How important is it to have a credit card machine in my business?
Dec 01, 2009
in
Credit Card Machines
I just recently opened a small clothing boutique. I only except cash right now because I am still shopping for a good low cost merchant account. I’ve tried a couple of banks but there all to expensive. Am I going to lose a lot of money doing this?
Thank you, I’ll see how it goes for awhile. It it seems like I am loosing a lot of customers due to this then I’ll get one immediately.
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4 comments
gabby on December 1, 2009 at 7:07 pm
how many people have you had to turn down? most people use credit or debit cards, so yes you will probably loose business
My Take on It on December 1, 2009 at 7:07 pm
Yes you are
Most people do not even carry much cash on them any longer due to the ability to just use their debit or credit cards
I would get a machine asap. I would look at your business as not very professional if I tried to use my debit card and you told me you couldnt’ accept it due to no merchant account. I would wonder how serious you were about you business.
Adam on December 1, 2009 at 7:07 pm
I think a lot of people will want a card machine - but I know the banks can be difficult especially with new businesses. I had one bank want to keep all the money paid to me for two months before they would give it to me - mad!
If there is a cash machine near by it should not be too much of a problem to start with and you can see how it goes as you will soon get the idea if people want to buy stuff but then don’t because of the lack of a card machine. Maybe print of some sheets of how to find the cash machine if its hard to get to - giving this to customers and spending time to explain it might make them feel more obliged to come back with the cash
One thing to consider is that a card machine can cost you at least 3-5% on each sale. This exra cost can have a much bigger impact on profits than you think. Lets say you sell an item for £10 and it cost you £6 to stock it. This would mean at 5% cash machine your profit on the sale has not dropped by 5% but by 12.5% as you now only get to keep £3.50 not £4.00. So the cost of the card machine has a disproptionatly large impact on your profit - this is even worse if you profit is a lower percentage of the sales value.
My point being that even if you lose some sales but can get everyone else onto cash it might be worth it. However the best thing is to monitor how it goes and then make a decision to get one if it becomes clear you need to.
Good luck with the business!
huh? on December 1, 2009 at 7:07 pm
Yes, you will. You should try processing through your computer it’s usually cheaper.