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Credit Card Processing – The Way of the Future

Profitable Financial Advice

In today’s world of debit cards, credit cards and automatic payments, it seems very strange when a small business or restaurant does not accept credit cards.  It can at times cause a customer to stop frequenting the establishment if they do not handle cash much and rely on their plastic cards to pay for goods and services they receive.  Although there may be some good reasons why an establishment might not want to accept credit cards, in today’s competitive market it can be more of a hindrance than anything, which is why finding a method for credit card processing can be so important to a business owner.

Credit card purchases make up a great deal of purchases today, making it imperative that a business owner has a way to handle credit card processing.  But, paying with plastic is only expected to rise in the future, as more and more customers favor this method of paying for their purchases.  Any business today that is not able to accept credit card purchases is going to see their sales numbers decline as well as their customer base lessen, as more and more customers become dissatisfied with not being able to pay with a credit card.

Fortunately credit card processing is integrated into many small business and restaurant accounting software packages.  These programs will enable one to set up an account with a service that handles credit card processing, and the entire process is run through the software that is used for other parts of the business.  It is all integrated and that makes it easier to set up and maintain.  There generally is a fee for credit card processing, and while many think it is an expense they can forgo by not accepting credit cards, when you count the sales lost because of a cash only business, the expense is not that great.

Many worry about how much they will actually have to spend to accept a credit card.  Generally fees for credit card processing run between 2.5 percent and 5.5 percent of the sale.  But along with the expense there are some features that one receives when they accept credit cards.  For one thing, unlike checks, there is no doubt that one will be paid once a credit card is authorized by the service.  That liability is transferred to the company once they approve the purchase.  There is also no waiting 30 days for payment, which is a worry with many small businesses. In the end, it is a winning decision to start credit card processing for your restaurant or business.