Many businesses are hesitant when considering the transition to accepting credit card payments. Their hesitation may be caused by a negative past experience with a low-quality merchant services provider that lacked customer service and support, or by the fear of hidden fees. There are many misconceptions about credit card processing; however, if you choose the right merchant services provider, you can ensure you have transparency, high-quality equipment, and 24/7 customer support.
Misconception #1: Payment Processing Equipment is Expensive
One of the major myths that exist with credit card processing is that the upfront expense of credit card processing equipment is too high. Many small business owners fear that the return on investment they will see from getting started accepting credit cards will not justify the expense of the equipment; however, this is simply not the case.
The reality is payment processing equipment is quite affordable. Most of the equipment costs range from $200 to $600 initially. Considering the added sales dollars that come in, the break-even point is much closer than you would think. Accepting credit cards can boost sales because people tend to be willing to spend more money using credit cards than with other methods. When you have a cash-only business, you also lose out on expanding your customer base as consumers are choosing not to carry as much cash. Offering credit card processing will ultimately help to increase your sales volume and overall revenue.
Merchant services providers may also offer other options for equipment. BankCard Services, for example, will provide free equipment (including EMV/NFC terminals or mobile readers) to its customers. By cutting out on the initial cost of the equipment, BankCard Services makes it simple and affordable for all businesses to get going with credit card processing right away.
Misconception #2: Setting Up Credit Card Processing Equipment Takes Too Much Time
Setting up a POS system to accept credit cards is usually quick and easy. By partnering with BankCard Services, you can have your credit card processing equipment up and running within 24 hours. An onboarding expert will walk you and your employees through the process and provide support along the way.
For those that already have payment processing, many are worried about the hassle of switching merchant service providers. BankCard Services makes this transition seamless by offering free equipment or the ability to integrate with your current hardware or software to prevent unnecessary downtime. In the long run, it is important to work with the right payment processing provider that will provide peace of mind when it comes to keeping your business running and making sure your transactions are safe and secure.
Credit card processing always gets a bad reputation due to the misconception of profit-eating. Merchant services providers will take a percentage-based fee with each transaction. Since most consumers prefer to spend with credit cards than cash (as much as 77% according to a study), the benefits of accepting cards as payment will quickly outweigh these minor fees.
A study published by MIT found that shoppers spend up to 100% more when using their credit card to pay instead of cash. The reason for this is that credit cards are easy to use and there is no immediate impact to your bank account, but this also means it is easier to accidently overspend as well.
Many payment processing providers have left business owners with a bad taste in their mouth on what it is like to work with a merchant service provider. From tacking on hidden fees or increasing the rates after the account is signed up, businesses have a misconception that they cannot trust merchant service providers. However, by choosing the right provider, businesses will find that they can trust their provider with upfront pricing, fraud prevention, customer privacy, PCI-compliance, 24/7 support, and so much more. BankCard Services believes in full transparency and will offer merchants clear monthly pricing with no hidden fees.
Misconception #4: My Business Will Experience a Data Breach If I Accept Credit Cards
Every business faces risk, but it is all about how you mitigate. The best merchant services providers like BankCard take extensive measures to secure all customer data. PCI Compliance requires merchants accepting credit card payments to put added security measures in place. Providers always track and secure data, using the latest and greatest tools to protect each customer.
Payment processing capabilities are pivotal to the success of each business. When you can accept credit cards at your POS stations, you open up to a whole new world of consumer possibilities. Very few customers carry cash, so having your credit card processing station ready for their impulse buy will ensure you lose no revenue dollars. Work with BankCard merchant services to get your business set up quickly to begin accepting credit, today.
Mickael is an entrepreneur and the Co-founder of Bankcard Services. He is a family man and loves technology, innovation, and soccer.