Are Merchant Services Worth It?
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
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