Should I Accept Credit Cards for My Small Business?

Hi D.,

If you decide to accept credit cards, you might want to check out Costco. I just got the August 2009 Costco Connection magazine and they had an ad for their credit card processing services and a free terminal ($359) if opened in August. It says to call 888-337-1882 and refer to coupon code 832208 or go to costco.com and click on services. I am sure you probably need a costco membership to do this, but the rates seem much lower than what I have heard about from some stores. They seem to have a lot of business type services that they offer as well.
Good luck!

Hi D.,

You should absolutely accept credit cards!! You are losing sales if you do not! I use www.propay.com They have a really cool card reader that I used at craft shows last year. It's very easy to use, processing time is very quick and the processing fees are not large. The really nice thing about propay is that after paying an annual fee (which varied depending on what type of acct you have), there are only processing fees when you actually use it....so, it's perfect for seasonal sales! When you're not processing cards, you're not paying fees! If you go thru a company or bank to set up your merchant account, you will pay fees every month regardless of whether you have run cards.
:-)

Hi D.,

I have a home based business selling personalized music/storybook cd's; alarm clocks and labels for children. I've been using propay for almost 4 years. I take all the credit card information in the field and then enter the information online when I get home. It's very economical and I love it. Because I'm not a high volume business this was the most economical way for me to process credit cards. Check out their website www.propay.com.

My website is www.kiddosdelight.com

I need your contact information because I love to buy both my girls personalized ornaments and have been having a hard time finding them because I haven't done many craft fairs the last two years.

P.

I never carry cash. I use debit or credit card. We use our credit card for business and of course it is paid in full monthly. We also like the perks we get from using our card.

If you do start accepting credit cards, you will need to increase pricing to cover the added percentages (up to 8%+ per transaction) charged by the credit card company.

When we have a big ticket item to purchase......we offer cash and usually get a discount because the seller does not have to pay the credit card fees. We did this for our complete AC system, hor water heaters, and garage doors. We saved about 10% just by using cash so the dealer did not have to pay the credit card company.

I think the Paypal might be a good option, especially if you are doing business online.

Good luck!

I'm not an expert, and I am also one of those who does not carry cash - I use my debit card for just about everything. However, if you are going to have to get into a long-term contract is it really worth it? I do work with a couple of small businesses that take credit cards through Paypal. It might be worth checking out.