5 Handy Credit Card Tips for Small Traders
As a small trader it’s imperative that you exercise caution with credit card transactions to instil trust in your customer base with the aim of establishing your business as an establishment with its customers’ best interests in mind.
Moreover, as you undoubtedly use plastic from time to time, you should also be looking for ways to make your cards work for you. With that in mind, here are five tips for small traders.
Evaluate your online processing facilities
This should be seen as an essential expense, in fact, a more astute way to view paying a professional to evaluate your online processing facilities and security is to see it as an investment in your customers’ trust in your business.
Bad publicity can quickly arise among your customers – word of mouth spreads at an amazing pace when something goes wrong – so avoiding bad publicity as a result of credit card transactions gone awry on your business website is in your best interests, plus it also helps you to adhere to legislation governing the processing of your customers’ data.
Negotiate your processing fees
You can always negotiate your processing fees with the aim of getting a better deal. If you can successfully negotiate more competitive processing fees you can offer your customer base more competitive prices and avoid having to raise the price of your goods.
MasterCard and Visa you can contact directly or through your bank, depending on your agreement with them and the country in which you operate, though some small traders and business owners have found going through an intermediary company is a more feasible way to negotiate processing fees.
Explore your reloadable card options
Many businesses offer their customers reloadable cards, and provided you have a loyal, regular customer base and you market your reloadable cards effectively, this can prove to be an excellent means of significantly reducing processing fees and other fees applied to credit card transactions.
There are costs involved, including the cost of producing the reloadable cards and acquiring transaction facilities, though you might find this option to be an effective means of reducing transactional fees for purchases made online and in your place of work.
Offer discounts for cash purchases
Another way of doing away with fees so as to keep your products as cost effective and affordably priced as possible is to offer your customers discounts for paying in cash. Requiring your customers to make a minimum purchase violates the guidelines of most major credit card companies, though businesses are able to offer discounts for cash purchases without violating these guidelines.
Cash is more affordable to process for businesses, something that as a business owner you’re undoubtedly aware of, so offer your customers a discount for paying in cash, or provide them with an incentive of some kind, and do away with plastic altogether.
Shop around for the most suitable card for your business
If you use plastic for business then it’s in your best interests to possess the most cost effective card on the market. Shop around for the best deals using websites where you can compare the offerings of major credit card companies, and don’t forget to look for rewards programs and other incentives to help you get more from your card.
In addition to the tips discussed here it’s imperative that you keep up to date with what’s happening with credit cards these days. Security and online processing facilities are always being improved upon and the more up to date you are the better you’ll be able to leverage credit card transactions to your advantage.
About the Author:
A part of GE Capital, GE Finance and Insurance is a reputable provider of credit cards in New Zealand. Their Visa cards are accepted in more than 2000 service providers and retail outlets.
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Category: Credit Cards
