Increase Your Sales Accept Credit Cards, Part 2

In part two we will discuss overcoming objections, which credit cards to accept and using the check paying option.

If your business is home-based or has been in operation for less than two years, you're likely to face objections from the bank.

If yours is a home-based or a brand-new company, be sure to meet with the banker to show your business plan, offer collateral and discuss your personal net worth. You are more likely to be able to overcome objections by being open and honest. Even if your bank turns you down, however, you still have options. First, you can always try other banks.

If you don't have any luck getting a bank to back you on your own, consider going through an Independent Sales Organization (ISO). These are field representatives from out-of-town banks who, for commission, help businesses find banks willing to grant them merchant status. Ask your bank to recommend an ISO, or look in the Yellow Pages under credit cards. The ISO may be able to help you simply because it represents dozens of banks, each with their own specialties and criteria. The ISO representative can match your needs with the needs of the banks he or she represents, without requiring you to go through the application process with all of them.

Of course, you will pay higher fees because you run a home-based business, which presents more risks to the bank. Some banks will require you pay either a percent of your monthly credit transactions or dollar amount, whichever is higher. You also pay a per-transaction handling fee, a monthly fee and per month fee to rent a point-of-sale terminal.

Which Credit Cards Should You Accept

Once you've obtained merchant status, you can accept a variety of credit cards, depending on which are offered by your bank. Some banks issue their own cards, and others act as intermediaries between the credit-card companies and your business.

Different banks offer different cards. Most will likely offer Visa and MasterCard, because these are the cards most consumers have. Many banks also offer Discover and American Express, but not all do.

Before you sign on with any bank, consider the costs carefully. If you don't anticipate many credit-card sales, it might not be worthwhile for you to pay the setup and monthly fees. If you're not sure the costs will benefit your business in the long run, call a few banks and find out what kinds of fees they charge. Be sure to call more than one, because fees vary and you won't have a set figure until you actually apply.

Accepting credit cards may not be for every business. But if yours is the kind of business where customers are likely to want the convenience, you're only cheating yourself if you don't give them what they want. Remember, your competition will.

Check It Out

If a lack of a business track record is what keeps you from getting merchant status, consider signing up with an agency that provides checks by phone. This service allows you to accept payment directly from a customer's checking or savings account.

With this type of service clients simply e-mail, fax or send by modem the customer's name and address, the amount of the sale and all the numbers listed across the bottom of your customer's check. These numbers, include the bank routing number and the customer's account number. They use these numbers to draft the appropriate account and pay your business. You can usually request that your payment be sent by overnight shipment, resulting in your getting paid even before the draft has been completed.

If you suspect a check might be bad, you can have them check it against its computer database, which includes identification information on banks and their branches in both the United States and Canada. There is a per transaction charge for this additional screening.

So, as you can see you have a number of ways to get merchant status. Remember, the name of the game is options and convenience for your customers. If you don't offer it, they will go to someone who does. So what are you waiting for!

Copyright 2004 DeFiore Enterprises

Interested in having your own successful, home based creative real estate investing business? Chuck and Sue have been helping folks start successful home based businesses for over 19 years, and we can help you too! To see how, visit http://www.homebusinesssolutions.com for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses. No time to visit the site? Subscribe to our "how to" Home Business Solutions Digest, it's like having your own personal coach: mailto:[email protected]

In The News:

“They Aren't Using CRM!!!”  Business 2 Community
Building Block  Comstock's Magazine
The Pipeline Review  Business 2 Community
Watsco Sales Up 8% in 3Q | 2019-10-18  Modern Distribution Management
Take-Two's franchises corner the video game market  The Australian Financial Review
Sales and Marketing Management  Business 2 Community

How to Sell Strategically

If you want to maximize your sales performance, take a... Read More

Increasing Sales by Using Coupons - Will it Help Your Business?

Increasing Sales by using Coupons. Will it help your business?... Read More

The Hidden Competition: Avoiding the 2 Most Common Competitors

There are really only two types of competitor:1. Obvious2. HiddenThe... Read More

Raise Concern About Sales Competition, Not About Yourself

As you are reading this sales article, read very carefully.... Read More

Book of Lists Marketing for Pressure Washing Companies

The American Business Journals produces a Book of Lists each... Read More

Snowflakes Improve Holiday Sales

Snowflakes are beautiful!For the Winter Holiday sales season handcrafted snowflakes... Read More

Baditude!

As a group of sales trainees took a break from... Read More

How To Use A Powerful Leadership Tool To Step Up Sales Results

Good sales people can close, but few "step up" for... Read More

Train a Winning Sales Team: Rounding Third and Heading for Home

Although I never met the man, I imagine Lou Boudreau... Read More

Leadership - How To Turn The Vision Into A Reality

Be clear about where you are now. Audit your strengths... Read More

Set Yourself up for Trade Show Success

Of the many mistakes small business owners make, a big... Read More

Increase Your Sales - Accept Credit Cards

Many people today simply prefer the convenience of paying by... Read More

Building Trust For Lifetime Success

Trust.One word.One very powerful word that can increase both first... Read More

Leadership Lessons for Sales Managers

Leadership, like class, is hard to define, but easy to... Read More

The Spirit Of Change

A Highly Conscious Approach To Business Management. For more on... Read More

Increase Your Sales Accept Credit Cards, Part 2

In part two we will discuss overcoming objections, which credit... Read More

Getting Off The Advertising And Sales Rollercoaster

Seeing the results of advertising your business can be like... Read More

Drop Discounts and Earn Top Dollar

Every dollar you discount is a dollar of pure profit... Read More

Hire A Six, To Consistently Produce Sales Success

For many years as a sales manager, I would only... Read More

How Many Salespeople Should I Hire?

One of the most asked questions I get is how... Read More

Why Performance-Based Recruiting Produces Top Sales Performers

Many recruiting ads and job descriptions include "knockout factors" that... Read More

The Sales Carpenter

I remember moving my family to Argentina as Vice President... Read More

Small Business Marketing: Overtaking Your Competitors

Few businesses keep tabs on competitors, yet such knowledge can... Read More

Determining Sales Fit; the Key Growth Process for Your Business

Help your organization grow by assessing the right indicators in... Read More

Retail Operations - Effective Branch Manager Support and Guidance

Performance and behaviour management is by far the most difficult... Read More