The presence of credit cards has made business transactions more manageable to complete nowadays. Sales can be made in just seconds, regardless of the amount, as cash no longer has to be brought all the time. Credit card transactions are completed with the help of a credit and debit card processor or readers. Choosing the right one for your business can be quite tricky, so here are a few tips to help make the selection process easier for you:
1. Choose the specific type of credit card readers that you need based on financial aspects
There are generally two types of credit card readers today:
- Mobile credit card readers
- Full-service credit card processors
A mobile credit card reader is a card reader for small business, beneficial if your business usually accepts credit card payments that do not go beyond 3,000 USD per month. Mobile credit card readers are affiliated with companies such as PayPal that do not charge you with annual fees. Hence, you can save up on this matter. Although the percentage fee for each transaction is higher, these costs are not fixed as each transaction also varies. This means that your entire schedule of fees to pay the bank or the reader company in a year is lesser.
Full-service credit card processors refer to the traditional credit card readers that you see in most restaurants, supermarkets, and other major retail stores. If you have a steady influx of customers daily and your credit card transactions go beyond 3,000 USD, then this type is best for you, as you can afford the regular annual fees.
2. Before finally making a purchase, do read the full contract carefully
Purchasing a credit card reader is a fundamental decision for you to make in your business. Hence, you should not rush the same. If you are looking at various readers, make sure that you fully understand each of the terms provided. Read the contract thoroughly multiple times to help ensure that you do not miss out on any particular point.
This step is very prudent for you to make as a business owner because once you sign the agreement to get tied up with that credit card reader company or bank, it is not something that you can rescind immediately.
3. Choose the reader that provides easy setup methods
Remember that the bottom line in making a credit card transaction is that you want to close the sale as fast as possible. Customers do not like to wait so long in line to get their transactions done. Hence, you should have the speed in mind as well, and one that is not too technical, so that whoever uses your reader knows how to operate the same. You always have to endeavor to make payment methods as easy and fast as possible for your customers.
4. Choose the reader that has the lowest fees
Credit card transactions are effortless, fast, and convenient. This fact makes it very attractive and easy for your customers. However, for you as the seller, credit card transactions can be expensive. Remember that reader or processing companies take a percentage of your sale transaction for every credit card swipe.
One consideration that you should have in mind, therefore, should be the credit card company that offers readers that take the lowest percentage of sales and the lowest annual fees.
5. Choose the reader that has the EMV support service
EMV stands for EuroPay, MasterCard, Visa. New credit and debit cards now have an EMV chip in place, to help authenticate transactions. This chip is like an added security feature that most credit and debit cards have. It is crucial, therefore, that you choose the reader that offers not only the traditional magnetic strip reader, but also this EMV chip reader.
The above fact is highly essential for you to remember because you can be liable as the seller if you make the mistake of running your customer’s EMV chip in the magnetic strip, rather than on the chip reader itself. Banks are very strict with this, and you might be charged with the counterfeiting of a credit card.
6. Ask about the speed of bank deposits
At the end of the day, as a business, whether you accept payments through cash or credit cards, the bottom-line is that you are there to make a profit. Depending on your type of business and proximity to the bank, sales are usually deposited either on a daily or weekly basis. This situation is no problem with cash transactions because you have to carry whatever cash on hand you have with you to deposit physically to the bank.
However, for credit card transactions, the speed of bank deposits can vary based on the credit card reader company that you are using. It is essential, therefore, for you to double-check on this
matter. Sometimes, your sales are often placed on hold first in a merchant account before transferring them to your bank account. However, there are also some companies that transfer directly to your bank account after collecting their fees.
The speed of bank deposits is vital as this can also affect the monthly accounting of your cash inflow or financial statements.
7. Do consider as well your type of store and how you accept payments
If you are a physical store, then you would most likely need the card processor that accepts payments on the go, wherever you are in your store. However, the tricky part is if you take online payments as well if you have a website for online purchases. The type of readers in these transactions is different.
When your store offers online transactions as well, if you have two readers, one for physical transactions and another for online sales, make sure that you are not violating any exclusivity clause in each credit card reader company, as most companies do prohibit subscribers from using two different readers simultaneously.
Conclusion
For business owners, whether small or big, the ability to accept credit card payments is highly crucial. Sometimes, this availability or convenience for the customers can make the difference between making a sale or losing one. Having a reliable credit card reader or credit card processor is highly advisable, primarily if your business is located in a tourist-laden location, as tourists do not usually bring in a lot of cash with them. With these tips in mind, you can help your business become more attractive to a wide range of customers by having the best credit card reader for your needs.