be considered lower risk, such as ones with longevity and a stable financial history. This tends to assist in paying a lower amount and percentage for fees and rates.
Now that you have identified the type of risk category your business falls under, the next challenge you will be faced with is, which service provider is best for you and what will be the rates and fees structure. These tend to vary from service to service, and in the case of a business categorized as high risk, it will likely have higher rates and fees comparably. Other factors that can come into play are the amount of transactions that are being processed, whether the business is retail or internet and, in the case that there are monthly/yearly minimum charges that must be met, that those numbers are reached. Reaching out to service providers to get as much information as possible will help in choosing the best one that can provide you the most valuable service. Then comes the application. This will require you to fill out information regarding your business and the owner applying for the services. Once the application process is completed and the service is in operation, the benefits of the service become evident very quickly.
First and foremost, the ability to increase sales for most businesses would be considered the greatest benefit of being able to accept credit cards and money electronically. As a world, we are moving more towards the digitization of our money and away from the paper and metal currency of old. This makes it imperative for businesses to move with the market towards accepting payment electronically. Secondly, for most customers, this eases the process of purchasing by making the process simple and convenient. A quick swipe (or dip, if you have a chip), sign and another happy customer is on their way. This is no more evident than he ease in which someone can purchase goods or services in store or online. Something that would have been impossible had it not been for the digitization of currency and the infrastructure supporting it. Included in this is the use of POS Point of Sale Systems, which utilize the service and capitalize on the ability to track and organize the information pertaining to the sales and exchanges of money.
Today, because of the advancements made in technologies that allow for merchant services to work, a label company in Upstate New York is able to sell their product to a factory that produces industrial turbines in the furthest corner of China. Your business has been given access to the world as its marketplace. With the proper exposure and marketing, the ability to reach customers outside of your immediate market has grown exponentially and will keep growing as the technological world spreads outwards. So, for all the small business owners utilizing the merchant services that are moving the global market into the future. Sky is the limit! Good Luck!
- Author: Cristian Rowe
Small business authority and entrepreneurial journalist.
Contributing writer at High Risk Merchant Account LLC