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Are merchant services worth it?
By: Jack Chevalier, Mon Apr 24th, 2006
According to www.smallbusiness.yahoo.com,if the company is
successfully invoicing the customers, you may be put off by the
costs of merchant services, which take a percentage of all your
sales. However, avoiding potential loss from non-payment can
quickly make up for the expense. Plus, you will no longer have
to spend staff time issuing late invoice notices or wait 30, 60
or even 90 days for invoices to be paid. Credit cards allow
funds to be transferred to your bank account in less than a
week. This can be a welcome relief for businesses that
experience a tight cash flow.
If the company sells to consumers, merchant services will allow
you to expand your customer base and provide a more convenient
method of payment than cash or checks. And if you are interested
in selling over the Internet, credit card processing is a must
you have.
It is possible to accept credit cards over the Internet without
establishing your own merchant account. Third party merchants
can accept credit cards on your behalf, without requiring a
credit check. However they typically batch the money into
regularly scheduled payments, negating the advantage of quick
turnaround. In addition, their rates tend to be higher
significantly higher, in some cases they can make the business
seem like a small time operation.
Not every company needs to accept credit cards, though. If your
per order cost is typically in the thousands of dollars and the
customer base is stable or subject to credit checks, you may
find it cheaper to continue invoicing your customers
About the author:
For further information on merchant services,please
visit http://www.paynetsystems.com
