Merchants Center.com » Small Business Owners

Credit Card Merchant Processing Tips for Small Business Owners

Melanie James — Wed, 26 Jan 2011 03:06:03 +0000

If you have finally decided to accept credit card payment from your customers, you are definitely in the right direction. This enhancement to your business will surely increase your customer sales and boost your reputation. In this article, let’s talk about credit card processing tips to enjoy the most benefit and avoid unnecessary costs.

Credit Card Merchant Processing Fees

Before signing up for a merchant account, be sure to read and understand the fine print. Pay attention to the specific fees associated with the credit card processing service.

For example, some merchant account providers may hide the cancellation fee should you decide to deactivate your account. The fee may cost you anywhere from $250 or more, depending on the merchant account provider. Furthermore, get to know the exact cost per transaction as some companies may charge you with hidden fees.
If you don’t request for this fee to be waived, you may have to pay it once you have signed up the contract. This is why it’s very important to understand the terms and conditions, particularly the fees before opening a merchant account.

Compare Credit Card Processing Companies

Remember that the policies and fees vary from one processor to another. Compare at least three or four credit card processing companies to be sure that you will be making the right choice. Find out what each provider offers. Find out the specific fees charged. It’s also a good idea to ask your business contacts such as your attorney, accountant and suppliers for possible recommendations.

Watch Out for Fraud!

Accepting credit card payments from customers, both online and offline poses the threat of credit card fraud. You can avoid being a victim of fraud by taking careful steps to make sure that the bearer or user of the credit card is truly the genuine owner of the account.

When a customer purchases from your shop in person, take the extra time to verify the authenticity of the credit card. Ask for additional ID such as a driver’s license or other valid identification to make sure that the card has not been stolen. See to it that the signatures on the ID, the receipt, and the credit card match.

For online transactions, require the customer to enter verifying information to make sure that the account is not being used without the account holder’s consent.

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About the Author:

Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line.

Business Cash Advance and Your Own Business

Melanie James — Thu, 10 Dec 2009 00:18:17 +0000

When in need of short term financing assistance, a business owner can apply for a merchant cash advance. This article talks about the process of business cash advance loan, also known as credit card account receivables factoring or credit card financing.

if you're in need of money

What is Business Cash Advance?

Business cash advance is available for entrepreneurs who have a merchant account or who accept credit card payments.

You can use your credit card receivables to obtain cash from a factoring lender.

Most lenders offer 80% cash advance from the amount of the receivables submitted. The rest of the funds will be given when the cardholder completes payment.

This method is ideal for keeping the cash flow steady. Instead of applying for a traditional business loan, a merchant can use the sales made from credit card-paying customers to get cash right away. Instead of waiting for the 30-day grace period given to cardholders, a merchant can instantly utilize the funds to cover for business expenses.

Points to Ponder For Small Business Owners

Who are qualified to get a business cash advance loan? Factoring lenders often require that the business meets the minimum value of credit card sales each month. The minimum amount may range from P2, 500 and above. If your credit card transactions do not reach this quota, you may consider other business financing options.

It is important to choose a legitimate cash advance lender. Watch out for lenders who offer instant approval online as not all lending companies that you can find on the web can be trusted. Spend time and effort doing research and make sure that you clearly understand the process.

A typical business cash advance application can be processed within two to four weeks. Take note that you should not be required to submit an upfront payment to get approved.

If you are not familiar with how merchant cash advance financing works, you may seek help from a business marketing expert. You can also ask for recommendations from other entrepreneurs or business owners in your community or State.

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About the Author:

Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line.

Best Small Business Phone Service that Fits the Budget

Melanie James — Thu, 01 Oct 2009 05:49:15 +0000

Many small business owners today are incorporating VoIP phone systems to enhance their customer service. If you are planning to subscribe to a small business telephone service, what key features should you look for?

Hosted VoIP or VoIP PBX – Which to Choose?

A hosted VoIP service means a separate company provides the telephone service and other features related to it so there’s no need to hire an IT specialist to help you manage the system.

This type of telephone service is entirely dependent upon your internet connection.

