Most consumers these days want the flexibility to pay for their services in whatever manner they choose. For some that's cash, but for the majority, it's with a credit or debit card. Credit and debit cards have become the vehicle of choice for the majority of Americans when paying for goods and services. Younger consumers expect the convenience of using their credit card for all purchases they make, and older consumers appreciate it for ease in bookkeeping, tracking, and accounting purposes.
In a 2011 consumer survey conducted by ABMP, 30 percent of massage and bodywork consumers said they want to pay for therapeutic services with a credit card. Are you able to meet the payment needs of these clients? With today's options available to small businesses, it's easier than ever.
Comparing Options
First, do some research. What will fit best with your business, your overhead, and your clients? What makes the most sense for the amount of transactions you make every day, every week, or every year?
Be careful to consider all costs associated with credit card processing. Some companies charge a basic one-time fee for the plan you are on, a monthly fee to keep the service active (just like the phone company), and a per transaction fee to use the service. Others may charge you for any equipment you require, while some may include that in the total rate.
Look carefully at all the fees associated with each plan. While one company may offer a lower percentage rate per transaction, it might have higher monthly minimums, a long-term contract to adhere to, or charge other related fees. Before signing anything, make sure you've done your homework.
Here are some things to look for when researching your options for accepting credit card payments in your business:
- Per transaction fees: The percentage rate you pay on each transaction can vary depending on several things, the most critical being whether you swipe your cards through a card reader or key them in manually.
- Monthly fees: These can often vary depending on the amount of transactions you process.
- Volume of business you anticipate: Some companies require a monthly minimum to utilize their card reader program. Take a look at your financials and determine where you realistically fall. What might your minimum and maximum numbers be for each month? Have those numbers ready when you start your research.
What Hardware Do I Need?
It used to be that you needed a credit card imprint machine or terminal, but that's no longer the case. A touchtone phone or a smartphone are all you need to get started accepting credit cards from your clients.
- Cell phone: Most companies offer a basic credit card processing program that allows the business owner to call a secure, toll-free number to key in client credit card numbers and payment information. These programs often include a manual imprinter so that you can create receipts for your clients.
- Smartphone: For smartphone users, downloading an app is usually all it takes to set up a credit card processing program. With this program, you can easily email receipts to your clients, so no imprint machine is necessary.
- Smartphone with a swipe device: You've likely seen these little plug-in devices that fit easily into the audio jack of your smartphone. With a swipe of the card, you've captured your client's payment, no matter where you are. Alternatively, consider using a wireless card reader and printer that connects wirelessly to your smartphone via Bluetooth, and prints receipts at the point of service.
- Desktop or laptop computer: Many companies offer a virtual terminal that can be easily administered through your computer. By logging on to a secure site, you can enter the client payment information directly, without it having to live on your computer. No additional software or equipment is necessary, and this program can typically be used on any computer.
- Standard electronic terminal: All credit card companies offer the standard electronic terminal most often seen in larger retail establishments, restaurants, and other storefront locations. While it doesn't give you the flexibility to process a credit card from various locations, this option typically does offer the lowest rate available, but is most often more suitable for higher-volume businesses.
How Do I Get Started?
There are several good credit card service options available to the small business owner and independent practitioner today. ABMP members get a free account with the ABMP Edition of PocketSuite, which features free online scheduling, credit card processing, and more.