The way customers pay for products and services has drastically changed over the years. And along with it, businesses must also evolve. Failing to stay current with how your customers want to pay means straining your relationship with them. In this blog, let’s talk about how merchant services can help your small business survive and thrive in a world where technology is shifting the way we shop.
What are Merchant Services?
Merchant services, also called credit card processing, refers to working with a financial institution to handle and manage electronic payments. By working with a merchant services provider, small businesses can more easily accept a variety of payment options. These typically include credit and debit cards, along with online payments. In fact, merchant services are non-negotiable if you’re an eCommerce brand since paying with cash isn’t an option.
Why are the Benefits of Merchant Services for Small Businesses?
You might not think that merchant services are a must-have. But here’s how your small business stands to gain from it.
1. You’ll Open Your Small Business Up to Far More Sales
Writing a check at the cash register has mostly become obsolete, and cash isn’t far behind. About 80% of shoppers prefer using a card over cash. Only 10% say that they make all of their purchases with cash. In other words, if a small business doesn’t accept credit or debit cards as a form of payment, it could be missing out on a huge chunk of business revenue.
2. You Collect Valuable Information About What Your Shoppers Like (And Don’t Like)
To manage your merchant services and credit card processing, you’ll need a reliable POS system. In the process of managing orders and payments, you’ll also gain crucial information like:
- What products/services are selling well?
- Which ones are sitting on the shelves?
- Where are there opportunities for upselling or cross-selling?
As an added bonus, a POS system can help you master your inventory management. This information will be far harder to collect if you’re filling your cash register with paper bills.
3. Your Small Business Can Manage All Payments Under One Roof
That’s the beauty of working with a point-of-sale system. Whether a customer pays with cash, a card, a digital wallet/contactless payment, or through another avenue, all payment types can be streamlined under one unified system. And that leads us to our next benefit…
4. Your Costs Will Go Down
With the right POS system, you’ll be able to reduce the various transaction fees and subscription costs you’d be responsible for if you were working with different providers. This will be especially helpful as you continue to scale your business.
While these are some of the more obvious benefits of merchant services, we want you to think of the greater advantages for your small business.
- Taking your payments to an electronic mode leaves less room for human error.
- Your staff spends less time counting money and more time running your business.
- Payments and their associated (sensitive) data stay encrypted and private, which removes certain vulnerabilities and risks that your small business faces when you carry cash in the store.
- Payment processing is something that you can more efficiently scale without having to also spend more time and money managing it.
How Can Your Small Business Get Started with Merchant Services?
First, you need to find a merchant service provider and create an account with them. This provider will work in between your business and the banks that manage your customers’ debit and credit cards.
When a shopper makes a purchase, you accept their payment, and then their bank needs to verify and authorize the transaction. After it’s approved, your payment processor will take their fees, and the rest goes into your bank account. What makes a merchant account unique, however, is that it allows you to get paid faster. This is because, instead of waiting for the transfer process to complete, your business is technically “loaned” the money in advance.
When you work with True POS, we make it easy to manage and streamline all of your payments in a way that’s secure, efficient, intuitive, and user-friendly for both your team and your customers. We’ll get you set up and trained on our payment processing systems so that you can seamlessly transition your team without disruption to your shoppers. True POS can get you set up with gift cards, which are a simple way to attract new customers, keep current ones coming back, and increase your revenue. We’ll also show you the power of having an ATM at your place of business, and you can even continue to accept paper checks and instantly screen them before accepting the transaction.
A POS system makes everyone’s lives easier. Your customers experience a faster, easier check-out process. Your staff doesn’t have to manually handle payments. You can keep track of your inventory in a far more hands-off manner. And you’ll be introduced to creative and strategic new ways to lower costs and boost revenue.
With a POS system that you can count on, managing your payments is easier and safer than ever before. Get a free quote today and let’s talk more about how True POS can help your small business.