On the other hand, a VoIP PBX system means all the management and maintenance will be taken care of by the business owner. If you prefer to hire your own IT specialist to do this job for you, then you can choose this system. Generally, larger businesses opt for this solution since they can easily afford to hire in-house employees to manage their own telephone system.

Why a Hosted VoIP System Fits the Budget

One of the biggest advantages of acquiring a hosted VoIP telephone service is cost-effectiveness. First, there is no need to purchase any hardware or equipment to make the system work. As long as you have a reliable computer system and a broadband internet connection, the system will work.

Second, you will not need to hire additional manpower to supervise the system. All tasks associated with the management and maintenance of the system will be carried out by your VoIP host company.

There is also no need to hire extra personnel just to answer all calls and connect them to the appropriate extensions. When a caller dials the number, he/she will hear a voice prompt giving instructions on which number to press to get in touch with the right person. You can save a great deal of money by not paying employee salary, benefits, etc.

It is easy to see why small businesses can afford the hosted VoIP service despite having a limited budget. You’ll be glad to know that all the expenses you spend on enhancing your telephone system will pay off as you gain more sales and customers because of your dependable customer service.

More Benefits of a Hosted VoIP

Flexibility. VoIP Hosts give their clients the option to make changes with their communication systems without difficulty.

If you need to change phone numbers or voice prompts, all you have to do is log in to your account using a secured website provided by your Host VoIP company.

Track your calls easily. You simply need to access your account to review the calls your company received for the day, including important details such as the time of call, the duration of the call, who received the call, etc.

Special functions to use. You can use call features like voice mail, call conferencing, automated attendant, call forwarding, etc. – all are designed to make business management a more easier task for you.

Never miss important calls. VoIP phone systems can automatically redirect unanswered calls to your voicemail box or voice email account so the caller can leave the message, and you can be alerted that a voice message is waiting for your retrieval.

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Seller Responsibilities With Credit Card Merchant Processing

The Cost of Credit Card Payment Processing

About the Author:

Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line.

How To Break Office Lease Without Being Penalized?

Melanie James — Wed, 23 Sep 2009 23:57:41 +0000

In some instances, a business owner must make the decision to give up its current lease location. Perhaps the business isn’t going as expected and moving to a different location is a better choice. This article discusses possible options for small business owners who want to discontinue their current office space lease contracts.

Speak with your landlord. This is a very important step for anyone who plans to break an office lease contract.

Discussing your concerns with your lessor will help you to decide your next action.

What is the reason why you plan to terminate the contract? Is it because your business isn’t going as expected and you can’t keep up with your monthly payments?

If the problem is with regards to your lease payments, the best thing to do is negotiate with your lessor. However, if you really think that leaving the space is the best solution, politely request your lessor if it’s possible for you to find a new tenant as replacement.

If your landlord consents to let you go as soon as a new tenant has been found, see to it that all the details about this agreement is put into writing.

Without a written agreement, your landlord may insist that you take on the payment obligations, should the new tenant defaults from the lease. This is why a formal turn-over is absolutely necessary and everything should be clearly stipulated in a new contract.

Sublease the place. What if you landlord refuses to release you from your obligations? In this case, you may request to sub-lease the place instead. Sub-leasing means you will be finding a new tenant to replace you so that monthly payments will be submitted continuously.

Nevertheless, should the sublessee defaults from the lease, you- the first lessee will take charge of the debts. When looking for a sublessee, one of the most important criteria you should look for is credit-worthiness.

Be Prepared to Pay Lease Penalty. Regardless of how your negotiation with your lessor turns out, you should be prepared to pay penalty charges. Your lender may choose to keep the security deposit you submitted at the beginning of your lease term.

The penalty charges that your lender can impose upon you must be stipulated early on when you first signed your lease contract. Make sure that you carefully review your contract with your business attorney to avoid being taken advantage of.

On the hand, whatever penalty is stated in your agreement, you should be ready to accept the consequences for breaking lease before the completion of your lease term.

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About the Author:

Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line.

Prepaid Debit Cards – Why Advantageous for Merchants

Melanie James — Thu, 10 Sep 2009 08:17:16 +0000

Prepaid debit cards have been introduced in the market for quite some time. To keep up with the competition, different issuers have enhanced it’s features to make them more flexible and user-friendly. Today, prepaid cards are not just ideal for people with bad credit history. Even those who do have good credit standing can choose to own a debit card for personal reasons.

