Before entering the merchant credit card processing business, I spent the first decade of my life designing restaurants and bars. I also offered a suite of additional services including beer, wine & full liquor licenses. In providing the best service to my customers, it was a natural evolution to provide a restauranteur approved blueprints, a liquor license, and a POS system to process their credit card transactions.
Your point of sale equipment can make or break your business. Many customers are looking for a contactless payment option, so make sure you have something in place to put your clients at ease. With VCCP, we have lots of options for you depending on what you need. Are you a brick and mortar restaurant? Are you a food truck or mobile vendor? Do you want your customers to order online for quick and easy pick-up at your store?
The rate you pay per transaction is also a key factor. Keep in mind there can be different rates when charging in person, over the phone, and online. Is the customer using a debit card or a credit card? The difference in fees can be significant.
There are also options available so you can pass the credit card processing fee on to your customer as a service fee. If the customer doesn’t want to pay the credit card service fee, they can pay in cash or with a debit card. You need to decide if you want to absorb the service fee or pass it along. You know your business and your customers. Either way, it’s good to know your options.
With Covid-19 regulations, many restaurants and bars have suffered a loss in business revenue. It’s a great time to take stock and evaluate various ways to improve your bottom line. Remember to check in with your credit card processor. In a tight economy with a low-profit margin business, 1% can make a bigger difference than you realize. Hopefully, you are already paying a fair rate, but you might be paying more than you need to. Here are a few questions you can ask your merchant processor:
- What is my current rate?
- Is there room to negotiate for a more competitive rate?
- Is that the best you can do? (Use this question when negotiating whenever possible).
- Are there other options that would work better for my business?
- What complementary or additional services can you offer me?
- What should I know that I am not asking? (I love this question).
- Do you support charities in the community?
Sometimes, if your processing rate can’t be changed, you might be offered a discount for an upgraded service or maybe even a free upgrade. Next Day Funding is a great perk to have, especially in the restaurant and bar industry. There might be services available that will make managing your business easier. Having an online dashboard that you can access anytime from your computer or smart device can make pinpointing key factors in your business a breeze.
Everyone needs to make a living, but be aware that there are a lot of hidden fees you might be paying for without your knowledge. Be sure to check your statement and understand what each line item is costing you.
With VCCP we favor the IC-Plus model, which is our wholesale cost plus our service fee. If you are contemplating using a flat-rate processor be sure to check in with us first. 2.65% is a good price! Remember the wise words of John Maxwell, “learn to say no to the good so you can say yes to the best.”
As a small business owner, I understand the intricacies of managing a business and the many hats we might need to wear to make ends meet. Your merchant processor should be that silent partner who is always there for you, making sure that your customers can easily pay you for the amazing delights you prepare for them.
I look forward to having a chat with you or your management TEAM.
Cheers!
TofuAlan