Credit Card Processing

4.26.07

The question is not, “Can I afford to process my credit cards through my salon software?”, but rather, “Can I afford NOT to process my credit cards through my salon software?” Controlling your salon’s Operating Expenses is something every salon owner is acutely cognizant of. If you’ve been a loyal reader of my previous articles you have “heard” me talk about the importance of good expenses and how to embrace them instead of fearing them or worse yet, avoiding them.

We all know that the direct cost of doing business in order to process credit cards is a discount rate plus a transaction fee which are the two easiest direct costs to compare as far the expenses go. However, there are other direct costs as well as indirect costs that need to be taken into consideration before making a decision to integrate your credit card processing. Below is an overview of some of these expenses in what I’ve dubbed:

Scott’s Top 10 Reasons to Integrate Your Credit Card Processing, from the home office in Indianapolis, Indiana!

10. Credit card swipe hardware is hundreds of dollars cheaper than a credit card terminal. I’ve heard horror stories of how much salons have paid for their terminals. Some salons have paid over $1,000 or worse yet, up to $20 a month to lease the terminal for the “privilege” of processing credit cards through a particular vendor and this is on top of paying the normal monthly fees.

9. You will get approvals and declines back in under 3 seconds. This may not seem like that big of a deal, but once you have the speed you will wonder why you waited so long to upgrade. Remember the day you kicked your dial-up to the curb and replaced it with your Cable or DSL Internet connection? Get the NEED for SPEED!

8. No more keying in the wrong amount for the sale. I know I’m going to be dating myself here, but even I made mistakes at the counter with this one when credit card processing was still an analog procedure. Don’t risk only receiving $15 instead of the total sale amount of $150 by missing a zero using the terminal.

7. No more reconciling your credit card sales from your point-of-sale software to your terminal report. Each of your credit card transaction should be recorded in your daily sales reports.

6. Stop terminal theft NOW - nuff said!

5. Drop a phone line and save money. Many times the cost of the extra business line will cover most if not all of the cost of adding a broadband Internet connection.

4. Process your EFT’s in seconds instead of manually keying them in at a higher discount rate. Processors charge a lower discount rate for recurring payments submitted in a file format than they do for card not present transactions that are hand keyed into a terminal.

3. Have your EFT return file automatically update each of your customers’ approvals and declines without having to manually update them. Just think of all the time you will save with this automation!

2. Utilize the power that your software company has to negotiating lower rates based on the number of merchants they bring to the processor. Processors are willing to provide better pricing to salons with multiple locations. Just think of what they would be willing to do for someone who could bring hundreds if not thousands of merchants to them!

1. Look like the professional that your ARE!

I recommend you contact your salon software provider and see just how affordable and easy integrating your credit card processing really is.

Until next month…PEACE!