In fact, small business owners are beginning to recognize the benefits of using such.

If you are a small business owner, then you should be interested to learn how it can be beneficial for your business.

In this article, let us discuss why debit cards are advantageous for merchants and how you can make the most out of them.

Encourage Customers to Pay with Debit Cards

If you have a merchant account, then why not encourage your customers to pay with a DC’s instead of a credit card? Some merchants even accept ONLY debit card payments. The reason? There is much lower card processing fees involved with debit card transactions than with traditional credit card transactions.

Merchant account providers can afford to require lower fees on debit card payments because it involves much less risk than credit card payments.

When a DC holder pays for his/her purchases, the balances are instantly paid off using the customer’s available funds from his/her debit account.

The only risk associated with this purchase is if a customer makes claims that the products were not received in good condition or that the transaction was made without consent and demands for a charge-off. Of course, the same thing applies with customers who use the credit card mode of payment.

On the other hand, when a credit cardholder pays for his/her purchases, the customer has the option to pay for the full balance within that billing period or pay only the minimum amount required by the credit card issuer. Thus, credit card processing costs tend to be more expensive than debit card processing fees.

Manage Your Payroll with Debit Cards Payment System

Whether you hired in-house employees, freelancers or home based contractors, you can simplify your payroll system using debit card payment. How is a DC payroll system more advantageous than the traditional one?

First, you can conveniently keep track of your payroll records by accessing your debit account. Most debit card companies provide an online account access for their cardholders so you can check on your account status from your own computer at any time. If you need to document the report, you can simply print out a copy for filing purposes.

Sending payments through debit cards is more cost-effective, more convenient and safer. As a business owner, all you have to do is deposit sufficient funds in your debit account, and you can send out payments through online banking.

Unlike wire money transfer services, you will not be charged with additional costs every time you send in payment. Your employees can make a withdrawal from the ATM immediately after their salaries have been sent.

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About the Author:

Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line.

Business Cash Advance – an Efficient Business Financing Option

Melanie James — Thu, 09 Jul 2009 23:28:03 +0000

A business cash advance is a popular financing option for many small business owners. However, before applying for a business cash advance financing, see to it that you understand how it works and how you can use it to save your business.

How Business Cash Advance Financing Works
There is another name for business cash advance financing – accounts receivables factoring. Based on this term, it’s easy to see that financing can be obtained by submitting accounts receivables invoices to a factoring lender.

Accounts receivables are sales made to customers that are awaiting payment. Merchants often extend 30-day credit to their customers to give them time to pay back their purchases. However, if you have a limited budget, you may need to obtain cash during the thirty-day waiting period. This is where business cash advance or accounts receivables factoring can help you.

When you submit your receivables invoices, your lender would immediately release your cash advance. Most lending companies offer 80% cash advance from the amount of invoices surrendered. Upon approval, your lending company will take over the collection of payments from your customers.

When your customers finished submitting their payments to your factoring lender, the business owner can receive the remaining 20% from the amount of invoices. Typically, customers are given 30 to 60 days to submit their payments. If your customer fails to pay back their debts on time, the business owner will get penalized.

Aside from accounts receivables, a merchant can also use credit card sales through credit card receivables factoring. If you accept credit card payments online, this is a good financing option for you. Both accounts receivables and credit card factoring can be obtained by businesses that have been in existence for at least two years. For new business owners, they will have to seek other alternatives to meet their short term financing needs.

How to Manage a Business Cash Advance

If you haven’t tried a business cash advance loan, it is recommended to explore your options carefully and do your own research. Take note that not all lending companies that offer accounts receivables factoring or credit card factoring services are legitimate. It is your duty to fin one a lender that not only offers a great deal but one that can be trusted as well.

For new business owners, it is also a good idea to seek professional advice from a business accountant or a business attorney. Get to know practical tips on how you can use your sales invoices and credit card transactions to free up your resources.

About the Author:

Melanie James has spent the last 14 years working with businesses to implement quick, effective and inexpensive changes to their businesses to increase productivity and their bottom line.