If you are a retail business, you may need an integrated point of sale system that will take payments and help you manage your inventory, or you might just need a simple solution at a reasonable price. Either way, a retail business is typically a business that takes most of their payments from their customers in person.
Typically retail businesses have an average ticket ranging from $10 to $500 and are focused on speed and simplicity of checkout. Your customers expect you to get them checked out and on their way in a reasonable amount of time and don’t want to have to wait in line forever. They also want to have the freedom to pay with cash, check, or credit cards. Your goal is to give them a good experience so that they continue bringing their business to you instead of the competitor across the street.
Regardless of how or what you sell, you need your payment solution to be simple and cost effective. Here are a couple of tips to ensure that your solutions is as cost effective as possible:
- Use a solution that is compatible with more than just one payment processor – Simply put, choice is power. Having a larger number of competitors vying for your business will give you the opportunity to compare rates and ensure that you are not being taken advantage of. If you are concerned about whether your rates are too high, click here for help looking at your current solution cost.
- Ask for an interchange plus or “pass through” pricing structure – Instead of charging you based on three or four categories of customer card types, this option gives you pricing that is driven from the wholesale cost that Visa, MasterCard, and Discover are charging the processor. For a more in-depth look at interchange pricing, click here.
- Make sure that your MCC is for a retail business – The Merchant Category Code (MCC) categorizes your business based on what you sell. Your MCC may qualify you for special rates that will give you access to lower cost fees, especially if you have a smaller average ticket or are a restaurant. If you don’t know what MCC your business is under for your merchant account, call your provider and ask. In many cases, your MCC for a retail business should start with a “5.” Click here for an example of an MCC Guide that may help you clarify where you should be categorized.
- Swipe cards whenever possible - The cost of a swiped transaction is less expensive than a keyed transaction. Use a terminal cleaning card on a regular basis to ensure that you don’t end up paying more just because your dirty card terminal or swiper can’t read your customers card information. Ask your office supply provider about a credit card swipe cleaner or find one here.
- Make sure to settle your transactions daily – One of the top reasons a swiped transaction might unnecessarily cost you more is that it wasn’t submitted for settlement in a timely manner. This will also affect how long it takes for you to receive your money from the transactions. Make sure your terminal or POS software is set to automatically batch at the end of the day. This will help ensure that even if someone forgets to do it, your transactions will be submitted.
Hopefully these steps will help you ensure that you are adding more profit to the bottom line of your retail business. If you have any questions about this information, please don’t hesitate to let me know. You can email me at takingcards@gmail.com or find me at www.linkedin.com/in/wallaceben
Have a great day!
Ben Wallace
Posted by Ben Wallace 
