Credit Card Processing
Today you can pay for almost anything in the following ways:
• Credit Card
• Debit Card
• Google Wallet
• Mobile payments
• Check/Money Order
If you run a “standard” business, such as brick and mortar location or even e-commerce, you more than likely already have Credit Card Processing established. But what about small businesses that operate at Flea Markets, Fairs, Farmers’ Markets, etc.? A few credit card processing companies have solved this issue. Companies like Square, InTuit, AprivaPay, and evenPayPal; have developed mini credit card processing adaptors. These adaptors plug directly into your cell phone. This way you don’t have to rely on whether or not where you’re selling has internet access, electrical outlets for the cords, etc.
Credit Card Processing also helps track what you’re selling much easier than a cash sale. You can also build a client list and know what their spending habits are. Credit Card Processing does come with fees. Typically the Credit Card Processing company will charge a percentage based on sales and a per swipe fee. Rough estimates (this depends on your Credit Card Processing Company) include 1.5%-2% per swipe, plus $.10; monthly fees of $5-$15. Also factored in is average ticket size. The higher your average ticket, the less you’ll pay in fees. This can be explained as follows:
Two businesses each have $1000.00 a week in credit card sales. Business #1 has an average ticket sale of $10, while Business #2 has $100.00. They both have the same rate of $.18 per transaction; so Business #1 would pay $18.00 in fees. However, because Business #2 has a higher transaction rate ($100.00); they would be paying $1.80.
Another thing to consider is that Debit card fees are typically lower. Fees for debit cards are capped at $.21 plus .05%. This was included in the Durbin Amendment, as part of the Dodd-Frank Financial Reform of Legislation in 2010.
So as you can see, Credit Card processing is an integral part of businesses in todays’ world.