Increase Your Sales - Accept Credit Cards

Many people today simply prefer the convenience of paying by credit card. If you want their business, you must be able to accept their credit-card payments.

In part one of this series we will discuss why you should accept credit cards, and the basics of getting merchant status. Part two will deal with objections you might get, which credit cards to accept, and the check paying option.

Obtaining merchant status, which allows you to accept credit-card payments, might seem like an unnecessary hassle, especially for those in business where the majority of their customers pay by cash or check. But by not accepting credit-card payments, you lose sales. This is especially true if yours is a mail order business, or consulting business. Just look at the majority of business today, all of them accept credit cards, and becoming more and more popular all the time are debit cards.

As many businesses have found, up to 70 percent of people never mail the check, so accepting credit cards is crucial. When the customer places an order, he's excited and eager to buy. Faced with the prospect of sending a check, waiting for it to clear and then awaiting shipment, his interest is likely to wane. In the meantime, you lose sales.

The Basics of Merchant Status

In order to accept credit cards, you need to work with a bank that will transfer the money into your account within a day or two of the sale, and then collect the money from the customer. In return, you pay the bank a commission of 1.5 percent to 5 percent for each credit-card transaction; a set, per-transaction fee; and a setup fee. You will also have to pay monthly support or equipment-rental fees for a point-of-sale terminal-the machine used to swipe the card-depending on the contract.

The fee is based on two things, the average amount per transaction and the total volume for the year.

When you apply for merchant status, the banks evaluate your business based on its sales track record, the type of business it is, your credit record, the business's credit record and your overall financial picture.

Apply for merchant status when you get your start-up financing. This accomplishes several things. First, it shows that you've thought ahead. And you will probably have customers that you wouldn't have otherwise. In fact, some people don't pay with anything but credit cards.

Second, you show you're taking steps to minimize the time and expense involved in recovering bad debts. If someone writes a bad check, for instance, it will cost you time and money to recover the loss. If you swipe a customer's credit card through a point-of-sale terminal, you can be sure you'll get paid. The machine contacts the issuing bank to authorize the transaction and runs the account numbers through a variety of fraud-protection procedures.

In part two of this series we will deal with objections you might get, which credit cards to accept, and the check paying option.

Copyright 2004 DeFiore Enterprises

Interested in having your own successful, home based creative real estate investing business? Chuck and Sue have been helping folks start successful home based businesses for over 19 years, and we can help you too! To see how, visit http://www.homebusinesssolutions.com for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses. No time to visit the site? Subscribe to our "how to" Home Business Solutions Digest, it's like having your own personal coach: mailto:subscribeHBS@homebusinesssolutions.com

In The News:

---

Make Time, Not Excuses

There are four primary activities that successful salespeople engage in... Read More

100% Commission Equals Zero Percent Control

The temptation to use straight (100%) commission plans never goes... Read More

How to Beat the 80/20 Rule in Sales Performance -- Part 2

Another key reason why companies suffer from 80/20 performance is... Read More

Drop Discounts and Earn Top Dollar

Every dollar you discount is a dollar of pure profit... Read More

Beyond the Golden Rule

There are several types and sub types of people in... Read More

The Hidden Competition: Avoiding the 2 Most Common Competitors

There are really only two types of competitor:1. Obvious2. HiddenThe... Read More

Sales & Marketing Plan Strategies

Design and Implementation of a new Sales & Marketing campaign... Read More

How Many Salespeople Should I Hire?

One of the most asked questions I get is how... Read More

How to Develop a Proactive, New-Business Sales Team!

I don't know about your business but in my experience... Read More

The Boss from Hell: Quick to Criticize, Slow to Praise

So you have a boss who dumps all over you... Read More

Set Yourself up for Trade Show Success

Of the many mistakes small business owners make, a big... Read More

3 Secrets That Set The Context For Sales Success

In today's competitive environment, every organization is trying to improve... Read More

Snuff Out the Competition Without Leaving a Mark!

Does the competition drive you crazy? Are they relentless about... Read More

Stop Drowning: Nine Strategies For Managing Your Priorities

I just got off the phone with Susan. She is... Read More

Sex, Drugs, & Rock-n-Roll at Trade Shows

Here's the Scenario...You're at a trade show. Out of town.... Read More

The Differences Between A Commercial Collections Agency & Lawyer

If your letter writing and phone calls have all failed... Read More

A Coachs Handbook For Sales Managers

This article may be reprinted in its entirety with express... Read More

6 Steps to Avoid Losing Summer Sales

It's a fact - the online world dies down in... Read More

All Small Businesses Need to Gather Community Intel

How well do you know your community? As business owners... Read More

4 Tips for the Summer Slowdown - How To Pick Up Sales

You may have heard about the "summer slowdown". You may... Read More

10 Things to Help Your Business When Sales Are Slow During the Holidays

Twiddling your thumbs and waiting for some business to come... Read More

We Will Make It Back----- A Fictional Story Based on Fact About Sales Management Success

Bill Borders stepped up onto the podium. He had just... Read More

How to Sharpen Your Sales Message with Do-it-Yourself Focus Groups - Small Business Power Tools

You've probably heard of focus groups. It's a tool that... Read More

Effective Sales Territory Management

How you prioritize your sales territory management activities depends upon... Read More

Rotten to the Core: The Story of How the Best and Brightest can be Ruined

The objective of an incentive is to incite action within... Read More

Sales Competence Isn?t About Quota Performance!

Compounding the problem are two myths regarding measures of competency... Read More

Increasing Business Through Distributors

You're a small company with a good product. You are... Read More

Run a Productive Business From Your Car-Office

The way we do business has changed dramatically over the... Read More

How Your 60-Second Elevator Script Can Transform Your Staff, Your Sales, & Your Business

When attending a Chamber of Commerce breakfast networking get-together, I'm... Read More

Leadership Lessons for Sales Managers

Leadership, like class, is hard to define, but easy to... Read More

How to Sell Strategically

If you want to maximize your sales performance, take a... Read More

Discounting Your Way Into Sales Oblivion

I don't even like saying the word d---------g. I have... Read More

Are Your Sales Meetings Boring?

Many sales meetings are boring and a waste of salespeople's... Read More