How much do you spend in credit card fees every year? This was a topic in our recent board meeting. Most likely you are spending thousands of dollars every year if you accept credit card payments. Most will agree that credit cards are needed to run certain kinds of businesses.
The big benefit of credit cards for business owners is receiving money quicker, and for that you pay a fee. These fees can add up to a significant amount of money annually.
So what are your options? Of course you can be a cash/check-only business. You can set up ACH or EFT payments through your bank.
Or, for customers paying with a credit card, you can add a surcharge to invoices. These days it isn’t uncommon to see a 3% additional charge on an invoice for using credit cards. There is a downside to this as well: how will your customers react? In some cases, they won’t care; they may completely understand. There are other situations, however, where from a perception perspective your customers may not stomach the additional fee.
You need to think about what makes sense for your business with respect to credit card fees. Whatever you decide will have a direct impact to your bottom line.