You’ve checked with
local banks and have found that none offer merchant accounts, or
maybe some do, but you want to investigate more opportunities.
What other companies
provide this service?
Costco is one company
that makes merchant services available to their executive members.
This information is listed under the "services" link at the top
right corner of their site.
BJ's Wholesale Club
also offers merchant services, but I didn't see anything listed on
the Sam's Club site.
Not a club member?
QuickBooks.com and Quicken.com provide insights into opening a
merchant account.
You can also seek a reputable source by asking
small business owners and others whom you trust for references. This
could include:
1. Members of
organizations you’ve joined. Who processes their transactions? Where
are these merchant account providers located, and what are the
costs?
2. Organizations that
offer benefits such as credit card processing. This includes
chambers of commerce, retail associations and home business groups.
3. Artists exhibiting
at local craft and business fairs. Some of these individuals will
gladly share information about the company that processes their
transactions. Look for booths displaying credit card logos.
Since artists are
selling outside of their offices, this would be a good time to ask
how they process transactions while in a booth. Not all merchant
account companies provide this flexibility, so these travelling
sellers are the best people to query.
Years ago, I noticed
that many small businesses only accepted the American Express (AmEx)
card.
I was told that the
AmEx application approval was easy. When a customer presented his or
her card, the business owner would call the AmEx approval center to
speak with a representative who approved or denied the transaction.
Calling for approval
by phone results in a higher transaction charge, but since there
were no per-month charges associated with the account, it was seen
as an affordable option. There is no such choice through Visa and
MasterCard.
Does the Discover Card
allow you to take orders in the same manner as AmEx? There’s only
one way to find out. Visit the American Express and Discover Cards'
merchant sites for details.
Do you charge
customers who pay by cash one price and others who pay with a credit
card a higher price because of the fees? No, and there may be a law
against this. Your prices must incorporate all fees associated with
the sale, no matter how the customer pays. A $50 basket is $50, not
$55 if a person pays using Visa. When was the last time you went
into a store and saw a two-price structure on the merchandise?
The bottom line is
that you are the only one who knows whether it’s time to offer your
customers another way to pay for their gift baskets. If you’re
ready, you will have to do your homework and find the best service
for your circumstances.
There’s only one
reason for the credit card dilemma: this option involves an expense,
a new cost that you must pay every month, whether you process one
sale or 100. Answer these four questions honestly:
1) Do you want to
provide your customers with another payment solution?
2) Are you ready for your business to grow?
3) Do the benefits of adding a merchant account outweigh the costs?
4) Is being in business really for you, or do you want to
occasionally make gift baskets for friends and family?
It’s okay if you
decide to not to apply for a merchant account. Many designers do,
and some don’t. Buyers also make choices; some choose to only do
business with companies that accept credit card payments. Perhaps
your baskets will become so revered and highly recommended that
buyers won’t care that you don’t accept credit cards. You just might
be that lucky.
Make your decision, and get busy doing what you do best.
