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Quick Tips to Accept Credit Cards For Small Business

Guest post by: Matt Winter

Article Overview: If your small business isn't accepting credit cards, you are losing sales. These tips will have you taking credit card sales in no time.

Quick Tips to Accept Credit Cards For Small Business

Do you accept credit cards in your small business? If you do not, you could be missing a lot of sales and losing a lot of money.

Despite the state of the economy, there are still a lot of consumers who prefer the convenience of using credit cards for their purchases. If your business cannot take credit cards, your customers may be take their shopping dollars to your competition.

But you cannot just decide to accept credit cards. You have to establish merchant status first.

What is Merchant Status?

There are lots of banks and companies offering merchant services. You can apply with your local banks or go online and apply with one online. These banks collect the money paid by credit card customers and transfer it to your account, usually within a day or two of processing. You pay them a commission for the service, usually ranging from 1.5 to 6 percent per transaction. Other costs will include equipment rental and fees for technical support.

What Information Will Banks Want to See?

The application process for merchant status is similar to applying for a loan. Lenders will look at your overall financial picture, so keep the following things in mind:

1. What Type of Business Do You Have and How Long Have You Been Open?

Type and age of a business usually determine the amount of risk your business poses to a lender. For example, if your retail business has been operating for 5 years it will get merchant status quicker than a business that has been open for a few months. Home-businesses have a very difficult time getting approved.

2. What Does Your Sales Picture Look Like?

Banks will want to know that you have a healthy business and your sales figures will help prove that. The better your sales history, the easier it will be for you to get merchant status.

3. Does Your Business Have A Lot of Debt?

We are talking about financial services, so your business and personal credit histories will be reviewed. While it will not be the deciding factor, the better your credit picture the easier it will be to get merchant approval.

What Steps Should You Take To Get Merchant Status?

Before you apply for merchant status, get your information together including business and personal credit histories. Include information on how you finance your business. It is also quicker to request credit reports yourself and provide them when requested.

While this may all seem like a lot of trouble, once you have merchant status you will realize it was worth the effort. Accepting credit cards can dramatically boost sales and improve your cash flow.

Accepting credit cards for your small business will quickly become one of the best financial decisions you could make for your success.

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Article Tags: accept credit cards, accepting credit cards, increase sales, small business



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