To Accept Credit Cards or Not to Accept Credit Cards…That is the Question.

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To Accept Credit Cards or Not to Accept Credit Cards…That is the Question.

Encourager-In-Chief: December 18th, 2019

How to know when to start.

Is it time to start accepting credit cards? This is one of the most frequent questions entrepreneurs face when they start their business. Nobody wants to lose out on sales, however, when is the right time to have a merchant account (which gives you the ability to accept credit cards from your customers)?

The best way to know when the right time to accept credit cards is when you look at your industry and see how customers pay for your services. For example, if you are a hotel, you’re going to need to accept credit cards. Most of your customers will be from out of town and you’re going to want some peace of mind of knowing that the credit card company will back you up on legitimate charges. On the other hand, if you’re mowing lawns, you probably don’t need to accept credit cards. Of course, things can change.

Most large corporations prefer to pay by check. It creates a record of the transaction and, much to the chagrin of small business owners, allows the customer to drag their feet when making payments to you. When you see this happening with more and more customers, it’s time to start accepting credit cards. Remember, if you are not a bank, don’t let your customers treat you like one.

Credit cards are a great way to make sure you are going to get paid in a timely fashion for your work. Yes, you will pay a fee for the service, but consider this: would you rather pay 2 or 3% and know you’re going to get your money without a hassle, or spend half your week on the phone making collection calls to slow paying and deadbeat customers? By the way, get rid of all of your slow paying and deadbeat customers!

If you are considering accepting credit cards, talk to someone who provides merchant accounts and asked them to look at your sales volume. There’s a certain point where it makes sense to set up a merchant account. There’s a monthly fee attached, so you don’t want to be paying that if you only get three credit card transactions a year. However, from the time you open your business, unless you’re working out of the Good Humor truck, you should be convincing your customers to pay you by credit card. It’s one of the best decisions I’ve ever made. In fact, I went three years without losing any money on any transaction.

Oh, and by the way, don’t go to a bank for your merchant account. Check with a reputable service first, like Horn Payment Solutions. You’ll like the fees and customer service a lot better.

If you don't accept credit cards, you're only pretending to be in business.
- Terry Allen

This excerpt is taken from my Survive and Thrive in Your Own Business seminar.

Survive And Thrive In Your Own Business

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I also encourage you to order my Survive and Thrive in Your Own Business video program, which covers this topic in much greater detail.

Survive and Thrive in Your Own Business

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