MERCHANT SERVICES FOR SMALL BUSINESS
Why merchant services needs are different for small business owners
Modern businesses need to appeal to modern customers. More than 70% of customers prefer using digital payment methods over cash, creating a new emphasis for small businesses to accommodate an increasing number of digital payments. This means signing up with a merchant service provider, which seems an easy task, but the process for small businesses is particularly complicated.
In this blog, we will discuss merchant services for small businesses, including how these services differ from larger companies and how their features make them a worthwhile investment to reduce costs.
Merchant services for small businesses: how are they different from the big companies?
The central concern is profit. Smaller businesses (particularly those in their early years that are still developing a following) are working with razor-thin margins. Whereas larger companies have some wiggle room to make adjustments when necessary, smaller operations can afford no such mistakes.
On a related note, they have fewer resources with which to make their investments. While a large corporation might have spare capital to invest in technology, small businesses do not have the same luxury. Because of this, investments must pay off for small businesses. Otherwise, they lose the cost of the investment and the resources necessary to pivot.
Cost reduction features help you close the gap
So how does a small business make the most of its merchant service provider? Although your options will vary depending on the provider you choose, most offer a few basic services. These include:
Merchant services make up a particularly hefty cost for most small businesses; apart from employee payroll, they are the largest monthly expense on the books. Customer surcharging allows you to pass that expense onto customers who pay additional fees for their transactions. These services are not allowed everywhere, but your service provider can provide more information.
The best way to draw existing customers back to your store is through targeted promotions. Using their purchase history, a small business can send customers discounts on products they’ve bought before. This can also be expanded into related products, further driving them to make a return visit. Merchant service providers can facilitate this process for you, which can then be monitored via your POS.
Small business owners can use this information to thrive in a competitive marketplace. By reducing charges with surcharging and drawing in more profits from loyalty plans, they can effectively target both a) the money coming into their businesses and b) the money going out. Having a firm hold of both ends allows a larger degree of freedom.
Merchant services for your small business
Merchant services for small businesses are essential; the features provided can mean the difference between an effective business strategy and an early closure. Most importantly, it allows for businesses to grow. Drawing in new customers and padding your bottom line closes the gap between your small business and your competition.
Sometimes the best way to establish merchant services is through your POS. Starting an account with talech, for example, automatically utilizes Elavon as a merchant service provider. We offer the features listed above and much more, tailoring our solutions to your needs. Contact us today about a free demo and to learn how we can become your trusted partner.