Today, every business needs to have card machines to improve its business operations and grow. The good news is that there are advances in technology leading to many businesses adopting payment systems that make transactions easier to do. Remember that you can now use debit cards, credit cards, contactless, and many more payments.
Studies have indicated that many people can shop locally if small and medium businesses start accepting card payments. Now, businesses that use card machines usually enjoy a lot of benefits. This article discusses how small and medium businesses can benefit from card machines.
Understanding small and medium businesses
Many large businesses usually accept card payments, but small and medium businesses tend to only accept cash. The truth is that small and medium businesses can become more competitive and even grow if they use card machines. You can find many card machines for small and medium businesses. Most customers prefer utilizing card and contactless transactions as they are convenient, quick, and secure.
Even when you display the acceptance logo of a credit and debit card, you can increase the sales of your business and reach many customers. It’s a good idea to combine a variety of payment options to improve the point of sale experience for your customers. After all, many customers don’t like to look for an ATM to get money to pay for their purchases.
There are many customers who leave businesses that only accept cash empty handed just because they don’t accept cards. Worse still, these customers may never visit your business again, so it can have a negative impact on your business. Other customers tend to spend more cash through impulse purchases because they know cash is not a limiting factor. Therefore, having credit card terminals can increase your profits.
You can improve security when you use a card machine, especially for small businesses. With less cash on your premises, it means you can reduce the risk of fraud and theft. The best way you can prevent the chances of these risks can be to invest in card machines that have chip and pin technology. This technology is designed to prevent fraud associated with credit cards.
A card machine can also save you lots of time. It’s worth noting that a card transaction can process faster than counting money. Also, contactless payments tend to reduce queues while increasing your business transactions. There can be no need to visit your bank and wait in long queues to deposit large amounts of cash.
Many small and medium businesses usually avoid cashless payments that involve card machines because of the costs. A card payment system can cost some money to set it up. You also need to maintain it every year and there are credit card processing fees that can be considered to be an unnecessary extra cost. This is especially true for businesses that are not not doing well on the market.
Therefore, small and medium businesses with small profit margins usually avoid using card machines preferring to accept cash only to avoid fees when their customers swipe their cards. Keep in mind that card issuers can take a certain percentage of their sales. Besides, the cost of repairing these card terminals can make accepting cards not necessary.
While these issues contribute to the reasons why some small and medium businesses avoid card payments, other businesses usually don’t invest in card machines because of the work and complexity needed to set up an ideal card machine. Also, they may be getting enough business, so they don’t consider having a card machine to be important. But all these issues can be handled by getting the right card machine that meets the needs of your business.
It’s a good idea for your business to adopt recent technologies like epos now, especially if it’s a small and medium one. This is because large businesses are a competition for these small and large businesses. It can be hard for businesses with no card machines to survive in this highly competitive market.
How you can begin accepting card payments
You need to find the right card machine that works well for your business. Remember that many card machine suppliers usually have different types of card terminals, and the most popular for small and medium businesses are portable, countertop, and mobile ones.
Countertop card machines are usually wired and placed in fixed places in your shop to make them suitable for takeaways, local stores, and reception desks. You can also find portable card machines that are convenient for restaurants. This is because these card machines can accept card payments anywhere on your premises. But if your small and medium business is usually on the go, then the ideal option can be the mobile card machine. The mobile card machine can be ideal for tradespeople, taxi services, and many more.
You should also look for a merchant account that offers affordable fees. You should note that a merchant account can automatically process your card transactions. For each card transaction it processes, it takes a certain percentage from the sales you make and deposits the rest of the money into your bank account.
But the merchant account fees tend to vary depending on your business, though it usually considers the price of the card machine, transaction fee, authorization fee, an interchange fee, and many more. The good thing is that you can also find merchant services and card machines for small and medium businesses that may not charge you these fees and offer affordable card payment services.
To have a good chance of getting accepted for your merchant account, it’s crucial to have a good credit rating. Even if your business is considered to be in a high risk industry or you have poor credit, you can still be eligible for a merchant account. Most merchant account providers usually review the credit history to determine how you can repay loans, the age of your business, and any past experiences using a merchant account. In this way, they can figure out if it can be easier to trust you.