Congratulations are starting your new business. You have a website, a product or service that you are offering at a reasonable price, and an advertising plan. You even found a way to accept credit cards without breaking the bank or entering a contract of any kind. PayPal, Venmo, and Square, among other alternative options, are wonderful options for those businesses that are like yours, just starting out with minimal credit card sales per month. However, what happens when you are becoming a sustainable business that has started to see real revenue from credit card sales on a monthly basis? There are options beyond PayPal and its competitors that can actually be beneficial to your bottom line when your credit card sales are substantial.
When PayPal is OK
PayPal, Venmo, Square, and all of these types of programs have a true place in the business world. They are wonderful for businesses just getting started and businesses that never reach a large quantity of credit card sales. However, the fees for these services grow as your business with them grows. They can become some of the most costly merchant processing services available to small businesses, costing your business thousands of dollars of fees every month. They are appealing to many businesses because of their lack of contracts and ease of use. Yet, the cost, as some point does justify the means.
The Time for Merchant Services
The question you must answer is when is it more cost effective and beneficial to your company to work with a merchant services provider for credit card purchases? Most merchant service professional can help companies with over $10,000 per month in credit card sales. At this point, your business has outgrown things like PayPal and Square. Instead, to continue using such products, you are now paying some of the highest fees in the industry.
By switching to a merchant services provider and entering a contract with your provider, you are allowing your provider to begin to negotiate credit card fees on behalf of hour business. This type of income makes you a valuable asset to the credit card companies. They do not want to lose your business by charging too much in fees. However, many credit card companies understand that you, as the business owner, are not familiar with their standards and tactics. Yet, those in the merchant services industry are. Rather than allowing your business to continue to be taken advantage of by the credit card companies, your merchant services provider can help lower your fees, keeping you, your clients, and the credit card companies happy and successful.
To learn more about making the transition from PayPal or Square to a reliable merchant services provider, contact Scott Tanker at Tanker Consulting Services at (609) 922-0201. Tanker Consulting Services has been helping companies save money on credit card processing for over two decades. He believes in putting everything in writing and providing a free analysis of your current credit card services to make sure you are getting the best service and fees available.