Small businesses face unique challenges today as they compete with larger corporations to win customers and increase profit margins. Depending on how those customers are paying for goods and services can impact the bottom line for smaller companies mainly due to processing fees imposed by credit card companies.
As a small business, those fees eventually add up and for many merchants could even lead to loss.
What can small businesses do?
Certainly refusing to accept credit card transactions is a foolish move since most everyone today is using them and other advanced forms of payment like mobile pay.
Instead of limiting your sales potential, you could pass those costs down to the consumers with surcharges. But raising prices could also push them off to a competitor and in some states it’s even against the law to do so.
Cash only discounts is a viable alternative.
Merchants can extend discounts to their customers if they use cash to pay versus a credit card. One popular example is paying for gas. Many stations are now offering a lower price for those who pay with cash. This is the same idea and it can be applied in many other applications.
Payment Processing Regulations
However, it’s not as easy as just setting different prices for your customers. There are laws and regulations in place regarding how these discounts are given.
When it comes to payment processing, you need a company with expertise and tools that ensure your business has everything in place to accept all payment forms and keep the most profits possible.
Contact us today to find out more.