Small Business Credit Card Processing; to offer or not to offer?

Posted by: Guest Author

These days, the average consumer uses their credit card more often that cold hard cash, and accepting credit cards is practically mandatory. However, if you are in a B2B environment, the decision about how worthwhile processing will be is not always as clear. A few factors that can help make the call:

• Do you service clients internationally? If so, accepting credit cards is not only convenient for your customers, but likely a safer bet on your end as well. You'd have a hard time getting a client to pay up if they are overseas and decide not to hold up their end of the deal, Visa on the other hand will not.

• Do you service clients that have large fluctuations in their revenue? Many of these types rely on credit cards to hold them over during the slow seasons, continuing to purchase goods and services along the way. Accepting cards will give you the ability to offer services without having to finance you customers. 
• Does "net 30" often turn into "net 45" or "net 60"? Printing and mailing a check can be just enough of a burden for a client to delay payment they might have otherwise completed if they could hop online and have it taken care of. They easier it is to purchase goods or services, the more likely they'll continue coming back.

So if you find yourself answering yes to some or all of the above questions, a few tips for being sure you get the most out of a vendor:

• Don't pay an application fee
• Watch for hidden-fees; don't base your choice solely on base price.
• Consider their responsiveness. If they are slow to respond to a prospect, don't expect any better as a customer.