It’s actually a funny area to think about.
It seems like something that’s almost a requirement anymore, yet many business owners are asking if they should have credit card processing – and for good reason.
It’s not because they don’t want to accept credit cards, it’s because they’re unsure on the cost.
And that’s exactly what we’ll discuss today.
The cost might be higher than other options, but that doesn’t have to be the deciding factor – especially if it can help you in other ways…
How Credit Card Processing Helps Your Business
Increased Cash Flow
Let’s get this one out of the way first – Increased Cash Flow.
As the old saying goes, cash is king – and that still holds true in today’s business, even though a lot of entrepreneurs don’t understand this focus.
And it’s not their fault, it’s something we learn as we enter the field – whether you realize it or not.
It seems like today’s entrepreneurs are trained to focus solely on Revenues and Profit.
Obviously two key areas that should be focused on, but without cash to keep their doors open – these measurements mean nothing.
And that’s where Credit Card Processing can help.
Instead of waiting 30 days for a payment or having to call your client everyday, you could consider offering payment options right away.
I think we both know that every customer won’t take this route, but some will now – and other’s will down the road….
Think about that time when you were down to your last dollar, and how helpful those few payments would have been.
Sure, processing fees might cost more money when compared to waiting for cash payments – but if you can get the money now and use it to grow your business – is that 2.9% fee, really that bad?
Let’s face it, you are your business.
Without you, things don’t operate at 100% – so that means you need to stay healthy.
And in the life of an entrepreneur, that can be hard to do.
You’re always working and your mind is always on work – it seems hard to justify anything else right now…
I get the logic, but only because I’ve been there. Now I see how harmful this thought is.
Extra work is needed and I’m not arguing against that, but you need to take any break you can get – and credit card processing can help with this.
Remembering to create the invoice, actually creating the invoice, mailing it out, and following up on it – the total billing process is stressful. You might be lucky enough to have an employee take care of this for you, but if you don’t – you understand what I mean.
Credit card processing might not eliminate this stress completely, but it’s a great start.
Opens Other Doors
This is a different way to look at it, but once you see the results – you’ll realize how much it actually helps.
Credit card processing does great things by itself, but it also opens the doors for other products…
The lender is able to see your monthly credit card transactions and offers a credit limit based off of that amount.
But that’s not all.
A huge misconception with Credit Card Processing is the actual process. The term triggers us to think about Point-of-Sale Machines, similar to the ones we use at convenience stores and major retailers.
Don’t get me wrong, that’s a primary part of credit card processing – but it extends beyond that…
Like processing payments online – a feature offered by major Accounting Software programs.
This type of processing allows you to send invoices via email, but also allows your client to pay right there.
This doesn’t just make your life easier, it helps your client out too – an added value that helps in any relationship.
So there’s the main two options that are opened up with credit card processing, and here’s some other options that are relevant – but not necessarily tied to credit card processing…
Other Areas of Merchant Services
Credit card processing is a big piece of the puzzle, but it’s not the only piece.
We just mentioned how it opens the door for other products, but some of these products can be used by themselves…
And it really depends on your situation, but they’re all apart of the Cash Management and Merchant Services family.
The same category that focuses on different ways to increase your business – usually in a way that focuses on increased cash flow and/or less stress.
If this sounds like something that might help you, please head over to our solutions page to learn more.
Credit Card Processing – Recap
A product with some stigma – Credit Card Processing can help your business…if used in the right way.
I understand why business owners don’t want to pay higher fees, I’m all against wasteful spending…
But when you’re hurting your cash flow to avoid these higher fees – well, that’s when I get concerned.
Not because I get less business, it’s because an old logic is hurting yours.
Credit Card Processing might not have been important years ago, but in today’s world – that couldn’t be farther from the truth.
So whether you’re a convenience store selling products or a Roofing Company that offers services – please think about how the increased cash flow could help you.
As always, if you have any questions on credit card processing, or any other product that might help you – please don’t hesitate to ask.