Credit Card Processing Tips for Small Businesses

As a small business owner it can be difficult to compete with large competitors, especially when it comes to overhead costs. Whether it is office space or shipping fees, the smaller you are the more per unit you generally have to pay. The good news for small businesses is that when it comes to credit card processing there are a few tips that can score you a contract about as good as the big guys get.

Find a Reputable Company

First and foremost, you must find a company that is known for treating their merchants well. Simply signing up with the next sales representative that walks in your place of business will ensure you are not getting the most ethical company. You can accomplish this by doing online research and reading things like the Better Business Bureau.

Demand Interchange Pass-Through

Interchange pass-through is a type of fee structure which the largest companies in the world pay. It is a type of wholesale pricing system that ensures the best rates for each card processed is passed on to the merchant. Very few processors will offer this up front, since the total fees and commissions are reduced, and some may even try and act like it is a bad way to set up an account. If a sales rep tries to move away from interchange pass-through, move on to the next company.

Negotiate Every Fee in the Agreement

The typical merchant account agreement will be littered with additional fees. They can range in title from PCI compliance to statement fee. The unfortunate part is that many sales agents have the authorization to make fees up as an additional way to pad their commission. Since most merchants are unaware of this, they simply sign the contract and pay the additional fees. The best idea is to challenge every fee individually, and attempt to negotiate it down or completely out of the contract.

Get Quotes from Multiple Companies

Every company is different and each sales rep will write up a contract in their own way. It is important to have multiple quotes so it is easier to compare the different features and costs. Many sales agents have tremendous flexibility over the contract terms and fees, and they would rather get a sale with a reduced commission than no sale at all. It is important to gather all the information from each company before agreeing to a single contract.

This guest post is by Eric Stauffer, who is part of a credit card processing watchdog group that reviews companies and products like PayPal Here. They also help small businesses negotiate the best payment processing contracts possible.

Like the image in this post? We got it at BigStockPhoto.com

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Need to Quickly Improve Your Cash Flow? Here’s Help

The economy is improving in baby steps. But that may not have had an impact on your business yet.

If your small business is still struggling with cash flow, never fear, there are some quick and creative ways you can improve just by making a few tweaks in your  business.

I have recently published a new quick read book that can help you solve some of those cash flow problems. It’s available in Amazon Kindle format (you don’t need a Kindle to read it — just get the free Kindle reading app here). In this book, you will learn eight creative tactics to get your cash flow moving in the right direction. Here’s a sneak peek:

  1. Don’t Be An Invoice Laggard
  2. Plastic Will Make Your Cash Flow Faster
  3. Get Paid In Chunks
  4. A Steady Paycheck Will Even The Flow
  5. Double Up With A Joint Venture Partner
  6. Keep The Dust Off Your Receivables
  7. Focus On The Red Corvette
  8. Forget Crystal Balls, Use a Cash Flow Budget

Michelle Dunn, credit and collections expert for small business says:

“This is a short little book but it is really full of new, helpful information that can help you improve your cash flow in this new economy – a must read for any business owner looking to protect their cash and their business.”

In addition to the eight ways to improve your cash flow now, I’ve included the transcript (and some really tough questions for you to ask about your business) of a Cash Flow Summit I led with small business cash flow experts Philip Campbell and Caroline Jordan. And, you get the MP3 recording of the summit for free once you have the book. Here’s what we talked about during the summit:

  • The Causes of Small Business Cash Flow Problems
  • Dealing With Payment Deadbeats
  • Ya Gotta Be A Marketer or Your Business Will Have No Cash Flow
  • Pricing Can Make or Break Your Company
  • Avoiding the Payables Death Spiral
  • Get Ahead of Your Cash Flow With Budgets and Forecasts
  • Three Quick Tips to Get You Moving In The Right Direction

There are a ton of tips and value inside this short book that can help you improve your cash flow — now. And for a limited time, I’ve priced it at an insanely low 99 cents. Yep, it will cost you less than a buck. That’s a pretty cheap investment to get quick improvement in your business. Click here to get your copy of Pump Up Your Cash Flow Now! 8 Quick and Easy Ways to Improve Your Bottom Line Thank you in advance. :)

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Payment Options Can Increase Your Cash Flow

If you’re looking for a way to increase your bottom line, take a look at your payment options.

How many choices do your customers have to pay you?

If you only accept cash and checks, you’re letting a lot of money walk out your door. I know that accepting credit cards — at first look — seems to be just an added expense, but they can add quickly to your bottom line and can actually save your company money.

Consider this. [Read more...]

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