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Message from CT...

The key to success is the knowledge one gathers from the relationships we make and the experiences of others. If you have just discovered CT Jewelry Design, I encourage you to subscribe and follow along. Feedback is always welcomed! - CT

Saturday, March 14, 2009

Accepting "Plastic" Cash


Several studies have shown that the average size of credit card orders can be up to three times more that cash and check orders. Customers buy more when they use their credit cards. They can often get benefits for paying with credit cards such as points or cash back and it can give them more flexibility in managing their cash flow. Many vendors are hesitant to begin accepting credit cards because they feel the transaction fees and set-up fees are a deterrent, but the benefits outweigh the costs and the time involved in accepting credit cards.

So how does one start accepting credit cards on-line? First contact the bank where you have your checking account for details on opening a merchant account. Take a look at programs such as Pay Pal, Pro Pay or Google Checkout, etc., that perform credit card transactions. Comparison shop for the best services and fees. Read all the details to compare set-up fees, transaction fees, transfer fees and any annual fees. Beware of credit card fraud and scams. Do some word of mouth networking and check the companies out.

Typically, you will want to sign up with the company that provides the lowest percentage transaction fees, even if you have to pay a small set-up charge but fees vary so review the fine print! Once you decide which company you will use, fill-out all the required set-up paperwork and pay the required fees. Many companies will run a credit-check before approving your account. Then learn how to activate and process the credit card charges according to their specific instructions.

In today's market it's almost a necessity to accept credit cards payments. While it is true that you can still sell your items and customers will still buy your products with cash and checks, you will greatly increase your sales by giving your customer the option of charging their purchases. Your payments are guaranteed up front with no more trips to the bank or the cost of bounced checks and even if your customer orders just one more product as a result of paying with a credit card, you'll make more money than you would have otherwise. - CT

5 comments:

Jenn said...

Great advice! I think this is especially true for those who do festivals and craft shows. In my craft show days I almost always sold more than vendors who didn't take plastic. The first thing people would say as they walked up to my booth was "Oh great!, you take credit cards!" When I'm the shopper, I feel the same way!

alwaysadorable said...

Very good point, CT. I have been thinking about this a lot with an impending craft show in April. Credit card or not to credit card, that is the question! :) I just need to figure out how to have that service available on site.

Thanks for visiting my blog today!

CT said...

Thank you for reading my blog today ladies. I too sell more than others at craft shows just by having several signs visible on my table. I've been using ProPay for several years now so it allows me to enter the CC information right there on the spot! I have the premium package ($59.95/year) so it allows me to process via telephone real time and also accept Visa, MasterCard, Amex and Discover too. For $5.00/mo and the small transaction percentage fee it's a great way to make a sale. You should check it out. Happy Selling! - CT

oblinaknit said...

I use ProPay and it has been wonderful - it is a definite advantage to accept credit cards... ProPay also allows you to invoice through their system - it is a much better deal all-around than PayPal's Virtual terminal.

CT said...

Thanks for the reminder of the Propay invoicing Oblinaknit! That's also a great selling feature. - CT

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