Advantages to Small Businesses when offering payments by credit cards to their customers

 

Consumers use less and less bills and pay a considerable percentage of their expenses with “plastic money”. Due to the fact that today there is a large number of shops that accept card payments , everything is more practical for the customer, who no longer needs to load the ticket portfolio or spend time withdrawing money. Establishments that accept only “cash” are left behind.

Is it worth accepting cards?

The first benefit for the merchant or the small businesses that accepts credit cards is to offer this convenience to the customer. But technology also facilitates sales in installments, whose rate of delinquency caused losses to the owners of the stores. Selling to debit or credit, there is no danger of default for the merchant – if you approve the purchase, you receive the money anyway. Considering the different types of cards and the positive aspects any Business should check theĀ credit card processing for small business and make use of those services.

These positive points should be placed on the scale when considering the negatives. Of course the practicality of the cards has a cost . The rate charged for each transaction varies according to the brand and the issuer, but is around 3% for purchases made by debit and 4.2% with credit (when it exceeds six installments, it reaches approximately 5% of the value of the sale).

In addition to the percentage on sales, there is the rental of the machine , which can also be free, according to the negotiation (and in the case of capture by cell phone, when it is necessary to acquire that technology).

Types of cards

Learn about the main types of cards and their characteristics:

Credit

If a merchant makes a sale by credit card, he receives the value in 30 days (in cash purchases), or a percentage per month in the case of sales in installments . The customer pays the purchase on the next invoice.

Debit

With the debit card, the purchase is made in cash and the amount is debited immediately from the account of the owner and goes to the account of the establishment. The amount is credited the next day .

Private cards

This is the name that the exclusive cards of a trade receive. They are issued to be used only in that establishment – they usually offer discounts and promotions for users.

Hybrid private cards

This type differs from the previous one because it has a trademark , and can be used in accredited establishments, beyond which it can be used for the same purpose (in commerce to obtain discounts).

Business

It is the so-called corporate card that some people designated by a company can use in activities related to professional practice. It can be used for the acquisition of supplies, payment to suppliers, daily expenses and other purposes.