Your POS system is not just a cash register. Your system coordinates inventory, purchasing, receiving, and transfers of products. It also tracks sales information and trends, and performs analyses of various elements – cost, price, and profit – as needed.
Using the information stored in your POS reports, you can improve your business’s marketing, staffing, and sales processes. Read the full entry
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When you process a credit card transaction in your retail store, there is an element of risk involved in the transferal of payment – a moment when the processing company assumes, but cannot confirm, that it will receive payment from the credit card holder.
In the majority of transactions, this risk is minor and ephemeral. However, certain transactions come with a greater degree of risk that the company will not receive payment or will become a victim of fraud.
Related: Not accepting credit cards yet? Get started with one of our hand-picked vendors
To make up for the risks of this kind of transaction, credit card processing companies charge the merchant a much higher fee. Once you understand how risk is assessed by your processing service, you can take action to reduce that risk and, therefore, reduce your transaction fees. Read the full entry
Want to do an experiment? Find a retail establishment that doesn’t accept credit cards. It’s nearly impossible today, but somewhere between the cracks you can still find a few if you look hard enough.
The simple fact is that consumers are replacing the use of cash or checks with credit cards. One of the reasons is the convenience; all you have to do is reach into your wallet and pull out the plastic. And, for you, it’s nearly just as easy to accept credit cards. In fact, it’s about as easy as it is to whip out the plastic to pay for something. Read the full entry
Today’s retail environment is much more complex than it was back when the mom-and-pop corner store was the only place in town to buy a loaf of bread. Today, most cities have a handful, if not dozens, of chain grocery stores selling the same products, a Sam’s Club or Costco offering deep discounts on bulk purchases, and even online grocers to compete against.
Shopper marketing is more important than ever, and spending on this form of marketing is only projected to increase in years to come. The shopper state of mind and unspoken needs that influence buying behavior are factors retailers cannot afford to ignore. Read the full entry
At the start of each New Year you will put forth resolutions. While we all start out with the best intentions, a staggering amount of resolutions are forgotten by mid- January. Here are some helpful tips to attain your retail goals in the New Year.
Straight out the gate in the New Year, retailers will be coming off a large spike in income; however, sudden increases in income are generally mismanaged.
If you do not manage your purchasing, staffing, and schedules, all while making enough sales at the correct price, your profits will go out of the window and you will make few inroads to improve your business or stability despite all of your hard work. Read the full entry
This week I found myself in a home improvement store, staring at a huge selection of cabinet hardware and wondering if the store’s prices really were the best deal in the area.
Instead of jumping in the car and driving to the next store, however, I simply pulled out my smartphone, scanned the bar code for the type of hardware I was considering, and searched the price at five different stores in the area.
It turned out that I could buy them for almost two dollars less at a hardware store just down the street, so I headed down the road for the better deal. Read the full entry
As a means of giving your customers the opportunity to purchase products 24/7, 365 days a year, eCommerce provides huge opportunities for businesses to sell their products online and achieve sales volumes like never before.
According to Forrester Research US eCommerce is expected to reach $250 billion in 2014 – with an expected 10% compound annual growth rate. An opportunity like this cannot be ignored, however many companies underestimate the resources needed to open an eCommerce store or fail to consider that a strong front-end eCommerce system will never perform as well as it could without a strong back-end ERP system. Read the full entry
Both your business and your customers need your credit card processing service to be reliable, versatile, and secure. People typically buy more when paying with a credit card than with cash, so you should encourage their spending by accepting their card.
Many banks won’t offer merchant accounts directly to your small business. Instead, you have to go through third-party credit card processing providers. Each provider have different fee structures and rules, so follow these tips to protect your business and find yourself the best deals. Read the full entry
Debit and Credit Card Use on the Rise
Despite the recession, credit and debit card use is growing … and is expected to continue to grow, according to ResourceNation.com. In 2008, 176 million Americans owned credit cards and 181 million had debit cards, according to the U.S. Census Bureau,.
And while credit card use has been down in recent months because of slow job growth, according to the HuffingtonPost.com, debit card use is becoming the dominant form of payment for many consumers.
According to a study by the Federal Reserve, between 1996 and 2006, debit card use grew 20 percent per year and has now exceed credit card transactions. At the same time, the number of checks written each year is dropping steadily and cash transactions are leveling out.
More than ever, Americans are accustomed to paying with plastic over paper. And as smartphone use increases, the newest trend will be virtual wallets — consumers using their phones to make purchases at major retailers.
The cost of scanning devices and processing fees have made some small businesses shy away from offering credit card payments. But the advent of card readers that attach to mobile phones means that even the small and mobile businesses (i.e. food trucks, landscapers, pizza delivery, contractors, etc.) can accept credit cards at a low cost.
Businesses that don’t accept credit cards potentially inconvenience customers (and in the worst case, lose customers who don’t have another form of payment), limit their ability to sell products via the internet, and appear less savvy than competitors.
Types of Credit Card Processing
It is imperative that small business owners not only accept debit and credit cards, but that also make processing such transactions easy and efficient. Here are the primary outlets for accepting credit card payments:
Finally, mobile processing is becoming an increasingly popular option for both businesses and consumers.
Mobile Processing Companies Compete for Small Businesses
Startups are currently developing smart-phone-compatible credit card readers. These readers charge less than the 3 percent that large credit card processing companies collect each time a consumer uses a credit, debit, or gift card, according to a recent Washington Post article.
In addition, earlier this year, PayPal launched PayPal Here, a mobile card reader that charges 2.75 percent per swipe and accepts PayPal payments in addition to credit and debit cards. Square Inc. charges customers a flat rate of $275 a month to process up to $250,000 in sales using its credit card reader.
And another entry into the field, Level Up, doesn’t charge a fee for processing, but requires both the business and customer to download a smartphone app to complete a transaction (the customer’s credit card is linked to the app; in order to pay for an item the customer uses their smartphone to scan a QR code located on the item).
It could be that in the not-too-distant future, consumers will ditch their wallets in favor of their phones. Is your small business prepared?
Learn more about credit card processing for your small business on Business.com.
Image courtesy of SquareInc.com
When times are tough, it is the little extra things that make a difference.
As a small business owner, are you doing anything extra to assist your customers who are feeling the pinch these days? If not, have you noticed a drop in business or even complaints from your customers?
Just as your business may be seeing some tough financial times, your customers are no different. They are looking for deals, loyalty programs, coupons and more to save some money here and there, so take the time to reward them. Not only will you likely keep their business, but they may refer some new clients to you. Read the full entry
